THE Kuala Lumpjur High Court was informed on Tuesday that Datuk Seri Najib Razak exercised active control over SRC International Sdn Bhd, either directly or via its former chief executive officer, Nik Faisal Ariff Kamil.
Giving evidence, former SRC director Datuk Shahrol Azral Ibrahim Halmi, 56, said Nik Faisal, who served as both director and CEO, effectively acted as Najib’s proxy, serving as the vital link between the then prime minister and the company’s board of directors.
He explained that Nik Faisal would present papers and proposals to the board for approval, oversee follow-up actions on projects, and keep Najib apprised of all discussions and decisions within SRC.
“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.
“Whatever our opinions or comments were, Nik Faisal would tell us that the projects or matters had already been approved and endorsed by Datuk Seri Najib or the government,” Shahrol Azral stated.
The witness was providing his statement in the RM42 million civil suit brought against Najib by SRC and its subsidiary, Gandingan Mentari Sdn Bhd.
Shahrol Azral emphasised that Nik Faisal was appointed by Najib as director, CEO, and corporate representative, tasked with managing SRC and authorised as signatory on all company bank accounts, as well as holding a mandate 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 explained.
He added that he had no reason to doubt Nik Faisal’s authority at the time.
He further informed the court that all major decisions regarding the RM4 billion loan from the Retirement Fund Incorporated (KWAP) were taken by Najib, noting that as a director, he lacked the authority to make such financial decisions.
Addressing Najib’s claim for indemnity against third parties, Shahrol Azral stated he should not be required to indemnify or contribute to the former prime minister if Najib were found liable.
He also denied any obligation to act as a constructive trustee, provide compensation, or grant the declaratory relief sought.
“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 manipulated SRC to perpetuate a fraud which caused billions of funds from the company to be wrongfully disbursed and misappropriated.
“I was never charged with any offence pertaining to the loss and damage suffered by SRC in respect of the misappropriation of the RM4 billion fund from the Retirement Fund Incorporated 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 added.
The civil suit, filed in 2021 by SRC and Gandingan Mentari, 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 is scheduled to resume today. - March 4, 2026
