Ex-MD acquitted of RM34.4m fraud charge

KUALA LUMPUR: The Sessions Court here yesterday discharged and acquitted former Tanjung Offshore Bhd managing director Datuk Harzani Azmi of fraudulent inducement involving shares worth RM34.4 million and money laundering.

Judge Mardihah Harullah announced the discharge and acquittal without calling the accused to defend himself after the prosecution failed to establish a prima facie case against Harzani.

“The court found that the prosecution failed to prove that RM34.4 million was exceeding the real value (of the shares), as there was a report from an expert stating that the price was right for the sale and purchase.

“The prosecution also failed to prove that the accused had the intention to mislead the board of directors into making their decisions on the sale and purchase of the shares.”

On Feb 16 last year, Harzani, 50, was alleged to have misled Tanjung Offshore’s board of directors to enter into a share sales agreement with Appolusa Sdn Bhd for the purchase of Gas Gen erators (M) Sdn Bhd in 2013, valued at RM34.3 million.

He was alleged to have committed the offence at the conference room of Tanjung Offshore Bhd, Wisma UOA in Damansara, at 10am on Oct 21, 2013. He was charged under Section 366 (1)(a) of the Companies Act 1965, which carries a 10-year jail term or a RM250,000 fine or both.

Harzani was also charged with money laundering for allegedly instructing legal firm Mathews Hun Lachimanan to transfer RM13.3 million from a bank to a client trust account at Kenanga Investment Bank Bhd.

For the second offence, Harzani was charged under Section 4 (1)(a) of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001 (Act 613), which carries a fine not exceeding RM5 million or a jail term of up to five years, or both, upon conviction.