I never interfered in 1MDB, SRC investigation, says Najib

Former prime minister Najib Abdul Razak denied ever having interfered in the authorities’ probe into the 1MDB and SRC affair.

He told the Kuala Lumpur High Court today that it would not have been appropriate for him - who was also being questioned by the police and MACC then - to call up the investigation agencies and enquire about the status of the probe.

“I was very concerned as I knew 1MDB was under investigation and of course its relationship with SRC International (a former subsidiary of the Malaysian sovereign wealth fund).

“I was also being investigated and they (authorities) came to my office (Prime Minister’s Office in Putrajaya) to question me,” he said.

“When you are being investigated as well, it would not be appropriate for me to go beyond it (call up investigating agencies), otherwise I would be accused of interfering with the investigation, which was at the back of my mind. Hence, I left it to the authorities.

“If you deliberately say something (calling up investigating agencies), it could constitute a crime, an abuse of power, and interference in the investigation,” the former adviser emeritus to SRC and chairperson of 1MDB’s board of advisers testified.

Before civil court judge Ahmad Fairuz Zainol Abidin, Najib also cited the abuse of power case against Prime Minister Anwar Ibrahim to support the ex-premier’s contention that he would not have committed abuse of power.

On April 14, 1999, the criminal court jailed Anwar for six years for corruption. He was released in 2004. However, in 2018, the Yang di-Pertuan Agong pardoned him.

SRC’s suit

Najib today was giving oral evidence to rebut SRC’s US$1.18 billion (RM3.6 billion) lawsuit against him.

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.

The former finance minister contended that the persons responsible for the financial misuse at the company were the 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.

‘PM super busy, had to put faith in SRC board’

During re-examination by his lead counsel Muhammad Shafee Abdullah, Najib denied ever compelled SRC's board to follow his instructions.

Najib said SRC's directors have a fiduciary duty under the law to run MOF Inc, pointing out that he never micro-managed the company due to being caught up with administering the country.

The former prime minister testified it was humanly impossible for him to micromanage SRC when the daily issues in running the government were humongous, thus he had to put his trust in the company's board.

"As you know, when I was, or anybody for that matter, being the prime minister, one's schedule is super busy, dealing with so many things. Not only that, but you apply your mind to very pressing and quite often complex issues daily.

"As prime minister at that time, I always took a position not only when dealing with SRC matters but also other companies (under MOF Inc) including Khazanah (National Berhad).

"I would be guided by what (SRC) management and board represented to me. In SRC, it was represented to me that the board has decided (on matters), so on that basis, I signed (the documents to greenlight transactions)," Najib said.

He claimed another incident that showed he never abused power was in relation to Petronas National Berhad, which is governed by specific legislation that prevents the national oil company from questioning the directives of a sitting premier over it.

Najib pointed out that Petronas' exceptional structure has a sitting prime minister with overwhelming power to issue directives to the company's board, which the directors must implement.

"I am happy to say when I was prime minister, I never once activated this (legal power over) Petronas by giving such directions that create conflict with Petronas.

"When I left office, I left with RM176 billion in (reserve) cash with Petronas. That shows how careful I was in exercising power as prime minister," Najib said.

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

Lawyer Muhammad Farhan Muhammad Shafee also appeared for Najib.

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

1MDB argues US$248m siphoned to fund Najib stepson's film

Najib defends move to greenlight RM3.95b funding for SRC

Najib withdraws 'academic' appeal to lift US$681m Mareva freezing order