Ex-SRC director denies role in RM4b Kwap loan, points to Najib

 

A former director of SRC International Sdn Bhd told the Kuala Lumpur High Court today that he was not involved in getting approval for a RM4 billion loan from Retirement Fund Incorporated (Kwap) as he was not a director at the time.

Che Abdullah @ Rashidi Che Omar, 77, who joined SRC in August 2011, said he only became aware of the loan after it was already approved and later tabled at an SRC board meeting.

“I was not a director during that time (of the loan application in June 2011). Therefore, I am not and cannot be involved in the loan application or approval,” he said.

He said this in his witness statement at the trial of the RM42 million civil suit filed by SRC and its subsidiary, Gandingan Mentari Sdn Bhd, against former prime minister and finance minister Najib Abdul Razak.

Che Abdullah said that in his opinion, Najib was the main factor, if not the sole factor, that enabled SRC to obtain the loan.

“My involvement was only limited to approving the shareholders’ resolution, which was presented to the SRC’s board of directors (BOD).

Kuala Lumpur High Court

“At that material time, all the decisions were proposed, made, and approved by SRC’s sole shareholder (Ministry of Finance Incorporated) without the discretion of the BOD.

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

“This is because the said resolution is not only the decision of the shareholder, but also the decision of the prime minister and finance minister at that material time, which can be interpreted as the decision of the government,” he said.

Che Abdullah added that the company’s corporate structure at the time meant the BOD typically endorsed and approved instructions from Najib in his capacity as adviser emeritus, while Najib was also serving as prime minister and finance minister.

Najib given wide powers

Che Abdullah also said he had no personal knowledge of the transfer of RM123 million from SRC or through its subsidiary, Gandingan Mentari, to Ihsan Perdana Sdn Bhd, where RM42 million was later transferred to Najib.

“Despite the transaction happening during my tenure as a director in SRC, nevertheless, I was neither a signatory nor an approving party to the transactions.

“The transfer from SRC to Gandingan Mentari was never approved by the BOD nor tabled before the BOD at that material time for any discussion. Therefore, I have no personal knowledge of these transactions, and these were not brought before me as a director for any consideration, judgment, or authorisation,” he said.

He also disagreed with Najib’s claim that the former prime minister had no power to decide or be involved in SRC’s decision-making, saying the company’s structure gave Najib wide powers as adviser emeritus.

Che Abdullah further rejected allegations that the losses allegedly suffered by SRC and Gandingan Mentari were due to any breach of duty on his part as a director, saying any decisions relating to the use or transfer of the Kwap loan were made by SRC’s shareholders.

SRC and Gandingan Mentari, which filed the suit in 2021, are seeking a declaration that Najib is responsible for the RM42 million and are seeking damages for alleged knowing receipt, dishonest assistance, misfeasance in public office, and abuse of power.

The trial before judge Raja Ahmad Mohzanuddin Shah Raja Mohzan concluded today, with Che Abdullah as the final witness. The court set Aug 7 for parties to present oral submissions.

- Bernama