Najib Didn't Inquire About Frozen SRC Funds In Switzerland, Court Heard

KUALA LUMPUR, Oct 10 (Bernama) -- Datuk Seri Najib Tun Razak told the High Court here today that he did not inquire about the investigation into the RM3.6 billion funds by SRC International Sdn Bhd that was frozen by Swiss authorities in 2013 due to the complexity of the investigation.

The 71-year-old former prime minister said that he did not seek information regarding the SRC funds in BSI Bank in Lugano as he expected that the authorities would update him on any developments.

The frozen money, part of the RM4 billion loan from the Retirement Fund Inc (KWAP) to SRC, was seized by the Swiss authority on suspicion of it being laundered funds.

Najib, as the first defendant said this when questioned by lawyer Datuk Lim Chee Wee, representing SRC International, at SRC International’s US$1.18 billion civil suit against him and former SRC chief executive officer Nik Faisal Ariff Kamil, who is currently at large.

Lim: As the Minister of Finance did you take action personally to find out what has become of SRC investments to generate returns to pay the loan from the Retirement Fund Inc?

Najib: Yes, I did ask around, I did ask the management. They had difficulties in giving me a satisfactory answer. I was not happy with the situation.

Lim: If you were unhappy with the management, what report did you ask from the law enforcement agencies as to why SRC funds were frozen in Switzerland?

Najib: I didn't ask for the report but as I said I expected them to give me the report. I was disappointed with the situation.

Najib then confirmed that even after leaving office in 2018, the SRC investment funds had still not been repatriated to Malaysia.

In response to another question by Lim, Najib disagreed with the suggestion that the reason he did not instruct local enforcement agencies to investigate the frozen funds in Switzerland was because he had benefited and received RM42 million of SRC money in his account.

"Whatever I received I believed in my state of mind is donation money," said Najib.

Najib also denied that he had stopped former Finance Minister II, Datuk Seri Ahmad Husni Hanadzlah from attempting to repatriate the money that had been frozen by the Swiss authorities to Malaysia.

"He (Ahmad Husni) just mentioned it casually. I never stopped him from acting in any 1MDB matters. If he prepared a cabinet paper then we could review it. All ministers travelling overseas must prepare a cabinet paper," he testified.

However, when questioned whether he had personally taken the initiative to prepare a cabinet paper for Ahmad Husni to initiate an investigation into the frozen funds, Najib answered negatively and stated the SRC management had travelled to BSI Bank in Switzerland to address the issue.

In May 2021, under the new management, SRC filed the lawsuit, accusing Najib of breach of trust, abuse of power and personally benefiting from the company’s funds and misappropriating the said funds.

SRC International previously removed five of its directors from the lawsuit, retaining Najib as the sole defendant. However, the High Court permitted Najib to issue third-party notices against them.

The company is seeking a court declaration holding Najib accountable for the company's losses due to his alleged breach of duties and trust and for him to compensate the RM42 million in losses they have incurred. 

The trial before Judge Datuk Ahmad Fairuz Zainol Abidin continues on Oct 16.

-- BERNAMA