Will Umno face trial over RM16 million SRC funds?

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Umno to Face Trial Over RM16 Million SRC Funds Lawsuit

The Court of Appeal has dismissed Umno's attempt to strike out a lawsuit filed by SRC International Sdn Bhd and two subsidiaries, paving the way for a trial to determine the alleged wrongful transfer of RM16 million. The appellate court found no merit in Umno's appeal, ruling that the case involves complex issues requiring a full trial for resolution. This decision upholds the High Court's earlier dismissal of Umno's application to have the suit thrown out.
Lawsuit Alleges Wrongful Transfer of Funds

SRC International and its subsidiaries, Gandingan Mentari Sdn Bhd and Jendela Pinggiran Sdn Bhd, are seeking to reclaim RM16 million that was allegedly transferred to Umno. The companies contend that Umno knew or should have known that these funds belonged to SRC International and that the party had no legitimate basis for receiving them. The initial lawsuit named Umno, its President Datuk Seri Ahmad Zahid Hamidi, and its secretary-general Datuk Seri Ahmad Maslan as defendants.
Court Finds Issues Require Full Trial

The Court of Appeal panel, comprising Justices Datuk Hadhariah Syed Ismail, Datuk Abu Bakar Jais, and Datuk Seri Mariana Yahya, stated that the case is not a straightforward matter suitable for striking out. Justice Hadhariah highlighted that the pleadings raise significant issues such as alleged breach of fiduciary duty, breach of trust, misappropriation of trust money, and fraudulent use of trust money. These matters, she explained, can only be properly determined through a comprehensive trial.
Appeal Against Amendment of Defendants Also Struck Out

In addition to dismissing the appeal against the strike-out application, the Court of Appeal also struck out Umno's separate appeal concerning the amendment of defendants' names. The High Court had previously allowed SRC International and its subsidiaries to amend their legal filings to replace Ahmad Zahid and Ahmad Mazlan with Umno working secretary Datuk Mohd Sumali Reduan as defendants. Umno's lawyer informed the court of the withdrawal of this specific appeal.

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Will Umno face trial over RM16 million SRC funds?

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