‘SRC victim of grand fraud’
1MDB unit taking najib to court to recover over Us$1bil in losses
A subsidiary of 1Malaysia Development Bhd (1MDB), SRC International Sdn Bhd, was a victim of a large-scale, multi-jurisdictional fraud orchestrated by Datuk Seri Najib Razak, the High Court heard.
SRC’S lawyer Datuk Lim Chee Wee said that instead of serving the rakyat, the company became a vehicle manipulated by the former premier to procure an eye-watering Rm4bil loan from the Retirement Fund Inc (KWAP).
He said this was to enrich Najib by at least Us$120mil, causing injury and losses to SRC and the rakyat by at least Us$1.18bil.
Lim said this when reading the opening statement in a lawsuit by SRC against Najib and former SRC
CEO Nik Faisal Ariff Kamil, who is still at large, before High Court judge Justice Ahmad Fairuz Zainol Abidin here yesterday.
He said the legal action and claims against Najib relate to the events surrounding SRC, which was incorporated as a special purpose vehicle (SPV) on Jan 7, 2011, to invest in conventional and renewable energy, natural resources and minerals sector.
“These investments were ultimately meant for the rakyat, with the expectation that those in power would act in good faith for the benefit of the public,” he said.
Lim also said Najib could be sued for his dishonest conduct and abuse of power in the company as the tort of misfeasance in public office had stated that no man is above the law.
He said to that extent, the rule applies to both public and private law elements.
This is unlike other torts, which are wholly private in nature.
He said this meant that Najib, who is the first defendant, could be sued in his capacity as the prime minister – a public officer.
Under new management, SRC filed the legal action in May 2021, alleging that Najib had committed breach of trust, abuse of power, misappropriated the company’s funds and personally benefitted.
It named Najib along with its former directors Datuk Suboh Md Yassin, Datuk Mohammed Azhar Osman Khairuddin, Nik Faisal Ariff Kamil, Datuk Che Abdullah @ Rashidi Che Omar, Datuk Shahrol Azral Ibrahim Halmi and Tan Sri Ismee Ismail in May 2021.
However, later, it removed six names from the suit and retained
Najib and Nik Faisal as the first and second defendants.
Additionally, Najib has brought the former named SRC directors as third-party respondents.
Najib was SRC’S Emeritus Advisor from May 1, 2012 until March 4, 2019.
The company sought general, exemplary and additional damages, interests, costs and other relief deemed fit by the court.
It also sought a court’s declaration that Najib is responsible for the company’s losses due to his breach of duties and trusts, and demand for Najib to pay back the Rm42mil in losses suffered.
Najib, 70, is currently serving a sentence at the Kajang Prison since Aug 23, 2022, after being convicted in the Rm42mil SRC case for misappropriation of funds.
The hearing continues today.