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 1. Home
 2. SRC claims US$120 mil out of RM4b KWAP loan went to Najib

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SRC claims US$120 mil out of RM4b KWAP loan went to Najib
By Hafiz Yatim & Timothy Achariam / theedgemalaysia.com
05 Mar 2024, 11:36 amUpdated - 02:03 pm


Datuk Lim Chee Wee (centre), the lead counsel for SRC International Sdn Bhd,
described the SRC case as a 'multi-jurisdictional fraud' in his opening
statement at the trial before High Court (Commercial Division) judge Datuk Ahmad
Fairuz Zainol Abidin. (Photos by Zahid Izzani/The Edge)

KUALA LUMPUR (March 5): In the SRC International Sdn Bhd's US$1.18 billion civil
suit against former prime minister Datuk Seri Najib Razak, lawyers for the
company have alleged that out of the RM4 billion loan given by Retirement Fund
Inc (KWAP) to SRC International over two disbursements in 2011 and 2012, US$120
million made its way to Najib’s AmBank account.

Datuk Lim Chee Wee, the lead counsel for SRC International, described the SRC
International case as a “multi-jurisdictional fraud” in his opening statement at
the trial before High Court (Commercial division) judge Datuk Ahmad Fairuz
Zainol Abidin. Lim contended that the company became a victim orchestrated by
Najib’s multiple wrongdoings in his various roles as a public officer — namely
as Prime Minister and Minister of Finance, Advisor Emeritus of SRC, and in truth
a shadow director.

“SRC International was set up as a special purpose vehicle on Jan 7, 2011, to
invest in conventional and renewable energy, natural resources and minerals
sector.

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“These investments were ultimately meant for the rakyat, with the expectation
that those in power would act in good faith for the benefit of the public. Those
in power having all the avenues open to them, were duty bound to act solely in a
manner that would be of public good. In short, as custodian of the country’s
coffers,” he added.

Lim said the unthinkable happened in this case, that an abuse of power
took place and they would attempt to prove it, and that Najib wielded supreme
authority to ultimately cause harm and injury to the company which was set up
with the public's interest in mind.

Najib is presently serving a 12-year jail sentence and RM210 million fine, which
was recently reduced to six years jail and a RM50 million fine, following a
partial pardon by the former King.

Lim said a portion of the RM4 billion loan from KWAP made its way to a Swiss BSI
account, followed by elaborate transactions with Enterprise Emerging Market Fund
in Curacao, and then to Blackstone Asia Real Estate Partners Ltd in British
Virgin Island, and then to Singapore, where a sum of US$120 million made its way
back to Najib’s bank account.


ACTION AGAINST NAJIB

The senior lawyer said the action against Najib is for fraud, breach of
fiduciary duties and breach of trust, conspiracy, tort of misfeasance in public
office, conversion, dishonest assistance and knowing receipt of assets belonging
to SRC International.

Najib has pulled in several former directors of SRC International, namely Datuk
Suboh Md Yassin, Datuk Shahrol Azral Ibrahim Halmi, Tan Sri Ismee Ismail, Datuk
Mohammed Azhar Osman Khairuddin and Nik Faisal Ariff Kamil, as third party
respondents.

Najib's lawyer Harvinderjit Singh at the Kuala Lumpur High Court on Tuesday.

Nik Faisal, who was Najib’s proxy in managing his AmBank accounts, is still at
large having fled the country much earlier.

Lim claimed that Najib was the ultimate controller of SRC and its board of
directors by virtue of being the chairman of the board of advisors, and in
wearing different hats, influenced and directed decisions of the board. He said
that Nik Faisal was Najib's proxy and accessory (to the crime) and that both
were beneficiaries of the decisions taken.

The actions by Najib and Nik Faisal had resulted in losses of US$1.18 billion,
which are accountable for pursuant to the purported investment schemes.

Following this, SRC International is seeking several declarations in this case
namely that Najib is liable for the breaches of duties and trust, that Najib and
Nik Faisal are liable for and to pay the US$1.18 billion losses from the
investment funds, an order for Najib to compensate the US$120 million and Nik
Faisal to pay US$2 million to SRC, and that the company is entitled to trace the
amount, as well as general, exemplary and aggravated damages.

SRC International co-counsel P Gananathan said the plaintiff would show how the
KWAP loans were to be utilised within Najib’s purview and influence.

He added that SRC invites the court to observe the role of Nik Faisal who is the
company’s former CEO and was the link between Najib and the board of directors
of SRC, who were accustomed to act in accordance with the former premier’s
instructions.

“The directors were updated by Nik Faisal and were essentially adopting
shareholder resolutions of SRC by Najib which were brought to the attention of
the directors of SRC at board meetings.

“The court will also hear evidence of circumstances where the board of SRC
International were accustomed to act on the directions or instructions from
Najib where there was an absence of shareholders resolutions or minutes,” he
added.

The action by SRC International is one of 16 suits filed by the company since
2021 to recover the losses. Of the 16 suits, two have been settled and this case
against Najib is the first to go to trial.

In addition, there is a separate suit filed by SRC International and its
subsidiary Gandingan Mentari Sdn Bhd against Najib for RM42 million, where the
court granted a Mareva injunction against the disposal of assets by Najib.

The first witness to be called in this civil suit is former BSI banker Kevin
Swampillai.

Read also: 
Ex-BSI banker says he's under impression SRC fund transactions undertaken at
Najib’s instructions
Najib and SRC International alleged to have disregarded BNM conditions on RM4
bil KWAP loan
Court allows SRC to amend statement of claim against Najib


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