‘Umno took RM16mil donation without knowing SRC's affairs'
Lawyer Mohamed Shahrul Fazli Kamarulzaman, who appeared for the party, said in his submission that Umno did not have the requisite knowledge that the RM16mil, received from Jendela Pinggiran Sdn Bhd (JPSB), was a result of a breach of duty or trust by the company's former directors, especially SRC's former chief executive officer Nik Faisal Ariff Kamil.
'Umno was a bona fide recipient of the RM16mil, and the sum was spent and used by Umno for activities and programmes that were CSR (corporate social responsibility) in nature.
'It is unjust to allow for restitution against Umno and Umno will suffer injustice if it is called to repay the amount to the plaintiffs,' Mohamed Shahrul said.
He also argued that the claim against Umno was time-barred by the statute of limitation provided under Section 6(1)(a) of the Limitation Act.
He said Umno received the RM16mil in April 2015 and the plaintiffs contended that the purported wrongful disbursement of the sum was only discovered by the new management in 2019, but there was no evidence to substantiate the claim.
Meanwhile, the plaintiffs' lawyer Razlan Hadri Zulkifli submitted that Umno had not proven its case that the money was used for political reasons as there was no evidence to support the claim.
He said evidence before the court had shown that the source of the money was SRC, and that Umno was not entitled to it.
In May 2021, SRC and its two subsidiaries – JPSB and Gandingan Mentari Sdn Bhd – filed two separate lawsuits against Umno and Selangor Umno.
In the lawsuit against Umno, the plaintiffs are seeking RM16mil, which they claim was wrongfully transferred to the party, asserting that Umno had no basis to receive the funds.
The second lawsuit involves a claim for RM3.5mil against Selangor Umno, which is also alleged to have received the funds improperly.
The hearing continues before Justice Raja Ahmad Mohzanuddin Shah Raja Mohzan tomorrow.
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