Najib was not an insider in SRC with regard to misappropriation of funds - Counsel

PUTRAJAYA: The Court of Appeal was today told that Datuk Seri Najib Tun Razak was not a director or shadow director in SRC International Sdn Bhd to be found guilty of misappropriating RM42 million of the company's funds.

The former prime minister’s counsel Tan Sri Muhammad Shafee Abdullah stressed that trial Judge Mohd Nazlan Mohd Ghazali adopted the civil law and common law concept of shadow director from England to convict the appellant (Najib).

“My Lord, Section 402A of the Penal Code on definition of a director was 'something similar to the shadow director' but it was not the same as in England.

“Najib was not an insider in the company as required under the Penal Code to have committed Criminal Breach of Trust (CBT). Najib was the outsider. The prosecution also did not establish the ingredients of the CBT charge to be called to enter defence,” he added.

The prominent veteran lawyer submitted this before a three-member bench led by Judge Datuk Abdul Karim Abdul Jalil in the hearing of Najib's appeal against his conviction and jail sentence for misappropriation of RM42 million in SRC International funds.

The other two judges on the bench were Datuk Has Zanah Mehat and Datuk Vazeer Alam Mydin Meera.

Muhammad Shafee said the trial judge erred in law to import a common law from England to implicate the Pekan MP to the offence.

“My Lord, it must be proven that the appellant had control and was entrusted with the RM42 million to be found guilty.

“The appellant submits that the trial judge committed a grave error by relying on the common law and stretching the language of Section 402A of the Penal Code beyond the natural and ordinary meaning of the provision,” he said, adding that this has caused serious prejudice and injustice to Najib.

The Kuala Lumpur High Court had on July 28 last year sentenced Najib to 12 years’ jail and a RM210 million fine after finding him guilty on seven charges of criminal breach of trust, money laundering and abuse of position, involving RM42 million in SRC International funds.

The hearing of the appeal continues.

-- BERNAMA