The plaintiff’s lawyer pushed former Prime Minister Najib Razak to take responsibility for key documents related to SRC transactions, but Najib maintained that his approvals were purely statutory, emphasising that the management of SRC funds was the duty of its Board of Directors.
KUALA LUMPUR : In the ongoing SRC International Sdn Bhd trial involving former Prime Minister Datuk Seri Najib Razak, tensions are escalating as the line of questioning from the plaintiff’s counsel pushes the boundaries of what Najib perceives as reasonable.
During the court proceedings, which took place on 27 September, Najib was pressed repeatedly by the plaintiff’s lawyer, Datuk Lim Chee Wee, to acknowledge direct accountability for the management and approval of the company’s financial transactions. However, Najib steadfastly maintained that his role was limited to statutory approval, leaving the operational details to SRC’s Board of Directors.
Najib is being sued by SRC International Sdn Bhd (SRC) in relation to two loans granted by Kumpulan Wang Amanah Persaraan (KWAP) totaling RM4 billion during his tenure as Prime Minister and Finance Minister. The core of the plaintiff’s argument revolves around Najib’s approval of key documents that led to the disbursement and utilisation of SRC funds for investment purposes, which later became the subject of public scrutiny.
The Plaintiff’s Questions
At the start of the session, Lim presented three key documents: the statement of agreed facts, a Ministry of Finance (MoF) memorandum dated 3 February 2012, and the minutes from a 17 February 2012, meeting involving SRC’s holding company. These documents were highlighted to demonstrate Najib’s involvement in approving transactions related to the SRC and KWAP loans.
Lim began by referencing paragraph 24 of the agreed facts, which detailed transactions totaling USD 1.18 billion made by SRC between 2011 and 2014. He directed Najib’s attention to seven specific transactions, amounting to USD 570 million, that were approved between 16 November and 12 December 2011.
“These are facts agreed to by your lawyers,” Lim asserted, pressing Najib to admit that he had knowledge of these transactions.
In response, Najib clarified, “These were transfers required, or rather, decided by the Board.” While acknowledging that the transfers were documented, he emphasised that the decisions had been made by SRC’s Board of Directors, not him personally. He repeatedly stressed that his involvement was limited to signing off on documents as part of his statutory obligations.
The MoF Memorandum
The crux of Lim’s examination hinged on a Ministry of Finance memorandum signed by Najib in February 2012. This document discussed the strategic investments SRC was making using a KWAP loan of RM2 billion. Lim honed in on paragraph 5 of the memorandum, which described SRC’s utilisation of KWAP loans for strategic investments, including a joint venture with Aabar Investments and a USD 120 million investment in PTABM in Indonesia.
“Please confirm that these are your words in the memorandum,” Lim said, asking Najib to acknowledge his role in the approval of these investments.
Najib affirmed that the memorandum did indeed contain his signature but explained that his approval was strictly statutory. “That’s what the memorandum says … It was the Board’s responsibility to manage the funds, not mine,” he insisted.
The Role of the SRC Board and Najib’s Accountability
Throughout the proceedings, Najib continually underscored that it was the Board of Directors’ responsibility to manage SRC’s financial transactions. When asked if he had the ability to independently verify the company’s use of the KWAP loans, Najib responded, “I had confidence in the Board … It wasn’t necessary to intervene at the time.”
Najib’s defense focused on his belief in the Board’s ability to carry out their duties. “My role was to ensure that SRC had enough funding to do their work. The rest was up to the Board,” he maintained.
According to Najib, as Prime Minister and Finance Minister, his priority was to ensure the success of SRC’s projects under Malaysia’s energy policy, but it was not his role to micromanage the company’s operations.
Lim, however, was persistent, asking the same question multiple times: “You had the ability to instruct for independent verification of SRC’s utilisation and disbursement of the RM2 billion KWAP loans. Yes or no?”
Najib’s response remained consistent: “I left it to the Board. That’s my response.”
The Statement of Agreed Facts
At one point, Lim returned to the statement of agreed facts, attempting to use it as evidence that Najib had contemporaneous knowledge of SRC’s transactions. However, Najib’s defense counsel, Tan Sri Dr. Muhammad Shafee Abdullah, interrupted to clarify the legal significance of the document.
“A statement of agreed facts, pursuant to Section 58 of the Evidence Act, simply means those facts are undisputed. It cannot be extended to mean that the defendant had contemporaneous knowledge of these facts,” Shafee asserted. The judge, Ahmad Fairuz bin Zainol Abidin, noted the clarification and allowed the cross-examination to continue.
Closing Questions
In the final moments before a short break, Lim pressed Najib on his witness statement, which claimed that he was “never informed” of the disbursement of SRC funds. Lim pointed out that this claim appeared to contradict the MoF memorandum and minutes Najib had signed, which showed knowledge of the KWAP loans and their intended use.
Najib responded by explaining that his statement referred to the time of the Board’s initial decision, not after it had been formalised and brought to him for statutory approval. “Maybe I was not informed at that point in time, but later, after the Board had decided, I signed it as a statutory requirement.”
Lim asked if Najib wished to correct his witness statement, to which Najib agreed that it could be amended later to reflect the statutory nature of his approval.
Conclusion
The session concluded with Najib maintaining that his involvement in the approval of SRC transactions was strictly statutory and that the responsibility for managing the funds rested with the Board. As the trial progresses, it remains to be seen how the court will assess Najib’s defense and the extent of his accountability in the management of SRC’s funds.
The next hearing is scheduled for 9 October 9 2024, where the cross-examination will continue. – NMH
Datin Hasnah is the co-founder and CEO of New Malaysia Herald based in Kuala Lumpur, Malaysia.
With an extensive background in mass communication and journalism, she works on building up New Malaysia Herald and it’s partner sites. A tireless and passionate evangalist, she champions autism studies and support groups.
Datin Hasnah is also the Editor in Chief of New Malaysia Herald.
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