Gov't loses bid to continue freezing Umno, Wanita MCA's bank accounts
The Court of Appeal has dismissed a government appeal to continue freezing the bank accounts of Umno, Wanita MCA and two companies in a case related to 1MDB-linked funds.
A three-member panel of judges led by Yaacob Md Sam made the decision after deliberating on submissions by the counsel representing the four parties.
"After considering all the submissions, cause papers and case of laws, we found that the applicant (government) has failed to prove to this court the special circumstances which can enable this court to use its discretion to grant a stay on (an earlier decision by the Kuala Lumpur High Court)," Yaacob said when delivering the judgement.
In February, the Kuala Lumpur High Court had denied the government's bid to forfeit 1MDB-linked funds from Umno (RM192 million), Wanita MCA (RM300,000), Perano Sdn Bhd (RM337,634.78) and Binsabi Sdn Bhd (RM827,250).
Following this, MACC through the Attorney-General's Chambers had filed an application with the High Court to obtain a stay on its order pending their appeal on the case. This application, however, was dismissed by the High Court on June 19.
The government then filed an appeal with the Court of Appeal under Section 59 of the Anti-Money Laundering and Terrorism Financing Act, citing special circumstances to obtain the stay order which led to today's hearing.
Deputy public prosecutor Roslan Mat Nor told the judges during today's proceedings that the money in the accounts should continue to be frozen pending disposal of the appeal in the forfeiture case.
He said if the monies were returned to the parties, the status quo would not be retained and thus making any decision on the forfeiture case "nugatory".
"This is because the sum of money subject matter, in this case, is now under the custody of the MACC. And if the monies are returned, and the stay is not given (by the court), then it would make any decision taken by the Court of Appeal to be nugatory," he said.
The four respondents' counsel, however, said their clients had shown their solvent status where the assets they have are much more than the subject matter.
"The order (freezing of Umno's bank account) was only for the amount of RM192 million, where assets that Umno has are worth more than RM450 million. And the party also has a steady income.
"So, there is no issue about getting back the money (in case the High Court's decision gets overturned)," said Hariharan Tara Singh (below, centre), who represented Umno.
Ben Chan, counsel for Wanita MCA, said the sum concerned was "very small" an amount compared to the number of assets that the party wing owned.
"It is shown in the affidavit that we (Wanita MCA) have more than sufficient assets. We are in a stable position," he told the court.
Meanwhile, Perano's counsel Thevini Nayagam told the court that they had proven that the money in the account concerned could not be public money.
"Because in 2015, the account only had a balance of about RM13,000. Evidence had shown that the amount in the account now is proceeds from my client's business, and cannot be public funds," she said.
Umno seeking immediate release of account
After the court announced its judgement, Hariharan made a request to the panel of judges to issue an order to CIMB Bank Berhad to unfreeze Umno's account with immediate effect.
However, Yaacob said that they were not going to issue a sequential order, and will leave it to the parties.
Met by reporters later, Hariharan said that the Kuala Lumpur High Court's order on Feb 7 was clear, that the amount in his client's account must be released immediately.
In view of today's decision by the Court of Appeal, he added, they would write to the bank immediately to unfreeze the account.
"It must be released because there is no stay order.
"I believe the bank who was represented this morning, they (lawyers who held watching briefs for CIMB) would advise the bank to do it immediately."
