Testifying in a civil suit brought by SRC International and its subsidiary, Gandingan Mentari Sdn Bhd, Najib said he merely approved board appointments presented to him and was not involved in proposing or selecting candidates.

SRC International is seeking to recover RM42 million allegedly misappropriated from the company, which the plaintiffs claim Najib was responsible for, due to his authority over the company.

Cross-examined by the plaintiffs’ counsel, Kwan Will Sen, Najib accepted that he had approved the appointment of all five SRC directors, but maintained that he did not initiate the list of candidates.

He was referred to a letter dated Aug 1, 2011, in which he approved the appointment of Ismee Ismail, Suboh Yassin, Che Abdullah @ Rashidi Che Omar, Shahrol Azral Ibrahim Halmi and Nik Faisal Ariff Kamil as board members.

Kwan: Now, this would mean you had exercised your power under Article 67 of SRC’s memorandum and articles of association?

Najib: Yes, but I didn’t initiate (the appointments). There are individuals here I had no knowledge of prior. For example, Che Abdullah, I didn’t know him at all.

He reiterated that he was also not familiar with Nik Faisal, who had been recommended to him as a qualified candidate.

Asked whether he had any documentary evidence showing how the appointment process was started or who initiated it, Najib said he did not.

“I only had veto power. I did not propose their names,” he said.

Asked if his approval of all five directors effectively meant that he controlled the board, Najib disagreed, saying the power to reject a proposal was not the same as making one.

He also rejected a suggestion that his position allowed him to direct SRC’s affairs, insisting that management decisions were made independently.

Kwan: Whatever advice you gave was not binding?

Najib: Not binding, unless the board thought it was in the best interest of the company.

Kwan: Do they not have the obligation to follow your advice?

Najib: Only if in their own deliberation that advice is in the best interest of the company.

At times, Najib was adamant about elaborating on his answers despite being told that he had veered off the questions. Kwan then gently told him not to be defensive.

Najib, represented by counsel Farhan Shafee, has maintained that he did not instruct or influence SRC’s board or management to carry out any unlawful transactions.

He has been jailed since Aug 23, 2022, after he was convicted of misappropriating RM42 million in SRC funds and sentenced to 12 years’ jail and fined RM210 million.

Following a petition for clemency, the Federal Territories Pardons Board halved Najib’s jail term to six years and reduced his fine to RM50 million on Jan 29 last year.

The hearing before Justice Raja Ahmad Mohzanuddin Shah Raja Mohzan continues on Jan 21.