KUALA LUMPUR (Sept 26): Former prime minister Datuk Seri Najib Razak's AmBank account that received US$70 million was his “corporate social responsibility (CSR) account” and not his personal account, the High Court heard in SRC International Sdn Bhd's civil action against him on Thursday.

The 71-year-old said that although the now-closed AmBank current account was under his name, he did not use the account for his own personal banking and affairs. 

"It's my CSR account. It's in my personal name, [but] it doesn't qualify as where I do my personal [banking]," Najib said on Thursday.

The account he was referring to was given the code name “AmPrivate Banking-MR” and was one of the five accounts the ex-finance minister had with AmBank which were alleged to have received funds misappropriated from SRC and 1Malaysia Development Bhd (1MDB).

Najib said this while testifying in his defence in the civil suit, concerning a RM4 billion loan from Retirement Fund Inc (KWAP), which was given to SRC in two tranches in the second half of 2011 and the first half of 2012. The company claims that US$120 million had eventually ended up in Najib’s bank accounts.

This is separate from the SRC criminal case, for which Najib is being imprisoned.

SRC's counsel Datuk Lim Chee Wee then asked the ex-prime minister to read out the balances in the account. Reading from the account statement, Najib said that in January 2012, the opening balance was about RM290 million, and the closing balance was roughly RM505 million.

Lim noted that a sum of about RM200 million was credited into that account in January 2012. The counsel then said that happened only four months after SRC received the first tranche of the KWAP loan.

To this, Najib replied: "This is just the timeline. It has nothing to do with SRC."

Lim then doubled down on the source of these monies in the account.

Lim: In your witness statement or defence, you have made no reference as to the source of this US$70 million credited into your personal account (ending 694).

Najib: Yes.

Lim: You have not produced any documentary evidence that the US$70 million was not SRC or KWAP [funds].

This query was met with silence, leading Lim to repeat his question.

After taking a beat, Najib replied: "Can I come back to that?"

The lawyer then asked Najib if he had requested any independent verification of the monies that landed in the account.

"I didn't request, because I didn't manage my accounts. I was not in receipt of my accounts," Najib shot back.

It has been established in court that SRC International Sdn Bhd's former chief executive officer Nik Faisal Ariff Kamil was the person who managed Najib's accounts, being the account mandate owner.

However, on the stand on Wednesday, Najib testified that Nik Faisal, who is currently on the run, was not the go-between for the company.

Lim also highlighted that the entire process from SRC's loan application to the actual receipt took about three months, which was "an expedited process".

Lim: It's fast isn't it?

Najib: It may not be unduly fast. I don't think it's fast.

SRC filed the RM4 billion suit against Najib and Nik Faisal in May 2021. The company obtained a judgement in default against Nik Faisal in November 2021, after he failed to enter an appearance in the matter.

Initially, the suit also named former company board members Tan Sri Ismee Ismail, Datuk Suboh Md Yassin, Datuk Mohammed Azhar Osman Khairuddin, Datok Shahrol Azral Ibrahim Halmi, and Datuk Che Abdullah @ Rashidi Che Omar as defendants.

They were dropped later, only for Najib to bring them back again as third parties. A defendant can initiate this against a third party who is not part of the main suit, in order to claim contribution, indemnity, or any remedy which is claimed by the plaintiff.  

SRC claims that out of the total KWAP loan of RM4 billion, a sum of RM3.6 billion was immediately transferred out when the funds came into SRC.

The trial before High Court judge Datuk Ahmad Fairuz Zainol Abidin continues.  

https://www.theedgemarkets.com/node/728068