KUALA LUMPUR, Feb 22 — The High Court today rejected Pekan MP Datuk Seri Najib Razak’s bid to temporarily suspend hearing SRC International Sdn Bhd’s US$1.18 billion (RM4.9 billion) civil suit against him.
The High Court also ordered Najib to file his defence within 40 days from today.
The suit is in relation to an alleged breach of trust and breach of statutory duty involving the RM4 billion Retirement Fund Incorporated (KWAP) loan to SRC International when Najib was prime minister.
In delivering his decision, judge Datuk Ahmad Fairuz Zainol Abidin said the management of the suit must continue and the filing of Najib's defence is critical to ensure that the suit progressed efficiently.
“It is of the view of the court that the outcome of the [Federal Court] appeal and the planned applications are purely speculative at this juncture, nevertheless whatever outcome of the appeal and applications will have will not bar the defendant from making amendments to the pleadings subject to the necessary applications being made.
“The disclosure of the defence will not prejudice the defendant, as per the large extent the defence has been disclosed in the criminal [SRC International] trial.
“Thus on settled principles of law and based on the background of the suit, stay is not allowed,” Ahmad Fairuz said during the hearing which was conducted through video conferencing.
Najib sought a stay pending his appeal at the Federal Court of his conviction and sentencing involving the misappropriation of SRC International’s RM42 million fund, as well as another money laundering trial involving RM27 million of the company’s funds, which has yet to start.
Ahmad Fairuz said the application to stay the current proceedings until the conclusion of Najib’s money laundering case involving RM27 million in SRC International funds is also disallowed as trial has yet to begin.
“As counsel for the defendant in their usual candour admitted that there will be interlocutory applications coming and the common knowledge that trial will not begin immediately it is best that all parties endeavour to file the necessary pleadings expeditiously,” he said.
He then ordered Najib to file his defence within 40 days from today and fixed April 1 for case management.
On May 7 last year, SRC under its new management, filed legal action against Najib and its former directors Datuk Suboh Md Yassin, Datuk Mohammed Azhar Osman Khairuddin, Nik Faisal Ariff Kamil, Datuk Che Abdullah @ Rashidi Che Omar, Datuk Shahrol Azral Ibrahim Halmi dan Tan Sri Ismee Ismail.
However, later, it removed six names from the suit and retained Najib as defendant.
SRC as a plaintiff in the writ of summons had alleged that Najib had abused his power and obtained personal benefits from SRC International’s funds as well as misappropriated the funds. Najib was SRC’s Emeritus Advisor from May 1, 2012, until March 4, 2019.
SRC International, which is now wholly owned by the Ministry of Finance Incorporated (MoF Inc) is seeking general damages, exemplary, additional and interest, costs and other appropriate relief provided by the court.
SRC International is currently seeking a declaration from the court that Naijib is liable to account for the company's losses due to their breach of duties and trust.
The company is also seeking an order that Najib pay the US$1.18 billion in losses it suffered, and damages for breach of duties and trust.
On December 7 last year, the Court of Appeal upheld the conviction and 12-year jail term and RM210 million fine on Najib for misappropriating RM42 million in SRC funds after dismissing his appeal against the KL High Court decision on July 28, 2020.
After the ruling, Najib subsequently filed an application to appoint a Queen’s Counsel from the United Kingdom to assist the former premier in complex issues and legal questions in the ongoing SRC International appeal at the Federal Court.
