High Court Orders Najib to Pay US$1.3 Billion to SRC International Over Abuse of Power

KUALA LUMPUR: Malaysia’s High Court has ruled that former prime minister Datuk Seri Najib Razak must pay a total of US$1.3 billion to SRC International Sdn Bhd after finding him liable for breach of fiduciary duty and misfeasance in public office.

In a decision delivered on Tuesday, Justice Ahmad Fairuz Zainol Abidin held Najib accountable for financial losses linked to a RM4 billion loan from the Retirement Fund Inc. (KWAP) to SRC.

The court ordered Najib to pay US$1.18 billion in losses related to failed investment funds, along with an additional US$120 million as compensation for fraudulent breach of fiduciary duties.

The lawsuit, filed by SRC in May 2021, alleged that Najib abused his position of power, misappropriated company funds, and personally benefited from decisions made while serving as both prime minister and finance minister.

Justice Ahmad Fairuz found that Najib had “systematically abused his authority” by directly intervening in KWAP’s leadership to secure the RM4 billion loan, bypassing standard lending procedures and accelerating approvals.

The court also highlighted Najib’s role in creating the position of “advisor emeritus” within SRC, which allowed him to exercise extensive control over the company’s operations and investment strategies. According to the judge, Najib required the board to report directly to him on all key matters, effectively removing institutional checks and balances.

“No single individual should possess such unchecked power,” the judge said, concluding that Najib had abused every level of authority under his control.

While the lawsuit initially named several former SRC directors, including Datuk Suboh Md Yassin and Tan Sri Ismee Ismail, the case later proceeded with Najib and Nik Faisal Ariff Kamil as the primary defendants. Claims brought by Najib against third-party defendants were dismissed by the court with costs.

Following the ruling, Najib’s lawyer Tan Sri Muhammad Shafee Abdullah informed the court that an appeal would be filed. The court granted a stay of execution, giving Najib 14 days to submit a notice of appeal.

SRC International had sought damages, interest, and a declaration holding Najib responsible for its financial losses, including the recovery of US$1.18 billion and additional compensation for breach of trust.

The ruling marks a significant development in one of Malaysia’s most high-profile financial cases, reinforcing judicial scrutiny over abuse of power at the highest levels of government.