KUALA LUMPUR (Sept 27): For a second day in a row, former prime minister Datuk Seri Najib Razak could not verify that funds in his AmBank bank accounts were not monies misappropriated from SRC International Sdn Bhd (SRC) or Retirement Fund Incorporated (KWAP).
When asked by SRC counsel Datuk Lim Chee Wee for documentary evidence to indicate that a sum of US$120 million in his accounts was not from SRC or KWAP, the imprisoned ex-finance minister once again asked if parties could get back to that at a later time.
Lim: You have no proof that these monies were not from SRC or KWAP?
Najib: Can we deal with that later?
Najib said this while testifying in his defence in a civil suit by SRC, concerning a RM4 billion loan from KWAP, which was given to SRC in two tranches in the second half of 2011 and the first half of 2012. The company claims that US$120 million had eventually ended up in Najib’s bank accounts.
Previously, SRC British Virgin Islands (SRC BVI) liquidator Angela Barkhouse testified that the monies went into Najib's accounts in three tranches. The first tranche, of US$70 million, was transferred on Dec 29, 2011. The other two tranches were US$25 million each, and were transferred on March 12, 2012, and May 22, 2012.
During proceedings on Thursday, Lim had tackled the US$70 million channelled into Najib's accounts. The 71-year-old was asked the same question, on whether he had documentary evidence to suggest that the funds were not misappropriated monies from SRC or KWAP. Najib had asked to circle back for a later occasion.
Najib also testified on Thursday that the account in which the funds were credited into was meant for corporate social responsibility (CSR) purposes.
On Friday, Lim asked if the words 'CSR' had appeared anywhere in the statements linked to the transactions. To this, Najib agreed that the words 'CSR' were not attached or indicated in the bank statements.
SRC filed the civil suit against Najib and SRC's former chief executive officer Nik Faisal Ariff Kamil in May 2021.
The company is seeking a declaration from the court that Najib is liable to account for the company's losses of US$1.18 billion due to breach of duties and trust. It is also asking for an order for Najib to compensate US$120 million, and for Nik Faisal to pay US$2 million to SRC, and for the company to be entitled to trace the amount in general, exemplary, and aggravated damages.
This is different from Najib's criminal case, where he was found guilty of criminal breach of trust, money laundering, and abuse of power of SRC funds amounting to RM42 million, which was received between Dec 26, 2014 and Feb 10, 2015.
'No PM in the world micromanages'
Earlier on Friday, Najib testified that he could not micromanage how the company funds were utilised because that fell within the purview of the board and management.
He reiterated that at that time, he had confidence in the board to do the necessary, because the board consisted of highly qualified individuals.
"The company's board and management were the main organs [of the company], so I decided to [support] SRC from the macro level, a macro point of view. I wanted SRC to succeed [in their goal of finding alternative energy for the country]," he said.
Lim: Did you independently verify [the usage and disbursements of these funds]?
Najib: I can't micromanage how the funds are utilised. The board and the management had to decide on the viability of investment. No PM in the world would, because that is the work of technocrats, not politicians.
Lim: You had the ability to instruct independent verification of the funds.
Najib: I left it to the board, because I believed it was the board's responsibility. I can't micromanage the company.
SRC had 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, Datok 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 contribution, indemnity, or any 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.
The trial before High Court judge Datuk Ahmad Fairuz Zainol Abidin continues on Oct 9, with continued cross-examination of Najib.