July 16, 2024

New Malaysia Times

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SRC International suit: Najib ordered to file defence by Oct 11


KUALA LUMPUR, Sept 3  — The High Court here has ordered Datuk Seri Najib Tun Razak to respond to the suit filed by SRC International Sdn Bhd against the former prime minister relating to the alleged breach of trust and breach of statutory duty involving SRC funds totaling RM 42 million by Oct 11.

According to a lawyer from Rosli Dahlan Saravana Partnership that is representing SRC International Sdn Bhd, the court has also ordered the plaintiff (SRC) to file a response to the defense by Dec 13.

“The court has set further case management on Dec 14 that will be conducted online (e-Review),” he said when contacted by reporters after the case management proceedings today that were conducted online in front of senior assistant registrar Noordura Mohamed Din.

SRC, a subsidiary of 1Malaysia Development Berhad (1MDB) and Gandingan Mentari Sdn Bhd (GMSB), a wholly-owned SRC subsidiary, filed a writ of summons on May 7, alleging that Najib conducted a breach of trust, misused his power, and benefited personally from SRC funds and misappropriated the funds.

Najib was SRC Emeritus Advisor from May 1, 2012, till March 4, 2019.


SRC, which is now wholly owned by the Minister of Finance (Incorporated), alleged that through a letter of appointment dated Sept 3, 2015, SRC appointed Ihsan Perdana Sdn Bhd (IPSB) (previously known as Gem Horizon Sdn Bhd) as social corporate responsibility (CSR) program partner.

It alleges that, between December 2014 and April 2015, SRC withdrew RM123 million in funds and deposited it into a bank account of IPSB for CSR purposes and a grant was given to IPSB without the approval of the board of directors of both SRC and GMSB.

The plaintiff claimed that IPSB transferred the funds received under the grant to various third parties for IPSB, including RM42 million that was transferred to two accounts owned by Najib allegedly for CSR purposes between December 2014 and February 2015.

SRC also alleged that Najib in his capacity as prime minister, finance minister and SRC emeritus advisor had acted in a dishonest manner to help former SRC and GMSB directors to violate various statutory duties and commit a breach of trust when failing to check with AmIslamic Bank about the amount of misappropriated funds that were deposited into Najib’s bank accounts. 

Therefore, the plaintiff is seeking a declaration that the plaintiff has a right to follow and trace the RM42 million and to demand equity ownership to the funds or any property obtained by Najib with the use of the money in addition to general, exemplary, and aggravated damages.