KUALA LUMPUR, March 13 — An offshore asset recovery specialist told the Commercial High Court today she did not see evidence that US$120 million of funds that flowed into former prime minister Datuk Seri Najib Abdul Razak’s bank account had been returned to Tanore Finance Corp owned by an associate of Malaysian fugitive Jho Low.
Angela Barkhouse, managing director at Quantuma International, was testifying as the second witness in SRC International Sdn Bhd’s US$1.18 billion (RM5.58 billion) civil suit against Najib.
Barkhouse said she had not seen any documentary evidence to suggest that US$120 million — the compensation sum sought by SRC International against Najib in the ongoing suit — was part of US$620 million returned to Tanore in 2013.
“I have not seen anything come back. I have not seen the US$120 million returned.
“I have not seen that evidence,” she said via video-conferencing from the Cayman Islands.
Based on previous evidence tendered during Najib’s ongoing 1Malaysia Development Berhad criminal trial, Tanore’s owner is Eric Tan Kim Loong.
Tan is now known to be an associate of Malaysian fugitive Low Taek Jho, with the latter better known as Jho Low and described by the prosecution as being Najib’s alter ego and mirror image.
In her testimony, Barkhouse affirmed Tan’s ownership as a beneficiary of the entity through analysis of documents provided to her by PriceWaterhouseCoopers in her capacity as a liquidator for offshore entities.
Under cross-examination by Najib’s counsel Harvinderjit Singh, Barkhouse said Low’s affiliation to these offshore entities is provided in the United States Department of Justice’s lawsuit as part of the 1MDB sovereign wealth fund fraud.
She also maintained that her investigative analysis was based on financial and corporate records she had obtained and as such only possessed knowledge limited to said documents when cross-examined by Harvinderjit as to Low’s true involvement and in utilising multiple offshore entities to siphon funds.
“I think it’s quite presumptuous to say Jho low, there was funds that flowed in a circuit.
“But I didn’t say it was Jho Low. It was based on the DOJ’s report that Jho Low was mentioned,” she said.
Apart from SRC BVI, Barkhouse had in her witness statement stated she was also appointed joint liquidators for over 12 other entities which either received funds from SRC International or became the intermediaries where US$1.18 billion passed through.
As to the origin of the US$1.18 billion, these funds originated from a loan of RM4 billion which SRC International obtained from the Retirement Fund Incorporated (KWAP) — a statutory body which manages the pension scheme for Malaysia’s civil servants.
The hearing resumes before Judge Datuk Ahmad Fairuz Zainol Abidin tomorrow.
Imprisoned since August 23, 2022, Najib is serving his 12-year jail sentence and RM210 million fine for his conviction over the misappropriation of SRC International’s RM42 million funds, which has recently been reduced to six years of jail and RM50 million fine by the Pardons Board.
SRC, under its new management, had 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 and Tan Sri Ismee Ismail in May 2021.
However, later, it removed six names from the suit and retained Najib as the defendant.
Additionally, Najib has brought the former named SRC International directors as third-party respondents.
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 his 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; including an order that Najib compensate the sum of US$120 million as well.
