The High Court on Wednesday allowed former prime minister Najib Razak to temporarily suspend the enforcement of a US$1.3 billion compensation payment to SRC International while awaiting the outcome of his appeal against the court’s decision delivered in March.
Judge Datuk Ahmad Fairuz Zainol Abidin, who is now a Court of Appeal judge, ruled that special circumstances justified the stay application, including the exceptionally large financial judgment imposed on Najib as an individual.
He said the court also considered previous stays granted in Najib’s RM1.69 billion tax case, as well as financial penalties imposed in his earlier criminal proceedings.
“The factors to be considered include the extraordinarily large financial judgment against the defendant, similar financial judgments involving the Inland Revenue Board suit, as well as criminal liabilities involving monetary penalties.
“When viewed collectively, the judgments and orders faced by the defendant simultaneously amount to special circumstances warranting a stay. It is better for this case to be fully decided at the highest level before any enforcement action is carried out,” he said.
The proceedings were conducted via Zoom on Wednesday. Ahmad Fairuz also ordered Najib to pay RM2 million in costs to SRC International and RM150,000 each to the third-party defendants named in the suit.
The five third-party defendants are former SRC International directors Tan Sri Ismee Ismail, Datuk Suboh Md Yassin, Datuk Mohamed Azhar Osman Khairuddin, Datuk Shahrol Azral Ibrahim Halmi and Datuk Che Abdullah @ Rashidi Che Omar.
The matter was confirmed by SRC International’s lawyer Luc Choong following the proceedings.
On March 31, the High Court ruled that Najib was liable for losses amounting to US$1.3 billion suffered by SRC International after finding that he had breached fiduciary duties, abused his position and misappropriated company funds for personal benefit.
The court allowed SRC International’s civil suit amounting to US$1.18 billion and ordered Najib to repay the sum, in addition to US$120 million allegedly received from the company through an AmPrivate Banking account ending with the number 964, bringing the total liability to US$1.3 billion.
The court also dismissed Najib’s claims against the third-party defendants with costs, ruling that he could not shift responsibility to individuals who merely carried out decisions under his instructions, given his control over the company.
SRC International initiated the lawsuit in May 2021, alleging that Najib had breached fiduciary duties, abused power and misused company funds for personal interests.
