SRC under Najib became victim of large-scale fraud, court hears

 

SRC International Sdn Bhd under Najib Abdul Razak became a victim of large-scale fraud committed by the then prime minister, the Kuala Lumpur High Court heard.

In reading out the opening statement in the first-day hearing of SRC's US$1.18 billion (RM5.58 billion) lawsuit against Najib, the plaintiff's lead counsel Lim Chee Wee pointed out that it was established “as a pillar to long sustainable economic development of Malaysia for the rakyat”, quoting the defendant's own words.

“Instead of being a vehicle for the rakyat, SRC became a victim of a large-scale, multi-jurisdictional fraud orchestrated by the first defendant (Najib), through multiple wrongdoings in his multiple roles of a public officer as prime minister and finance minister, adviser emeritus of SRC and in truth, a shadow director.

“SRC was the vehicle the first defendant manipulated to procure a whopping RM4 billion loan from Kumpulan Wang Persaraan (KWAP), our retirement fund for our civil servants, to enrich himself of at least US$120 million and in the process caused injury and loss to SRC and ultimately the rakyat in the sum of at least US$1.18 billion.

“A loss which is accumulating and continuing. Incidentally, KWAP fell under the purview of the first defendant when he was the finance minister,” Lim told civil court judge Ahmad Fairuz Zainol Abidin.

The lawyer said SRC’s causes of action and claims against Najib relate to the events surrounding SRC - which was incorporated as a special purpose vehicle on Jan 7, 2011 - to invest in conventional and renewable energy, natural resources, and the minerals sector.

“These investments were ultimately meant for the rakyat, with the expectation that those in power would act in good faith for the benefit of the public. Those in power having all the avenues open to them, were duty bound to act solely in a manner that would be of public good. In short, as custodian of the country’s coffers.

“The public invested their faith in those holding public office not to abuse the public power or authority given to them or be recklessly indifferent to the limits of that public power, in full knowledge that how they conduct themselves could harm the very institution that they are under oath to protect.

“As unthinkable as it should be, the abuse of power did take place. The first defendant wielding supreme authority over SRC, ultimately caused harm and injury to the company which was set up with the public interest in mind,” Lim said.

“This abuse of power cuts across and is present in the various causes of action and claims brought against the first defendant,” he added.

Banker to testify

The civil trial is set to continue this afternoon with the first plaintiff witness Kevin Swampillai who used to be with the Singaporean branch of BSI Bank.

In the lawsuit, SRC, a former subsidiary of sovereign wealth fund 1MDB, claimed Najib committed a fraudulent breach of duties as SRC’s then adviser emeritus. 1MDB is also fully owned by MOF Inc.

SRC’s allegations are linked to the RM4 billion in loans it received from KWAP between 2011 and 2012.

Najib is serving a six-year jail sentence and was also fined RM50 million, courtesy of a partial royal pardon that reduced the initial sentence of 12 years jail and RM210 million fine. - Mkini