I expected briefing from authorities, says Najib on 'complicated' Swiss case involving frozen RM3.6bil SRC funds


KUALA LUMPUR: Datuk Seri Najib Razak says the Swiss investigation where RM3.6bil of SRC International Sdn Bhd funds was frozen by authorities in 2013 was very complicated, hence why he did make further enquiries.

The former prime minister also told the High Court here on Thursday (Oct 10) that he expected authorities to update him on any developments regarding the SRC funds in its BSI Bank account in Lugano, Switzerland.

The frozen funds, part of a RM4bil loan from Retirement Fund Inc (KWAP) to SRC, was seized by Swiss authorities on suspicion that it was laundered.

Najib, as first defendant, said this when questioned by SRC International's lawyer Datuk Lim Chee Wee in the US$1.18bil civil suit against Najib and former SRC chief executive officer Nik Faisal Ariff Kamil, who is currently at large.

Lim: As Finance Minister, did you take action personally to find out what has become of SRC investments to generate returns to pay the loan from KWAP?

Najib: Yes, I did ask around, I did ask the management. They had difficulties in giving me a satisfactory answer. I was not happy with the situation.

Lim: If you were unhappy with the management, what report did you ask from the law enforcement agencies as to why SRC funds were frozen in Switzerland?

Najib: I didn't ask for the report but as I said I expected them to give me the report. I was disappointed with the situation.

Najib confirmed that even after leaving office in 2018, the SRC investment funds had not been repatriated to Malaysia.

In response to another question by Lim, Najib disagreed with the suggestion that the reason he did not instruct local enforcement agencies to investigate the frozen funds in Switzerland was because he had benefited and received RM42mil of SRC funds in his account.

"Whatever I received, I believed in my state of mind is donation money," said Najib.

Najib also denied that he had stopped former finance minister II Datuk Seri Ahmad Husni Hanadzlah from attempting to repatriate the money that was frozen by the Swiss authorities to Malaysia.

"He (Ahmad Husni) just mentioned it casually. I never stopped him from acting in any 1MDB matters. If he prepared a Cabinet paper then we could review it. All ministers travelling overseas must prepare a Cabinet paper," he testified.

However, when questioned if he had personally taken the initiative to prepare a Cabinet paper for Ahmad Husni to initiate an investigation into the frozen funds, Najib said no and stated that SRC management had travelled to BSI Bank in Switzerland to address the issue.

In May 2021, SRC, then under new management, filed the lawsuit accusing Najib of breach of trust, abuse of power and personally benefiting from the company's funds and misappropriating the funds.

SRC International previously removed five of its directors from the lawsuit, retaining Najib as the sole defendant. However, the High Court permitted Najib to issue third-party notices against them.

The company is seeking a court declaration holding Najib accountable for the company's losses due to his alleged breach of duties and trust and for him to compensate the RM42mil in losses incurred.

The trial before Judge Datuk Ahmad Fairuz Zainol Abidin continues on Oct 16. – Bernama

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