KUALA LUMPUR: The High Court was told that SRC International Sdn Bhd, initially intended to serve the public, was instead exploited to benefit former prime minister Datuk Seri Najib Tun Razak.
Lawyer Datuk Lim Chee Wee, representing SRC International, argued that the company became both a vehicle and victim of large-scale fraud, with Najib as the primary beneficiary.
The civil suit involves US$1.18 billion in losses, with Najib accused of personally receiving US$120 million and RM42 million from misappropriated Retirement Fund Inc (KWAP) pension funds.
Lim stated, “The very funds misappropriated through SRC were pensioners’ money from KWAP. While SRC International suffered a devastating loss of US$1.18 billion, the first defendant (Najib) personally received US$120 million into his own accounts.”
Najib allegedly acted as a shadow director, controlling key decisions through shareholder resolutions, including approving a RM4 billion KWAP loan and disbursing RM3.6 billion for illegitimate purposes.
Lim added, “He utilised his role as the shadow director of the company, where he controlled the company’s board via shareholder resolutions on important macro-decisions.”
SRC International, under new management, filed the suit in May 2021, accusing Najib of breach of trust, abuse of power, and misappropriation of funds.
The company seeks a court declaration holding Najib accountable for losses and demands repayment of RM42 million.
Najib is currently serving a six-year prison term for the misappropriation of RM42 million in SRC funds, following a reduced sentence from the Pardons Board in January 2024. – Bernama
