NAJIB Razak has been ordered to enter his defence in the SRC International Sdn Bhd trial on charges of misappropriating RM42 million from the former 1Malaysia Development Bhd subsidiary.

Kuala Lumpur High Court judge Mohd Nazlan Mohd Ghazali made the ruling this morning after finding that the prosecution has successfully established a prima facie case against the former prime minister.

Najib has chosen to give sworn testimony from the witness stand, after which he will be cross-examined by prosecutors.

The hearing dates have been fixed from December 3 to 19.

The 66-year-old Najib’s seven criminal charges – three counts of criminal breach of trust, three counts of money-laundering and one count of power abuse – are linked to RM4 billion in loans issued to SRC International in 2011 and 2012, for which he is accused of receiving RM42 million in his personal accounts in 2014 and 2015.

“Because of his position as (the then) prime minister and finance minister, the accused was able to cause the arrangement of SRC International… to be a vehicle to be utilised by him for his private advantage,” said Nazlan when delivering his oral judgment, which took nearly an hour.

He said the prosecution has established a prima facie case for the power abuse charge under Section 23 of the Malaysian Anti-Corruption Commission Act 2009, CBT charges under Section 409 of the Penal Code, and money-laundering charges under Section 4(1)(a) of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001.

Evidence submitted by the prosecution showed that Najib abused his office for the purpose of obtaining gratification, he said.

He said the evidence showed that Najib, in cabinet meetings in 2011 and 2012, used his position to set in motion the approval of up to RM4 billion in loans from Retirement Fund Inc to SRC International. It is from these loans that the RM42 million eventually made its way into Najib’s AmBank accounts.

Nazlan added that SRC International was “no ordinary” company, as Najib was named its adviser.

“The accused had enormous influence and wielded an overarching position of power in SRC,” the judge said.

“He was not the only person, who as the finance minister headed the Minister of Finance (MoF) Inc as sole shareholder of SRC and 1MDB (1Malaysia Development Bhd), but was also the prime minister vested with the authority under the articles of SRC to appoint and dismiss directors of the company and to whom certain reserved matters including amendments must be referred.”

Nazlan said evidence of Najib’s conduct in relation to SRC International “cannot be construed as purely being a lawful exercise official duty as either the prime minister, finance minister or adviser emeritus because such conduct and involvement was beyond the ordinary”.

Nazlan also said the defence’s argument that Najib had not given any instructions or directions, but merely made requests in relation to securing loans from KWAP “cannot withstand scrutiny”.

The judge said the RM4 billion loans would not have been approved by KWAP’s investment panel if not for the government guarantees.

He said the entity was deprived of RM42 million, and that the evidence pointed to the money being a “wrongful gain” as Najib had issued cheques for the amount.

Despite Najib saying he was shocked at discovering the money in his accounts, he did not order anyone to lodge a police report or file a suit against the bank for irregularities, said the judge.

He said the crime of misappropriation occurred when the funds left SRC International and before entering Najib’s accounts, as the former prime minister had been placed in charge of the firm.

“In conclusion, in light of the foregoing summary, upon a maximum evaluation of all the evidence adduced before me at the end of the prosecution stage, involving an assessment of the credibility of the prosecution witnesses and the drawing of inferences admitted by the prosecution evidence, as tested in cross-examination, in my judgment, the prosecution has successfully adduced credible evidence proving each and every essential ingredient of the offences of abuse of position for gratification, CBT (criminal breach of trust) and money laundering as framed in the charges, in relation to any of which if un-rebutted or unexplained, would warrant a conviction.

“A prima facie case has therefore been made out against the accused in respect of each of the single charge of use of position for gratification, the three CBT charges and the three money laundering charges within the meaning of Section 180 of the CPC (Criminal Procedure Code). As such l now call upon the accused to enter his defence in respect of all the seven charges.”

Najib, dressed in a dark grey suit and an orange tie, remained expressionless, while his supporters stayed silent when Nazlan made the ruling.

Present in the public gallery were Najib’s daughter Nooryana Najwa, opposition leader Ismail Sabri Yaakob, former Jerai MP Jamil Khir Baharom and about a dozen backers.

The prosecution’s case in the SRC International trial saw 57 witnesses testifying over 57 days between April 3 and August 27. The prosecution tendered more than 750 exhibits, including bank documents relating to Najib’s accounts, cash transactions, meeting minutes and Blackberry Messenger chats on his transactions.

In all, Najib faces 42 charges, spread out over five criminal trials.

The ongoing 1MDB proceedings involve the biggest sum – RM2.282 billion that he allegedly received between 2011 and 2014.

For his yet-to-be-heard trials, Najib faces six counts of CBT involving RM6.6 billion in government money paid out to settle debts with Abu Dhabi sovereign wealth fund International Petroleum Investment Company, one count of power abuse for tampering with the 1MDB audit report and three counts of money-laundering involving RM27 million in SRC International funds.

The trials will proceed one at a time, as Najib’s right as an accused requires that he be present for all trial hearings, as well as those on interlocutory matters, to ensure fair proceedings.

The burden of proof is on prosecutors, who must prove that Najib is guilty beyond reasonable doubt. Till then, he is presumed innocent. – November 11, 2019.