The High Court has ruled Najib Razak liable for SRC International’s USD 1.3 billion losses, ordering him to pay the sum after finding he breached fiduciary duties and misappropriated funds.
KUALA LUMPUR: The High Court today ruled that former prime minister Datuk Seri Najib Tun Razak is liable for SRC International Sdn Bhd’s USD 1.3 billion (approximately RM 6.1 billion) losses.
Judge Datuk Ahmad Fairuz Zainol Abidin found Najib had breached his fiduciary duties, abused his position, and misappropriated company funds for personal gain.
The court ordered Najib to pay USD 1.18 billion to SRC, plus USD 120 million that was traced directly into his personal AmPrivate bank account.
Justice Ahmad Fairuz held that Najib abused his public office to enable SRC to obtain a RM 4 billion loan from the Retirement Fund Inc (KWAP) under a government guarantee.
He stated that Najib’s misuse of authority facilitated the direct offshore disbursement of RM 3.6 billion without proper oversight.
The judge said these actions led to the misappropriation of USD 1.1 billion through fraudulent investment structures.
He added that SRC was consequently unable to repay the public loans, prompting a RM 600 million government bailout to cover the losses.
Justice Ahmad Fairuz further observed that Najib took no steps to secure the funds and never ordered any investigation into the transactions.
The court found that but for Najib’s misuse of office, SRC would not have borrowed the RM 4 billion, dispersed RM 3.6 billion offshore, or lost USD 1.2 billion in misappropriated funds.
“His orchestration of the scheme from inception to dissipation establishes a clear and complete chain of causation, rendering him fully responsible for the losses suffered by SRC,” said the judge.
He noted that SRC successfully established that USD 120 million was traced into Najib’s bank account through detailed testimony and unredacted documentary evidence.
The court dismissed Najib’s claims against third-party defendants, which included former SRC directors, with costs.
Justice Ahmad Fairuz stated the law on third-party contribution does not allow a primary wrongdoer to shift liability onto individuals he directed.
Following the verdict, Najib’s lawyer Tan Sri Muhammad Shafee Abdullah informed the court his client would file an appeal and seek an interim stay of the payment order within 14 days.
The court subsequently granted the interim stay order pending the appeal.
SRC initiated the suit in May 2021, alleging Najib breached his fiduciary duties, abused power, and misappropriated funds.
The company seeks a declaration of Najib’s liability and compensation for USD 1.18 billion in losses, plus quantified damages of USD 120 million.