Malaysia

SRC International to pursue asset seizure if Najib fails to repay US$1.3 billion

Company signals enforcement action despite interim stay as former prime minister prepares to appeal High Court ruling over misappropriated funds

Updated 2 months ago · Published on 01 Apr 2026 6:55PM

SRC International to pursue asset seizure if Najib fails to repay US$1.3 billion
Counsel says legal enforcement, including potential seizure and sale of assets, will follow should payment not be made - April 1, 2026

SRC International Sdn Bhd will move to enforce a US$1.3 billion (approximately RM5.24 billion) judgment against former prime minister Datuk Seri Najib Razak if he fails to repay the sum awarded by the High Court, the company’s counsel has said.

Lawyer Kwan Will Sen indicated that legal enforcement, including potential seizure and sale of assets, would follow should payment not be made, although immediate attention is focused on an interim stay granted pending appeal.

“We will have to proceed with execution. That said, there is now the interim stay, so we will deal with the stay first,” he told the New Straits Times.

The High Court recently ruled in favour of SRC International, ordering Najib to account for and repay US$1.18 billion in company losses, along with a further US$120 million traced directly to his personal accounts.

However, enforcement action may be temporarily suspended due to the stay of execution, which remains in place until the appeal process is resolved.

Najib is expected to challenge the ruling at the Court of Appeal and, if necessary, the Federal Court.

In his judgment, High Court Judge Datuk Ahmad Fairuz Zainol Abidin found that Najib had systematically misused a RM4 billion loan obtained by SRC International from the Retirement Fund Inc for personal enrichment.

The court held that US$120 (approximately RM483.24 million) had been channelled into Najib’s own accounts, demonstrating that his actions were driven by personal financial gain rather than the interests of the company or the public.

The ruling further stated that Najib exercised decisive control over SRC International’s board, directing its decisions at key junctures through shareholder resolutions and the appointment of directors loyal to him, while leveraging his authority as both prime minister and finance minister.

The board, the court found, failed to independently assess the strategies put forward.

On the issue of funds traced to Najib’s accounts, the court described his explanations as inconsistent and unsustainable, concluding that his conduct was motivated by an improper purpose and caused harm to the company.

Najib’s counsel, Tan Sri Muhammad Shafee Abdullah, confirmed that his client will appeal and successfully applied for an interim stay on the payment.

Najib was previously convicted on July 28, 2020, and sentenced to 12 years’ imprisonment and fined RM210 million over offences linked to SRC International funds, including abuse of power, criminal breach of trust, and money laundering involving RM42 million.

His sentence was later reduced by the Federal Territories Pardons Board to a shorter jail term and a RM50 million fine. - April 1, 2026

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