In a High Court hearing in Kuala Lumpur, it was revealed that SRC International Sdn Bhd, a former subsidiary of 1Malaysia Development Bhd (1MDB), fell victim to a large-scale fraud orchestrated by former Prime Minister Datuk Seri Najib Razak. SRC’s lawyer, Datuk Lim Chee Wee, alleged that Najib used the company to secure a massive RM4 billion loan from the Retirement Fund Inc (KWAP) for personal enrichment, resulting in losses of at least RM5.58 billion.
The legal action brought by SRC against Najib and SRC’s former CEO, Nik Faisal Ariff Kamil, centers around events involving SRC, which was established in 2011 to invest in energy, natural resources, and minerals. Lim stated that these investments were intended for the benefit of the public, with those in power expected to act in good faith.
Lim accused Najib of engaging in dishonest conduct and abusing his power within the company, suggesting that he could be held liable under the tort of misfeasance in public office. This legal principle signifies that individuals, including public officials, are not above the law and can be held accountable for their actions.
The lawsuit filed by SRC in May 2021 alleges breach of trust, abuse of power, misappropriation of funds, and personal gain by Najib. The company is seeking various forms of damages, including the return of RM42 million lost due to Najib’s alleged misconduct.
Najib, who is currently serving a prison sentence for criminal breach of trust related to SRC funds, had his initial 12-year jail term reduced to six years by the Federal Territories Pardons Board. Additionally, his fine was reduced from RM210 million to RM50 million.
The court hearing regarding the lawsuit against Najib is ongoing, with SRC seeking justice for the losses incurred as a result of his alleged actions. The outcome of the trial will have significant implications for Najib’s legal standing and potential liabilities in relation to SRC International.
Throughout the proceedings, the focus remains on holding Najib accountable for his role in the mismanagement of SRC funds and his purported misuse of power for personal gain. The court will assess the evidence presented and determine the extent of Najib’s responsibility for the financial losses suffered by SRC and the Malaysian public.
The case underscores the importance of transparency and integrity in governance, as well as the consequences of abusing positions of authority for personal benefit. The legal proceedings serve as a reminder that individuals, regardless of their status, must adhere to the principles of accountability and ethical conduct in their actions.
As the lawsuit against Najib progresses, the Malaysian legal system will continue to address allegations of corruption and misconduct at the highest levels of government. The outcome of the trial will shed light on the extent of Najib’s involvement in the alleged fraud and the impact of his actions on SRC International and its stakeholders.
