‘Billions of ringgit diverted, embezzled, and abused’: Court hears claims Umno received money from ‘gargantuan slush fund’ linked to SRC International

‘Billions of ringgit diverted, embezzled, and abused’: Court hears claims Umno received money from ‘gargantuan slush fund’ linked to SRC International



SRC International and its subsidiaries, which filed the suit in 2022 to recover the funds, claim that the political party knowingly received these funds without any legitimate basis. — Picture by Miera Zulyana

Monday, 20 Jan 2025 2:56 PM MYT


KUALA LUMPUR, Jan 20 — The High Court was told today that Umno received money from a “gargantuan slush fund” linked to SRC International Sdn Bhd and its subsidiaries.

SRC International’s lawyer, Razlan Hadri Zulkifli, described how billions of ringgit from Retirement Fund Incorporated had been diverted, embezzled, and abused, according to a report published today in Free Malaysia Today.

“The plaintiffs — SRC and its subsidiaries, Gandingan Mentari Sdn Bhd and Jendela Pinggiran Sdn Bhd (JPSB) — were just the instruments in what was a gargantuan slush fund,” Razlan said in his opening statement.

“This case is about some of those monies, RM16 million (to Umno headquarters) and RM3.5 million (to Selangor Umno).”

SRC International and its subsidiaries, which filed the suit in 2022 to recover the funds, claim that the political party knowingly received these funds without any legitimate basis.

Razlan further explained that SRC International was initially established to drive Malaysia’s energy independence, but the reality was far different.

“Alas, all the declarations were but smoke and mirrors. What was conceived was just a tool to deceive,” he added.

The plaintiffs’ claim is to recover RM16 million and RM3.5 million, which they say were wrongfully paid by JPSB under the guise of “corporate social responsibility” (CSR) activities, he said.

According to Razlan, the case hinges on allegations that these funds were diverted due to wrongdoings and breaches of statutory and common law duties by former directors of the plaintiffs.

“We are not alleging any wrongdoing or breach on the part of the defendants in assisting the wrongdoers in diverting the RM19.5 million. This is not a suit based on dishonest assistance,” Razlan said.

The case will also examine the involvement of key figures, including Datuk Seri Najib Razak, who served as prime minister, finance minister, and Umno president at the time, along with the directors and senior management of SRC International.

While the defendants do not deny receiving the funds from JPSB, they dispute the plaintiffs’ claims.

They argue that they were unaware the funds were linked to the wrongful actions of former SRC directors and that the funds were intended solely for CSR purposes.

As a political party, Umno maintains it is permitted to receive donations from various sources.

The party insists that the funds were used for CSR activities in relation to the 2018 general election.

Lawyer Shahrul Fazli Kamarulzaman is representing Umno, while counsel Hasnal Rezua Merican is representing Selangor Umno.

The hearing, presided over by Justice Raja Ahmad Mohzanuddin Shah Raja Mohzan, continues.