KUALA LUMPUR: The High Court here heard that Datuk Seri Najib Razak did not have control over the movement and utilisation of funds from the SRC International Sdn Bhd funds.
The former prime minister testified that he could only ratify a decision made by the board of directors (BOD) of SRC who were expected to conduct the necessary due diligence.
According to Najib, based on the duties and powers accorded to him in SRC, he lacked the position or power in the corporate governance structure to undertake any transactions for SRC.
"This is solely within the ambit of the board of directors and I was never informed of nor was I able to carry out an independent verification of the disbursement of the SRC funds," said Najib.
Najib then said that he had no role in earmarking and approving the purported investment and the funds by SRC.
"By virtue of my positions, I have no trust or fiduciary obligation over the proposed investment and the funds utilised for the same. I also have no oversight nor control of the disbursement of the funds," he added.
Under new management, SRC filed the legal action in May 2021, alleging that Najib had committed breach of trust, abuse of power, misappropriated the company's funds and personally benefited from it.
It named Najib along with its former directors Datuk Suboh Md Yassin, Mohammed Azhar Osman Khairuddin, Nik Faisal, Datuk Che Abdullah @ Rashidi Che Omar, Datuk Shahrol Azral Ibrahim Halmi and Tan Sri Ismee Ismail in May 2021.
However, later, it removed six names from the suit and retained Najib and Nik Faisal as the first and second defendants.
Additionally, Najib has brought the former named SRC International directors as third-party respondents in the suit.
The company is seeking damages, interests, costs and a court declaration that Najib is responsible for the company’s losses due to his breach of duties and trust, and is demanding that Najib pay back the US$1.18bil in losses that it has suffered.
It is also seeking US$120mil and US$2mil from Najib and Nik Faisal respectively, on account of fraudulent breach of fiduciary duties and breach of trust.
The trial before Justice Ahmad Fairuz Zainol Abidin continues on Thursday (Sept 26).
