Former SRC director files third party notice against Shahrol Azral, Ismee

KUALA LUMPUR: Former SRC International Sdn Bhd director Datuk Mohammed Azhar Osman Khairuddin has filed an application to have two fellow former directors, namely Datuk Shahrol Azral Ibrahim Halmi and Tan Sri Ismee Ismail, to indemnify him against all losses he may incur in the company's lawsuit.

On May 7, SRC under its new management has filed legal action against former Prime Minister Datuk Seri Najib Tun Razak and six others for alleged breach of trust and breach of statutory duty in relation to the RM4 billion Retirement Fund Inc (KWAP) loan to SRC.

The six were Mohammed Azhar, Datuk Suboh Md Yassin, Nik Faisal Ariff Kamil, Datuk Che Abdullah @ Rashidi Che Omar, Ismee and Shahrol Azral.

However, in July, SRC had removed Ismee and Shahrol Azral's names from the suit and retained the others as defendants.

Mohammed Azhar also wants the duo to bear all the expenses including legal fees and other relief that the court deems fit and appropriate.

He filed the application on the grounds that the transactions involving KWAP's RM4 billion loan took place during Shahrol Azral and Ismee's tenures.

According to Mohammed Azhar, Shahrol Azral was SRC director from Aug 1, 2011, before he resigned on May 15, 2012, while Ismee's tenure was from Aug 1, 2011, until he resigned on Aug 15, 2014.

SRC, a subsidiary of 1Malaysia Development Berhad (1MDB) as a plaintiff, in the writ of summons alleged that all the defendants conspired and committed a breach of trust besides claiming that the former prime minister had abused his power and obtained personal benefits from SRC funds as well as misappropriated the funds.

Najib was SRC's Emeritus Advisor from May 1, 2012, until March 4, 2019.

SRC, which is now wholly owned by the Ministry of Finance Incorporated (MoF Inc) is seeking a declaration that all the defendants are liable to pay the loss of investment funds as a result of the use of the loan amount in addition to claiming general damages, exemplary, additional and interest, costs and other appropriate relief provided by the court.

SRC said that in January 2019, the company was placed under the care of officials from the Ministry of Finance (new management) and, after scrutinising and reviewing SRC records, found that SRC's previous directors had not taken any reasonable steps to ensure KWAP's loans amounting to RM4 billion to SRC in 2011 and 2012 were used properly to finance the company's general investment activities and general working capital requirements.

The company also claimed that the previous directors did not monitor the disposal of RM3.6 billion to SRC BVI (proposed investment fund) allegedly for SRC to undertake investment activities in the energy resource sector overseas and failed to monitor the Malaysian government's exposure to guarantees given to SRC as well as failed to inquire about the misappropriation of SRC funds.

-- BERNAMA