In hindsight, I have certain regrets: Najib tells SRC lawyer

Najib Abdul Razak testified that, in hindsight, he has certain regrets over the misappropriation of nearly RM4 billion in SRC International’s funds by certain quarters.

However, before the Kuala Lumpur High Court today, the former prime minister and finance minister reiterated that he had no knowledge of any wrongdoing at the company under the Minister of Finance Incorporated (MOF Inc).

Najib was replying during cross-examination by lawyer Kwan Will Sen, who represented SRC in the plaintiff's US$1.18 billion (RM3.6 billion) lawsuit against the ex-premier to recover the money.

Kwan: Hindsight is 20/20, with the criminal conviction (against Najib) and in all matters in SRC leading to the plaintiff’s loss, do you have any regrets?

Najib: I have certain regrets, but based on that particular time, I did not have knowledge or information.

However, when Kwan asked whether Najib takes any responsibility for the matter, the former adviser emeritus to SRC said it depends as he had no knowledge of any wrongful flow of funds into his bank account.

When the lawyer asked whether Najib’s answer could be taken as a “no”, the former finance minister merely replied “no”.

The defendant rubbished Kwan’s contention that he had failed SRC and caused the US$1.18 billion loss.

Najib also disagreed with the SRC counsel’s submission that he was a central figure in the complex money trail that ultimately ended up with the company’s money landing in his account.

‘Political responsibility’

During cross-examination by lawyer Chong Yik Loong who represented former SRC director Shahrol Azral Ibrahim Halmi, Najib said he had political responsibility, but whether he was legally responsible is a separate issue.

Shahrol is among several third parties brought into the suit to fully or partly reimburse the former prime minister in the event that SRC wins the court action.

During a further grilling by Chong, Najib contended that SRC's board had the power to disagree with him in spite of the ex-premier having left the "Setuju dengan cadangan" (agree with the proposal) notation left on documents related to the company's finance.

Chong: As prime minister, finance minister and SRC's advisor emeritus, you had full and absolute control over SRC?

Najib: I disagree.

Chong: Directors were compelled to abide by your instructions as you were the then prime minister and finance minister.

Najib: I disagree.

Chong: None of the directors, including Shahrol, have any power to determine the control over SRC but were obliged under law and customs to implement your directions.

Najib: I disagree.

Chong: As a mere director appointed by you into SRC, he would not have dared to sign off to send out (overseas) nearly RM4 billion in Kwap loans if not for your instructions based on the minutes of the representative company (MOF Inc) that you signed.

Najib: I disagree.

Chong: There is no motive for Shahrol to commit a fraudulent breach of duty as none of the Retirement Fund Incorporated (Kwap) loans went into his personal account when compared to you, where the money trail showed US$120 million and RM42 million went into your AmBank account, Shahrol did not receive any benefit from the transactions?

Najib: I disagree.

Chong: I suggest that Kwap approved the colossal loans and the way Kwap disbursed the loans expeditiously, the manner in which the cabinet approved the two government guarantees (for Kwap to release the loans to SRC) and the manner in which Bank Negara approved conditions for SRC to transmit substantial amount of Kwap loans overseas, all this was made possible to one reason which was you having misused your position as prime minister and finance minister.

Najib: I disagree.

Proceedings before civil court judge Ahmad Fairuz Zainol Abidin are expected to resume on Monday next week.

SRC’s suit

SRC is suing Najib, 71, for his alleged breach of fiduciary duty regarding the misappropriation of US$1.18 billion of loans that the company received between 2011 and 2012.

Kwap had given a total of RM4 billion in loans to SRC in two tranches.

However, Najib contended that the persons responsible for the financial misuse at the company were members of its management, headed by its former CEO Nik Faisal Ariff Kamil, who is at large and being sought by the authorities.

Incidentally, Najib has been serving a six-year jail sentence since August 2022 over a separate criminal case involving RM42 million of funds from SRC.

He was convicted of receiving the RM42 million as gratification for ensuring two government guarantees for the Kwap loans to SRC. Kwap is under the purview of the Finance Ministry.

Under new management, SRC filed the lawsuit in May 2021, alleging that Najib not only committed a breach of trust and abuse of power but also personally benefited from the company’s funds.

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

The plaintiff is also seeking a court order that the former Pekan MP be held accountable for its US$1.18 billion loss and repay US$120 million of funds that allegedly flowed into his bank account.

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