Board of directors' job to manage SRC funds - Najib

KUALA LUMPUR - Former Prime Minister Datuk Seri Najib Razak told the High Court here today that he was not responsible for the micro-management of SRC International Sdn Bhd's funds, as the responsibilities lay with the company's board of directors (BOD) and management.

He emphasised that during his tenure as the chairman of the SRC Board of Advisors, he trusted the BOD to handle the company’s affairs as it comprised of highly qualified individuals.

"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," said Najib during cross-examination by SRC counsel Datuk Lim Chee Wee today.

Najib, 71, is testifying as a defendant witness in SRC International's US$1.18 billion civil suit against him and SRC former chief executive officer Nik Faisal Ariff Kamil, who is currently at large.

Further questioned by Lim whether he independently verified the usage and disbursements of SRC funds, Najib said he could not micromanage how the funds were utilised and the BOD had to decide on the viability of investments.

Lim:..but you had the ability to instruct independent verification of the funds.

Najib: 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.

Meanwhile, when questioned by Lim whether he has evidence to prove the US$120 million in his accounts did not originate from SRC or Retirement Fund Inc (KWAP), Najib requested that the matter be addressed at a later time.

This is the second day Najib has tried to avoid questions about the issue.

During yesterday's proceeding, Lim questioned him about the US$70 million that was deposited into his account and asked if he had any evidence to prove the funds were not misappropriated from SRC International or KWAP, to which Najib answered: "Can I come back to that?"

In May 2021, under the new management, SRC filed the lawsuit, accusing Najib of breach of trust, abuse of power and personally benefiting from the company’s funds and misappropriating the said funds.

SRC International previously removed five of its directors from the lawsuit, retaining Najib as the sole defendant. However, the High Court permitted Najib to issue third-party notices against them.

The company is seeking a court declaration holding Najib accountable for the company's losses due to his alleged breach of duties and trust and for him to compensate the RM42 million in losses they have incurred.

The trial before Judge Datuk Ahmad Fairuz Zainol Abidin continues Oct 9. - BERNAMA