COURT THROWS OUT 1MDB FORFEITURE SUITS

‘Remaining money in bank accounts of Umno, Wanita MCA and two others not from Najib’

THE government’s applications to forfeit more than RM194 million from Umno, Wanita MCA and two others have been dismissed by the High Court yesterday.

The monies were frozen by the Malaysian Anti-Corruption Commission for its alleged links to the 1Malaysia Development Bhd (1MDB) fraudulent money scandal.

The prosecution had filed forfeiture suits against the four entities alleging that the monies were proceeds from unlawful activities transferred from the personal bank account of Datuk Seri Najib Razak, Umno’s then president.

Judge Mohamed Zaini Mazlan said in his findings he had perused the respondents’ bank statements for the relevant period as stated in the forfeiture suits.

Concerning the application against Umno, he found that the remaining monies left in the party’s bank account as at May 13 last year were not linked to any money deposited by Najib.

Zaini said he found that the withdrawals from the bank account from the time the monies were deposited justified that it had long been spent.

“It (Umno) contended that monies deposited by Najib had long been spent and it had over a period of time saved monies from other sources.

“I’m of the view that the amount remaining in the respondent’s bank account could not be said to be from or part of the amount contributed by Najib.”

Zaini made similar findings for the applications against Wanita MCA and the two other companies — Binsabi Sdn Bhd, an event management company that supplies tents, and Perano Sdn Bhd, a clothing company.

He said in gist, there was nothing left from the monies banked in from Najib to the respondents’ bank accounts left to be forfeited, even if it was to be assumed that

We are concerned if the accounts are unfrozen, we would have no other avenue to seize the money in case we win the appeal. We are applying for a stay order.

MAHADI ABDUL JUMAAT

Deputy public prosecutor

the monies received were illegitimate proceeds.

“The prosecution’s application is therefore dismissed,” the judge said, ordering the accounts to be released immediately.

Deputy public prosecutor Mahadi Abdul Jumaat said the prosecution would file an appeal against the decision next week.

“We are concerned that if the accounts are unfrozen, we would have no other avenue to seize the money in case we win the appeal. We are applying for a stay order,” he said.

Zaini then gave an interim order for the accounts to remain frozen until the disposal of the stay application.

He ordered the prosecution to file their appeal by next Friday.

The government had sought to forfeit RM192,965,413.61 from Umno; RM300,000 from Wanita MCA; RM827,250 from Binsabi and RM337,634.78 from Perano.

On June 21 last year, MACC filed civil forfeiture applications against 41 people and entities to recover RM270 million allegedly taken from 1MDB.