KUALA LUMPUR (Oct 1): SRC International Sdn Bhd and its wholly owned subsidiaries, Gandingan Mentari Sdn Bhd and Jendela Pinggiran Sdn Bhd, on Monday settled their RM167.01 million suit against two former directors of Ihsan Perdana Sdn Bhd (IPSB) — Datuk Abdul Aziz Ismail and Datuk Dr Shamsul Anwar Sulaiman — by filing a notice of discontinuance.
This came about after SRC, Gandingan Mentari and Jendela Pinggiran obtained a judgement in default against IPSB on Dec 8, 2021, after the company did not enter an appearance and was found liable for the RM167.01 million.
On Monday, a notice of discontinuance on Shamsul Anwar and Abdul Aziz was filed by SRC, Gandingan Mentari, and Jendela Pinggiran’s solicitors Messrs Lim Chee Wee Partnership before High Court Judicial Commissioner Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan and sealed.
SRC counsel Datuk Lim Chee Wee, when contacted by The Edge, confirmed the suit had been settled.
“The suit is discontinued without liberty to file afresh, and no order was made as to costs,” the letter from Messrs Lim Chee Wee to Shamsul Anwar and Abdul Aziz’s solicitors from Messrs Tan Hock Chuan stated, which was sighted by The Edge.
Initially, SRC and the two units' suit against the two former directors of IPSB was scheduled for its first hearing on Tuesday, but then the notice of discontinuance was filed on Monday.
SRC, along with Gandingan Mentari and Jendela Pinggiran, had earlier in December 2022 discontinued their legal action against former SRC directors Datuk Suboh Md Yasin, Datuk Mohammed Azhar Osman Khairuddin, and Datuk Che Abdullah @ Rashidi Che Omar, as they were originally named as defendants.
The suit, which also named fugitive and former SRC managing director Nik Faisal Ariff Kamil, was originally filed by Messrs Rosli Dahlan Saravana Partnership in May 2021, where it alleged that Nik Faisal had breach his duties in SRC and the two subsidiaries by giving two grants totalling RM167.01 million to be paid to IPSB.
The sum of RM167.01 million comprised RM123 million that SRC provided as a grant to IPSB between December 2014 and April 2015, and a sum of RM44.01 million that SRC and its subsidiaries gave the company — purportedly for corporate social responsibility (CSR) purposes — between April and July 2015.
IPSB was set up to undertake CSR matters for the company, and also for 1Malaysia Development Bhd (1MDB). SRC was formerly a subsidiary of 1MDB.
At the time of the alleged incidents, Shamsul Anwar was IPSB's managing director, while Abdul Aziz was a director.
Nik Faisal has left the country and is still at large. SRC and the subsidiaries obtained a judgement in default against him in the matter on March 2, 2022.
Amended statement of claim
In the amended statement of claim filed by SRC, Gandingan Mentari, and Jendela Pinggiran in August this year, it was claimed that IPSB had knowingly received, provided dishonest assistance, conspired, and caused loss and damage to the three companies.
The three companies claimed that Nik Faisal had dishonestly, intentionally, and recklessly authorised and arranged the fraudulent or wrongful disbursements of the first and second grants from SRC's bank accounts, contrary to the approval conditions and not for CSR purposes.
SRC and the two subsidiaries claimed that by obtaining the grants, IPSB should have acted as their trustee — required to hold, control, and utilise the grants only for CSR purposes, act in good faith in the exercise of its duties and responsibilities, to not act for its own benefit or that of a third party, maintain proper accounting records and provide sufficient details and explanation of the expenditure incurred, and prepare and furnish CSR reports to them on time.
They alleged that IPSB dishonestly, intentionally, or recklessly utilised, transferred, or caused the transfer of the first and second disbursed grants to various third parties, including but not limited to former prime minister Datuk Seri Najib Razak, instead of using it for CSR purposes.
The three companies claimed that IPSB should have known that the disbursed grants to Najib and others were a direct contradiction of the terms of the letter of appointment.
During the SRC criminal trial involving Najib, Shamsul Anwar testified that IPSB had transferred funds to an AmBank account, which he later got to know belonged to Najib, and was the subject of the former PM’s money-laundering case, where Najib was found guilty and is presently serving his jail sentence since Aug 23, 2022.