I took an oath, wouldn't act against SRC's interests: Najib

Najib Abdul Razak testified that he took an oath as then prime minister and would not have acted against the interests of SRC International and the country.

The former finance minister told the Kuala Lumpur High Court that any director who disagreed with how the Minister of Finance Incorporated (MOF Inc) owned company was run had the liberty to resign.

Testifying in the SRC’s US$1.18 billion (RM3.6 billion) lawsuit against him, the company’s former adviser emeritus reiterated he could not micromanage the company and relied on the directors who had impeccable professional credentials.

“As a prime minister, I would not do anything against the interests of the company and the country, I took an oath under the (Federal) Constitution,” Najib told trial judge Ahmad Fairuz Zainol Abidin.

SRC is suing Najib for the return of the money embezzled out of the company.

Najib’s answer was in reply to cross-examination by lawyer Gurdial Singh Nijar, who represented ex-SRC director Suboh Md Yassin.

Najib brought Suboh and several other ex-SRC directors into the suit to partly or fully reimburse the ex-premier if the company wins the civil action.

The defendant contended that he could not be held responsible for the misappropriation of the funds as he had no knowledge of wrongdoing at SRC and that the company’s board of directors were beholden to corporate governance.

Breach of fiduciary duty

Najib alleged that Suboh and several other SRC board members breached their fiduciary duty.

However, when Gurdial asked for specifics on what Suboh allegedly did to breach the fiduciary duty, Najib said he would come back on that later.

Gurdial: You did not specifically state what the directors did or did not do that caused damage suffered by SRC. You blame them. You did not state what caused the damage or what they did not do that they ought to have done that resulted in losses (by SRC). You did not state what were the breaches of duties.

Najib: He (Suboh and other SRC directors) is bound by the law to do what is necessary as director, with fiduciary duties and responsibilities.

Gurdial: You did not state what they should have done.

Najib: I (will) come back to that (later).

The ex-prime minister added that he had to put his trust in the SRC board and management to handle the funds because he was saddled with governing the country.

“I expected them (directors) to do what board members (need to) do. You have to trust people.

“How you operate the government, with hundreds of (government-linked) companies,” Najib explained.

The civil court proceedings will resume this Thursday.

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.

The Retirement Fund Incorporated (Kwap) had given a total of RM4 billion in loans in two tranches for SRC to invest in renewable energy activities.

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.

A legal team headed by counsel Lim Chee Wee is representing SRC.

Lawyer Muhammad Farhan Muhammad Shafee appeared for Najib.

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