KUALA LUMPUR (Nov 20): SRC International Sdn Bhd has settled a suit against Parti Bumiputera Perkasa Malaysia president Datuk Ibrahim Ali, while the company and Umno continue to negotiate towards a settlement.

Lawyers Kwan Will Sen and Razlan Hadri Zulkifli, who represent SRC, confirmed the settlement with Ibrahim to The Edge. However, the terms of settlement between the two parties could not be divulged, they said.

In 2021, SRC and its subsidiaries filed the suit against Ibrahim, seeking RM600,000 allegedly misappropriated and wrongfully transferred to him in breaches of duty and trust, by the plaintiffs’ former directors.

Ibrahim had previously admitted to having received a personal cheque from former prime minister Datuk Seri Najib Razak.

However, he claimed that he did not know that the source of the money was 1Malaysia Development Bhd (1MDB) and its former subsidiary SRC, as neither of the companies’ names were stated on the cheque, and before the 1MDB issue was exposed.

In the meantime, SRC and Umno have asked for more time from the High Court to negotiate a settlement over a RM19.5 million suit against the country’s biggest political party.

Lawyer Mohamed Shahrul Fazli Kamarulzaman, who acted for Umno, had informed judge Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan that all parties are still working towards a settlement, and that they would need more time.

Razlan did not object to the request for time extension, as did Datuk Hasnal Rezua Merican, who represented Umno Selangor, which has also been named in the suit.

“As we indicated to My Lord, the settlement talks [are] progressing, and we are seeking a few more days within Nov 27,” said Razlan.

Raja Ahmad then fixed Nov 27 for the parties to update on the settlement.

Razlan also indicated to the judge that if they reach a settlement before Nov 27, they will write to the court to inform them.

On Monday (Nov 18), the lawyers informed the court that they were seeking a settlement.

In the suit filed in 2021, SRC is seeking to recover RM16 million that was allegedly transferred to Umno by former prime minister Datuk Seri Najib Razak when he was Umno president.

SRC and its subsidiaries claim that Umno knew, or ought to have known, that the money belonged to SRC, and that Umno had no basis to receive the funds.

Also in this suit, SRC seeks to recover RM3.5 million from Umno Selangor, a sum which they claimed had been wrongfully received by the party.

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Umno looking to settle SRC’s RM16m lawsuit