Ex-Felda chairman Isa acquitted of CBT but must answer nine charges on graft involving more than RM3mil.

Ex-Felda chairman still to answer charges over hotel purchase

KUALA LUMPUR: Former Felda chairman Tan Sri Mohd Isa Abdul Samad was acquitted of a criminal breach of trust (CBT) charge but has to answer nine charges on corruption involving more than RM3mil over a hotel purchase in Sarawak.

The High Court called Isa to enter his defence after finding there was a prima facie case and credible evidence against him in respect of the nine charges.

Justice Mohd Nazlan Mohd Ghazali said there was sufficient evidence to establish the ingredients of receiving gratification, including a series of cash withdrawals, which went through three individuals.

The money was subsequently handed over to Isa’s special officer, who in the end, gave it to him as stated in all the nine charges.

“In view of the evidence of the receipt of the cash by the accused, I therefore invoke the statutory presumption under Section 50 of the MACC Act.

“The defence should rebut and show the gratification in the form of the cash was not received corruptly and that it was not obtained as a reward for the accused’s involvement in the approval by the board of Felda Investment Corp (FIC) Sdn Bhd of the purchase of Merdeka Palace Hotel,” Justice Nazlan ruled yesterday.

He said any of the nine charges, if unrebutted or unexplained, would warrant a conviction. On the single CBT charge, Justice Nazlan said an FIC board meeting minutes in 2014 clearly showed that the RM160mil purchase of the hotel was approved by the board of directors (BOD) and this was not disputed.

“As such, even if the accused as a director of FIC may have been entrusted with the funds of the company, he cannot under the law, be said to have committed CBT on the disposal of company funds for the hotel purchase,” he said.

Justice Nazlan added that not only did the accused as FIC chairman or director not have the requisite authority to approve the purchase, more importantly the purchase was approved by the entire BOD consisting of seven directors.

“On this ground alone, the CBT charge cannot be sustained,” he said.

The court also found a lack of evidence of the accused having influenced or asked the other board members to approve the said purchase.

“At any rate, criminal liability under CBT cannot be founded on the disposal of company funds by FIC to finance the purchase of the hotel without the approval of Felda if the payment for the said purchase has been consented to by Felda,” Justice Nazlan said.

He said upon maximum evaluation of the evidence, the court found that the prosecution had failed to establish a prima facie case in relation to the CBT charge and ordered for the discharge and acquittal of the accused.

Isa, 70, then told the court that he chose to testify under oath in his defence trial, which has been fixed for three days starting Aug 17.

On Dec 14, 2018, Isa claimed trial to a charge of CBT and nine counts of receiving graft, involving more than RM3mil.

According to the first charge, the former Umno vice-president allegedly committed CBT by approving the purchase of Merdeka Palace & Suites Hotel without the approval from the Felda BOD on April 29, 2014.

The offence, under Section 409 of the Penal Code, carries a jail term of between two and 20 years, whipping and a possible fine, upon conviction.

Isa was also charged with receiving bribes of RM100,000; RM140,000; RM300,000; RM250,000; RM500,000; RM500,000; RM300,000; RM500,000; and RM500,000; totalling RM3.09mil from Gagasan Abadi Properties Sdn Bhd director Ikhwan Zaidel between July 2014 and December 2015.

He allegedly committed the offences at Level 49, Menara Felda, Platinum Park, No. 11, Persiaran KLCC, near here.

The charges under Section 16(a)(A) of the Malaysian Anti-Corruption Commission Act carry a jail term of up to 20 years and a fine of not less than five times the value of the bribes for each charge, if found guilty.

Isa was represented by lawyer Datuk Salehuddin Saidin while deputy public prosecutor Afzainizam Abdul Aziz prosecuted.

When met outside the court, Isa said he would answer the charges through a sworn testimony.

Salehuddin said his client was ready to be cross-examined by the prosecution in the defence trial.