KUALA LUMPUR: SRC International Sdn Bhd (SRC), instead of being the country and rakyat's pillar to long-term sustainable economic development, became a vehicle victim of a large-scale, multi-jurisdictional fraud orchestrated by former prime minister Datuk Seri Najib Razak.
SRC lead counsel Datuk Lim Chee Wee, in his opening statement in the civil suit against Najib, told the High Court that the acts were committed by the latter through multiple wrongdoings in multiple roles as a public officer as prime minister and finance minister, SRC adviser emeritus, and in truth a shadow director.
"SRC was the vehicle Najib manipulated to procure a whopping RM4 billion loan from Retirement Fund Inc (KWAP), the retirement fund for our civil servants, to enrich himself of at least US$120m and, in the process, caused injury and loss to SRC and ultimately the rakyat in the sum of at least US$1.18 billion.
"A loss which is accumulating and continuing.
Incidentally, KWAP fell under the purview of Najib when he was the finance minister," he said before judge Datuk Ahmad Fairuz Zainol Abidin.
Lim said SRC's causes of action and claims against Najib relate to the events surrounding SRC which was incorporated as a special purpose vehicle on Jan 7, 2011, to invest in conventional and renewable energy, natural resources and minerals sector.
On July 28, 2020, Najib was sentenced to 12 years' jail and fined RM210 million after he was found guilty of one count of abuse of power with regard to KWAP's RM4 billion loan to SRC, as well as three counts each of criminal breach of trust and abuse of power involving RM42 million of SRC funds.
However, the Federal Territories Pardons Board reduced Najib's fine as well as halved his 12-year jail term to six while his initial fine of RM210 million has been reduced to RM50 million.
During proceedings, Lim said Najib was the ultimate controller of SRC and its board of directors.
"The court will also hear evidence of circumstances where the board of SRC were accustomed to act on the directions or instructions of Najib even where there was an absence of shareholders resolutions or minutes executed by him.
"How the KWAP loans were to be utilised was entirely within the purview and influence of Najib," he said.
He added that Najib had acted primarily together with former SRC chief executive officer Nik Faisal Ariff Kamil, perpetrated fraud and participated in the unlawful and dishonest acts resulting in injury to SRC.
The duo, he said, should be held accountable for the US$1.18 billion that was lost due to purported investments activities.
He said further and critically, Najib was the benefactor of the outflow of funds from SRC through the layered transactions into his personal account, to the tune of US$120 million, whereas Nik Faisal had received US$2 million.
"SRC will show that Najib, by his acts and omissions, was very much involved in the fraud and dishonest conduct perpetrated against SRC.
"Nik Faisal was strategically appointed in 1Malaysia Development Berhad, SRC and SRC's subsidiaries in the BVI namely SRC BVI, Bright Oriande Limited and Aabar-SRC JV (now known as SRC Strategic Resources Limited).
"It is no coincidence that these were the very entities through which the RM 3.6 billion or US$1.18 billion were channelled as the purported investment activities," said Lim.
SRC also sought several declarations such as including Najib as being liable to account for and pay the sum of US$ 1.18 billion being the loss of the proposed investment funds.
It includes a declaration that Najib and Nik Faisal must return the sum of US$120 million and US$2 million respectively.