High Court dismisses UMNO's bid to quash SRC suit

KUALA LUMPUR: The High Court today dismissed UMNO's application to strike out the suit filed by SRC International Sdn Bhd against the political party, for allegedly receiving a misappropriated sum of RM16 million from the company.

In May this year, SRC International, which is a subsidiary of 1Malaysia Development Berhad (1MDB) had, under its new management, filed the suit, together with its subsidiaries Gandingan Mentari Sdn Bhd and Jendela Pinggiran Sdn Bhd as the plaintiffs, naming UMNO as the sole defendant.

Lawyer Shahrul Fazli Kamaruzaman, who represented UMNO, said that Judicial Commissioner, Quay Chew Soon, dismissed the application as there were issues that can only be determined through a trial.

"The court also allows the plaintiffs' application to amend the names of Datuk Seri Dr Ahmad Zahid Hamidi and Datuk Ahmad Maslan, who were initially named to represent UMNO in the suit, and replaced by Datuk Mohd Sumali Reduan, who is UMNO working secretary, as a public officer, representing the party," said Shahrul Fazli when contacted by reporters after the hearing of the application, which was conducted online.

He added that the court also allowed UMNO's application for an interim stay from filing its defence statement, pending an appeal of today's ruling.

Lawyer Mohamed Baharudeen Mohamed Ariff, also representing UMNO, and lawyer Nur Syafinaz Vani Abdullah, representing all three plaintiffs, also participated in today's proceedings.

SRC International, Gandingan Mentari, and Jendela Pinggiran are suing the party for the RM16 million sum that was allegedly wrongfully transferred to UMNO.

In its writ of summons, the plaintiffs claimed that the political party knew, or ought to have known, that the monies belonged to SRC International and they had no basis to receive the funds.

On May 10, the Finance Ministry confirmed that 1MDB and its subsidiary SRC International Sdn Bhd had filed 22 civil suits to seek its assets of over RM96.6 billion, including RM300 million from various local parties.

-- BERNAMA