Najib abused power as he had an interest in SRC, submits AG

Attorney-General Tommy Thomas says Najib Razak was brazen in his conduct because he was a powerful prime minister and finance minister.

KUALA LUMPUR: Najib Razak abused his power by not adhering to the best practices in dealing with SRC International when he chaired Cabinet meetings, the High Court heard today.

Attorney-General Tommy Thomas said prosecution witness Mazidah Abdul Majid, who was the former government secretary, testified that the former prime minister and finance minister did not leave the Cabinet room when SRC was discussed.

“He made decisions where he had an interest in the government-linked company,” said Thomas, adding that Mazidah’s testimony was direct evidence as she was present.

Thomas said Najib approved government guarantees for SRC to obtain a total of RM4 billion in loans from pensioner’s retirement fund KWAP in 2011 and 2012.

“Our submission is that he should have declared his interest and gone on record that he did not participate.

“In the past, he had left the Cabinet room and so he cannot claim ignorance in the SRC matter,” he said.

Thomas said Najib was brazen in his conduct because he was a powerful prime minister and finance minister.

“Other Cabinet ministers knew that he can hire and fire,” he said and referred to Najib’s sacking of his deputy Muhyiddin Yassin and then attorney-general Gani Patail in 2015.

He said there was misconduct under Section 23 of the Malaysian Anti-Corruption Act, which stated that an offence is committed when a person who is a member of a public or government body uses his position or the office in making a decision or taking action for the benefit of himself, his relative or associate.

Thomas said Najib was a public officer as he was a Cabinet member.

He said that in the present case, Najib benefited by RM42 million of SRC money which was part of the RM4 billion loans obtained from KWAP.

“This was a fraud designed by him to benefit over a period,” he said, adding that Najib’s action caused unlawful loss to the government.

He said Najib amended the SRC constitution to wield absolute power and caused the company to borrow money where the government had to issue guarantee letters.

“The first batch of RM2 billion in 2011 was despatched 12 days after the guarantee letter was issued,” he said, adding that this revealed Najib’s intention and knowledge to commit a crime.

Thomas said Najib caused the government to fork out RM550 million in interest and principal payment in 2012 when SRC was unable to service the loans.

He said Najib has a case to answer for money laundering as he had admitted to receiving RM42 million as a result of his illegal activities, misappropriation of money and abuse of power.

“A senior barrister (Ranjit Singh) had testified that Najib admitted in a defamation suit that RM42 million from SRC International went into his personal bank accounts,” he said.

Thomas said Najib had a legal and contractual obligation to check with his bank during a “reasonable period” why RM42 million was deposited in his accounts.

“He was earning only about RM1 million a year as MP and prime minister but had been issuing hundreds of cheques, and remarkably none bounced,” he said.

Najib, 66, is facing three counts of criminal breach of trust (CBT), one charge of abusing his position and three counts of money laundering over SRC International funds amounting to RM42 million.

The hearing before judge Mohd Nazlan Mohd Ghazali continues. - FMT