Cover image via Mohd Rasfan/AFP
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Former prime minister Datuk Seri Najib Abdul Razak has been ordered to pay a total of USD1.3 billion (about RM5.25 billion) to SRC International Sdn Bhd
The ruling, handed down earlier today, 31 March, came with pointed language about power, bad faith, and the deliberate dismantling of institutional checks.
The judgment, handed down by Justice Datuk Ahmad Fairuz Zainol Abidin at the Kuala Lumpur High Court, allowed a civil lawsuit that SRC filed against Najib in May 2021.
The civil suit originally named two defendants: Najib and former SRC CEO Nik Faisal Ariff Kamil, who allegedly acted as Najib's proxy within the company and served as the authorised signatory for SRC's bank accounts, and for Najib's personal accounts.
Nik Faisal, however, is still at large. The court entered a judgment in default against him, meaning the ruling stands against him even in his absence.
So, what exactly did the court find?
According to the High Court, Najib abused his position as both prime minister and finance minister to orchestrate the misappropriation of SRC's funds, and that he did all of this knowingly and in bad faith.
Justice Ahmad Fairuz found that Najib was, in effect, a shadow director of SRC International, exercising extensive control over the company's affairs and directing key decisions on loans, fund transfers, and investments, all without proper oversight or due diligence.
The judge found Najib had:
- Procured a RM4 billion loan from the Retirement Fund Inc (KWAP) through direct intervention, overriding prudent lending limits and pushing for expedited approvals
- Created a special "advisor emeritus" position within SRC specifically to consolidate his control over the company — requiring the board to report to him on all material matters
- Deliberately circumvented statutory and institutional safeguards to fast-track the movement of funds to offshore entities
- Systematically concealed information from the Cabinet and other oversight bodies, including the fact that USD120 million had flowed into his personal bank accounts
"No single individual should possess such unchecked power, and Najib abused every level of authority he controlled," Justice Ahmad Fairuz said.
A supporter's t-shirt bearing an image of former prime minister Najib Razak hushing, during his 1MDB trial at the Palace of Justice.
Image via Mohd Rasfan/AFPWhy are there two separate figures?
The total is split into USD1.18 billion and USD120 million. Here's the breakdown:
- USD1.18 billion — This represents the loss of proposed investment funds linked to SRC that were borrowed from KWAP and never properly deployed for their stated purpose.
- USD120 million — This is compensation specifically for Najib's fraudulent breach of fiduciary duties, tied to the funds that ended up in his personal bank accounts.
That totals USD1.3 billion (about RM5.25 billion) that the court says Najib owes SRC.
The judge did not mince his words.
Some of the most striking parts of the ruling were the judge's own words about what Najib had done and failed to do.
Justice Ahmad Fairuz noted that Najib's failure to supervise how the KWAP loan was used, his failure to recover misappropriated funds, and his refusal to initiate investigations all reinforced the finding of bad faith.
"He prevented investigations that could help identify wrongdoers and recover assets. He protected himself, at the company's expense, by orchestrating the fraud," the judge said.
The court also rejected Najib's attempt to pin blame on SRC's former directors, whom he had named as third parties in the suit, holding that any lapses on their part did not break the chain of causation leading back to Najib.
"An honest public officer concerned for SRC International's welfare would have sought recovery of the misappropriated funds," Justice Ahmad Fairuz added.
However, Najib isn't required to pay up immediately
His lawyer, Tan Sri Muhammad Shafee Abdullah, confirmed in court that Najib will be appealing the decision.
Justice Ahmad Fairuz granted an interim stay of execution, meaning Najib doesn't have to pay while the appeal is being prepared, but he has 14 days to file the notice of appeal.
Where does this fit in the bigger picture?
This civil ruling is separate from Najib's criminal convictions, but it piles on significantly.
Najib is already serving a reduced six-year prison sentence from his earlier criminal conviction, which found him guilty of abuse of power, criminal breach of trust, and money laundering for illegally receiving around RM42 million from SRC International.
In December 2025, he was convicted in the larger 1MDB criminal trial and sentenced to 15 years in prison, to begin after his current sentence ends in August 2028, along with billions more in fines.
On top of that, a separate RM35 billion civil lawsuit filed by 1MDB and four of its subsidiaries is still pending in the Kuala Lumpur High Court.
In other words: today's USD1.3 billion judgment is not the end of Najib's legal battles, not by a long shot.
Former prime minister Najib Razak greets supporters as he walks out during a break in the trial.
Image via Arif Kartono/AFP