Che Abdullah said he should not be blamed for damages suffered linked to the RM3.6 billion investment into its subsidiary, SRC BVI, from a Retirement Fund Inc loan. (KWAP)
The 75-year-old disagreed with Najib's claims that the damages was due to him being a director and he had breached his duty in approving the investment.
"The decision for the RM3.6 billion into SRC BVI was the decision of the company's shareholder.
"As a matter of fact, the board of directors (BOD) did advise the management who claimed to have direct communication with the advisor emeritus (Najib) to liquidate the investment when the US dollar was firming up.
"Should the shareholder acted in accordance to the BOD advice, I strongly believe the company should not suffered any losses or at the very least, mitigate their losses if any," he said in his witness statement before judge Datuk Ahmad Fairoz Zainal Abidin.
Najib was the sole shareholder of SRC International as well as advisor emeritus from May 1, 2012 until March 4, 2019.
Che Abdullah testified as the third party's sixth witness in SRC's US$1.18 billion civil suit against Najib and ex-chief executive officer Nik Faisal Ariff Kamil.
Che Abdullah said he resigned after his order to Nik Faisal to liquidate the investment within one year when the US dollar strengthened did not materialise, citing the latter as full of excuses.
Che Abdullah said Najib was involved in passing the SRC International's shareholder resolution in instructing the RM3.6 billion transfer to SRC BVI as part of its investment plan.
He disagreed with Najib, who claimed he had no power to decide or to be involved in the decision making on the RM3.6 billion investment into SRV BVI.
"The structure which was formed in managing the company had given a very wide power to Najib appointing him as advisor emeritus, knowing the fact that he was the prime minister and finance minister at the material time," he said.
Che Abdullah said to his understanding, in the context of SRC's management structure, whatever advice, suggestion and instruction given by Najib as advisor emeritus needed to be complied by the company's BOD at the material time.
He said the BOD endorsed and approved whatever instruction given by advisor emeritus while his duty was to study and approve papers presented by the management.
"However, there was some exception to the company because of the existing post of advisor emeritus who made all decisions as far as I can remember on most, if not all, occasions.
"Shareholder's resolutions preceded board resolutions," he said.
Che Abdullah said he was not involved in the RM4 billion loan application from KWAP and only knew about it after its approval and its tabling to the BOD meeting.
He added he did not know the purpose of the loan but the BOD was told that the bulk of it was to be used for government to government investment with Aabar UAE of Abu Dhabi.
Cross examined by Najib's counsel, Muhammad Farhan Shafee, Che Abdullah said the BOD at that time agreed that the Aabar investment was good for the country.
"At every board meeting, Nik Faisal had always said he had seen Najib about it and it was the way forward. It looked like he had everything done so I believe he must have seen Najib," he said.
He said he did not verify if Nik Faisal was indeed in talks with Najib and he had purely took his word for it.
SRC, under its new management, filed the suit in May 2021, claiming that Najib had committed a breach of trust and power abuse, personally benefited from the company's funds and misappropriated the said funds.
It also sought a court declaration that Najib is responsible for the company's losses due to his breach of duties and trust and wants Najib to pay back the RM42 million in losses that they have suffered.