FORMER prime minister Najib Razak claimed that billions of ringgit of SRC International Sdn Bhd funds were misappropriated through dubious investments authorised by former directors of the old management.

Out of more than 30 alleged “wrongdoings” discovered by the new management, 27 involve lack of due diligence and supervision over company affairs by former guardians, he added.

“The SRC constitution entrusts directors with investment-related matters.

“If former trustees in whom confidence was reposed turned a blind eye and allowed the proverbial wolf into the coop, the betrayal of confidence ought to have been inquired into.”

Najib said this in his statement of defence filed on April 4, in a reply to SRC International’s US$1.18 billion (RM4.9 billion) suit against him.

He contended that any wrongful transfer of funds out of the company was due to the previous management, as discovered by the new management.

He dismissed as ridiculous the claim that SRC directors’ investment decisions reflected his wish as then prime minister.

He claimed that the SRC board has exclusive powers in determining investment decisions and policies courtesy of articles 74, 75, and 78 of the SRC Memorandum and Articles of Association, as well as section 131B of the Companies Act 1965.

In refuting the allegation of fraud and wrongdoing against him, Najib said SRC’s suit shows that its inability to repay the instalments due in 2015 is the result of the various unlawful acts of the SRC board.

On May 7 last year, SRC filed legal action against Najib and its six former directors, but later removed the six from the suit.

The company in its writ of summons alleged that the 68-year-old politician abused his power and obtained personal benefits from firm funds and misappropriated those funds.

SRC, now wholly owned by Finance Ministry Incorporated, is seeking general damages, exemplary, additional and interest, costs and other appropriate relief deemed fit by the court. – Bernama, April 13, 2022.