'Can we deal with that later' - Najib on RM27m in his account

“Can we deal with that later?”

Former prime minister Najib Abdul Razak said this during today’s civil court hearing of SRC International’s US$1.18 billion lawsuit against him.

Najib’s answer came about when he was cross-examined by the plaintiff’s counsel Lim Chee Wee about RM27 million that ended up in the defendant’s AmBank account ending with 880.

The lawyer was referring to bank statements showing the inflow of funds on Dec 26, 2014, originating from Ihsan Perdana Sdn Bhd for the stated purpose of a “CSR programme”.

Lim: The RM27 million that was credited into your 880 account, you have no documentary evidence to show this RM27 million was not SRC or Kwap (Retirement Fund Incorporated) money?

Najib: Can we deal with that later?

It is understood that the former finance minister wished to consult with his legal team from Shafee & Co about the matter first.

The SRC civil suit before the Kuala Lumpur High Court is over the alleged misappropriation of US$1.18 billion (about RM3.6 billion) of loans that SRC received from Kwap between 2011 and 2012.

Incidentally, Najib is currently serving a six-year jail sentence since August 2022 over a separate criminal case involving RM42 million of funds from SRC, a fully-owned company of the Minister of Finance Incorporated (MOF Inc).

The criminal court case saw him being convicted over charges of receiving the RM42 million as gratification for ensuring two government guarantees for two Kwap loans totalling RM4 billion to SRC. Kwap is under the Finance Ministry.

Najib also used to be an adviser emeritus to SRC.

Kwap issue

During a further grilling by Lim, Najib remarked that it is the responsibility of Kwap's board and investment panel rather than the then-sitting premier to the viability of SRC's investment.

The former finance minister, under which Kwap was, testified that he cannot micromanage every step of the process.

Lim was asking Najib about the notion that the former premier chaired the cabinet which greenlit government guarantees for Kwap's loans to SRC, while at the same time, he helmed the MOF Inc, which SRC fell under as well as presided over the Finance Ministry.

"Due to the way it was structured, the main responsibility has to be the (Kwap) board and management, I cannot micromanage how the funds are utilised or what investment must be done. That is the purpose of the board.

"It is not the purpose of the prime minister to determine the viability of investment. No prime minister in the world would do that.

"(Prime minister) Manages the country and cannot do that (determine investment viability). It is the work of technocrats and not politicians.

"Technocrats must do their work, these are the people who have professional standing," Najib said.

When Lim contended that Najib could instruct Kwap to verify the SRC loan bid, he said he left it to the board.

Hearing before civil court judge Ahmad Fairuz Zainol Abidin resumes on Oct 9.

In the course of the suit hearing, Najib among others, testified being baffled about why SRC board members did not verify transactions with him, and that one of his bank accounts was for “corporate social responsibility” (CSR).

SRC’s suit

Under new management, SRC filed the lawsuit in May 2021, alleging that Najib committed a breach of trust and abuse of power, personally benefited from the company’s funds, and misappropriated billions of ringgit.

SRC is also seeking a court declaration that the defendant is responsible for its losses due to a purported breach of duties and trust, and for Najib to repay RM42 million.

The plaintiff is also seeking a court order for Najib to be made accountable for the former’s US$1.18 billion loss and repay US$120 million of funds that allegedly flowed into his bank account.

The civil action against Najib is linked to the alleged misappropriation of part of RM4 billion - RM3.6 billion or US$1.18 billion in foreign exchange rates between 2011 and 2012 - in loans that the company received from Kwap between 2011 and 2012.

My bank account was for CSR purposes: Najib

SRC suit: Baffling why board members didn't verify with me - Najib

1MDB: 'Dead man tells no tales' - Najib's lawyer tells court

1MDB probe against Najib 'biased', 'shoddy': Lawyer