Former SRC director testifies that Nik Faisal Ariff Kamil acted as Najib Razak’s proxy, relaying instructions and controlling company decisions and finances.
KUALA LUMPUR: The High Court was told that former prime minister Datuk Seri Najib Tun Razak actively controlled SRC International Sdn Bhd, either directly or through its former chief executive officer Nik Faisal Ariff Kamil.
Former SRC director Datuk Shahrol Azral Ibrahim Halmi testified that Nik Faisal, appointed as both director and CEO, acted as Najib’s proxy and served as the link between the then premier and the company’s board.
He stated that Nik Faisal would table papers for board approval and handle project follow-ups while keeping Najib directly informed of all company discussions and decisions.
“All the directors were compelled to comply with and implement the decisions and instructions of Datuk Seri Najib as represented by Nik Faisal or through letters and documents signed by him,” said Shahrol Azral, who is named as a third party in the suit.
He added that Nik Faisal would inform the board that projects had already been approved by Najib or the government, regardless of the directors’ opinions.
Shahrol Azral was giving his witness statement in the RM42 million civil suit filed against Najib by SRC and its subsidiary, Gandingan Mentari Sdn Bhd.
He explained that Nik Faisal was appointed by Najib as a director, CEO, and corporate representative of SRC, tasked with heading the company’s management.
The witness noted that Nik Faisal was the authorised signatory for all SRC bank accounts and a mandate holder for Najib’s personal accounts.
“The instructions conveyed by Nik Faisal during board meetings are confirmed in the minutes of shareholders’ meetings signed personally by Najib, and he is relaying Najib’s decisions, which all directors are obliged to implement,” he said.
Shahrol Azral added that he had no reason at the time not to believe Nik Faisal based on the structure of authority.
He further informed the court that all important decisions concerning SRC’s RM4 billion loan from the Retirement Fund Incorporated (KWAP) were made by Najib.
The witness stated that as a mere director on the board, he lacked the authority to make any financial decisions for the company.
Responding to Najib’s claim for indemnity against third parties, Shahrol Azral asserted he was not liable to indemnify the former prime minister should Najib be found liable to SRC.
He further denied that he was required to account to SRC as a constructive trustee or compensate the company for any damages.
“I also deny Datuk Seri Najib’s claim that I have acted fraudulently, failed to discharge my duty as a director, conspired with others, and that I have manipulated SRC to perpetuate a fraud which caused billions of funds from the company to be wrongfully disbursed and misappropriated,” he said.
Shahrol Azral highlighted that he was never charged with any offence pertaining to the loss and damage suffered by SRC regarding the misappropriation of the RM4 billion KWAP loan.
“On the contrary, Datuk Seri Najib has been convicted and sentenced by the High Court, and his conviction was confirmed by the Court of Appeal and his appeal to the Federal Court has been dismissed,” he told the court.
The civil suit, filed in 2021, seeks a declaration that Najib is liable for RM42 million and claims damages for knowing receipt, dishonest assistance, misfeasance in public office, and abuse of power.
The trial before Judge Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan continues.