KUALA LUMPUR (Dec 9): Jailed former prime minister Datuk Seri Najib Razak was granted leave (permission) by the High Court to issue third-party notices in the US$1.18 billion (RM5.19 billion) civil suit filed by SRC International Sdn Bhd.

Judge Datuk Ahmad Fairuz Zainol Abidin granted the leave for Najib and his legal team to issue third-party notices against members of the board of directors of SRC who served from 2011 to 2015. 

Najib’s lawyer Harvinderjit Singh submitted six names as third parties, namely former SRC managing director Nik Faisal Ariff Kamil who remains at large, and was last known to be in Indonesia, former chairman Tan Sri Ismee Ismail, as well as former directors Datuk Shahrol Azral Ibrahim Halmi, Datuk Suboh Md Yasin, Datuk Mohammed Azhar Osman Khairuddin and Datuk Che Abdullah @ Rashidi Che Omar.

In November last year, the court entered a judgement in default against Nik Faisal for his non-appearance after the suit was filed. A judgement in default can be entered if the person named in a suit fails to respond.

However, apart from Nik Faisal, SRC had dropped the rest of the parties mentioned above in this civil suit. 

Harvinderjit argued before the judge that the cause of the loss of funds in SRC was allegedly attributable to the third parties.

The lawyer in his submissions before the judge claimed that Najib intends for these third parties to be made liable to SRC for the loss and damage proven to have been suffered by SRC.

He said that the third parties were alleged to have committed fraudulent breaches of duties and trust, dishonest assistance and wrongful conversion.

He also said that Najib is seeking reliefs claimed against the third parties related to the investment funds.

After being granted leave, Harvinderjit said that they will file the notices as soon as possible.

SRC, a former subsidiary of 1Malaysia Development Bhd (1MDB), filed the suit in May last year, seeking a declaration from the court that Najib is liable to account for the company's losses of US$1.18 billion due to a breach of duty and trust.

The amount is said to be from the RM4 billion loans from Retirement Fund Inc (KWAP) to SRC between 2011 and 2012, which were channelled overseas and have not been recovered to date.

Najib, 69, is presently serving a 12-year jail term, after the Federal Court affirmed his conviction and sentence on seven counts of abuse of power, criminal breach of trust and money laundering related to SRC.

Meanwhile, Ahmad Fairuz last February refused Najib’s application for a stay of the hearing of the civil suit pending the outcome of his main SRC appeal.