THE High Court ruled that former prime minister Datuk Seri Najib Razak is liable for losses amounting to US$1.18 billion suffered by SRC International Sdn Bhd, arising from his breach of fiduciary duties.
Judge Datuk Ahmad Fairuz Zainol Abidin delivered the ruling after allowing SRC International's civil suit, ordering Najib to account for and repay the losses which arose from the company's investment funds.
The US$1.3 billion award comprises US$1.18 billion in losses and US$120 million in quantified damages. Costs will be determined at a later date.
In his judgment, Ahmad Fairuz said that Najib exercised extensive control over SRC International's affairs despite holding no formal position in the company, effectively acting as a shadow director.
He noted the money trail passed through five layers: SRC International, SRC BVI, Enterprise Emerging Markets Fund (EEMF), Blackstone Asia, and Najib’s personal account, with each entity serving as a pass-through to obscure the ultimate destination.
SRC International is seeking a declaration that Najib is liable to account for and repay US$1.18 billion in losses arising from the company's proposed investment funds. The company is also seeking a declaration for the return of US$120 million.
The civil proceedings are distinct from Najib’s earlier criminal trial involving RM42 million in SRC funds, for which he was convicted.
SRC filed the lawsuit alleging that Najib had breached his trust, abused his power, misappropriated the company’s funds, and personally benefited from these actions.
The proceedings were attended by the lawyer representing SRC as the plaintiff, Datuk Lim Chee Wee, while the defendant was represented by Tan Sri Muhammad Shafee Abdullah.
Muhammad Shafee later informed the court that his client would be appealing the decision and sought an interim stay of execution on the payment.
Justice Ahmad Fairuz granted the application and told Muhammad Shafee that he has 14 days to file the notice of appeal.
Meanwhile, regarding Najib's claim against a third party involving five individuals, namely former SRC International directors Datuk Suboh Md Yassin; Datuk Mohammed Azhar Osman Khairuddin; Datuk Che Abdullah @ Rashidi Che Omar; Datuk Shahrol Azral Ibrahim Halmi and Tan Sri Ismee Ismail, the court dismissed it.
The court found that the claim was essentially an attempt to use the same evidence and arguments as presented in his defence against the plaintiff, that a third party, consisting of the SRC Board of Directors, controlled SRC's operations to transfer liability to all the directors involved.
On 7 May 2021, SRC, under its new management, filed a US$1.18 billion suit against Najib and six former directors of the company, alleging that Najib, who was also SRC's Emeritus Advisor from 1 May 2012 to 4 March 2019, abused his power and obtained personal benefits from the company's funds, in addition to committing embezzlement.
Najib, 72, has been serving his sentence at Kajang Prison since August 23, 2022, for his conviction of embezzling RM42 million in SRC International funds. – March 31, 2026
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