'I haven't seen US$120m SRC funds in Najib's account returned to Tanore'

A cross-border recovery specialist based in the Cayman Islands testified that she did not see evidence that US$120 million of funds that flowed into former prime minister Najib Abdul Razak’s account had been returned to Tanore Finance Corp.

Testifying via Zoom from the Cayman Islands this afternoon, Angela Barkhouse told the Kuala Lumpur High Court this during the hearing of SRC International’s US$1.18 billion (RM5.5 billion) lawsuit against former prime minister Najib Abdul Razak.

During the hearing before judge Ahmad Fairuz Zainol Abidin, the witness for plaintiff SRC said she also did not see evidence that the US$120 million was part of a US$620 million that flowed out of Najib’s Malaysian account to Tanore’s account in Singapore in 2013.

She was replying during cross-examination by Najib’s counsel Harvinderjit Singh, who contended that the US$120 million was part of the US$620 million that has been returned to Tanore.

Harvinderjit: I am going to suggest to you, that these funds of US$120 million were returned to Tanore via redemption.

Barkhouse: I have not seen anything come back. I have not seen the US$120 million returned.

Harvinderjit: You see the US$620 million, right? I am suggesting to you that this US$120 million in Najib’s account, were part of the funds of US$620 million that went out and back to Tanore in 2013.

Barkhouse: I haven’t seen that evidence.

Among the reliefs sought by SRC via the lawsuit is for Najib to repay US$120 million of the Minister of Finance Incorporated (MOF Inc) owned firm’s funds that allegedly ended up in the former premier’s Malaysian bank account.

SRC is also suing Najib for the reimbursement of RM4 billion in loans from Retirement Fund Incorporated (Kwap) to the company which was alleged to have been misappropriated.

The allegation that US$620 million was returned from Najib’s Malaysian account to Tanore’s Singapore account is the crux of the separate ongoing RM2.27 billion 1MDB criminal trial against Najib.

Najib’s defence team had consistently maintained in the 1MDB criminal case that the former premier was under the impression that the US$681 million that flowed into his account in 2013 was a donation from the Saudi royal family and that US$620 million of it was returned later that same year.

Unsure if Low linked to offshore entities

Meanwhile, Barkhouse testified that she is uncertain whether fugitive businessperson Low Taek Jho is behind multiple offshore entities implicated in the misappropriation of RM4 billion from SRC.

She said many of these off-shore entities have another fugitive, Eric Tan, as their beneficial owners.

She was being cross-examined by Harvinderjit on whether Low is involved in these offshore entities.

“I am not sure if he (Low) is the individual that controls everything,” Barkhouse said, adding that the claim about Low is what she read about in the United States Department of Justice (DOJ) report on embezzlement of funds from SRC and troubled Malaysian sovereign wealth fund, 1MDB.

The DOJ report alleged that Low and several associates such as Tan were involved in the misappropriation of monies out of SRC and 1MDB, utilising multiple offshore entities such as Blackstone Asia Real Estate Partners and Blackrock Commodities (Global) Limited.

Tan is alleged to be the beneficial owner of Blackstone and Blackrock.

Barkhouse testified that her analysis of documents provided to her by PriceWaterhouseCoopers in her capacity as liquidator of the offshore entities showed Tan as the registered owners of these firms, rather than Low.

Among the entities that she was hired as a liquidator for is SRC BVI (British Virgin Islands), from which Malaysia-based SRC’s billions of ringgit of funds were alleged to have flowed through before disbursing to various other companies and individuals.

During questioning by Harvinderjit, Barkhouse said the DOJ report is the one making the connection between Low and the offshore entities rather than her, as she is limited to analysis of the financial documents before her.

The managing director of Cayman-based Quantuma International also said that she did not interview any directors of Malaysia-based SRC over these transactions, due to her analysis being confined to financial and corporate documents.

Hearing of the civil action before judge Ahmad Fairuz Zainol Abidin continues tomorrow.

In the civil action, SRC claimed former finance minister Najib had committed a fraudulent breach of duties as the company’s then-adviser emeritus.

SRC’s allegations are linked to the alleged misuse of RM4 billion in loans it received from Kwap between 2011 and 2012.

Through the lawsuit, SRC is seeking general and exemplary damages, as well as interest, costs, and other relief deemed fit by the civil court.

SRC seeks a declaration that Najib is liable to account for the MOF Inc firm’s losses due to his alleged breach of duty.

The plaintiff also seeks an order that Najib repay the US$1.18 billion in losses as well as repay US$120 million that the former prime minister allegedly received.

Najib is serving a six-year jail sentence and was also fined RM50 million, courtesy of a partial royal pardon that reduced the initial sentence of 12 years jail and RM210 million fine.

SRC was incorporated as a special purpose vehicle on Jan 7, 2011, to invest in conventional and renewable energy, natural resources, and the minerals sector.

Counsel Kwan Will Sen appeared for plaintiff SRC.

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