KUALA LUMPUR: Former prime minister Datuk Seri Najib Razak approved SRC International's RM3.95 billion loan from the Retirement Fund Inc (KWAP) to ensure the company had sufficient funds for its energy and natural resource investments, the High Court was told today.
Najib, who was the sole shareholder and advisor emeritus of the company, said the approval was conveyed in a two-page letter signed by SRC International's chief executive, Nik Faisal Ariff Kamil, with a handwritten note stating "Bersetuju dengan cadangan ini" (Agree with this proposal), dated June 5, 2011.
The 71-year-old was testifying in a US$1.18 billion civil lawsuit filed by SRC International against him and Nik Faisal, who is at large.
During cross-examination, the company's lawyer, P. Gananathan, suggested that Nik Faisal deliberately addressed the loan application to Najib, rather than to KWAP, to lend it more weight and secure Najib's backing as the prime minister and finance minister at the time. However, Najib disagreed with the suggestion.
Najib said that even though the letter carried his notation, his officers at the Finance Ministry would still conduct due diligence.
Gananathan: The SRC board of directors (BOD) had not been fully constituted when you were undertaking this task of putting your notation to KWAP?
Najib: The full BOD was constituted on Aug 1, 2011.
Gananathan: You would agree with me that this is a matter for the BOD to do, but you were getting involved in this (matter).
Najib: I disagree.
Najib said the company's BOD still had the responsibility to scrutinise the matter by evaluating the investments.
The former Pekan member of parliament said that while he secured the financing for SRC International, it did not absolve the BOD of their duty to oversee the investments.
SRC, under its new management, filed the suit in May 2021, claiming that Najib had committed a breach of trust and abuse of power, and had personally benefited from the company's funds and misappropriated the said funds.
It is also seeking a court declaration that Najib is responsible for the company's losses due to his breach of duties and trust, and for Najib to pay back the RM42 million in losses it suffered.
The trial before Judge Datuk Ahmad Fairuz Zainol Abidin continues.