KUALA LUMPUR: Umno received RM16mil 10 years ago as a donation and contribution from a subsidiary of SRC International Sdn Bhd but had no prior knowledge of what transpired in the company, the High Court here heard.

Lawyer Mohamed Shahrul Fazli Kamarulzaman, who appeared for Umno, said in his submission that the party did not have the requisite knowledge that the money received from Jendela Pinggiran Sdn Bhd (JPSB) was the result of a breach of duty or trust by the company's former directors, particularly SRC's former chief executive officer Nik Faisal Ariff Kamil.

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"Umno was a bona fide recipient of the RM16mil, and the said sum was spent and utilised for activities and programmes that were CSR (corporate social responsibility) in nature.

"It is unjust to allow for restitution against Umno and (the party) will suffer injustice if it is called upon to repay the said sum to the plaintiffs," the lawyer said on Monday (July 28).

Shahrul also argued that the claim against Umno was time-barred by the statute of limitations provided under Section 6(1)(a) of the Limitation Act 1953.

He said Umno received the RM16mil in April 2015, and the plaintiffs contend that the purported wrongful disbursement of the sum was only discovered by the new management in 2019.

However, there was no evidence to substantiate the claim, he added.

ALSO READ: Former SRC director signed blank cheques, not knowing they were for Umno 

Meanwhile, lawyer Razlan Hadri Zulkifli submitted that Umno had not proven its case that the monies were indeed used for political reasons, as there was no evidence to support the claim.

He said evidence before the court showed that the source of the money was SRC, and that Umno was not entitled to it.

In May 2021, SRC and its subsidiaries JPSB and Gandingan Mentari Sdn Bhd (GMSB) 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 political party, asserting that it 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 on Wednesday (July 30).