Prosecution fails again to forfeit RM192m from Umno

Umno gets to keep the RM192 million sought by the prosecution in the latter’s 1MDB-linked forfeiture suit.

The prosecution also has to return nearly RM2.5 million it previously forfeited from the party’s Pahang chapter in a 1MDB-linked forfeiture suit.

These followed on the heels of the Court of Appeal’s decision today in appeals linked to the prosecution’s 1MDB-linked forfeiture suits involving Umno, Pahang Umno and several other entities.

The unanimous decision was made by the three-person bench chaired by Court of Appeal judge Abdul Karim Abdul Jalil. The ruling was read by fellow bench member Hadhariah Syed Ismail. The other member of the bench is Abu Bakar Jais.

Today was set for decision on the prosecution’s appeal against the Kuala Lumpur High Court decision on Feb 7 last year, which threw out its legal action to forfeit the RM192 million from Umno.

High Court judge Mohamed Zaini Mazlan had ruled then that the prosecution failed to show the funds were linked to cheques deposited much earlier by the party’s then president and former prime minister Najib Abdul Razak.

Today’s Court of Appeal decision is also in relation to Pahang Umno’s appeal to overturn a previous High Court verdict allowing the prosecution to forfeit RM2,479,300.18 in alleged 1MDB-linked funds from the political entity.

The three-person bench today also dismissed the prosecution’s appeal in its previous failed 1MDB-linked forfeiture suits against multiple political and business entities.

These other entities are Wanita MCA (RM300,000); Kedah Umno Liaison Committee (RM1.05 million); hijab seller Perano (RM337,634.78), tent-supplier Binsabi Sdn Bhd (RM827,250); Habib Jewels Sdn Bhd (RM100,000); K&Z Enterprise Sdn Bhd (RM138,359.60); and Hattatex Trading (RM111,590).

Umno and these various entities were among the 41 entities and individuals who were hit with forfeiture suits from the MACC to recover a total of RM270 million of monies allegedly linked to 1MDB.

In July last year, Umno got back the RM192 million, following the High Court’s dismissal of the prosecution’s bid to stay its ruling, pending the disposal of the appeal at the Court of Appeal.

During the brief ruling by the Court of Appeal today, Hadhariah said that the High Court had erred in allowing the prosecution’s suit to forfeit nearly RM2.5 million from Pahang Umno.

She said that the High Court disregarded the undisputed fact that the money given by Najib to Pahang Umno has already been spent prior to 2018 and was no longer available, and that the money seized that year was instead from other lawful sources.

Hadhariah said the Court of Appeal will also not disturb the previous High Court rulings that dismissed the prosecution’s multiple forfeiture suits against Umno, Wanita MCA, Kedah Umno, Perano, Binsabi, Habib Jewels, K&Z Enterprise, and Hattatex Trading.

She said that this is because the prosecution’s affidavits by its investigating officers failed to establish that the funds seized from these various entities in 2018 were proceeds of illegal activities.

Correctly ruled

She noted that the affidavits merely disclosed movement of monies deposited and transferred out of Najib’s accounts and certain other entities, and it is not sufficient averment to establish the monies received by these entities were from unlawful activities.

Hadhariah ruled that even if the funds received from Najib were from unlawful activities, the High Court had correctly ruled that the prosecution could not forfeit from the various entities, as the money received from Najib between 2012 and 2013 had already been spent, and that the funds seized in 2018 were from other lawful sources.

“It is very unlikely that the money in the respondents’ accounts seized in 2018 was derived from cheques from DSN (Najib).

“The prosecution did not identify specifically which money in the respondents’ accounts was from DSN,” she said.

Hadhariah noted that the respondents can mount a successful challenge against these forfeiture actions by showing that they were bona fide (in good faith) purchasers who have legitimate legal interests in the property, had not colluded in an offence, lacked knowledge, and did not in any way aided in avoiding forfeiture of the property.

The prosecution was headed by DPP Muhammad Saifuddin Hashim Musaimi.

Counsel Hariharan Tara Singh, G Nadaraja, Ben Chan appeared for Umno, Kedah Umno and Wanita MCA, respectively.

Counsel Mohd Shukri Ahmad Mansor represented both Pahang Umno and Hattatex.

Lawyer Thevini Nayagam appeared for both K&Z Enterprise and Perano.

Counsel Mohd Khalil Tajuddin and Khoo Guan Huat represented Binsabi and Habib Jewels, respectively.