Kuala Lumpur: The High Court here today ruled that Datuk Seri Najib Tun Razak is liable for SRC International Sdn Bhd’s USD1.3 billion losses after finding that he had breached his fiduciary duties, abused his position, and misappropriated the company’s funds for personal gain.
Judge Datuk Ahmad Fairuz Zainol Abidin, in allowing the company’s USD1.18 billion lawsuit against the former premier, ordered Najib to pay the amount, in addition to USD120 million that he had received from the company into his AmPrivate banking account ending 964, hence bringing the total to USD1.3 billion.
The court will, however, determine the costs at a later date.
In his judgment, Justice Ahmad Fairuz, who is now a Court of Appeal judge, held that Najib had abused his public office, enabling SRC to obtain a RM4 billion loan from the Retirement Fund Inc (KWAP) under government guarantee.
“The misuse of authority facilitated the direct offshore disbursement of RM3.6 billion without proper oversight, raising concerns over financial management. The actions led to the misappropriation of USD1.1 billion through fraudulent investment structures.
“As a result, SRC was unable to repay the public loans, prompting a RM600 million government bailout to cover the losses,” the judge said, adding that Najib took no steps to secure the funds and never ordered any investigation into the transactions.
Justice Ahmad Fairuz said the court further observed that but for Najib’s misuse of office, SRC would not have borrowed RM4 billion on ineligible grounds, dispersed RM3.6 billion offshore through fraudulent structures, or lost USD1.2 billion in misappropriated funds.
“Najib’s misfeasance was thus the proximate and effective cause of SRC’s injury. His orchestration of the scheme from inception to dissipation establishes a clear and complete chain of causation, rendering him fully responsible for the losses suffered by SRC,” said the judge.
He further said that SRC had successfully established on a balance of probabilities that part of its funds, namely USD120 million, was traced into Najib’s bank account.
“The plaintiff’s second witness, Angela Barkhouse, an offshore asset recovery specialist, testified in detail how the sum of USD120 million moved from SRC to SRC BVI, then to Blackstone, and ultimately into Najib’s account.
“Each link in that chain is supported by unredacted documentary evidence showing the critical transaction particulars. From her explanation, this court was able to clearly trace when the USD120 million was transferred, through which entities it passed, and where it ultimately ended,” said the judge.
