Najib Tells Court He Approved SRC Directors but Did Not Select or Nominate Them

KUALA LUMPUR, Jan 14 : Former prime minister Datuk Seri Najib Razak told the High Court on Wednesday that although he had the authority to approve appointments to the board of SRC International Sdn Bhd, he did not nominate or initiate the selection of the directors.

Najib, who served as advisor emeritus of SRC, said his role in the appointment process was limited to giving final approval to names submitted to him by other parties. He acknowledged that he possessed veto power over the appointment and removal of SRC directors but maintained that recommendations came from elsewhere.

“I formalized the appointment, but the recommendations had to come from someone who submitted them to the prime minister. Before it was formalized, approval was required, but I was the last part of the process,” Najib said while testifying under cross-examination.

He was responding to questions from SRC’s lawyer, Kwan Will Sen, during proceedings in a civil lawsuit seeking RM42 million in damages against him.

Najib confirmed that he approved a letter containing the names of SRC board members, including Nik Faisal Ariff Kamil, who was later appointed managing director. However, he insisted that he neither initiated the nominations nor had personal familiarity with those appointed.

“I could exercise my power if I wanted to, but that is not the same as personally appointing them. Others had to source and propose the candidates. I made the final decision,” he said.

On the appointment of Nik Faisal, Najib stated that he was not personally acquainted with him and that the recommendation was made on the basis that Nik Faisal was suitably qualified. Nik Faisal, a former SRC director and chief executive officer, is currently at large. The court previously heard that he was a mandate holder to one of Najib’s bank accounts.

During the hearing, Najib was also referred to Article 116A of SRC’s Memorandum and Articles of Association, which requires prime ministerial approval for amendments to the company’s governing documents, as well as for the appointment or termination of directors and top management.

Najib agreed that the provision granted him exclusive veto authority, confirming that no amendments or senior appointments could proceed without his approval, although he reiterated that he did not originate such decisions.

SRC International and its subsidiary, Gandingan Mentari Sdn Bhd, filed the lawsuit in 2021, seeking a declaration that Najib is liable for receiving RM42 million, along with claims for dishonest assistance, knowing receipt, misfeasance, and abuse of power.

Earlier, the companies removed six former directors from the suit and retained Najib as the sole defendant. However, the High Court later allowed Najib to issue third-party notices against the former directors.

The hearing before Justice Raja Ahmad Mohzanuddin Shah Raja Mohzan is scheduled to continue on Jan 21.