He said this when asked by ad-hoc prosecutor V Sithambaram about his alleged signatures in letters issued by the Minister of Finance Incorporated (MoF Inc) allowing SRC International to get a RM4 billion loan from the Retirement Fund Incorporated (KWAP) to enable the company to make investments.
“Would this mean that from 2011 to 2018, which was the year you left office, that there were no major decisions that required the minutes from you on behalf of MoF Inc, the single shareholder?” Sithambaran asked.
Najib replied in the affirmative, adding that he would only sign the necessary documents after the resolutions had been passed by the board of directors at SRC International.
“The shareholder cannot decide. It must go through the board of directors,” he said.
Asked if he was “shocked” that a large portion of the RM4 billion loan, amounting to about RM3.6 billion was transferred to foreign banks, Najib said: “I was surprised at first”.
“Did you inquire on why they (SRC International) send this amount overseas?” Sithambaran asked.
Najib said he did not inquire about it and that “the board of directors have to be responsible”.
Sithambaram, who seemed annoyed over the response, then put it to Najib that he did nothing although RM3.6 billion had gone into foreign banks and “the alarm bells went ringing”.
“I say that in the Westminster model, if something like this happened, the finance minister would have resigned,” the lawyer said.
Najib rubbished the suggestion and said: “RM31 billion was lost in foreign exchange”. He was making reference to the Royal Commission of Inquiry (RCI) held to look into RM31.5 million in forex losses between 1991 and 1994.
Sithambaram then told Najib to stop making political statements in court.
Trial judge Mohd Nazlan Mohd Ghazali told the lawyer to move on to another topic.
Najib is facing six charges of money laundering and criminal breach of trust in the transfer of RM42 million to his account from SRC International, a former unit of 1MDB.
He is also accused of abusing his power as prime minister by giving government guarantees on SRC International’s RM4 billion loan from KWAP.
The hearing continues.