Former prime minister Datuk Seri Najib Razak has not abandoned his long-held belief that the RM42 million credited to his personal bank accounts originated from Saudi Arabia, despite widespread reporting suggesting otherwise, according to his lead defence lawyer Tan Sri Muhammad Shafee Abdullah.
Speaking to the media at the Kuala Lumpur court complex on January 23, 2026, Shafee argued that Najib’s testimony during ongoing civil proceedings involving SRC International Sdn Bhd and its subsidiary, Gandingan Mentari Sdn Bhd, had been misunderstood and inaccurately portrayed. The civil suit seeks to recover RM42 million that allegedly flowed into Najib’s accounts from SRC-linked sources.
Shafee said reports claiming Najib had accepted that the money was not a Saudi donation failed to reflect his client’s actual position. According to the lawyer, Najib’s consistent understanding, from the time he received the funds until the current High Court proceedings, was that the money came from Saudi Arabia as a donation linked to the Saudi royal family.
He explained that Najib’s responses during cross-examination were framed within the context of existing court rulings in the earlier SRC criminal case, where the courts concluded that the funds were not donations. Shafee maintained that acknowledging those judicial findings did not amount to Najib personally conceding or abandoning his own belief about the origin of the money.
During the civil proceedings earlier in the week, Najib was questioned by SRC’s counsel on whether he still maintained that the RM42 million was part of a Saudi donation. Najib was reported to have accepted that, based on later information and the court’s conclusions, the funds were found to be unrelated to any such donation. However, Shafee stressed that this response reflected legal realities rather than Najib’s personal conviction.
The lawyer said Najib had merely accommodated the line of questioning by recognising what the courts had ruled, while internally maintaining that he had no reason at the time of receipt to believe the money came from anywhere other than Saudi Arabia. Shafee added that Najib never testified that he had changed his belief or knowledge regarding the source of the funds.
Najib has been testifying throughout the week in the High Court as part of the civil claim by SRC and Gandingan Mentari to recover the RM42 million. The former prime minister was convicted in the SRC criminal case and has been serving a reduced prison sentence following a partial pardon granted in January 2024.
The civil proceedings are continuing, with the court expected to hear further arguments as both sides attempt to clarify the origins of the disputed funds and Najib’s role in their receipt.
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