Kuala lumpur: The High Court here was told today that UMNO had no knowledge that the RM16 million it received from Jendela Pinggiran Sdn Bhd (JPSB) could be traced to any breach of duty or trust. UMNO's counsel, Mohamed Shahrul Fazli Kamarulzaman, submitted that the party received the said sum as donations and contributions.

According to BERNAMA News Agency, Mohamed Shahrul Fazli argued that there is no evidence that the plaintiffs knew the RM16 million sum was disbursed due to any breach of duty or trust by their former directors sometime in 2019. He emphasized that UMNO was a bona fide recipient of the funds, which had been spent on corporate social responsibility (CSR) activities and programs.

The counsel made these submissions during the hearing of a lawsuit filed by SRC International Sdn Bhd and its two subsidiaries - Gandingan Mentari Sdn Bhd (GMSB) and Jendela Pinggiran Sdn Bhd (JPSB) - against UMNO and Selangor UMNO. Mohamed Shahrul Fazli also asserted that there is no evidence to suggest that former Prime Minister Datuk Seri Najib Tun Razak, as the Advisor Emeritus of SRC at the time, instructed the Board of SRC, GMSB, or JPSB to disburse the RM16 million to UMNO.

He clarified that the evidence only indicates that the Board of SRC held the ultimate decision-making authority for the management of business to fulfill SRC's objectives. He argued that Datuk Seri Najib cannot be construed as a shadow director of the plaintiffs or as their directing mind and will, as his roles were due to his official capacity and subject to SRC's Articles of Association.

Meanwhile, SRC's counsel Razlan Hadri Zulkifli submitted that no contemporaneous documents from JPSB or SRC explain the transfer of RM16 million to UMNO. He stated that there was no reason for the plaintiffs to transfer, donate, or gift the sum to UMNO, which had no relationship or knowledge of the plaintiffs.

Razlan Hadri emphasized that UMNO's claim of receiving the funds as a political donation is untenable, considering that UMNO did not verify or account for the RM16 million. He pointed out the absence of records indicating the purpose of the transfer or the reasons why JPSB's cheques were in Datuk Seri Najib's possession at the material time.

In the lawsuit against UMNO, the plaintiffs are seeking RM16 million, alleging it was wrongfully transferred to the political party without a basis for such receipt. The second lawsuit involves a claim of RM3.5 million against Selangor UMNO, which is also accused of improperly receiving funds.

The hearing before Judge Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan continues on Wednesday.