Najib ordered to repay US$1.3b to SRC after Malaysian High Court finds misfeasance in public office
Malaysia’s High Court has ruled that former prime minister Najib Razak must repay US$1.3 billion to SRC International after finding he abused his position and breached fiduciary duties, following evidence of fund misappropriation.
- High Court finds Najib Razak liable for US$1.18 billion in losses
- Total repayment ordered reaches US$1.3 billion including damages
- Court cites overwhelming evidence of misfeasance and control over SRC
PUTRAJAYA, MALAYSIA: The High Court of Malaysia has ruled that former prime minister Najib Razak is liable for losses suffered by SRC International, ordering him to repay US$1.3 billion.
According to local media reports, the court found Najib responsible for US$1.18 billion in losses arising from breaches of fiduciary duties linked to the company’s investment funds.
Judge Datuk Ahmad Fairuz Zainol Abidin delivered the decision after allowing SRC International’s civil suit, concluding that Najib had committed misfeasance in public office.
Court finds abuse of power and bad faith
The judge on 31 March ordered Najib to repay US$1.3 billion, comprising US$1.18 billion in losses and US$120 million in quantified damages.
The damages relate to funds allegedly misappropriated into his personal bank account.
The court stated that Najib acted in bad faith, abusing his position to facilitate financial misconduct rather than serving public or corporate interests.
Ahmad Fairuz said the totality of evidence “tips overwhelmingly in favour of SRC’s version”, citing documentary records, financial flows, and Najib’s own admissions.
Evidence of fund transfers and rejected explanations
The court found that US$120 million from SRC-linked funds had been credited into Najib’s personal account.
Multiple explanations offered by Najib were dismissed, including claims that the funds were donations or part of a pass-through arrangement.
The judge determined that these explanations were inconsistent with the documentary evidence presented during proceedings.
Role as shadow director highlighted
In his judgment, Ahmad Fairuz concluded that Najib exercised extensive control over SRC International despite holding no formal position within the company.
He described Najib as effectively acting as a shadow director, influencing key decisions from incorporation to the handling of funds.
The court noted that Najib maintained “comprehensive and meticulous control” over critical aspects of SRC’s operations, including actions linked to the alleged misappropriation.
Background on SRC and financial flows
SRC International was established in 2011 as a subsidiary of 1Malaysia Development Bhd to pursue overseas energy investments.
The company secured RM4 billion in borrowings from Retirement Fund Inc, backed by government guarantees.
According to court findings, portions of these funds were transferred offshore through intermediary entities before eventually reaching Najib’s personal accounts.
The civil suit centred on Najib’s role in managing SRC’s funds and his responsibilities in overseeing the RM4 billion loan from KWAP.
Previous convictions and ongoing imprisonment
Najib was previously convicted on 28 July 2020 for offences linked to SRC International, receiving a 12-year prison sentence and a RM210 million fine.
The sentence was later reduced by the Federal Territories Pardons Board to six years’ imprisonment and a RM50 million fine.
In December 2025, the High Court sentenced him to 15 years’ imprisonment for additional charges involving RM2.28 billion, alongside fines totalling approximately RM13.4 billion.
Najib, now 72, was first charged in 2018 following a change in government after the general election.
He remains incarcerated at Kajang Prison after a request in December 2025 to serve the remainder of his sentence under house arrest was dismissed.
