KUALA LUMPUR: The High Court was told on Tuesday (July 8) that the responsibility for transactions undertaken by SRC International Sdn Bhd lies with its board of directors and management.
Lawyer Muhammad Farhan Muhammad Shafee, representing Datuk Seri Najib Razak, submitted that his client did not exercise exclusive control over SRC’s operations or the handling of loan proceeds obtained from the Retirement Fund Inc (KWAP).
"The board executed all relevant transactions and bore responsibility for oversight. If any misappropriation occurred, it was due to the board’s own decisions. Even taking Najib’s purported instructions at their highest, he ultimately vested responsibility in the board to properly manage the funds,” he said.
Muhammad Farhan advanced the submission during the hearing of SRC’s US$1.18bil civil suit against Datuk Seri Najib Razak and former SRC chief executive officer Nik Faisal Ariff Kamil, who remains at large.
He further contended that Najib neither exercised control over the decisions of SRC’s board of directors nor owed fiduciary duties to the company in the capacity of a director.
"Any formal roles or shareholder approval rights he held were part of lawful governance structures and did not make him the ‘controlling mind’ of SRC in breach of duty.
"In other words, responsibility, duty, trust - and ultimately, liability - rest with the board,” said Muhammad Farhan before Judge Datuk Ahmad Fairuz Zainol Abidin.
The submission will resume on Aug 25.
In May 2021, SRC, through its new management, initiated the suit alleging that Najib had committed breaches of trust and abuse of power, personally benefitted from company funds and misappropriated those funds.
The company is also seeking a declaration that Najib is liable for the company’s losses arising from his alleged breaches of duty and trust, and an order compelling him to repay RM42mil in losses purportedly suffered by the company.
Najib is currently serving a jail term in Kajang Prison for the misappropriation of RM42mil in the SRC International funds case.
On Sept 2, 2022, he filed a petition for a royal pardon. This led to his jail term being halved from 12 to six years and the RM210mil fine imposed on him reduced to RM50mil on Jan 29, 2024. - Bernama
