Najib Receives DNAA In The RM27 Million SRC Case. What Does It Mean And What's Next?

Former prime minister Datuk Seri Najib Razak has been granted a discharge not amounting to an acquittal (DNAA) in an SRC International case by the Kuala Lumpur High Court today, 20 June

According to the New Straits Times, High Court Judge K Muniandy's ruling pertains to the RM27 million corruption case linked to SRC International Bhd.

With the ruling, Najib is now temporarily released from the case, which involved three money laundering charges. But what does that actually mean and what is going to happen next?

Here are five things you need to know to understand Najib's latest legal development:

1. What is the difference between the RM42 million conviction and the RM27 million DNAA?

To recap, there are two SRC International cases involving Najib, and it is important to distinguish between them, as they are separate legal proceedings with different outcomes.

The RM42 million SRC International case

Najib is currently serving a jail sentence for the RM42 million SRC International case, which involved three counts of criminal breach of trust (CBT), three counts of money laundering, and one charge of abuse of power.

He was first charged in July 2018 with four of the offences, with three additional charges added in August 2018, reported The Edge.

The offences involved:
– Abuse of power in relation to the approval of a RM4 billion loan by Kumpulan Wang Persaraan (KWAP) to SRC International between 2011 and 2012
– Three counts of CBT involving RM42 million between 24 December 2014 and 10 February 2015
– Three counts of money laundering involving the same amount

The case was fought all the way to the Federal Court, exhausting all legal avenues for Najib to have it dismissed. He was ultimately ordered to serve 12 years in jail and pay a RM210 million fine, with the apex court upholding the previous sentence handed down by the Kuala Lumpur High Court in July 2020.

In September 2024, the Federal Territories Pardons Board reduced Najib's sentence to six years and lowered his fine to RM50 million.

The RM27 million SRC International case

Dubbed SRC 2.0 by some media outlets, the moniker helps distinguish this case from the earlier, larger SRC case.

In this case, Najib was charged with three counts of money laundering involving RM27 million, allegedly received through his AmPrivate Banking accounts on 8 July 2014.

He was formally charged in February 2019, about eight months after the first SRC case, reported NST.

However, unlike the first case, the court today granted Najib a DNAA.

2. Why was Najib granted DNAA in the SRC 2.0 case?

According to High Court Judge K Muniandy, the prosecution had not demonstrated readiness to proceed, despite the charges being filed six years ago.

"This case against the accused person has been pending in this court for a period of six years since the year 2019 and not an iota of witness testimony has been pursued with but only a plethora of postponements indicating that the prosecution is not ready with the prosecution of the case.

"Once the accused is charged in court, the charge cannot be hanging over his head for an indeterminate or indefinite period. That would be harsh and illegal.

"There is nothing to show that the prosecution able to proceed with the case for the time being or proceed within a reasonable time.

"Thus, it is unlikely that the case could be prosecuted expeditiously in the short future," NST quoted the judge as saying today.

3. What does DNAA mean?

A DNAA means that the accused is temporarily released from the charges.

However, it does not amount to a formal acquittal, and the prosecution retains the right to reinstate the charges at a later date should they be prepared to proceed.

Judge K Muniandy reiterated this in his judgment today, stating that granting a DNAA would not prejudice the prosecution, as they could reopen the case when ready.

4. So, will Najib be released from prison?

No. The DNAA in the SRC 2.0 case has no bearing on Najib's existing prison sentence from the RM42 million SRC conviction.

Najib's lawyer, Tan Sri Muhammad Shafee Abdullah, confirmed this, "For this case, he is freed. But because he is serving another jail term, he goes back to jail."

Shafee added that Najib is relieved that the SRC 2.0 case was dropped, stating, "There are not too many cases hanging over his head".

"He can concentrate on the 1Malaysia Development Bhd (1MDB) case now," NST quoted him as saying today.

5. Is Najib still facing other cases?

Yes, there are two (technically). Aside from today's DNAA in the SRC 2.0 case, Najib was also acquitted and granted a DNAA in two other separate cases.

Here is what you need to know:

Ongoing 1MDB RM2.3 billion trial
Also known as the 1MDB-Tanore case — named after Tanore Finance Corporation, the company allegedly channelled RM2.3 billion in illegal funds to Najib — this is the only active criminal case Najib is currently facing.

The former prime minister is awaiting a verdict after his defence team wrapped up the case last month. The court has set the next hearing for October when both parties will deliver their final submissions before the judge decides whether to convict or acquit him, reported NST.

In this major 1MDB case, Najib faces four charges of abuse of power and 21 charges of money laundering.

Judicial review for house arrest
Although it is not a criminal trial, it remains a significant case for Najib because it involves his bid to leave prison and serve the remainder of his sentence under house arrest.

A judicial review differs from a criminal case: it challenges whether a public authority acted legally and fairly, not whether an individual is guilty of a crime.

This is Najib's second active legal proceeding. In April 2024, Najib filed a judicial review at the High Court, seeking to compel the federal government and the Pardons Board to confirm the existence of a royal "addendum" that he claims allows him to serve the remainder of his sentence under house arrest, reported Free Malaysia Today.

The case has since reached the Federal Court and remains ongoing, with the next hearing scheduled for 1 July.

Acquittal in Auditor-General's Report Tampering Case
In March 2023, the Kuala Lumpur High Court acquitted Najib of charges related to tampering with the Auditor-General's 2016 report on 1MDB, reported Malay Mail.

DNAA in the IPIC Case
In November 2024, Najib was granted a DNAA for CBT charges involving RM6.6 billion linked to the International Petroleum Investment Company (IPIC), allegedly committed between December 2016 and December 2017, reported Sinar Harian.