[UPDATED] Najib alleges conflict of interest involving judge Nazlan in SRC case

KUALA LUMPUR – Datuk Seri Najib Razak wants his SRC International Sdn Bhd high court trial nullified after alleging a massive conflict of interest involving the presiding judge Datuk Mohd Nazlan Mohd Ghazali. 

The former prime minister filed an application at the Federal Court today to adduce further evidence via a motion and affidavit. 

His lead counsel, Tan Sri Muhammad Shafee Abdullah, said the application is aimed primarily at persuading the supreme court to invalidate the trial in the lower court, saying it has infringed the rules against bias and fair trial principles. 

Speaking at a press conference, Shafee claimed that Justice Nazlan had wilfully failed to disclose his role, involvement, or knowledge in the setting up of SRC International. 

According to Shafee, a recent discovery has found that in 2006, Nazlan was the general counsel and company secretary for the Maybank Group, and had the overall responsibility for the management and administration of all legal departments within the entire group. 

He said documents have shown that Maybank Investment Bank Bhd was responsible for proposing the establishment of SRC, while its strategic advisory division, Bina Fikir Sdn Bhd, was tasked with the research and advisory side of things. 

“The involvement of Maybank, through Maybank Investment and Bina Fikir Sdn Bhd, in the setting up of SRC was never brought up by the prosecution at any point of the trial, and no witness from Maybank, Maybank Investment, and Bina Fikir Sdn Bhd was called or offered by the prosecution.”

Shafee said Nazlan, by virtue of his position in Maybank, would have to be responsible in the overall handling of all legal matters in the group and would have actual knowledge of the financial institution's involvement. 

He further claimed that Nazlan, who was also Maybank’s head of corporate and legal services, would have known of the RM140 million loan given to Putra Perdana Development (PPD), which forms part of the subject matter of the RM42 million related to the charges against Najib. 

This is based on a statement made by a Maybank officer to the Malaysian Anti-Corruption Commission (MACC) that Nazlan had been informed of the loan to PPD. 

“In light of this, Nazlan would have known or have a good suspicion that the RM42 million subject matter of the charges against Najib had never had its source from the RM4 billion Retirement Fund Incorporated (KWAP) loan, as this was clearly the RM140 million loan from Maybank undertaken by PPD.”

Najib was sentenced to 12 years’ jail and fined RM210 million by Nazlan in July 2020 after he was found guilty of all seven charges related to the misappropriation of RM42 million of SRC funds. 

In December last year, the Court of Appeal upheld the high court judge’s conviction after finding that the guilty sentence delivered was correct, given the prosecution has proven elements of the offences beyond a reasonable doubt. 

Nazlan recently found himself under MACC investigation over allegations of unexplained money in his personal account. 

According to Shafee, the documents the defence team recently obtained also revealed that Nazlan was involved in the deliberation and decision making of a loan facility of RM4.17 billion to 1Malaysia Development Berhad (1MDB) for an energy project. 

He claimed that Maybank Investment Bank was responsible as the arranger of the multi-billion ringgit loan to the former state investment arm to acquire Tanjong Energy Holdings. 

Shafee alleged that a Maybank officer, Michael Oh-Lau, who was the head of Debt Markets, had confirmed that Nazlan had attended Maybank’s board of directors’ meetings in relation to the RM4.17 billion loan. 

“Oh-Lau confirmed that in early 2015, when 1MDB was on the verge of defaulting on the payments for the said loan, Nazlan as Maybank’s general counsel was deeply involved where he was briefed of every step taken by Maybank in the proposed actions against 1MDB and Tanjong Energy Holdings.”

Shafee said these facts would have conclusively put Nazlan in the position of being a potential witness in the 1MDB case. 

The senior lawyer said this additional evidence that Najib seeks to adduce would show that Nazlan’s findings of Najib’s “overarching control” over SRC, to serve his corrupt and selfish interest, were unfounded. 

He said if these documents are allowed to be disclosed, the judge’s personal involvement in the setting up and incorporation of SRC would unfold. – The Vibes, June 7, 2022