KUALA LUMPUR (Jan 22): Datuk Seri Najib Razak conceded in court on Thursday that the RM42 million in his personal bank accounts had nothing to do with the oft-claimed “Saudi donation”.

The former prime minister also acknowledged that his understanding of the origins of the money had changed based on developments in subsequent court proceedings.

Najib was testifying under cross-examination in the civil suit brought by SRC International Sdn Bhd and its subsidiary Gandingan Mentari Sdn Bhd seeking to recover RM42 million allegedly misappropriated and channelled into Najib’s accounts between December 2014 and February 2015.

The questions centred on Najib’s long-standing defence that the funds were part of “Saudi donations”, a narrative that had been rejected at every level of the courts in Najib’s criminal trials involving SRC International and 1Malaysia Development Bhd (1MDB).

Lawyer Kwan Will Sen, of Lim Chee Wee Partnership representing the two firms, put it to Najib that the High Court, Court of Appeal (COA) and Federal Court had all dismissed his Saudi donation defence in the SRC International case involving the same RM42 million.

Najib responded that he did not have the opportunity to provide an explanation at the Federal Court. He also referred to his bid to review the Federal Court’s earlier decision which had upheld his conviction and 12-year sentence for misappropriating RM42 million from SRC International.

In that case, the court delivered a split 4-1 decision, with Chief Judge of Sabah and Sarawak Datuk Abdul Rahman Sebli being the sole dissenting judge.

Abdul Rahman, in his written judgment, said Najib did not have proper legal representation during the hearing because his lawyer, Datuk Hisyam Teh Poh Teik, had informed the court that he was unprepared to proceed, yet the panel did not allow Najib to be properly represented among others.

Kwan: On the 42 million. You would agree with me that the High Court, COA and Federal [Court], in that case, specific to this defence of Saudi donation, they have effectively dismissed or disagreed with your defence. That is a correct statement?

Najib: Except the Federal Court, because we didn't have the opportunity, or I didn't have the opportunity, to do a full explanation at the Federal Court.

Kwan: That wasn't my question. My question is, this particular defence of the Saudi donation was dismissed by all levels of the courts. I think that's a correct statement?

Najib: Yes, but I have to clarify because there was no full explanation, no full defence at the Federal Court. That’s why in the review, one of the judges, senior judge [Abdul Rahman], agreed with our position, I think. In other words, during the review, he concluded I didn't get a fair trial.

Kwan: All said and done, in conclusion, the majority finding, as it were, in the review per se, upheld the condition. That is correct, isn't it?

Najib: Yes, unfortunately, yes.

Kwan then referred Najib to the High Court’s findings in the recent 1MDB-Tanore trial judgment by justice Datuk Collin Lawrence Sequerah, where the court found that the alleged Saudi donation “lacked credibility” and was contradicted by documentary evidence. Najib agreed that this was the finding of the High Court judge in that case.

Kwan: In the 1MDB trial at the High Court, and I know you have appealed against that decision, And that is also the same finding by Justice Collin, isn't it?

Najib: Yes.

In closing the line of questioning, Kwan asked Najib directly whether he still maintained that the RM42 million originated from a Saudi donation.

Kwan: Now, just to close the loop on this whole position of the Saudi donation, and again, I want to go back to what I've said earlier on. At this very moment, do you still maintain that the RM42 million is from the Saudi donation?

Najib: At that particular time, I thought it was still Saudi donation.

Pressed further on his position Najib agreed that, based on what he now knows, the [RM]42 million had nothing to do with any Saudi donation.

Kwan: My question is, on this very day... So, just to be extremely clear, your position, or the truth in your mind, if I can use those words, at this moment, is that the [RM] 42 million has nothing to do with the Saudi donation?

“Based on subsequent knowledge, yes,” Najib said, confirming his agreement with Kwan’s statement.

Najib also eventually conceded and answered “Yes” when Kwan asked if the RM42 million did not have anything to do with Saudi donations.

The trial before High Court judge Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan continues on Friday.

Najib is already entangled in another civil suit involving SRC, which 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.

The company is also asking for an order for Najib to compensate US$120 million and Nik Faisal to pay US$2 million to SRC, as well as damages. The case has concluded, and the decision is pending.