KUALA LUMPUR: The High Court was informed that the board of directors and management of SRC International Sdn Bhd held responsibility for the company’s financial transactions, not Datuk Seri Najib Tun Razak.
Muhammad Farhan Muhammad Shafee, Najib’s lawyer, argued that his client did not have exclusive control over SRC’s operations or the handling of funds obtained from the Retirement Fund Inc (KWAP). “The board executed all relevant transactions and bore responsibility for oversight. If any misappropriation occurred, it was due to the board’s own decisions,“ he said.
The submission was made during the hearing of SRC’s USD1.18 billion civil suit against Najib and former CEO Nik Faisal Ariff Kamil, who remains at large. Muhammad Farhan contended that Najib neither controlled the board’s decisions nor owed fiduciary duties as a director.
“Any formal roles or shareholder approval rights he held were part of lawful governance structures and did not make him the ‘controlling mind’ of SRC in breach of duty,“ he said before Judge Datuk Ahmad Fairuz Zainol Abidin.
SRC, under new management, filed the suit in May 2021, alleging Najib breached trust, abused power, and misappropriated funds. The company seeks repayment of RM42 million in losses.
Najib is currently serving a reduced six-year jail term for misappropriating SRC funds. His petition for a royal pardon led to a halved sentence and a reduced fine of RM50 million. The case resumes on Aug 25. - Bernama
