3 days ago
SRC US$1.1b suit: Lawyer says Najib changed his story five times on how RM42m wound up on his books
KUALA LUMPUR, July 7 — Former prime minister Datuk Seri Najib Razak gave five conflicting explanations in court for how US$120 million from SRC International ended up in his personal bank account, the High Court heard today.
SRC counsel Datuk Lim Chee Wee said it was proven in trial that the funds from SRC International were credited into Najib's personal account for personal enrichment — with Najib giving five different versions under oath to justify said receipt in court.
Lim said this in his submission at the close of the defendant's case in SRC International's US$1.18 billion civil suit against Najib and former SRC chief executive Nik Faisal Ariff Kamil, who is currently at large.
Listing the five versions, Lim said Najib had variously:
Denied receiving monies stemming from SRC
Asserted his account was for corporate social responsibility purposes
Claimed he did not manage his account
Claimed the monies were donations
Claimed his account was merely a pass-through entity
'In the context of credibility and tort of misfeasance, the first defendant was confronted with his affidavit in which he confirmed receipt of RM42 million from SRC.
Lim said Najib vaguely stated that the affidavit was 'very badly drafted', then later claimed that the admission was the 'allegation at that time'; before suddenly claiming it was his own knowledge but stated he was misled at that time.
'He (Najib) then backtracked and stated that 'I am not saying I am misled, but that was the information that was given to me.'
'Curiously, when questioned as to who provided this incorrect information, the first defendant could not provide an answer.
Lim said Najib later claimed that he was misled by 'media reporting including social media' during his re-examination.
'Even if true, this reflects the grave recklessness for a prime minister to rely on unverified public commentary on social media to justify why RM42 million had entered into his personal account,' Lim said.
Lim also said while SRC International was intended to fulfill its intended public purpose, SRC became the vehicle and victim of large-scale fraud, with Najib as its primary beneficiary.
'While SRC suffered a devastating loss of US$1.18 billion, the first defendant personally received US$120 million into his own accounts and RM42 million which is the subject matter of a separate suit.
'It cannot be said that the first defendant was acting in the best interests of Malaysia, nor can his actions be downplayed to mere recklessness.
'The first defendant's concealment of receipt throughout SRC's lifespan actively confirmed his malice and knowledge in his misfeasance,' he said.
The hearing before trial judge Datuk Ahmad Fairuz Zainol Abidin resumes tomorrow.
Imprisoned since August 23, 2022, Najib is serving a 12-year jail sentence and a RM210 million fine for his conviction over the misappropriation of RM42 million from SRC International, which has recently been reduced to six years of imprisonment and a RM50 million fine by the Pardons Board.
SRC, under new management, sued Najib and several former directors — Datuk Suboh Md Yassin, Datuk Mohammed Azhar Osman Khairuddin, Nik Faisal, Datuk Che Abdullah @ Rashidi Che Omar, Datuk Shahrol Azral Ibrahim Halmi, and Tan Sri Ismee Ismail — in May 2021.
However, five names were later removed from the suit, leaving Najib as the sole defendant.
Additionally, Najib has named the former directors of SRC International as third-party respondents.
SRC, as the plaintiff in the writ of summons, has alleged that Najib abused his power to obtain personal benefits from SRC International's funds and misappropriated these funds. Najib served as SRC's Emeritus Adviser from May 1, 2012 until March 4, 2019.
Now wholly owned by the Ministry of Finance Incorporated (MoF Inc), SRC International is seeking general damages, exemplary damages, additional interest, costs, and other appropriate relief from the court.
The company seeks a declaration that Najib is liable for the company's losses due to his breach of duties and trust. It is also seeking an order for Najib to pay US$1.18 billion in losses suffered, along with damages for breach of duties and trust, including an order for him to compensate the US$120 million that entered his bank account.
