KUALA LUMPUR: Datuk Seri Najib Razak told the High Court that he had the power to approve appointments for SRC International Sdn Bhd's board of directors, but the nominations did not come from him.
The former prime minister, who was the advisor emeritus of SRC, agreed that he had veto power when it came to the appointment and removal of directors, but maintained that he was "the last part" of the process.
Najib was testifying under cross-examination by SRC's lawyer Kwan Will Sen as the sole defendant in a RM42mil lawsuit filed by SRC against him.
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"I get to formalise the appointment. It (the recommendation) has to come from somebody who would submit it to the prime minister, but before it formalises, the prime minister has to approve," he said here on Wednesday (Jan 14).
Najib was also shown a letter relating to the appointments of SRC directors, including Nik Faisal Ariff Kamil, who became the managing director.
Najib agreed that he approved the names in the letter as they were recommended to him, but insisted that he did not "initiate" the names and that he did not know them personally.
"I could exercise (my power) if I wanted to, but it's not the same as the prime minister appointing it. They have to source and name who they want.
"I get to make the final call," Najib said.
On Nik Faisal's appointment, Najib said he was "not familiar" with him, but he (Nik Faisal) was recommended as "suitably qualified".
Nik Faisal was a former SRC director and CEO who is currently at large. The court had previously heard that Nik Faisal was a mandate holder to one of Najib's bank accounts.
Najib was referred to Article 116A of SRC's Memorandum and Articles of Association (M&A), in which the provision stated that any amendment of the M&A, or the appointment or termination of the director and top management of SRC, required approval from the prime minister.
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Kwan: Do you agree this gives you, and only you, power to amend the articles?
Najib: The veto power.
Kwan: It does not give anyone else the same power?
Najib: No.
Kwan: There can never be amendments without your approval?
Najib: Yes, but I am the last part of it.
SRC and its subsidiary Gandingan Mentari Sdn Bhd filed the lawsuit in 2021, seeking a court declaration that Najib is liable to them for the receipt of RM42mil, as well as damages for knowing receipt, dishonest assistance, the tort of misfeasance, and abuse of power.
It previously removed six of its directors from the lawsuit, including Tan Sri Ismee Ismail, Datuk Suboh Md Yassin and Datuk Shahrol Azral Ibrahim Halmi, and retained Najib as the sole defendant.
The High Court, however, granted Najib permission to issue third-party notices against them.
The hearing before Justice Raja Ahmad Mohzanuddin Shah Raja Mohzan resumes on Jan 21.
