KUALA LUMPUR (May 31) : The High Court (Commercial division) on Wednesday (May 31) allowed SRC International Sdn Bhd to amend its statement of claim (SOC) in its US$1.18 billion fraudulent and misappropriation suit against Datuk Seri Najib Razak and Nik Faisal Ariff Kamil.
The application was granted by Judge Datuk Ahmad Fairuz Zainol Abidin as Najib’s lawyers did not object to the amendments.
Ahmad Fairuz then instructed Najib to file his amended defence by July 12, and SRC International to file its reply by July 26.
The court fixed Aug 2 for case management on Najib’s application over third party proceedings.
The outcome was confirmed to The Edge by Kwan Will Sen from Messrs Lim Chee Wee Partnership.
In its notice of application to amend the SOC, SRC said that it is seeking to recover the RM3.6 billion (US$1.18 billion) from the RM4 billion loan given by Retirement Fund Inc (KWAP) to SRC in 2011 and 2012, and which it alleges was misappropriated as the RM3.6 billion was immediately transferred to Swiss banks after it was disbursed by KWAP. The status of the Swiss accounts is unclear. SRC is seeking now to recover the amount via its new solicitors Lim Chee Wee Partnership which replaced Rosli Dahlan Saravana Partnership.
SRC said that the new SOC has additional clarity and information obtained leading to the amendment. It also ascertained that the amount claimed from Nik Faisal was not US$82,000 but US$2 million and that this is reflected in the amendment.
In addition, the notice stated that the amendment also arises from certain out-of-court settlements that were recently concluded.
Prior to this, former SRC International directors Datuk Suboh Md Yassin, Datuk Mohammed Azhar Osman Khairuddin, Datuk Shahrol Azral Ibrahim Halmi, Tan Sri Ismee Ismail and Datuk Che Abdullah @ Rashidi Che Omar were originally named in the suit. A notice of discontinuance was later filed to omit them.
However, Najib intends to bring these directors back as third parties to be part of the claim.
Last December, Ahmad Fairuz allowed Najib to file third party notices against them.
Earlier in November 2021, the court had entered a judgment in default against Nik Faisal who has been missing and believed to be out of the country since May 2018, after Barisan Nasional lost the general election. He is also in the Interpol red notice.
SRC, a former subsidiary of 1Malaysia Development Bhd (1MDB), filed the suit in May 2021, seeking a declaration from the court that Najib is liable to account for the company's losses of US$1.18 billion because he had breached a duty of care and trust.
Najib, 69, is presently serving a 12-year jail term and RM210 million fine, 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.