Najib Denies Role in SRC Director Appointments, Claims Limited Authority

In a high-profile court proceeding, former Malaysian Prime Minister Datuk Seri Najib Razak has emphatically denied any involvement in the appointment ...

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Najib Denies Role in SRC Director Appointments, Claims Limited Authority
In a high-profile court proceeding, former Malaysian Prime Minister Datuk Seri Najib Razak has emphatically denied any involvement in the appointment of directors for SRC International Sdn Bhd, asserting that his role was strictly confined to exercising approval and veto powers. The case, brought by SRC International and its wholly-owned subsidiary Gandingan Mentari against Najib, resumed today at the High Court in Kuala Lumpur, where Najib testified as the defendant. During cross-examination by the plaintiffs' lead counsel, Kuan Wei Sheng (transliterated), Najib clarified that he never initiated or recommended any appointments to the SRC board of directors. He emphasized that his responsibilities did not extend to managing the company's affairs, countering allegations that he played a more direct role in its operations. "I only approved the list of board members submitted to me," Najib stated, acknowledging that he had sanctioned the appointments of five SRC directors but insisting that the selection of candidates was not his initiative. Najib further elaborated on the nature of his authority, explaining that while he possessed the power to approve or reject proposals, this did not equate to direct appointment by the Prime Minister. "If I wished, I could exercise this power, but it does not mean that the Prime Minister directly appoints them. The other party (SRC) must..." he said, leaving the statement incomplete but implying a procedural distinction between his approval and active involvement in the nomination process. This testimony is part of a broader legal battle surrounding SRC International, a former subsidiary of the state investment fund 1Malaysia Development Berhad (1MDB), which has been at the center of multiple corruption and financial mismanagement investigations. The plaintiffs allege that Najib abused his position to influence SRC's governance, leading to significant financial losses. Najib's defense hinges on portraying his actions as within the bounds of his official duties, limited to a supervisory rather than an executive function. The court session highlighted key aspects of corporate governance and political accountability, with Najib's statements aiming to distance himself from direct decision-making in SRC's internal matters. Legal experts note that the distinction between approval authority and proactive recommendation could be crucial in determining liability, as it touches on the extent of a leader's responsibility in state-linked enterprises. Public and media attention remains high, given Najib's previous convictions in related 1MDB cases, though he continues to appeal those rulings. The current case adds another layer to the complex legal narrative, with implications for Malaysia's anti-corruption efforts and the scrutiny of high-ranking officials' roles in government-linked companies. As the trial progresses, further testimonies and evidence are expected to shed light on the operational dynamics between Najib and SRC International. The outcome may influence broader perceptions of governance standards and the mechanisms of oversight in Malaysia's political and economic spheres.

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