The approval came in a two-page letter seeking the RM3.95 billion from Retirement Fund Inc (KWAP) and was signed by Nik Faisal, with Najib’s handwritten note dated June 5, 2011, stating “Bersetuju dengan cadangan ini (Agree with this proposal)”.
“I wanted SRC to have sufficient capital to fulfil its objectives,” said Najib.
Najib was testifying as the first defendant witness in SRC International’s US$1.18 billion civil suit against him and Nik Faisal, who is currently at large.
Najib, 71, who was under cross-examination, disagreed with SRC counsel P Gananathan’s suggestion that Nik Faisal deliberately addressed the loan application letter dated June 3, 2011 to him, rather than to KWAP, to lend it more weight and secure his backing as both the prime minister and finance minister at the time.
He said even though the letter carried a notation from him, his officers at the finance ministry would still conduct the follow-up to the application and do due diligence.
Gananathan: The SRC board of directors (BOD) had not been fully constituted when you were undertaking this task of putting your notation to KWAP?
Najib: The full BOD was constituted on Aug 1, 2011.
Gananathan: You would agree with me that this is a matter for the BOD to carry out. However, you were involved in such matters.
Najib: I disagree.
Najib said the board still had a role to play as he only secured the financing for SRC but that did not absolve the board from its responsibilities in looking into the investments.
Najib also disagreed with the suggestion that his involvement in securing the KWAP loan indicated he was acting in the capacity of an SRC director.
In May 2021, under the new management, SRC filed the lawsuit, accusing Najib of breach of trust, abuse of power, personally benefitting 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 Justice Ahmad Fairuz Zainol Abidin continues tomorrow.