KUALA LUMPUR: Datuk Seri Najib Razak sought RM2bil funding from the Retirement Fund Inc (KWAP) for SRC International Sdn Bhd to ensure the company had enough funds to achieve its objectives, the High Court was told.
During cross-examination in a lawsuit filed against him and SRC’s former CEO, Nik Faisal Ariff Kamil, Najib was questioned by lawyer P. Gananathan, representing SRC, about the ‘accelerated loan process.’
Najib acknowledged that he had spoken with the KWAP chairman to expedite the RM2bil financing.
“I wanted SRC to have sufficient capital to fulfill its objectives,” Najib said on Wednesday (Oct 16).
Gananathan asked why it was crucial to hasten the financing.
Najib replied that SRC needed the funds for imminent investments.
When asked to confirm the urgency of the investments, Najib stated that he was informed of their immediacy and instructed to take necessary actions.
Najib clarified that identifying specific investments was not within his job scope, stating that the management was responsible for that.
“My role was to secure financing for SRC, but the board of directors still had their responsibilities,” he added.
Najib denied pre-determining the loan amount requested from KWAP, attributing it to SRC’s management, and specifically to Nik Faisal.
Gananathan suggested that Najib’s involvement in obtaining the loan was akin to performing a director’s role, which Najib disagreed with.
Under new management, SRC initiated the legal action in May 2021, accusing Najib of breaching trust, abusing power, misappropriating funds, and personally benefiting from it.
The lawsuit initially included Najib and 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.
However, the suit later retained only Najib and Nik Faisal as the primary defendants.
Najib subsequently brought the previously named SRC directors as third-party respondents in the suit.
SRC seeks damages, interest, costs, and a court declaration holding Najib responsible for the company’s losses due to his breach of duties and trust. It demands Najib repay US$1.18bil in losses and seeks US$120mil and US$2mil from Najib and Nik Faisal respectively for fraudulent breach of fiduciary duties and trust.
The trial before Justice Ahmad Fairuz Zainol Abidin continues on Thursday (Oct 17).
