Kuala lumpur: The High Court heard today that SRC International Sdn Bhd, originally intended to benefit the public, was instead exploited for the advantage of Datuk Seri Najib Tun Razak. Lawyer Datuk Lim Chee Wee, representing SRC International, asserted that the company became both a vehicle and victim of a large-scale fraud, with Najib as the primary beneficiary.

According to BERNAMA News Agency, during the hearing of SRC International’s US$1.18 billion civil suit against Najib and former SRC CEO Nik Faisal Ariff Kamil, who is currently at large, Lim elaborated on how the misappropriated funds were derived from the Retirement Fund Inc (KWAP). While SRC International suffered a loss of US$1.18 billion, Najib allegedly received US$120 million into his accounts and RM42 million, which is the subject of a separate lawsuit.

Lim accused Najib of acting as a shadow director, controlling SRC’s board through shareholder resolutions on major decisions that should have been made by the board itself. Najib reportedly signed resolutions to approve and obtain the RM4 billion KWAP loan and to disburse RM3.6 billion for illegitimate purposes.

This alleged misuse of power led to Najib being identified as the mastermind behind the financial losses, Lim stated before Judge Datuk Ahmad Fairuz Zainol Abidin. The hearing will continue tomorrow.

In May 2021, SRC, under new management, initiated the lawsuit, alleging Najib’s breach of trust and misuse of power for personal gain. The suit seeks a court declaration holding Najib accountable for the company’s losses and demands that he repay RM42 million.

Najib is currently serving a prison sentence in Kajang Prison for misappropriating RM42 million from SRC International. On September 2, 2022, he sought a royal pardon, resulting in the Pardons Board reducing his jail term from 12 to six years and lowering the fine from RM210 million to RM50 million, effective January 29, 2024.