Blame Najib for SRC’s losses, not me, says ex-director

Najib Razak’s appointment as advisor emeritus of SRC International gave him ‘very wide powers’, ex-director Che Abdullah @ Rashidi Che Omar told the High Court.

KUALA LUMPUR: A former SRC International Sdn Bhd director told the High Court that former prime minister Najib Razak had no basis to blame him for losses suffered by the company.

Che Abdullah @ Rashidi Che Omar said the decision to “invest” a sum of RM3.6 billion in a joint venture with Aabar was made by Najib and not the board of directors. Najib, in his capacity as finance minister at the time, was SRC International’s sole shareholder.

Between 2011 and 2012, SRC International received a loan of RM4 billion from Retirement Fund Incorporated (KWAP), from which approximately RM3.6 billion was transferred to a Swiss bank account. The funds are currently frozen by the Swiss government.

“As a matter of fact, we (directors) did advise the management team, who claimed to have direct communication with the prime minister, to liquidate the investment when the US dollar was on the rise (against the ringgit).

“I requested that the investment be liquidated in a year. Since it did not materialise, I resigned,” Abdullah said in his testimony.

SRC International is suing Najib and former CEO Nik Faisal Ariff Kamil for wrongfully receiving company property, and dishonestly and wrongfully conspiring to convert company property to their own use.

The suit originally included Abdullah and former directors Shahrol Azral Ibrahim Halmi, Ismee Ismail, Azhar Osman Khairuddin and Suboh Yassin as co-defendants.

SRC International later dropped the case against them. However, they were added as third parties by Najib.

Abdullah told the court Najib, who was appointed advisor emeritus, was given “very wide powers” under the company’s constitution.

He also said the directors did not have power to overrule any decision the then prime minister made, especially in respect of the RM3.6 billion investment.

Not a ‘normal’ company

Abdullah also told the court that SRC International did not function as a “normal” company.

He said in normal companies, all decisions were taken by the board of directors and would be presented to shareholders at its annual general meeting.

“But here, the shareholder (Najib) gave directions and the board of directors followed,” said Abdullah.

Under cross-examination by Najib’s lawyer Farhan Shafee, Abdullah admitted that the directors of SRC International were legally bound to make decisions in the company’s interests.

The directors could make decisions but the “ultimate decision” was by the shareholder, said Abdullah.

The hearing continues before Justice Ahmad Fairuz Zainol Abidin on May 9.