Former SRC director denies role in RM42mil loss

 Azhar Osman Khairuddin says he had no personal knowledge of the disbursement of funds and the related transactions.

Former director of SRC International Sdn Bhd, Azhar Osman Khairuddin said during his tenure as a director, the SRC board of directors was always briefed on financial matters by the former CEO, Nik Faisal Ariff Kamil.

PETALING JAYA:

 A former director of SRC International Sdn Bhd categorically denied that any act or omission on his part had caused losses to the company, the High Court heard today.

Azhar Osman Khairuddin, 71, said he had no knowledge of the RM42 million disbursement and did not authorise any transactions or access to SRC’s bank accounts at any material time, Bernama reported.

He said this during cross-examination by counsel Shafee Abdullah, who is representing Najib Razak in a RM42 million civil suit filed by SRC and its subsidiary, Gandingan Mentari Sdn Bhd, against the former prime minister.

Responding to an allegation by Najib that the former directors of SRC, including himself, had breached their statutory and fiduciary duties, Azhar said he had no personal knowledge on the disbursement of funds and the related transactions in question, nor had he participated in or been involved in them.

“Therefore, I cannot be in breach of my statutory and fiduciary duties for matters that were not within my personal knowledge,” he said.

Azhar, who is named as one of the third parties in the suit, added that upon joining SRC, his specific responsibility was to execute and operationalise the Sabah Gas Pipeline Project and the Peninsular Pipeline Project, two of the three previously identified projects, in his later role as CEO.

“When I was asked to join SRC in 2014, after getting the nod from the Prime Minister’s Office that the two projects were to move forward, I came to realise that Nik Faisal Ariff Kamil (former SRC CEO) had played a very physical role in setting up SRC itself.

“By the time I joined SRC, the RM4 billion loan from Retirement Fund Incorporated had already come in (into the SRC account) and left (the account). At that point in time, in the background, everyone knew Nik Faisal had played a critical role for that to happen.”

The witness also recalled that during his tenure as a director, the SRC board of directors was always briefed on financial matters by Nik Faisal.

The civil suit, filed in 2021 by SRC and Gandingan Mentari, seeks a declaration that Najib is liable for RM42 million and damages for misfeasance in public office and abuse of power.

The trial before Justice Raja Ahmad Mohzanuddin Shah Raja Mohzan resumes tomorrow. - FMT