1MDB Najib sued by SRC for misuse of US$1.18b in funds

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1MDB Najib sued by SRC for misuse of US$1.18b in funds

 KUALA LUMPUR, March 11, 2024: The disgraced and shameless former prime minister Najib “1MDB” Razak is now being sued by SRC International (SRC) for using US$1.18 billion (RM5.546 billion) in company funds which were not used as originally intended.

Asset recovery specialist Angela Barkhouse testified in the High Court today that US$864.4 million was transferred to five “pass through” entities.

And Najib had his 12-year jail sentenced discounted by half to six years, and a RM160 million court fine slashed to RM52 million last month - also for corruption related to SRC.

Shame on the Madani Unity Government for supporting the slashed jail term and super generous discount on the fine for the world's biggest kleptocrat.

No News Is Bad News reproduces below a news report on the court proceedings:

SRC’s US$1.18bil not invested in energy sector, court told

Ho Kit Yen

-11 Mar 2024, 04:03 PM

Asset recovery specialist Angela Barkhouse says US$864.4 million was transferred to five ‘pass through’ entities.

 

Angela Barkhouse told the High Court that US$1.18 billion traceable to a RM4 billion KWAP loan taken out by SRC International was misappropriated via firms controlled by Low Taek Jho, or Jho Low.

KUALA LUMPUR: An asset recovery specialist told the High Court hearing SRC International’s lawsuit against former prime minister Najib Razak that US$1.18 billion in company funds was not used to invest in the renewable energy and resources sector, as originally intended.

Angela Barkhouse, a director at advisory firm Quantuma, said SRC BVI received US$864.4 million in its Singapore bank account and another US$255 million in a Hong Kong account.

Another US$60 million was remitted to a joint venture account SRC International had with Aabar UAE.

The entire US$1.18 billion formed part of a RM4 billion loan obtained from Retirement Fund Incorporated (KWAP), she said.

Barkhouse said that between 2011 and 2014, the US$864.4 million at Singapore’s BSI Bank was transferred to five entities – Cistenique Investment Fund, Enterprise Emerging Market Funds (EEMF), Pacific Rim Global Growth Ltd, Muraset Ltd, and Gobi Resources Coal Ltd.

“Cistenique, EEMF and Pacific Rim were not legitimate investment firms. They were ‘pass through’ entities used to conceal the misappropriation of assets and facilitate the onward movement of funds,” she said.

The witness said Muraset was a company incorporated in the British Virgin Islands and controlled by former Mongolian prime minister Sukhbaataryn Batbold.

“The nature of its business is unknown,” she said.

Barkhouse also said Gobi Resources was linked to fugitive businessman Low Taek Jho, or Jho Low.

“There seems little commercial sense in the transfers to Muraset or to Gobi Resources. No basis for these payments has been identified, and indicates that this was a mechanism to divert funds from SRC International,” she said.

SRC International is suing Najib and the company’s former CEO, Nik Faisal Ariff Kamil, for alleged breaches of trust and duty, wrongful receipt of company property and dishonestly and wrongfully conspiring to convert company property for their use.

The company also wants Najib to return US$120 million, and Nik Faisal US$2 million.

The lawsuit initially named six former directors as co-defendants.

Ismee Ismail, Shahrol Azral Ibrahim Halmi, Suboh Yasin, Azhar Osman Khairuddin and Che Abdullah @ Rashidi Che Omar were dropped as defendants but named by Najib as third parties.

SRC funds traceable to Najib, Nik Faisal and Jho Low

Barkhouse also told the court SRC BVI paid Cistenique and EEMF a total of US$841.7 million.

The funds were then transferred to entities owned by one “Prince Faisal” as well as to Blackstone Asia Real Estate Partners Ltd and Affinity Equity International Partners Ltd, two BVI-based firms linked to Low’s aide, Tan Kim Loong, she said.

She said the two BVI firms then transferred US$120 million to Najib in 2011 and 2012, while Nik Faisal received US$82,000 in 2012.

Barkhouse named several other corporate and individual recipients of funds originating from SRC International.

The other recipients of funds were Mohammed Badawy al-Husseiny; Low’s Good Star Ltd; Alsen Chance Holdings Ltd, also controlled by Tan; Hong Kong-based jeweller Brightstone Jewellery Ltd; Riza Aziz’s Red Granite Capital Ltd; and American rapper Swiss Beatz.

The hearing before Justice Ahmad Fairuz Zainol Abidin continues on Tuesday.