KUALA LUMPUR: Datuk Seri Najib Razak has failed in his bid to stay a US$1.1 billion lawsuit filed against him by SRC International Sdn Bhd.
High Court judge Datuk Ahmad Firuz Zainol Abidin made the ruling after he found there was no issue of prejudice pending Najib's appeal in his criminal case.
The former prime minister applied for the stay pending his appeal against his conviction in the seven charges involving RM42 million in the SRC International criminal trial.
He was sentenced to 12 years' jail and RM210 million fine for abuse of power, criminal breach of trust, and money laundering involving funds from SRC.
Firuz said it was the court's view that the outcome Najib's appeal at the Federal Court was purely speculative at this juncture.
The court also ordered Najib to file his defence statement within 30 days.
However, Najib's counsel Harvinderjit Singh requested an extension of time of 40 days as he and his colleague Tan Sri Muhammad Shafee Abdullah was heading to United Kingdom tomorrow to brief the Queen's counsel on Najib's criminal appeal at the Apex court.
The court allowed the extension of time and fixed April 1 for next case management.
SRC International had under its new management, filed the legal action on May 7 last year, and initially named Najib and its former directors Suboh, Mohammed Azhar, Nik Faisal, Datuk Shahrol Azral Ibrahim Halmi, Tan Sri Ismee Ismail and Che Abdullah as defendants.
However, on July 22 same year, it removed Ismee and Shahrol's names from the suit and retained the others as defendants.
SRC International, which is a subsidiary of 1Malaysia Development Bhd in the writ of summons, alleged that all the defendants conspired and committed a breach of trust.
It also claimed that Najib had abused his power and obtained personal benefits from SRC International funds as well as misappropriated the funds.
Najib was the adviser emeritus of SRC International from May 1, 2012, to March 4, 2019.
SRC International, which is now wholly-owned by the Ministry of Finance Incorporated (MoF Inc), is seeking a declaration that all the defendants are liable to pay the loss of investment funds as a result of the use of the loan amount.
The company claimed that in January 2019, it was placed under the care of officials from the finance ministry and after scrutinising and reviewing SRC International records, it was found that SRC's previous directors had not taken any reasonable steps to ensure Retirement Fund Inc's (KWAP) loans amounting to RM4 billion to SRC in 2011 and 2012 were used properly to finance the company's general investment activities and general working capital requirements.
It also claimed that its new management found that a large number of withdrawals, transfers and use of KWAP loans were fraudulent or wrong.