KUALA LUMPUR: Datuk Seri Najib Razak has “certain regrets” over what happened to SRC International Sdn Bhd, a subsidiary of 1Malaysia Development Bhd (1MDB) that suffered losses in the billions of ringgit, the High Court here heard.
The former prime minister, however, maintained he had no knowledge of the funds channelled out of the company that subsequently landed in his bank account.
Najib, who was under cross-examination by SRC’s lawyer Kwan Wil Sen, was testifying here on Friday (Oct 18) in a US$1.18bil lawsuit filed by SRC against him and former CEO Nik Faisal Ariff Kamil.
Kwan: Hindsight is 20/20. With your criminal conviction, with all the matters that transpired in SRC, leading to the plaintiff's losses.... my question is simple. Do you have any regrets?
Najib: I have certain regrets but based on that particular time, I have no knowledge or information.
Kwan also suggested that there was a greater accountability and responsibility on Najib’s part, as a person wielding great power, to act in accordance with the law.
“I maintain that I have no knowledge of the fund flow at all but I agree with the statement. As a finance minister, I was in a position of accountability,” Najib replied.
Kwan: You have failed SRC and cost it losses of approximately US$1.18bil based on the evidence of (asset recovery specialist) Angela Barkhouse.
Najib: I disagree.
Kwan: A simple yes or no would do (for this question). In respect of all matters that have transpired in SRC, do you take any responsibility for parts of it? Yes or no?
Najib: It depends on whether I am accountable. I have no knowledge of the funds that flowed and I never authorised that flow into my account.
Kwan: Can I take it that your answer is no?
Najib: (Agreeing with Kwan) No.
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Najib was also questioned by lawyer Chong Yik Loong, acing for third-party respondent Datuk Shahrol Azral Ibrahim Halmi, a former director at SRC.
Chong suggested that Nik Faisal, a co-defendant in the lawsuit, was Najib’s link to the board of directors in SRC.
“He (Nik Faisal) was the CEO. That’s all. The board has a role to play and they have to play it in the best interest of the company," Najib replied.
"It does not absolve (them of) responsibility. He (Nik Faisal) has never been my link in the sense that you want to impugn,” he added.
ALSO READ: Najib approached KWAP for RM2bil funding for SRC International, High Court hears
Najib also disagreed with Chong’s suggestion that he had full control of SRC in his capacity as prime minister, finance minister and SRC’s advisor emeritus.
Chong: My instructions from Shahrol. As a mere director appointed by you, he (Shahrol) wouldn’t have dared to sign a director's resolution to send over RM4bil of Retirement Fund Inc (KWAP) loan had it not been by your instruction that was conveyed to them via meeting minutes which you had personally signed.
Najib: I disagree.
Chong: There is no motive for Shahrol to commit any fraudulent breach of his duty as a director as US$120mil had gone into your personal account. Shahrol has not received any benefits.
Najib: I disagree.
Chong: I suggest to you that KWAP approved this colossal loan to SRC, expeditiously as it did, the way and the manner the Cabinet approved the two government guarantees, and the way Bank Negara granted these two permissions for SRC to transfer the KWAP loan overseas (was) only due to one reason – that is, you used your position as the prime minister and the finance minister.
Najib: I disagree.
Under new management, SRC filed the legal action in May 2021, alleging that Najib had committed breach of trust, abuse of power, misappropriated the company's funds and personally benefitted from it.
It named Najib along with its former directors Datuk Suboh Md Yassin, Mohammed Azhar Osman Khairuddin, Nik Faisal, Datuk Che Abdullah @ Rashidi Che Omar, Shahrol and Tan Sri Ismee Ismail in May 2021.
However, later, it removed six names from the suit and retained Najib and Nik Faisal as the first and second defendants.
Additionally, Najib brought the former named SRC International directors as third-party respondents in the suit.
The company is seeking damages, interests, costs and a court declaration that Najib is responsible for the company’s losses due to his breach of duties and trust, and is demanding that Najib pay back the US$1.18bil in losses it suffered.
It is also seeking US$120mil and US$2mil from Najib and Nik Faisal respectively, on account of fraudulent breach of fiduciary duties and breach of trust.
The trial before Justice Ahmad Fairuz Zainol Abidin continues on Monday (Oct 21).
