Malaysia

Former SRC Director denies role in RM4 billion KWAP loan approval, points to Najib’s influence

Che Abdullah acknowledged, however, that in his view Najib was the primary, if not sole, factor enabling SRC to secure the funding

Updated 6 months ago · Published on 16 Mar 2026 5:33PM

Former SRC Director denies role in RM4 billion KWAP loan approval, points to Najib’s influence
Che Abdullah@Rashidi says he only became aware of the loan after it had been sanctioned and presented to the SRC Board of Directors - March 16, 2026

A FORMER director of SRC International Sdn Bhd has denied any involvement in securing the company’s RM4 billion loan from the Retirement Fund Incorporated (KWAP), insisting that he had not yet assumed his position when the loan was approved.

Datuk Che Abdullah@Rashidi Che Omar, 77, who joined SRC in August 2011, said he only became aware of the loan after it had been sanctioned and presented to the SRC Board of Directors.

“I was not a director when the loan application was made in June 2011… so I was not involved and could not have been involved in the application or approval of the loan,” he told the High Court while reading his witness statement in the RM42 million civil suit filed by SRC and its subsidiary, Gandingan Mentari Sdn Bhd, against former Prime Minister Datuk Seri Najib Razak.

Che Abdullah acknowledged, however, that in his view Najib was the primary, if not sole, factor enabling SRC to secure the funding.

“My involvement was limited to approving the shareholders’ resolution presented to the SRC Board. At that time, all decisions were proposed, made, and approved by SRC’s sole shareholder—the Minister of Finance Incorporated—without the discretion of the Board of Directors. I do not think the Board could oppose or reject a shareholder resolution as it always overrode the Board’s decisions,” he explained.

He noted that the resolution effectively represented the decisions of both the Prime Minister and the Finance Minister at the time, which could be interpreted as a government decision.

Che Abdullah further described the company’s corporate structure as one in which the Board generally supported and implemented directives issued by Najib in his capacity as Emeritus Adviser while serving as Prime Minister and Finance Minister.

Regarding the alleged transfer of RM123 million from SRC and Gandingan Mentari to Ihsan Perdana Sdn Bhd, of which RM42 million was later transferred to Najib, Che Abdullah said he had no personal knowledge of these transactions.

“Although the transaction occurred while I was a director, I was neither a signatory nor did I approve it. The transfer of funds from SRC to Gandingan Mentari was never approved by the Board or presented to it for discussion.

“Therefore, I have no personal knowledge of the transaction and it was not brought to me for consideration, evaluation, or approval,” he said.

Che Abdullah also rejected Najib’s claim that the former Prime Minister lacked authority in SRC decision-making, stressing that the company’s structure granted Najib significant power as Emeritus Adviser.

He denied that any losses allegedly suffered by SRC and Gandingan Mentari were due to negligence on his part, stating that decisions regarding the use or transfer of KWAP loans were made solely by SRC’s shareholders.

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

Che Abdullah was the last witness in the trial before High Court Judge Datuk Raja Ahmad Mohzanuddin Shah Raja Mohzan concluded proceedings.

The court has scheduled both parties to present their arguments on 7 August.- March 16, 2026

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