KUALA LUMPUR (March 4): Former director of SRC International Sdn Bhd Datuk Shahrol Azral Ibrahim Halmi and lawyer Tan Sri Mohamed Shafee Abdullah on Wednesday argued over Shahrol’s defence of taking orders from then-SRC chief executive officer Nik Faisal Ariff Kamil, with Shafee claiming that the defence is “double hearsay”.

Shafee wasted no time in dismantling the legal weight of Sharol’s testimony as a witness in the RM42 million civil suit brought by SRC and its subsidiary Gandingan Mentari Sdn Bhd against former prime minister Datuk Seri Najib Razak, labelling Shahrol’s claims as “double hearsay”, since they relied on statements from absent third parties that the court could not verify.

Shahrol was questioned over his reliance on Nik Faisal’s instructions when Shahrol was a director of SRC.

In his witness statement, Shahrol stated that whenever documents, forms, or cheques required execution by SRC directors, Nik Faisal would forward the documents either personally or through officers acting on his instructions.

Shahrol stated that he took Nik Faisal’s instructions as coming from Najib.

He further stated that he had no reason not to believe Nik Faisal and was compelled or obliged to sign documents as directed, citing Najib’s position at the material time as Prime Minister, Minister of Finance, and sole shareholder of SRC via the Minister of Finance Incorporated (MOF Inc).

Shafee however contended that Shahrol’s testimony on taking instructions from Nik Faisal could not be verified by the court, as Nik Faisal has absconded and remains a fugitive.

Shafee then spent much of the remaining morning session questioning Shahrol’s reliance on the instructions of fugitive businessman Low Taek Jho (Jho Low) and Nik Faisal when he was in SRC.

“You are quoting Nik Faisal Ariff Kamil, that certain things were conveyed to him by Datuk Seri Najib. It is not merely hearsay, but double hearsay,” Shafee said.

“What you have stated in your witness statement, that Nik Faisal conveyed [instructions] to you and to the SRC board of directors, are purported statements that the court cannot verify,” he said.

Shafee further argued that with Nik Faisal being not present in the country or before the court, the witness could not conclusively prove the truth of what was allegedly said.

Sharol replied: “I have no comment on this. How do I prove something that I heard and remember?”

In the suit filed in 2021, SRC and Gandingan Mentari are seeking a declaration that Najib is liable to them for the receipt of RM42mil, among others.

The former prime minister is also being sued for breach of fiduciary duties, knowing receipt of the funds, dishonest assistance, tort of misfeasance, and abuse of power.

In this trial before High Court judge Raja Ahmad Mohzanuddin Shah Raja Mohzan, the court has allowed Najib to bring back third parties in the trial.

A third party is someone the defendant (or sometimes the plaintiff) claims is actually responsible — wholly or partly — for the loss.

In this case, Najib claims that it was Shahrol and five other third-parties who were also responsible for the losses in SRC.

The High Court allowed Najib to bring in six former directors — Tan Sri Ismee Ismail, Datuk Suboh Md Yassin, Shahrol, Datuk Mohammed Azhar Osman Khairuddin, Datuk Che Abdullah @ Rashidi Che Omar and Nik Faisal — as third-party defendants.

Azhar had testified on Monday.