RM2bil not ‘advance’ by SRC to BVI subsidiary, says witness

 

SRC International is suing Najib Razak for alleged breaches of trust and duty, wrongful receipt of company property and for conspiring to convert company property for his own use. (Bernama pic)

KUALA LUMPUR: An asset recovery specialist today insisted that SRC International’s funds were not used to invest in renewable energy and resources.

Testifying at a civil suit brought by the company against Najib Razak, Angela Barkhouse, a director at advisory firm Quantuma, told the High Court that the movement of funds from SRC BVI was not in furtherance of the company’s objectives.

Cross-examined by the former prime minister’s lawyer Harvinderjit Singh, she denied that a sum of RM2 billion transferred to SRC BVI was an “advance” from its parent company, SRC International.

She also said the RM2 billion originated from a RM4 billion loan obtained from Retirement Fund Incorporated (KWAP) in several tranches between 2011 and 2012.

According to Barkhouse, as much as RM3.6 billion was transferred to a Swiss bank account belonging to SRC BVI and is currently frozen by that country’s government, she added.

Referring to a directors’ circular resolution of SRC International issued in August 2011, Harvinderjit suggested to Barkhouse that the RM2 billion was intended to be placed in an investment account.

Harvinderjit: I don’t think this circular resolution shows there was a fraudulent transfer of funds from SRC International to SRC BVI.

Barkhouse: That is your opinion.

SRC International is suing Najib and the company’s former CEO, Nik Faisal Ariff Kamil, for alleged breaches of trust and duty, wrongful receipt of company property and dishonestly and wrongfully conspiring to convert company property for their use.

The company also wants Najib to return US$120 million and Nik Faisal US$2 million.

The hearing continues before Justice Ahmad Fairuz Zainol Abidin tomorrow. - FMT