Former prime minister Datuk Seri Najib Razak returned to court today to defend himself in SRC International Bhd’s RM42 million civil lawsuit, just weeks after he was convicted over the misappropriation of RM2.3 billion in 1MDB funds.
Najib, testifying as a defendant, denied claims that he controlled SRC International or acted as a “shadow director”, insisting the company was run entirely by its board and management.
He told the High Court that his role was limited to shareholder-level decisions through Finance Ministry Inc, and that he never attended board meetings or handled SRC’s daily operations.
“The plaintiffs have wrongly turned institutional decisions into personal control. There was no pattern of the board taking orders from me,” he said.
Najib added that SRC was set up as part of Malaysia’s national energy-security plan under the 10th Malaysia Plan, after a proposal by 1MDB in 2010.
A feasibility study by the Economic Planning Unit (EPU) rejected a RM3 billion government grant and approved only RM20 million in seed funding, directing SRC to seek commercial loans instead.
He said SRC later obtained RM4 billion in loans from KWAP, backed by government guarantees and approved through formal cabinet and investment panel procedures.
Najib also denied any role in SRC’s incorporation or the appointment of Nik Faisal Ariff Kamil and Vincent Koh as directors, saying constitutional clauses requiring prime ministerial approval were standard safeguards in government-linked companies.
He further rejected claims that Nik Faisal acted on his behalf, calling any such representations unauthorised.
On allegations that SRC money was funnelled to him, Najib said he believed funds that entered his personal accounts were donations, and that he did not manage those accounts or receive monthly statements.
“I had no knowledge the money came from SRC. If I had known, I would have rejected or returned it,” he said.
The hearing continues.
