Former SRC director Che Abdullah testifies he was not involved in the RM4 billion KWAP loan approval, stating decisions were made by the shareholder and former PM Najib Razak.

KUALA LUMPUR: A former director of SRC International Sdn Bhd has told the High Court he was not involved in securing approval for the company’s RM4 billion loan from Retirement Fund Incorporated (KWAP).

Datuk Che Abdullah@Rashidi Che Omar, 77, said he only learned of the loan after its approval, as he was not a director at the time of the application in June 2011.

He stated this in his witness statement during the trial of a RM42 million civil suit filed against former prime minister Datuk Seri Najib Tun Razak (pic) by SRC and its subsidiary, Gandingan Mentari Sdn Bhd.

“I was not a director during that time. Therefore, I am not and cannot be involved in the loan application or approval,” he said.

However, he opined that Najib was the primary factor enabling SRC to obtain the loan.

Che Abdullah said his involvement was limited to approving a shareholders’ resolution presented to the board.

He explained that all decisions were proposed and approved by SRC’s sole shareholder, the Ministry of Finance Incorporated, without board discretion.

“I did not think that the BOD can ever contradict or object to the shareholders’ resolution as it always supersedes the decision of the BOD,” he said.

He added the resolution represented the decision of the shareholder, the prime minister, and the finance minister, which could be interpreted as a government decision.

The company’s structure meant the board typically endorsed instructions issued by Najib as Adviser Emeritus, he testified.

Che Abdullah also said he had no personal knowledge of a RM123 million transfer from SRC via Gandingan Mentari to Ihsan Perdana Sdn Bhd.

From that sum, RM42 million was later transferred to Najib.

“Despite the transaction happening during my tenure, I was neither a signatory nor approving party to the transactions,” he said.

He stated the transfer was never approved by or tabled before the board for discussion.

Che Abdullah disagreed with Najib’s claim that he had no power to decide or be involved in SRC’s decision-making.

He said the company’s structure gave Najib wide powers as Adviser Emeritus.

The witness further rejected allegations that losses suffered by the companies were due to any breach of his directorial duties.

He asserted decisions relating to the use or transfer of the KWAP loan were made by SRC’s shareholders.

SRC and Gandingan Mentari filed the suit in 2021, seeking a declaration that Najib is responsible for the RM42 million.

They are also seeking damages for alleged knowing receipt, dishonest assistance, misfeasance in public office, and abuse of power.

The trial before Justice Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan concluded with Che Abdullah as the final witness.

The court set August 7 for parties to present oral submissions.

 The Sun Malaysia