Shahrol Azral Ibrahim Halmi, who was director from 2011 to 2012, said he and others were “obliged under the law and by practice to comply with and implement” former prime minister Najib Razak’s decisions and instructions at SRC International.

“He had absolute power to make all decisions on the direction, administration and operations of SRC International, including how the RM4 billion from KWAP (Retirement Fund Incorporated) would be utilised and disbursed.

“As one of the many directors of the board, I did not have the power to make any decision over the RM4 billion,” he said.

Shahrol added that Najib, also the then finance minister, had “caused” his Cabinet to approve a government guarantee for the RM4 billion loan.

“The former prime minister was SRC International’s sole shareholder and adviser emeritus. I was compelled to sign whatever documents he (Najib) or (former CEO) Nik Faisal Ariff Kamil directed me to sign,” he said.

SRC International is suing Najib and Nik Faisal for wrongfully receiving company property, and dishonestly and wrongfully conspiring to convert company property to their own use.

The suit originally included Shahrol and fellow former directors Ismee Ismail, Azhar Osman Khairuddin, Suboh Yasin and Che Abdullah @ Rashidi Che Omar as co-defendants.

SRC International later dropped the case against them. However, they were added as third parties by Najib.

Shahrol also told the court that Nik Faisal was Najib’s “proxy” and had acted as the link between the former prime minister and SRC International directors.

He said whatever Nik Faisal said during the board meeting was confirmed in the minutes signed by shareholder Najib.

“I had no reason to suspect Nik Faisal,” he said.

‘I have nothing to hide’

Shahrol said the court should not hold him jointly liable with Najib for the loss and damage that SRC International incurred, in the event the court ruled against the former prime minister.

“I reiterate that my role as a director only existed in name and not in reality. I did not conspire with others to manipulate SRC International to perpetuate a fraud that caused the company’s funds to be misappropriated,” he added.

Shahrol reaffirmed that he was never charged by the authorities over SRC International’s loss and damages.

“I have nothing to hide and gave my full cooperation to the police and MACC (Malaysian Anti-Corruption Commission).

“On the contrary, Najib was convicted (over SRC International’s RM42 million misappropriation) and his appeals (at the Court of Appeal and Federal Court) were dismissed,” he added.

The hearing continues before Justice Ahmad Fairuz Zainol Abidin tomorrow.