I only knew of KWAP loan after its approval, ex-SRC director tells court

2026-03-16 - 08:14

SRC International Sdn Bhd and its subsidiary are suing Najib Razak to recover RM42 million in company funds which allegedly flowed into the former prime minister’s personal bank accounts. KUALA LUMPUR: Former SRC International director Che Abdullah @ Rashidi Che Omar told the High Court today he had no knowledge of a loan application made by the company to Retirement Fund Inc (KWAP) as the facility was approved before he joined the board in August 2011. Testifying as the sixth third-party witness in the RM42 million civil suit brought by SRC against former prime minister Najib Razak, Che Abdullah, 77, said he only learned of the RM4 billion loan after it was tabled at a board meeting. During examination-in-chief by his counsel How Li Nee, he insisted that he played no role in the loan application or approval process. How: Do you have any knowledge about a loan taken by the first plaintiff (SRC International) from KWAP? Che Abdullah: I only knew about the KWAP loan taken by the first plaintiff after it was already approved by KWAP and tabled at the board meeting. Che Abdullah said the board had been informed at a meeting that much of the loan was intended for a government-to-government investment with Abu Dhabi-based company Aabar Investments PJS. He said although several transactions, including the sum which entered Najib’s personal accounts, took place during his tenure as a director, he was neither a signatory nor involved in approving them. “The transfers were never approved nor tabled before the board at that material time for any consideration. “Therefore, I have no personal knowledge of these transactions,” he said. Che Abdullah is one of six individuals added by Najib as third parties to the suit brought by SRC and its subsidiary Gandingan Mentari Sdn Bhd against Najib to recover RM42 million which allegedly flowed into the former prime minister’s personal bank accounts. Najib contends that Che Abdullah along with former SRC International directors Ismee Ismail, Suboh Yassin, Azhar Osman Khairuddin, Shahrol Azral Ibrahim Halmi and Nik Faisal Ariff Kamil, had breached their fiduciary duty and should all share responsibility for any damages payable to the two companies. Che Abdullah maintained that any decision on transfers linked to the KWAP loan rested with Najib, whom he claimed held ultimate authority as the company’s adviser emeritus, as well as prime minister and finance minister. “Blaming me and the other SRC directors is an afterthought and without basis,” he said. Najib, 72, has been jailed since Aug 23, 2022, following his conviction for misappropriating RM42 million in SRC funds. He was sentenced to 12 years’ jail and fined RM210 million. On Jan 29, 2024, the Federal Territories Pardons Board halved his jail term to six years, and reduced his fine to RM50 million. On Dec 26 last year, the High Court sentenced Najib to 15 years in prison and fined him RM11.387 billion following his conviction in his 1MDB case, with the prison term to follow immediately after he completes his current jail term. Lawyer Kwan Will Sen represented SRC, while senior lawyer Shafee Abdullah and Farhan Shafee represented Najib. The trial before Justice Raja Ahmad Mohzanuddin Shah Raja Mohzan concluded today with Che Abdullah being the last witness. The judge fixed Aug 7 and Aug 21 for oral submissions.