SRC International’s lawyer Razlan Hadri Zulkifli said billions of ringgit from Retirement Fund Incorporated (KWAP) had been diverted, embezzled, and abused.
“The plaintiffs – SRC and its subsidiaries, Gandingan Mentari Sdn Bhd and Jendela Pinggiran Sdn Bhd (JPSB) – were just the instruments in what was a gargantuan slush fund.
“This case is about some of those monies, RM16 million (to Umno headquarters) and RM3.5 million (to Selangor Umno),” he said in his opening statement.
SRC International and the two subsidiaries that filed the suit in 2022 to recover the money said the party had knowingly received the funds when it had no basis to do so.
Razlan said the establishment and incorporation of SRC International was supposed to herald a new era of energy independence for the nation.
“Alas, all the declarations were but smoke and mirrors. What was conceived was just a tool to deceive,” he added.
He said the plaintiffs’ claim against the defendants was for the recovery of RM16 million and RM3.5 million wrongfully paid by JPSB, purportedly for “corporate social responsibility” (CSR) purposes.
He said the plaintiffs’ case was premised on the claim that these monies were transferred to the defendants as a result of the wrongdoings, breaches of statutory and common law duties, and breaches of trust by the former directors of the plaintiffs.
“We are not alleging any wrongdoing or breach on the part of the defendants in assisting the wrongdoers in diverting the RM19.5 million. This is not a suit based on dishonest assistance,” Razlan added.
He said that, in understanding the facts behind the transfer of these funds, the roles played by Najib Razak as former prime minister, former finance minister, and ex-Umno president, as well as by the directors and senior management of the plaintiffs at the material time, would have to be examined, scrutinised, and analysed.
The defendants do not deny receipt of the funds transferred by JPSB.
However, they are disputing the plaintiffs’ claims on the following grounds: they had no knowledge that the funds were traceable to the wrongful acts of the former directors of the plaintiffs, and that the funds were limited to CSR purposes.
The defendants also said that as a political party they could receive donations from various sources. They said the funds received were used for CSR activities for the general election in 2018 (GE14).
Lawyer Shahrul Fazli Kamarulzaman appeared for Umno while counsel Hasnal Rezua Merican represented Selangor Umno.
The hearing before Justice Raja Ahmad Mohzanuddin Shah Raja Mohzan continues.