Five takeaways from Najib’s defence in RM42m SRC trial

NAJIB SRC TRIAL | On the 91st day of hearing today, the defence wrapped up its case in the defence stage of former premier Najib Abdul Razak’s RM42 million SRC International trial.

The accused’s lead counsel Muhammad Shafee Abdullah closed the case on the 33rd day of the defence stage.  

Najib is on trial for seven charges; one count for abuse of power, three counts of criminal breach of trust, and three counts of money laundering, linked to RM42 million of funds from SRC International, a former subsidiary of troubled sovereign wealth fund 1MDB.

The defence closed the case today after the 19th and final defence witness, MACC officer Regjit Singh, gave a brief testimony at the end of proceedings today. 

These are the five takeaways from Najib’s case since the defence stage of trial began on Dec 3 last year:

Najib has no personal interest in SRC International

The defence claimed that Najib has no personal interest in SRC International, a former subsidiary of troubled sovereign wealth fund 1MDB before it was transferred to be fully owned by Minister of Finance Incorporated (MOF Inc).

On the first day of the defence stage of trial on Dec 3 last year, Najib testified that his actions were only done in the best interest of the country in relation to the company.

He emphasised that he had no single personal interest in SRC, except in his professional capacity as then prime minister and finance minister and his public duty to act in the best interest of the government.

Earlier during the proceedings that day, Shafee (photo) in the defence’s opening statement had said that his (Najib’s) actions in relation to SRC were endorsed or ultimately approved by Retirement Fund Incorporated (KWAP), the Employees Provident Fund, the Finance Ministry, the Treasury and/or the cabinet. 

The court previously heard from other witnesses that SRC became fully owned by MOF Inc in early 2012, and that Najib in that year was also finance minister, advisor emeritus to SRC, and chairperson of the board of advisors to 1MDB.

Najib’s bank accounts allegedly mismanaged with connivance of Jho Low

The defence had repeatedly relied on the notion that fugitive businessperson Jho Low, with the possible involvement of SRC’s CEO Nik Faisal Ariff Kamil, mismanaged Najib’s accounts, leading to the RM42 million inflow.

During the defence stage of trial, Najib personally had testified that he does not know why Low (photo) would deposit millions into his personal accounts as Nik Faisal was the only person authorised to deal with the accounts.

The accused had also claimed that he was lied to by Nik Faisal and Low about the true state of the accounts. 

Najib believed RM42m was from billions in donation from Saudi royalty

The defence made it clear from the outset that they rely on the argument Najib had believed the RM42 million that flowed into his personal accounts were from earlier billions of ringgit in donation received from the Saudi royal family.

They had relied on the purported authenticity of four letters allegedly signed by Arab prince, Prince Saud Abdulaziz al-Saud, to confirm the validity of the RM2.6 billion in donation that earlier flowed into Najib’s accounts. 

The charges alleged that the RM42 million flowed into Najib’s personal accounts between December 2014 and February 2015.

“Bersetuju” annotation was neither order nor final

The defence is relying on the argument that Najib’s annotation of “Bersetuju” on SRC’s loan application from KWAP does not equate to an order that the fund’s management cannot air disagreement with.

Najib had testified that his minute on SRC’s loan application for RM3.95 billion in loan from KWAP in 2011, does not amount to an order to then KWAP CEO Azian Mohd Noh (above) to approve the said loan.

He had said that as finance minister then, he had no power to compel KWAP’s investment panel to approve the loan. 

The prosecution’s case had relied on arguments that the RM42 million that was transferred into Najib’s accounts could be traced to the total RM4 billion in loans given by KWAP to SRC between late 2011 and early 2012.

Millions of monetary inflow into account do not necessarily mean wrongdoing if got no knowledge

The defence is also relying on former DPP Dzulkifli Ahmad’s (photo) testimony that the RM42 million inflow of monies into Najib’s personal accounts does not constitute an offence unless he was aware that the money was from SRC.

The 17th defence witness testified that then attorney-general Mohamad Apandi Ali’s decision, on Jan 26, 2016 to absolve Najib of wrongdoing in the matter of the RM42 million that ended up in his account, was due to the MACC’s related probe failing to show that he (Najib) had knowledge that the monies were from SRC.

The witness said knowledge is a key ingredient for any proposed charging of Najib for criminal misappropriation under Section 403 of the Penal Code.

Dzulkifli had also testified that the decision to clear Najib was also due to the MACC failing to prove that there had been orders from Najib for the RM42 million to be transferred into his account.  - Mkini