Najib did not request feasibility study for SRC loan, court told

KUALA LUMPUR: Former Prime Minister Datuk Seri Najib Tun Razak told the High Court here today that he had full confidence in the management of SRC International Sdn Bhd, resulting him to forgo requesting a feasibility study before approving the billion-ringgit loan from the Retirement Fund Inc (KWAP) to the strategic investment company.

He said he had confidence in the company's management as its board of directors (BOD) comprised of skilled and capable individuals.

Najib, 71, was testifying as a defendant in SRC International's US$1.18 billion civil suit against him.

"Initially, I had confidence in the SRC management to do whatever was necessary for the company to produce returns.

"They were the ones who helped ensure that money would be spent in a very productive way," he said when cross-examined by counsel Datuk Lim Chee Wee, representing SRC.

Questioned by Lim about his responsibility as the Prime Minister and Finance Minister in handling the approval process for the RM2 billion loan, Najib said that the Economic Planning Unit (EPU) must be satisfied with the necessary due process before issuing a memorandum related to the loans.

Lim: I put it to you that EPU have been satisfied is your assumption?

Najib: I believe so because they are a central agency. Otherwise, they wouldn't prepare the memorandum.

Lim: I would conclude this line of enquiry. You as the Prime Minister, as the Finance Minister, as the chairman (of SRC board of advisors), you must be satisfied pursuant to Act 96 Loan Guarantee (Bodies Corporate) Act 1965.

Najib: At that time, I was satisfied.

In May 2021, under new management, SRC filed the lawsuit, accusing Najib of breach of trust, abuse of power and personally benefiting from the company's funds and misappropriating the same.

SRC International previously removed five of its directors from the lawsuit, retaining Najib as the sole defendant. However, the High Court permitted Najib to issue third-party notices against them.

The company is seeking a court declaration holding Najib accountable for the company's losses due to his alleged breach of duties and trust and for him to compensate the RM42 million in losses they have incurred.

The trial before Judge Datuk Ahmad Fairuz Zainol Abidin continues.

-- BERNAMA

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