UMNO has informed the High Court on Monday that it is seeking an out-of-court settlement in the RM16 million civil suit against them by SRC International and its two subsidiaries.
In the civil suit that was slated to begin on Monday with SRC’s first witness, Umno’s lawyers had informed High Court Judge Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan that Umno intends to settle the suit without going for a full trial.
“We ask that we have these two short days to work on it and come back on Wednesday,” lawyer for Umno Mohamed Shahrul Fazli Kamarulzaman told the court, noting that the parties have been working “extensively” to come to a settlement.
With the case initially scheduled to start at 9am, lawyers on both sides had gone to Raja Ahmad’s chambers, emerging shortly thereafter and informing the open court about the possibility of settlement.
While the parties are ready to proceed with the trial, they are exploring a settlement out of court, Mohamed Shahrul said in the court alongside Umno Selangor’s counsel Datuk Hasnal Rezua Merican.
SRC lawyer Razlan Hadri Zulkifli also informed the judge that the parties have talked about a settlement, but need a few days to iron out the final details.
“I support the defendants’ [request] to vacate the trial for two days for us to work on the settlement,” he said. “We are open to a settlement but we need something more concrete than what was offered.”
Judge Raja Ahmad told parties that he was inclined to proceed with the trial as it has been fixed since 2022, while the settlement had come late in the day.
He nevertheless allowed their request for a two-day adjournment, but warned the parties to come back on Wednesday with a concrete settlement or the case will have to begin as scheduled.
“I need something concrete… or else we have to proceed [as] we will be deprived of two days [because of the potential settlement],” he added.
In this trial filed in 2021, SRC is seeking to recover RM16 million that was allegedly transferred to Umno by former prime minister Datuk Seri Najib Razak when he was Umno president.
SRC and its subsidiaries claim that Umno knew, or ought to have known, that the money belonged to SRC, and that Umno had no basis to receive the funds.
Also in this suit, SRC seeks to recover RM3.5 million from Umno Selangor, a sum which they claimed had been wrongfully received by the party.
