He said out of over 31 “wrongdoings” purported to be discovered by the new management, 27 related to the lack of due diligence and supervision over the affairs of SRC by its former guardians as the cause for the loss of billions of ringgit.

“The constitution of SRC entrusts the directors exclusively on matters relating to investments to be undertaken. If indeed the former trustees in whom confidence was reposed had turned a blind eye and allowed the proverbial wolf into the coop, the betrayal of confidence ought to have been inquired into,” the former prime minister said.

Najib, 68, said this in his statement of defence filed on April 4 in reply to SRC’s US$1.18 billion civil suit against him.

He also contended that any wrongful transfers of funds out of the company were due to its previous management as discovered by the new management.

Najib dismissed as ridiculous the allegation that SRC directors’ investment decisions reflected his wish as the then prime minister.

The former finance minister also alleged that SRC’s board had exclusive powers in determining investment decisions and policies, courtesy of Articles 74, 75, and 78 of the company’s memorandum and articles of association (M&A), as well as Section 131B of the Companies Act 1965.

In refuting SRC’s claim of fraud and wrongdoing, Najib said the company’s own suit appeared to show that its eventual inability to repay the instalments that were due in 2015 was the result of the various unlawful acts of the SRC board.

Based on the circumstances surrounding Najib’s discharge of duties in public office, the former prime minister categorically denied committing any wrongdoing, including the tort of misfeasance or abuse of public office or position, whether as PM or finance minister.

Najib stressed that he did not embezzle, misappropriate or convert any money from SRC or defraud SRC in any way, nor did he even intended to do so and was not motivated by ulterior or improper motives or was dishonest or reckless.

He also claimed that Article 117 of SRC’s M&A itself prevents the adviser emeritus (Najib) from ever issuing advice unilaterally to the government-linked company.

Najib claimed that as per SRC’s corporate governance structure, advice from the adviser emeritus was subject to requests from the board.

He said any such advice was limited to material matters and those of strategic interest to Malaysia and could not have affected any matter within the board’s exclusive powers.

Thus, Najib added that throughout the material time, he acted in good faith and discharged his duty as then prime minister and finance minister to further the national interest.

On May 7, 2021, SRC under its new management filed legal action against Najib and its former directors Suboh Md Yassin, Mohammed Azhar Osman Khairuddin, Nik Faisal Ariff Kamil, Che Abdullah @ Rashidi Che Omar, Shahrol Azral Ibrahim Halmi and Ismee Ismail, but later removed the names of the six directors from the suit and retained Najib as the sole defendant.

SRC as a plaintiff, in the writ of summons, alleged that Najib had abused his power and obtained personal benefits from SRC funds as well as misappropriated the funds.

SRC, which is now wholly owned by the Ministry of Finance Incorporated is seeking general damages, exemplary, additional and interest, costs and other appropriate relief deemed fit by the court.