Former prime minister Datuk Seri Najib Razak told the High Court on January 13, 2026 that he never exercised control over SRC International Sdn Bhd and did not act as a shadow director of the company, maintaining that its board and management were fully responsible for its affairs and any losses incurred.
Najib made the assertion while testifying as the sole defendant in a civil lawsuit filed by SRC and its subsidiary, Gandingan Mentari Sdn Bhd. The suit seeks to hold him liable for the receipt of RM42 million allegedly originating from SRC funds. Najib stated that when the money was credited into his personal bank account, he believed it to be a donation similar to funds he had received on previous occasions.
Reading his witness statement before High Court judge Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan, Najib explained that his involvement with SRC was limited to his role at the shareholder level through the Ministry of Finance (Incorporated), following the company’s transfer from 1Malaysia Development Berhad to MOF Inc in February 2012. He stressed that he never attended SRC board meetings, did not manage its operations, and held no formal or informal position as a director.
According to Najib, decisions concerning SRC’s funds and business activities were the responsibility of the board of directors and senior management. He argued that for claims of shadow directorship to succeed, there must be evidence showing that the board habitually acted on his instructions, which he said did not exist in this case.
Najib also rejected allegations that he was involved in SRC’s formation, including the drafting of its constitutional documents or the appointment of key individuals such as Nik Faisal Ariff Kamil and Vincent Koh. He said provisions requiring prime ministerial approval for certain matters were standard safeguards applied across government-linked companies and did not grant him unilateral control over appointments or dismissals.
Addressing claims that SRC funds were misappropriated and channelled through intermediaries before reaching his account, Najib said he neither authorised nor had knowledge of such transfers. He maintained that he did not personally manage his bank accounts, did not receive monthly statements, and was unaware at the time that the RM42 million allegedly originated from SRC.
Najib further denied that Nik Faisal or any other individual acted on his behalf to influence SRC’s board decisions. He said any suggestion that actions were taken under his orders without authorisation would contradict principles of proper corporate governance.
SRC and Gandingan Mentari are seeking declarations of liability and damages for alleged abuse of power, dishonest assistance, and knowing receipt of funds. The civil proceedings continue as the court examines whether Najib bears personal responsibility for the disputed transactions.
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