Najib blaming me over SRC US$1.18b loss is afterthought, baseless: Ex-director

Former SRC International Sdn Bhd director Che Abdullah @ Rashidi Che Omar disagreed with former prime minister Najib Abdul Razak blaming him for the firm’s US$1.18 billion (RM3.6 billion in 2011-2012) loss.

The retiree was testifying during today’s Kuala Lumpur High Court full hearing of SRC’s lawsuit against former finance minister Najib, who also used to be the company’s adviser emeritus.

In his written witness statement, Che Abdullah was responding to Najib’s claim that whatever damages suffered by SRC, a Minister of Finance Incorporated firm, over the investment were due to the former’s breach of duty in approving the investment.

“I totally disagree. The decision for the investment of RM3.6 billion into SRC was the decision of the shareholder (Najib) of the plaintiff (SRC).

“As a matter of fact, the board of directors did advise the management, who claimed to have direct communication with advisor emeritus, to liquidate the investment while the US dollar was firming up.

“Should the shareholder act in accordance with the board of directors’ advice? I strongly believe the plaintiff would not suffer any loss or at the very least mitigate their loss, if any.

“Blaming me and the other board of directors of the plaintiff is an afterthought and without basis,” Che Abdullah said.

Che Abdullah was initially a defendant also targeted by SRC alongside Najib before the company dropped the action against him.

However, Najib succeeded in his court bid to bring Che Abdullah back into civil action as a third party to partially or fully reimburse the ex-premier in the event that SRC wins the suit against the ex-finance minister.

SRC contended that the RM3.6 billion - meant for a government-to-government investment between Malaysia and Abu Dhabi’s Aabar Investment PJS - was transferred to an offshore entity called SRC BVI (British Virgin Islands).

‘No power to overrule’

In his witness statement tendered and taken as read in the civil court, Che Abdullah said he had no power to overrule SRC’s idea to make the overseas investment as the shareholder (Najib) had decided on the investment.

Che Abdullah said as director and later chairperson of SRC, the board was briefed from time to time by Lugano-based BSI Bank over the status of the investment.

“In fact, on one occasion when the US dollar was firming up, I requested to liquidate the investment within one year.

“Since the liquidation did not materialise, I have resigned as director,” he said.

However, during cross-examination by Najib’s lead counsel Muhammad Shafee Abdullah, Che Abdullah conceded it was possible the resolution (allegedly signed by Najib) presented by SRC’s then chief executive officer Nik Faisal Ariff Kamil to the board (for the overseas investment) could have been backdated.

Hearing of the civil action before judge Ahmad Fairuz Zainol Abidin continues tomorrow.

Malaysian authorities are still attempting to track down Nik Faisal, who is currently at large, to assist in the criminal investigation into wrongdoing at SRC.

Najib is serving a six-year jail sentence and fined RM50 million over a separate criminal court case involving RM42 million of funds from the company.

SRC’s present civil action against Najib is linked to the alleged misappropriation of RM4 billion in loans that the company received from Retirement Fund Incorporated (Kwap) between 2011 and 2012. Kwap is a statutory body under the Finance Ministry.

Under its new management, SRC filed the suit in May 2021, alleging that Najib, as adviser emeritus, had committed breach of trust and abuse of power, personally benefited from the company’s funds, and misappropriated billions of ringgit.

SRC also seeks a court declaration that Najib is responsible for its losses due to a purported breach of duties and trust, and for the ex-PM to repay RM42 million.

The plaintiff also seeks a court order for Najib to be made accountable for the former’s US$1.18 billion loss, as well as repay an amount of US$120 million of its funds that allegedly flowed into the former premier’s bank account. - Mkini