AG: I was advised Thomas agreed to Riza Aziz settlement 'in principle'

New Attorney-General Idrus Harun has responded to the controversy surrounding film producer Riza Aziz’s billion-ringgit money laundering case, stating he acted upon advice his predecessor agreed to the settlement terms “in principle”.

This after former head prosecutor Tommy Thomas repeatedly insisted he never agreed to the settling of the US$248 million (RM1.08 billion) 1MDB-linked case with the accused.

Riza is also former prime minister Najib Abdul Razak’s stepson.

In a statement today, Idrus (above) said he was also advised by ad hoc public prosecutor in the case, Gopal Sri Ram, after consulting with former MACC chief Latheefa Koya, that the proposal sent by Riza’s lawyers be accepted by the anti-graft body.

“I have been advised that my predecessor Tommy Thomas, after perusing the said letter of representation (by Riza’s solicitors), via a minute dated Nov 19, 2019, to senior deputy public prosecutor Gopal Sri Ram, sought the views of the latter, and further stated that in light of the proposals outlined above, he is prepared to consider the representation.

“I have been further advised that Sri Ram, in consultation with the then chief commissioner of MACC, Latheefa Koya, suggested that the proposals laid down in the letter of representation be accepted by MACC. I have also been advised that Thomas had agreed to the suggestion in principle.

“This paved the way for further negotiations and planning of the mechanism to be adopted, to take place on March 11... I shared the views of my predecessor as had been informed to me, and agreed to accept the offer that was made by Riza subject to his strict compliance with the terms and conditions,” said Idrus.

Thomas had resigned as attorney-general on Feb 28, following the collapse of the Pakatan Harapan government. Latheefa, meanwhile, resigned from the MACC on March 2.

Riza was on Thursday accorded a discharge not amounting to an acquittal (DNAA) by the Kuala Lumpur Sessions Court for his five criminal charges on allegedly receiving illegal proceeds from sovereign wealth fund 1MDB.

The producer of The Wolf of Wall Street and Dumb and Dumber To was charged last year for allegedly receiving a total of US$248 million on five occasions between 2011 and 2012.

Riza (below) was accused of committing the offences by receiving the money through the bank account of Red Granite, the Hollywood production company he co-founded.

The deal, however, is dependent on him fulfilling the terms of the agreement reached with the prosecution, which among others, necessitates the return of an estimated US$107.3 million (RM465.3 million) to the Malaysian government.

According to Idrus today, among the terms of settlement proposed by Riza’s solicitors in a letter dated Nov 18, 2019, were that the accused was to surrender his rights in three properties seized by the US Department of Justice (DOJ) in Beverly Hills and New York in the US and in London, as well as monies seized from him be forfeited by the Malaysian government.

“With this arrangement, the government of Malaysia is expected to recover approximately US$108 million (subject to the eventual sale proceeds of the assets and deduction of the associated costs thereof) to be credited into the 1MDB Asset Recovery Trust Account.

“This is in addition to the US$57,036,688.68 which was forfeited earlier in April 2019 from Red Granite Pictures, a company co-owned by Riza, the funds of which are traceable to 1MDB,” said the attorney-general.

Below is Idrus’ statement in full:

PP v Riza Shahriz Abdul Aziz

1. Riza Shahriz Bin Abdul Aziz (Riza Aziz) was charged with five (5) money laundering offences punishable under Section 4(1) of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001 (Act 613) for receiving proceeds of an unlawful activity, totalling US$248,173,104.00 linked to 1MDB between April 2011 and November 2012.
2. Since the filing of the charges, Riza Aziz has made several representations to this Chambers through his solicitors, Messrs Scivetti & Associates. I am made to understand that the chronology of correspondence between the Attorney-General’s Chambers (AGC)/MACC and Riza Aziz’s solicitors, before my appointment as Attorney General, is as follows:

a. On Nov 18, 2019, the solicitors sent a letter of representation to this Chambers seeking for a review of all five (5) charges against Riza Aziz in the Kuala Lumpur Sessions Court. The letter of representation, among others, proposed that Riza Aziz -

i. Surrender his rights in three (3) properties seized by the United States Department of Justice and for Riza Aziz to facilitate the return of the same or its value, to the government of Malaysia. The properties in question are as follows:

a. One (1) unit of bungalow located in Beverly Hills, California;

b. One (1) unit of apartment located in New York, and

c. One (1) unit of townhouse in London, United Kingdom;

ii. Agreeable to have the monies seized from him which form the subject matter in a related matter before the Kuala Lumpur High Court, be forfeited to the government of Malaysia; and

iii. Pay a compound pursuant to section 92 of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001.

I have been advised that my predecessor Tommy Thomas, after perusing the said letter of representation, via a minute dated Nov 19, 2019, to Senior Deputy Public Prosecutor Gopal Sri Ram, sought the views of the latter, and further stated that in light of the proposals outlined above, he is prepared to consider the representation.

I have been further advised that Gopal Sri Ram, in consultation with the then Chief Commissioner of MACC Latheefa Koya, suggested that the proposals laid down in the letter of representation be accepted by MACC. I have also been advised that Thomas had agreed to the suggestion in principle. This paved the way for further negotiations and planning of the mechanism to be adopted, to take place.

b. On March 11, 2020, the solicitors sent another letter of representation fortifying the earlier proposal and undertook that, should Riza Aziz fail to comply with the terms and conditions, the original five (5) money laundering charges would remain. This was then presented to me after I had been made aware of Thomas’ earlier position. Having been briefed by the deputy public prosecutors in charge of the matter, I shared the views of my predecessor as had been informed to me, and agreed to accept the offer that was made by Riza Aziz subject to his strict compliance with the terms and conditions.

c. On April 16, 2020, the MACC replied to the solicitors essentially stating that the public prosecutor was willing to apply for a discharge not amounting to an acquittal (DNAA) on all five (5) charges subject to Riza Aziz taking steps to ensure that the monies and properties seized be transferred to the government of Malaysia, and to pay a compound pursuant to Section 92 of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001.

d. On April 21, 2020, the MACC wrote to the solicitors instructing Riza Aziz to relinquish his rights, title and interest in another asset identified as the “Metropolis Poster” being a one-framed, 3-sheet colour lithograph poster created by the German artist Heinz Schulz- Neudamm for the 1927 silent film “Metropolis”.

e. On May 13, 2020, the MACC again wrote to the solicitors instructing Riza Aziz to transfer USD14,087,072.76 held in an escrow account at Huntington National Bank, USA to the government of Malaysia.

With this arrangement, the government of Malaysia is expected to recover approximately US$108 million (subject to the eventual sale proceeds of the assets and deduction of the associated costs thereof) to be credited into the 1MDB Asset Recovery Trust Account. This is in addition to the US$57,036,688.68 which was forfeited earlier in April 2019 from Red Granite Pictures, a company co-owned by Riza Aziz, the funds of which are traceable to 1MDB.

These arrangements are part of the government’s ongoing efforts to recover assets related to 1MDB. I have been informed that negotiations with several parties in the past year, especially in relation to assets located overseas, had resulted in the successful recovery and repatriation of monies which will reduce the government’s burden in repaying 1MDB’s debts. Such negotiations have been complex, requiring close cooperation with authorities abroad, and are continuing.

Idrus Bin Harun

Attorney-General / Public Prosecutor  - Mkini