Don’t know why SRC dropped suit against me - former director

A former director of SRC International Sdn Bhd testified he had no idea why Minister of Finance Incorporated (MOF Inc) dropped a lawsuit against him in 2021.

Shahrol Azral Ibrahim Halmi told this to the Kuala Lumpur High Court today during the full hearing of SRC’s US$1.18 billion (RM5.6 billion) lawsuit against Najib Abdul Razak.

In July 2021, SRC, which was suing Najib, withdrew the civil action against Shahrol. However, the court later allowed the ex-prime minister’s third-party claim bid to bring Shahrol back into the suit.

A third-party claim is when a defendant seeks a third party to fully or partly reimburse the defendant if the plaintiff succeeds in the main lawsuit against the defendant.

During the full hearing of the suit before judge Ahmad Fairuz Zainol Abidin today, Najib’s counsel Harvinderjit Singh was cross-examining Shahrol - as a third party - on the reason for SRC discontinuing the suit against him.

Harvinderjit: Was there a resolution between you and the government?

Shahrol: No.

Harvinderjit: Then why did they (SRC) drop the suit against you?

Shahrol: I do not know.

Harvinderjit: You did not ask anything?

Shahrol: No.

It should be noted that Shahrol (above) was a prosecution witness in a separate criminal trial against Najib over alleged abuse of power and money laundering involving RM2.27 billion of funds from Malaysian sovereign wealth fund 1MDB.

1MDB used to fully own SRC. Now, MOF Inc fully owns SRC as well as 1MDB.

SRC’s civil action against Najib

Najib is serving a six-year jail term and was fined RM50 million over a separate criminal corruption case involving RM42 million of funds from SRC.

SRC’s present civil action against Najib is linked to the RM4 billion in loans it received from Retirement Fund Incorporated (Kwap) between 2011 and 2012. Kwap is a statutory body under the Finance Ministry.

Under its new management, SRC filed the suit in May 2021, alleging that Najib, as adviser emeritus of the plaintiff, had committed breach of trust and abuse of power, personally benefited from the company’s funds, and misappropriated billions of ringgit.

SRC also seeks a court declaration that Najib is responsible for its losses due to a purported breach of duties and trust, and for the ex-PM to repay RM42 million.

Former prime minister Najib Abdul Razak

The plaintiff also seeks a court order for Najib to be made accountable for the former’s US$1.18 billion loss, as well as repay an amount of US$120 million of its funds that allegedly flowed into the former premier’s bank account.

Trial before Fairuz resumes tomorrow. - Mkini