The Malaysian Insight

NAJIB Razak, as the prime minister, had at all times acted in the best interests of the government and not for personal gain, in his dealings with SRC International, his lawyer told the high court today.  

Najib’s lead counsel Muhammad Shafee Abdullah, in reading the defence’s opening statement at the SRC International trial today, said the former prime minister had never controlled or directed the board of directors on the affairs and operations of SRC International.

“Datuk Seri Najib was being misrepresented on the transactions and actual balances in his accounts in 2013 to 2015 and his accounts were being manipulated by third parties without his knowledge and approval,” said Shafee.

“Datuk Seri Najib was not involved in any corrupt arrangement involving funds of SRC International and did not solicit any bribes from any person.

“The RM42 million transferred into his account was done without his knowledge or involvement and was not a form of gratification related to any act of Datuk Seri Najib vis-à-vis SRC International.”  

Najib’s trial enters the defence stage today. Shafee read out the opening statement prior to Najib reading out his sworn testimony, an account which is expected to take days to conclude.

Najib was ordered to enter his defence on November 11 after presiding judge Mohd Nazlan Mohd Ghazali ruled that the prosecution has established a prima facie case against Najib’s seven criminal charges – three counts of criminal breach of trust, three counts of money-laundering and one count of power abuse.

The charges in the SRC International case are linked to RM4 billion in loans issued to the entity in 2011 and 2012, for which Najib is accused of receiving RM42 million in his accounts in 2014 and 2015.

In his opening statement, Shafee said Najib had never directed the SRC International’s board through former CEO Nik Faisal Ariff Kamil.

“And the limited briefings he received from Nik Faisal provided Datuk Seri Najib only with a general outline of the affairs and initiatives of SRC International which was represented as having been directed by the board of SRC International.

Shafee said Najib had no knowledge of and no involvement in the following transactions:

1. Funds amounting to RM40 million disbursed out of the account of SRC International to Gandingan Mentari Sdn Bhd and thereafter to Ihsan Perdana Sdn Bhd on December 24, 2014;

2. Funds transfers of RM27 million and RM5 million from IPSB to his banks accounts ending 880 and 906 on December 26, 2014;

3. Fund transfers of RM27 million and RM5 million from the 880 and 906 accounts to the accounts of Permai Binaraya Sdn Bhd and Putra Perdana Construction Sdn Bhd on December 29, 2014;

4. Funds amounting to RM10 million disbursed out of the account of SRC International to Gandingan Mentari Sdn Bhd and thereafter to Ihsan Perdana Sdn Bhd on February 5, 2015 and February 6, 2015; and

5. Funds transfers of RM10 million from Ihsan Perdana Sdn Bhd to the 880 account on May 10, 2015.

Shafee said “the surrounding circumstances and material events” had also led Najib to believe that Low Taek Jho, commonly known as Jho Low, was a close associate of the royal family of Saudi Arabia and that monies he received from 2011 to 2014 were in fact donations from King Abdullah in pursuance to assurances Najib had received from King Abdullah himself.

The lawyer said throughout the period from 2011 to 2015, Najib was of the understanding that matters related to the opening of his corporate social responsibility accounts, remittances into the accounts, and supporting documents for the same had been duly reported to Bank Negara and former chairman Zeti Akhtar Aziz.

“And this fortified his belief that nothing sinister was taking place,” Shafee said.

The lawyer said Najib’s utilisation of the funds from the accounts by way of cheques from 2011 to 2015 were almost all for CSR-related matters to promote political, social, charitable causes and community related projects.

“Quite apart from this, the credit cards were charged for gifts to foreign dignitaries and some personal expenses. The amount utilised for personal matters was minimal and in any event was done in the belief that the monies could be utilised by him as he deemed fit.”

Shafee said Najib therefore never intended to wrongfully gain or enrich himself with any of those funds and never intended to cause wrongful harm to any party.

He said the prosecution has failed to establish the predicate offences which make up the illegal activity it is said the RM42 million is derived from.

“The objective circumstances justify that there was reasonable excuse for Datuk Seri Najib to believe that the funds in his account were not the proceeds of illegal activity.

“Ultimately we will pray for an order that Datuk Seri Najib be acquitted and discharged of all seven charges as the same would be merited given the above.” – December 3, 2019.