Umno claims SRC has no reasonable action to recover RM16m 'wrongfully transferred' to party

KUALA LUMPUR (Sept 2): Umno, which is seeking to quash a civil suit by SRC International Sdn Bhd, claims there is no cause of reasonable action against the political party.

The party, which is accused of receiving a misappropriated sum of RM16 million from SRC, claims the company had omitted material facts from the suit which are prejudicial to Umno.

In court documents sighted by The Edge and confirmed by SRC’s lawyer Clarence Hng of Rosli Dahlan Saravana Partnership, Umno also insisted that SRC’s action against the party is barred by a limitation period.

Further, it also claimed that the suit is frivolous, vexatious and an abuse of the court’s process.

At a case management last week where the striking out application was made, the High Court set Nov 10 to hear the application.

SRC, Gandingan Mentari Sdn Bhd, and Jendela Pinggiran Sdn Bhd are suing Umno for the RM16 million sum that was allegedly wrongfully transferred to the party.

In its writ of summons, the plaintiffs claimed that Umno knew or ought to have known that the money belonged to SRC and that it had no basis to receive the funds.

On May 10, the Finance Ministry confirmed that 1Malaysia Development Bhd (1MDB) and its former subsidiary SRC had filed 22 civil suits to recover assets totalling RM96.6 billion, including RM300 million from various local parties.

The suits filed by 1MDB were against nine entities, including two foreign financial institutions and 25 individuals, while SRC filed suits against eight entities and 15 individuals over various misconduct.

However last week it was reported that 1MDB had dropped seven of the 15 defendants in their US$8 billion lawsuit against former office bearers of these companies.

Those dropped from the suit are 1MDB’s former directors Tan Sri Che Lodin Wok Kamaruddin, Tan Sri Ismee Ismail, Tan Sri Ong Gim Huat and Ashvin Jethanand Valiram, its former CEOs Datuk Shahrol Azral Ibrahim Halmi and Mohd Hazem Abdul Rahman, and former chief financial officer Azmi Tahir.

The defendants retained included former prime minister Datuk Seri Najib Razak, as well as Terence Geh Choh Heng, Jasmine Loo Ai Swan, Casey Tang Keng Chee, Vincent Beng Huat Koh, Radhi Mohamad, Kelvin Tan Kay Jin and Nik Faisal Ariff Kamil.

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2 September 2021