Najib Defends SRC Fund Management Amid US$120 Million Allegations

In a riveting courtroom session on September 27th, former Malaysian Prime Minister Datuk Seri Najib Razak made bold declarations as he faced allegations concerning the management of SRC International Sdn Bhd’s funds. Testifying as a defendant in a US$1.18 billion civil suit, Najib stood firm on his stance that micromanaging the company’s finances was beyond his responsibilities as chairman of SRC’s Board of Advisers, asserting that such duties were the realm of the company’s board of directors (BOD).

Najib, aged 71, revealed his trust in the board, which he described as composed of highly capable individuals responsible for overseeing the financial health and strategic direction of the company. He stated, “The company’s board and management are the main organs of the company, so when I decided to manage SRC from a macro point of view, I wanted SRC to succeed in their goal for finding alternative energy for the country.”

The cross-examination conducted by SRC counsel Datuk Lim Chee Wee probed deeper into the intricate financial dealings, focusing on whether Najib had independently ensured the prudent use of company funds. Najib reiterated his position, acknowledging his reliance on the BOD’s expert judgment to make investment decisions, implying no direct intervention from political figures was apt or warranted. “I left it to the BOD because I believe it is their responsibility. I can’t micro manage the company, no PM in the world would because that is the work of technocrats, not politicians,” Najib firmly defended.

Intriguing courtroom dynamics unfolded as Lim inquired about the controversial US$120 million traced to Najib’s accounts, questioning the former leader on its origins. In response, Najib strategically deferred, suggesting the issue be explored in future proceedings, indicating a patterned evasiveness observed over consecutive days of questioning. During an earlier session, Lim prompted Najib to elucidate a US$70 million transaction, a query met with the same reticence from Najib.

This lawsuit, launched by SRC in May 2021 under its new management, accuses Najib of systematically breaching trust, misappropriating company funds, and failing in his fiduciary responsibilities. As the sole defendant following the removal of five directors from the case, Najib is summoned to repay substantial losses, amounting to RM42 million, attributed to his alleged misconduct. The High Court notably allowed Najib to pursue third-party notices against these erstwhile directors, weaving a complex narrative of accountability and corporate governance failures.

The trial, overseen by Judge Datuk Ahmad Fairuz Zainol Abidin, is set to resume on October 9, continuing the high-stakes examination of Najib’s actions during his pivotal tenure at SRC International. This case remains a significant marker in Malaysia’s legal and political landscape, casting long shadows over Najib’s storied political career and the broader narratives of financial impropriety within the upper echelons of power.