Malaysia

SRC only seeks return of RM42 million from Najib in civil suit

Trial begins as SRC International and its subsidiary aim to recover public funds allegedly misused by former prime minister, in case tied to earlier criminal conviction

Updated 1 year ago · Published on 15 Aug 2025 1:22PM

SRC only seeks return of RM42 million from Najib in civil suit
Kwan described the matter as one of betrayal - August 15, 2025

SRC International Sdn Bhd and its subsidiary Gandingan Mentari Sdn Bhd have commenced civil proceedings against former prime minister Datuk Seri Najib Razak, seeking the return of RM42 million that had allegedly ended up in his personal bank accounts.

“Ten years have since passed since the sum found its way to the defendant’s bank accounts,” The Edge cited Kwan Will Sen, counsel for the plaintiffs saying, as the trial opened on Friday. “Today, we begin the trial process for the plaintiffs to recoup what is rightfully theirs.”

Kwan described the matter as one of betrayal.

“The facts are stark,” he said. “Public money, funds meant to secure Malaysia's energy future and intended for the benefit of civil service pensioners, ended up in the personal bank accounts of our former prime minister.”

The suit is part of a wider series of legal actions initiated in 2022 by 1Malaysia Development Bhd (1MDB) and SRC, the former state investment vehicles marred by global corruption scandals.

This particular case centres on the same RM42 million for which Najib was previously convicted in his criminal SRC case involving criminal breach of trust, money laundering, and abuse of power. He is currently serving a prison sentence for those offences.

SRC and Gandingan Mentari are now seeking a declaration that Najib is liable for receiving the RM42 million and are claiming damages for knowing receipt, dishonest assistance, misfeasance in public office, and abuse of power.

On the difference in burden of proof between civil and criminal proceedings, Kwan explained, “Unlike criminal cases which needed to be proven beyond reasonable doubt, the civil action only needs proof on the balance of probabilities that Najib did receive the RM42 million and that he was aware that the funds were tainted.”

Najib is also facing a separate, ongoing civil suit brought by SRC, which is seeking a declaration that he is accountable for the company’s losses amounting to US\$1.18 billion due to breaches of fiduciary duties and trust.

In that case, the plaintiffs are seeking an order for Najib to pay US\$120 million in compensation and for former CEO Nik Faisal Ariff Kamil to repay US\$2 million, alongside further damages. The matter remains pending before the courts. - August 15, 2025

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