KUALA LUMPUR (Nov 2): Former premier Datuk Seri Najib Razak's application for a stay of proceedings in the US$1.18 billion suit initiated by SRC International Sdn Bhd against him and several others has been fixed for hearing on Dec 3.
This was decided following case management before High Court (Commercial) Justice Datuk Ahmad Fairuz Zainol Abidin on Tuesday. Checks on the court's system showed that the hearing of the application would be done online before Justice Ahmad Fairuz.
Najib wants a stay of the suit, pending a decision on his appeal in the criminal case where he was sentenced to 12 years jail and fined RM210 million after the High Court found him guilty of abuse of power, criminal breach of trust and money laundering with regards to SRC's funds.
On Monday (Nov 1), it was reported that SRC, a former subsidiary of 1Malaysia Development Bhd, had obtained a judgment in default against its former CEO Nik Faisal Ariff Kamil, who is missing and believed to be out of the country and did not enter an appearance to the suit.
SRC had named Najib, who was advisor emeritus of SRC, along with Nik Faisal and former fellow directors Datuk Suboh Md Yassin, Datuk Shahrol Azral Ibrahim Halmi, Tan Sri Ismee Ismail, Datuk Mohammed Azhar Osman Khairuddin and Datuk Che Abdullah @ Rashidi Che Omar as defendants in its suit, alleging breach of duties, breach of trust, receipt of wrongful property, dishonest assistance, conspiracy and wrongful conversion of SRC property.
However, SRC later dropped Shahrol and Ismee as defendants. But Azhar, in his defence and counterclaim, brought them back as third party notice, should the suit be successful on the rest of them.
SRC also claims abuse of power, dishonesty and misappropriation of funds
SRC, in its 80-page statement of claim, also accused Najib, Suboh, Azhar, Rashidi and Nik Faisal of abuse of power, dishonesty, and misappropriation of SRC funds, and acting with the knowledge or probability of harming the company.
SRC claimed Najib, as the advisor emeritus and leader of the government, supported the company and gave the go-ahead for it to get the RM4 billion Retirement Fund (Incorporated) (KWAP) loans in 2011 and 2012, leading to the bulk of the funds being transferred overseas.
It claimed that Najib changed the investment structure for which the loans were supposed to be used, going against Bank Negara Malaysia's (BNM) requirements.
The company also showed the money trail in the utilisation of the funds, including a sum of US$120 million that had allegedly gone into Najib's personal account or placed under his control, and a sum of US$82,000 that was allegedly transferred to Najib's proxy, Nik Faisal.
SRC said detailed investigations were done on all the transactions after Najib's fall from power, and that it noticed that crucial documents linked to the fraud committed against the company had been destroyed.
In January 2019, the company was placed under the care of the Ministry of Finance, where the various fraudulent transfers and embezzlement of money were discovered.
SRC claimed that Najib helped approve the KWAP loans in a bid to misappropriate and embezzle the funds.
The company further claimed that Suboh, Nik Faisal, Azhar and Rashidi ought to have known that the proposed investment funds were for the specific purpose of investment activities but were instead used for something else, and that they authorised the utilisation of the funds, resulting in the fraudulent or wrongful transfers.
The company also claimed that the four had conspired to wrongly injure SRC, resulting in the company going against BNM's requirements.
SRC is seeking a declaration from the court that Najib and the four others are liable to account for the company's losses due to their fraudulent breach of duties and trust.
It is also seeking an order that they pay the US$1.18 billion in losses it suffered, and damages for breach of duties and trust.
In July last year, the High Court found Najib guilty of seven criminal charges in relation to SRC and sentenced him to spend a total of 12 years in jail and fined RM210 million. Najib is currently appealing this conviction.