FORMER Prime Minister Datuk Seri Najib Razak has insisted that he never controlled SRC International Sdn Bhd or acted as a shadow director of the strategic investment company.
Najib, who returned to the High Court today after being convicted of misappropriating 1Malaysia Development Berhad (1MDB) funds last month, said instead that SRC's Board of Directors (BOD) and management were fully responsible for the operations and use of the funds.
He, who was testifying as a defendant in a civil suit filed by SRC and its subsidiary, Gandingan Mentari Sdn Bhd against him, said the company was also liable for any losses it suffered.
SRC was established as a subsidiary of 1MDB on January 7, 2011, but in February 2012, it was transferred from 1MDB to the Ministry of Finance (Incorporated) (MOF Inc).
Najib, who is also a former Finance Minister, said he never attended SRC's BOD meetings and did not manage the company's operations, while any approvals or consents by him were made solely at the shareholder level through MOF Inc.
"I do not hold a position as a director, either legally or de facto. I also did not act as a shadow director and did not cause the BOD to become accustomed to acting according to my instructions.
"My involvement is limited to my public interest responsibilities as Prime Minister and the limited shareholder functions as provided by law, nothing more.
"From a legal perspective, the plaintiff needs to prove a pattern of conduct that the SRC BOD habitually acted on my instructions, but there is no such evidence," he said.
Najib, who is also a former Pekan MP, said this when reading his witness statement before Judge Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan.
SRC had previously dropped five of its directors from the suit, including Tan Sri Ismee Ismail, Datuk Suboh Md Yassin and Datuk Shahrol Azral Ibrahim Halmi, leaving Najib as the sole defendant.
However, the High Court later allowed Najib's application to issue a third-party notice against them and named them as third-party defendants.
In the suit filed in 2021, SRC and Gandingan Mentari asked the court to declare Najib liable for the receipt of the company's RM42 million in funds.
The plaintiffs are also seeking damages for knowingly receiving the funds, dishonest assistance and acts of abuse of power.
Meanwhile, Najib also denied his involvement in the establishment of SRC, the drafting of the Memorandum and Articles of Association, the initial appointment of Nik Faisal Ariff Kamil and Vincent Koh as directors and shareholders of the company.
He said that the provisions in the SRC constitution that require the Prime Minister's approval for certain matters are only standard shareholder protections as practised in other government-linked companies (GLCs), and do not provide absolute control or unilateral power to appoint or dismiss directors.
He also rejected the claim that Nik Faisal acted as an intermediary for his instructions, while insisting that any representation that decisions made on his instructions were invalid and contrary to proper corporate governance.
Regarding the allegations of misappropriation of funds, Najib said that he was not aware of and had never ordered SRC money to be channelled to Ihsan Perdana Sdn Bhd or transferred to his personal account.
He insisted that the money credited to his personal account was supposed to be a donation, as had been received before and that he did not manage the account personally and did not receive monthly bank statements.
"I did not use Nik Faisal or any individual as an intermediary to direct or determine the decision of the SRC BOD or to plan the entry of RM42 million into my account.
"If any officer said 'this is the Prime Minister's order', that was never authorised by me and is contrary to proper corporate governance.
"I did not know at that time that the money allegedly originated from SRC International. If I had been informed, I would have definitely rejected or returned the money," he said.
The trial continues tomorrow. – January 13, 2026
