KUALA LUMPUR: Datuk Seri Najib Tun Razak repeatedly shifted blame onto others to conceal his own dishonesty in the misappropriation of RM3.95 billion from civil servants’ pension funds, the High Court heard today.
SRC International Sdn Bhd counsel Datuk Lim Chee Wee stated that Najib’s defence wrongly claimed the SRC Board of Directors bore responsibility for due diligence on the first RM2 billion loan from Retirement Fund Inc (KWAP).
Lim revealed the SRC Board did not even exist when KWAP disbursed the loan in the second half of 2011.
“Datuk Seri Najib’s response was that, as Prime Minister and Finance Minister, he could not be expected to undertake due diligence, as this was the responsibility of operational safeguards such as the SRC BOD or the KWAP Investment Panel,“ Lim said during submissions.
He declared this response untenable because the plaintiff had already established there was no SRC Board in place during the loan procurement.
Lim explained the KWAP Investment Panel felt compelled to follow Najib’s instructions since KWAP fell under his purview as Finance Minister.
The hearing concerns SRC’s US$1.18 billion civil suit against Najib and former CEO Nik Faisal Ariff Kamil, who remains at large.
Lim asserted Najib used his influence as Prime Minister and Finance Minister to expedite a massive loan to SRC despite knowing there were no imminent investments.
“He knew that there were no imminent investments, but nevertheless worked in concert with Nik Faisal to procure the loan on an expedited basis in furtherance of the eventual misappropriation of SRC funds,“ Lim told the court.
He added that both Najib and Nik Faisal were personal recipients of the misappropriated funds.
Lim dismissed the contention that Najib was too busy as Prime Minister to concern himself with due diligence as completely untenable.
“SRC was never a run-of-the-mill project,“ Lim emphasised, noting it involved RM4 billion of pension funds channelled into a fledgling company with no proven track record.
He stated the company was conceptualised as an entity akin to Petronas to pursue energy security for the public under the 10th Malaysia Plan.
“Ultimately, there was no energy security achieved,“ Lim concluded.
The hearing before Judge Datuk Ahmad Fairuz Zainol Abidin continues tomorrow.
SRC filed the legal action in May 2021 under new management, alleging Najib committed breach of trust, abuse of power, and misappropriated company funds for personal benefit.
The company originally named Najib and six former directors as defendants but later removed all except Najib and Nik Faisal.
Najib has brought the former SRC directors as third-party respondents in the suit.
SRC seeks damages, interests, costs and a court declaration that Najib is responsible for the company’s losses due to his breach of duties and trust.
The company demands Najib repay US$1.18 billion in losses it has suffered.
SRC also seeks US$120 million from Najib and US$2 million from Nik Faisal for fraudulent breach of fiduciary duties and breach of trust. – Bernama