Najib actively controlled SRC operations through CEO, court told

The Kuala Lumpur High Court was told today that Najib Abdul Razak actively controlled and administered SRC International Sdn Bhd, whether directly or through its former chief executive officer, Nik Faisal Ariff Kamil.

Former SRC director Shahrol Azral Ibrahim Halmi, 56, testified that Nik Faisal, appointed as both director and CEO of the company, acted as Najib's proxy and served as the link between the then prime minister and SRC's board of directors.

He added that Nik Faisal would table papers and proposals to the board for approval and undertake follow-up action on projects, while keeping Najib directly informed of all company discussions and decisions.

"All the directors were compelled to comply with and implement the decisions and instructions of Najib as represented by Nik Faisal or through letters and documents signed by him.

"Whatever our opinions or comments were, Nik Faisal would tell us that the projects or matters had already been approved and endorsed by Najib or the government," said Shahrol, who is named as one of the third parties in the suit.

He was giving his witness statement in the RM42 million civil suit filed against the former prime minister by SRC and its subsidiary, Gandingan Mentari Sdn Bhd.

"Najib appointed Nik Faisal as a director, CEO and corporate representative of SRC. He was tasked with heading the company's management. He was also the authorised signatory for all SRC bank accounts and a mandate holder for Najib's personal accounts.

"The instructions conveyed by Nik Faisal during board meetings are confirmed in the minutes of shareholders' meetings signed personally by Najib, and he is relaying Najib's decisions, which all directors are obliged to implement," he explained, adding that based on the reasons above, he had no reason or grounds at the time not to believe Nik Faisal.

The witness further informed the court that Najib made all important decisions concerning the RM4 billion loan from Retirement Fund Incorporated, adding that, as a mere director on the board, he lacked the authority to make any financial decisions.

Not liable to indemnify

Responding to Najib's claim for indemnity against third parties in the suit, Shahrol asserted that he was not liable to indemnify or contribute to the former prime minister should Najib be found liable to SRC.

He further denied that he was required to account to SRC as a constructive trustee, compensate or pay any sums or damages to SRC, or provide the declaratory relief sought by Najib.

"I also deny Najib's claim that I have acted fraudulently, failed to discharge my duty as a director, conspired with others, and that I have manipulated SRC to perpetuate a fraud which caused billions of funds from the company to be wrongfully disbursed and misappropriated.

"I was never charged with any offence pertaining to the loss and damage suffered by SRC in respect of the misappropriation of the RM4 billion fund from the Retirement Fund Incorporated loan.

“On the contrary, the High Court had convicted and sentenced Najib, the Court of Appeal affirmed his conviction and his appeal to the Federal Court has been dismissed," he said.

Filed in 2021 by SRC and Gandingan Mentari, the civil suit seeks a declaration that Najib is liable for RM42 million and claims damages for knowing receipt, dishonest assistance, misfeasance in public office, and abuse of power.

The trial before judge Raja Ahmad Mohzanuddin Shah Raja Mohzan resumes tomorrow.

- Bernama

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