Azhar Osman Khairuddin said he joined SRC as a director in July 2014 and was later reassigned as its CEO. He left the company in February 2017.
“I was offered to join SRC as a director to spearhead three oil and gas projects my team and I had identified.
“Later, I took over from Nik Faisal (Ariff Kamil) as CEO, but he remained there to handle finance matters, especially KWAP’s (Retirement Fund Incorporated) loans.
“I knew that KWAP had granted a RM4 billion loan to SRC (between 2011 and 2012), but I was never involved in any of the transactions,” he said.
Azhar was testifying in a civil suit brought by SRC International against former prime minister Najib Razak and Nik Faisal over claims of breaches of trust and duty.
The duo are being sued over wrongfully receiving company property, and dishonestly and wrongfully conspiring to convert company property to their own use.
The suit originally included Azhar and fellow former directors Ismee Ismail, Shahrol Azral Ibrahim Halmi, Suboh Yasin and Che Abdullah @ Rashidi Che Omar as co-defendants.
SRC later dropped the case against them. However, they were added as third parties by Najib.
Azhar also told the court he became aware of the status of the loan from the company’s other directors.
“They informed me they went to Switzerland to check the funds themselves and they reported all was indeed there.
“Meanwhile, Nik Faisal said approximately RM3.6 billion (from the RM4 billion) was deposited into the accounts of SRC BVI and Aabar-SRC’s joint venture,” he said.
He also said he knew about KWAP’s loan through Najib’s criminal case involving SRC funds amounting to RM42 million.
Azhar also said that during his tenure as a director, the board instructed Nik Faisal to repatriate SRC’s funds after noting losses that the company suffered.
“Nik Faisal told us (the directors) that if we were to bring the funds back before maturity, SRC would suffer a high penalty,” he said.
Separately, he said he did not report to, or receive instructions, directly from Najib, who was SRC International’s adviser emeritus.
He said Nik Faisal would attend and convey messages from the then prime minister at board meetings.
The hearing before Justice Ahmad Fairuz Zainol Abidin continues tomorrow.