Crime & Courts

Najib denies role in SRC Int'ls RM3.95bil loan utilisation, blames board

KUALA LUMPUR: Datuk Seri Najib Razak today denied any involvement in the utilisation of SRC International Bhd's RM3.95 billion loans secured from the Retirement Fund Inc (KWAP).

The former prime minister said he only approved the company's loan, and that the utilisation of the funds for investment purposes was up to the board of directors' (BOD) decision.

"I signed based on their (Board of Directors) recommendation.

"How much went to this or that was not my decision. They presented it as necessary for the placement.

"As the prime minister at the time, I could not be concerned with these funds... I had no idea.

"No prime minister can go through all the details. This is the responsibility of the SRC International board," he said.

The 71-year-old was testifying in a US$1.18 billion civil lawsuit filed by SRC International against him and the company's former chief executive Nik Faisal Ariff Kamil, who remains at large.

During cross-examination, the company's lawyer P. Gananathan challenged Najib's testimony, suggesting that the BOD still required Najib's signatures to execute its investment plans.

Gananathan: Regardless of whatever it is said to you by the BOD or by the management, the utilisation of these funds would not have been carried out without your signature and approval.

Najib: I disagree.

Najib, who was the company's emeritus advisor, also said he did not enquire about the second RM2 billion loan request from SRC International as he had faith in the BOD to manage the funds responsibly.

SRC, under its new management, filed the suit in May 2021, claiming that Najib had committed a breach of trust and abuse of power, 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.

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