Ex-company MD acquitted of money laundering charge

KUALA LUMPUR: A former managing director of oil and gas company, Tanjung Offshore Berhad, was yesterday acquitted and discharged by the Sessions Court here of two charges of laundering RM13.3 million and submitting a false document for the purchase of shares of a company at RM34.3 million.

Judge Madihah Harullah acquitted and discharged Datuk Harizani Azmi, 50, without calling for his defence after she decided that the defence had failed to prove a prima facie case against the accused.

In her judgment, Madihah said the prosecution had failed to prove that the RM34.3 million was above the actual value of the shares as an expert report proved that the price of the shares bought was appropriate.

“The prosecution had failed to prove that the accused had intended to deceive the company's board of directors in deciding on the share purchase and the decision was not the accused's. Therefore, the accused is acquitted and discharged by this court without his defence being called,” she said,

Fourteen prosecution witnesses were called to give their evidence during the case hearing which began on July 14, 2016.

Harizani, who is self-employed now, was charged with money laundering by instructing legal firm, Messrs Mathews Hun Lachimanan to transfer RM13.3 million from customer's account at Standard Chartered Berhad to a customer's account at Kenanga Investment Bank Berhad.

He was alleged to have committed the offence at 10-3, Batu 3, Jalan Klang Lama, here, between Nov 14 and Nov 27, 2013 under Section 4(1)(a) of the AntiMoney Laundering and AntiTerrorism Financing Act 2001, which provides for a fine of up to RM5 million or up to five years' jail, or both, upon conviction.

Harizani was also charged with submitting a false document, namely a proposal paper titled ‘Proposed Acquisition of Remaining Shares In Gas Generators (M) Sdn Bhd in relation to the purchase of 49 per cent of Gas Generators shares owned by Appolusa Sdn Bhd at RM34.3 million, to Tanjung Offshore board of directors.

The proposal paper was submitted through Tan Seow Hoe, head of Corporate Finance at Tanjung Offshore Berhad, whereby the accused allegedly knew that the value of the shares at RM34.3 million was not right as it was above the actual value to the point of deceiving the board to enter into a share sale and purchase agreement with Appolusa Sdn Bhd on Oct 21, 2013.

The accused allegedly committed the offence at the meeting room of Tanjung Offshore Berhad office, Wisma UOA, Damansara, here, at 10 am on Oct 21, 2013. The offence under Section 366(1)(a) of the Companies Act 1965, provides for a jail term of up to 10 years or a fine not exceeding RM250,000, or both. - Bernama