KUALA LUMPUR: The High Court has been informed that SRC International Sdn Bhd, a subsidiary of 1Malaysia Development Bhd (1MDB), fell victim to a large-scale fraud allegedly orchestrated by Datuk Seri Najib Razak.
According to SRC’s lawyer Datuk Lim Chee Wee, instead of fulfilling its role in serving the public, the company was allegedly exploited by Najib to secure a whopping RM4 billion loan from the Retirement Fund Inc (KWAP).
It is claimed that Najib benefitted by at least US$120 million, leading to losses of at least US$1.18 billion to SRC and the public.
Lim made these assertions in an opening statement during a lawsuit by SRC against Najib and former SRC CEO Nik Faisal Ariff Kamil, who is currently evading authorities.
The lawsuit is being heard before High Court judge Justice Ahmad Fairuz Zainol Abidin.
Lim explained that the legal action against Najib revolves around SRC, established on Jan 7, 2011, as a special purpose vehicle to invest in energy, natural resources, and minerals sectors for the benefit of the people.
He highlighted that Najib could be held accountable for his alleged dishonest conduct and abuse of power under the tort of misfeasance in public office, emphasizing that no one is above the law.
This means that Najib could be sued as the prime minister, a public officer, for his actions in the company.
Under new leadership, SRC initiated the legal action in May 2021, alleging breach of trust, abuse of power, misappropriation of funds, and personal gain by Najib.
Initially, the lawsuit included several former directors of SRC, but they were later removed, with Najib and Nik Faisal remaining as the primary defendants.
Furthermore, Najib has named the ex-SRC directors as third-party respondents in the case.
Previously serving as SRC’s Emeritus Advisor, Najib is now facing claims for damages, interest, costs, and a court declaration holding him responsible for the company’s losses due to breach of duties.
Additionally, SRC is seeking repayment of the RM42 million in losses incurred.
Najib, currently serving a sentence in Kajang Prison since August 2022 for misappropriation of funds in the RM42 million SRC case, is scheduled to appear at the hearing.
The proceedings are set to continue today.
