UBB Investment Bank Limited's former CEO Razlan Raghazli has been charged this morning with defrauding over RM139 million of the bank’s Amanah Berhad’s investment into an education company in September last year.
Razlan pleaded not guilty to the charge before Kuala Lumpur Sessions Court judge Azura Alwi this morning.
Razlan was accused of deceiving the bank’s Amanah Berhad’s CEO and managing director, Aida Aizura Othman, into believing that he had signed a payment schedule for an Islamic property financing facility in accordance with legal advice from Messrs Kassim Tadin, Wai & Co.
The payment schedule letter is titled "Disbursement Advice on Islamic Property Financing Under Bai-Bithamin Ajil (BBA) dated Sept 18 last year.
This led to Aida releasing the payment of RM139,891,776 to ELMU Higher Education Sdn Bhd.
However, the charge detailed that Razlan allegedly knew he acted against solicitors’ advice and that Aida would not have released the funds had she not been deceived by the accused.
The charge was framed under Section 420 of the Penal Code, which carries a jail term between one year and 10 years, together with strokes of the cane and a fine.
RM100k bail proposed
Deputy public prosecutor Hazel Tan suggested RM100,000 bail for the accused.
She also suggested that the court confiscate his passport and, as additional conditions, order him not to disturb prosecution witnesses.
Razlan’s lawyer, Azimudin Abd Aziz, in reply, requested a lower bail amount, stating that his client is jobless as he left the bank in June this year.
Azimudin added that Razlan will comply with the additional conditions suggested.
The court then granted RM60,000 bail to Razlan, as well as the additional conditions requested by the prosecution.
The judge fixed Oct 12 for case management.
UBB Investment Berhad was hit with a RM10 million compound by Bank Negara Malaysia and the Labuan Financial Services Authority (LFSA) in June, as reported by The Edge on Aug 15.
The compound was due to the bank’s failure to report more than 50 suspicious transactions conducted between 2023 and 2024, as well as breaching other anti-money laundering rules.
The bank fully paid the compound on June 11. - Mkini
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