Najib has absolute power in SRC — Former director

KUALA LUMPUR — A former director of SRC International Sdn Bhd told the High Court here today that Datuk Seri Najib Tun Razak (picture) had complete authority to make all decisions within SRC including the utilisation and distribution of the RM4 billion loan from Retirement Fund Inc (KWAP).

Datuk Shahrol Azral Ibrahim Halmi, 54, said all the important decisions involving such a colossal amount of money were made by Najib as he was the then Finance Minister, who held ultimate control over SRC through Minister of Finance Incorporated.

“As a mere director and just one of the many directors of the board, I do not have the power to make any decision in respect of the said RM4 billion loan from KWAP.

“I too was obliged under the law and by practice to comply and implement Datuk Seri Najib’s instructions,” he said in his witness statement in SRC International’s US$1.18 billion civil suit against the former prime minister and its former chief executive officer Nik Faisal Ariff Kamil, who is named as the first and second defendant.

Meanwhile, Shahrol Azral was named as the third party respondent along with other former directors, namely Datuk Suboh Md Yassin, Datuk Mohamed Azhar Osman Khairuddin, Tan Sri Ismee Ismail and Datuk Che Abdullah @ Rashidi Che Omar.

Shahrol Azral said as KWAP was a statutory body established under the Retirement Fund Act, it is required to report directly to the Minister of Finance.

“Datuk Seri Najib was the Minister of Finance at the material time and he was the person who approved SRC’s application for KWAP loan either by himself or via his instructions to KWAP’s investment panel.

“In respect of KWAP’s condition that government guarantee be provided for the said loan, in his capacity as the Prime Minister who chaired the Cabinet meeting where all the Cabinet ministers were appointed pursuant to his prerogative, Datuk Seri Najib has also caused the Cabinet to approve and issue the government guarantee for the KWAP loan,” he said, adding that Najib also expedited the disbursement of the RM4 billion loan to SRC.

SRC, under its new management, filed the suit in May 2021, claiming that Najib had committed a breach of trust and power abuse, personally benefited from the company’s funds, and misappropriated the said funds.

It also seeks 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 that they have suffered.

Najib, 70, has been serving a jail sentence at the Kajang Prison since Aug 23, 2022, after being convicted of misappropriating RM42 million in SRC International funds.

The trial before Judge Datuk Ahmad Fairuz Zainol Abidin continues tomorrow. — BERNAMA / pic TMR FILE