FORMER SRC DIRECTOR DENIES ROLE IN RM42 MILLION LOSS

KUALA LUMPUR, March 2 (Bernama) -- A former director of SRC International Sdn Bhd categorically denied that any act or omission on his part had caused losses to the company, the High Court heard today. 

Datuk Mohammed Azhar Osman Khairuddin, 71, said he had no knowledge of the disbursement of the RM42 million and did not authorise any transactions or access to SRC’s bank accounts at any material time.

He said this during cross-examination by counsel Tan Sri Muhammad Shafee Abdullah, who is representing Datuk Seri Najib Tun Razak in a RM42 million civil suit filed by SRC International Sdn Bhd and its subsidiary Gandingan Mentari Sdn Bhd against the former prime minister.

Responding to an allegation by Najib that the former directors of SRC, including himself, had breached their statutory and fiduciary duties, Mohammed Azhar said the disbursement of funds and the related transactions in question were not within his personal knowledge, nor had he participated in or been involved in them.

“Although the transactions and disbursement of funds occurred during my tenure as a director, they were at all material times not within my personal knowledge and I neither participated in nor was involved in them. Therefore, I cannot be in breach of my statutory and fiduciary duties for matters that were not within my personal knowledge,” he said.

Mohammed Azhar, who is named as one of the third parties in the suit, added that upon joining SRC, his specific responsibility was to execute and operationalise the Sabah Gas Pipeline Project and the Peninsular Pipeline Project, two of the three previously identified projects, in his role as chief executive officer.

"When I was asked to join SRC in 2014 after getting the nod from the Prime Minister's Office that the two projects were to move forward, I came to realise that Nik Faisal Ariff Kamil (former SRC chief executive officer) played a very physical role in the setting up of SRC itself.

"By the time I joined SRC, the RM4 billion loan from Retirement Fund Incorporated already came in (into SRC account) and left (the account), and at that point in time, in the background, everyone knows Nik Faisal played a critical role to have that possibly happen," he explained.

The witness also recalled that during his tenure as a director, financial matters were always briefed to the SRC Board of Directors by Nik Faisal, in line with his role as CEO after he had taken over the position.

The civil suit, filed in 2021 by SRC and Gandingan Mentari, seeks a declaration that Najib is liable for RM42 million and claims damages for knowing receipt, dishonest assistance, misfeasance in public office and abuse of power.

The trial before Judge Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan resumes tomorrow.

-- BERNAMA