KUALA LUMPUR (Sept 25): Former prime minister Datuk Seri Najib Razak told the court that he did not have any control over movement and usage of SRC International Sdn Bhd's funds.
The imprisoned former finance minister said that he merely ratified decisions made by the company's board, which was expected to carry out the necessary due diligence.
"By reference to the duties and powers accorded to me in SRC, I lacked any position or power in the corporate governance structure to undertake any transactions of SRC.
"This was solely within the ambit of the board of directors, and I was never informed of, nor was I able to carry out an independent verification of the disbursement of SRC funds," he said.
Najib was testifying in his defence in the company's civil action against him, concerning a RM4 billion loan from Retirement Fund Inc (KWAP), which was given in two tranches in the second half of 2011 and the first half of 2012 to SRC. This is separate from the SRC criminal case, which Najib is being imprisoned for.
The 71 year-old testified that he played no role in events concerning the earmarking and eventual approval of the alleged investments and the funds.
Najib says he had no fiduciary duty over SRC funds
Najib also testified that he had no "fiduciary obligations" over the utilisation of the funds and proposed investments.
"By virtue of my positions, I had no trust or fiduciary obligations over the proposed investments and the funds utilised for the same. I also had no oversight nor control of the disbursement of the funds," he said.
During cross-examination by SRC counsel Datuk Lim Chee Wee, Najib agreed that Minister of Finance Inc's (MOF Inc) companies should not be treated as any individual's possession.
Najib also agreed with Lim that no public servant should personally reap benefits from the funds set up for public interest.
SRC filed the RM4 billion suit against Najib and Nik Faisal in May 2021.
The company obtained a judgement in default against Nik Faisal in November 2021, after he failed to enter an appearance in the matter.
Initially, the suit also named former company board members Tan Sri Ismee Ismail, Datuk Suboh Md Yassin, Datuk Mohammed Azhar Osman Khairuddin, Datuk Shahrol Azral Ibrahim Halmi, and Datuk Che Abdullah @ Rashidi Che Omar as defendants.
They were dropped later, only for Najib to bring them back again as third parties.
A defendant can initiate this against a third party who is not part of the main suit, in order to claim any contribution, indemnity or remedy which is claimed by the plaintiff.
SRC claims that out of the total KWAP loan of RM4 billion, a sum of RM3.6 billion was immediately transferred out when the funds came into SRC, of which a sum of US$120 million eventually ended up in Najib’s bank account.
The trial before High Court judge Datuk Ahmad Fairuz Zainol Abidin continues.