The company had applied for additional funding, despite a lack of concrete developments from its first RM2 billion loan from Retirement Fund Inc (KWAP), which was government-guaranteed.
Najib, 71, said he had discussed with SRC’s management “imminent investments” in the energy field, and it was the responsibility of then SRC chief executive officer Nik Faisal Ariff Kamil to deal with the board.
Under cross-examination by SRC’s counsel P Gananathan, Najib said he was aware there would be a formal process before the second loan application could be approved by KWAP, and it was Nik Faisal’s responsibility to liaise with the board on the issue.
Gananathan: All you did was agree with Nik Faisal’s proposal for additional funding and forward it to the Economic Planning Unit? You asked no additional questions as finance minister?
Najib: It was for Nik Faisal to deal with the board. I had faith in the board all along.
Gananathan: The board that you did not revert to?
Najib: It was not for me to deal with the board, that was the management’s duty.
Najib was testifying as the first defence witness in SRC’s US$1.18 billion civil suit against him and Nik Faisal, who is still at large.
Gananathan further questioned Najib’s testimony and implied that the board would still need Najib’s approval, in the form of his signatures, to move forward with their investment plans.
Gananathan: Regardless of whatever was said to you by the board or management, the utilisation of these funds would not have been carried out without your signature and approval.
Najib: I disagree.
SRC, under a new management, filed the lawsuit in May 2021, accusing Najib of breach of trust, abuse of power, personally benefitting from the company’s funds and misappropriating the funds.
SRC 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 it has incurred.
The trial before Justice Ahmad Fairuz Zainol Abidin continues tomorrow.