The Kuala Lumpur High Court today dismissed a forfeiture suit targeting RM114 million allegedly linked to 1MDB as the prosecution failed to prove that the money may have been laundered from the state fund.
The funds were part of RM680 million in cash, jewellery and other assets seized from condo units in Pavilion Residences, Kuala Lumpur, owned by Obyu Holdings Sdn Bhd, in 2018.
Obyu is the sole respondent in the government’s main 1MDB-linked forfeiture suit. However, Umno and its former president Najib Abdul Razak are third party claimants seeking the return of the RM114 million, which is currently in Bank Negara’s custody.
Today’s order is only in relation to the RM114 million rather than the rest of the RM680 million in seized assets. Those are still pending further hearing in future.
Judge Muhammad Jamil Hussin did not make any consequential order in his oral ruling on whether the RM114 million should be returned to where it was initially seized.
The judge ruled that the prosecution failed on a balance of probabilities to prove that the RM114 million is part of any money laundering from 1MDB or even linked to any illegal activity.
Jamil said that the applicant (the government through the prosecution) failed to show that the money is linked to any offence of criminal breach of trust (CBT) or receiving of stolen property, among others.
He noted that the affidavit of 1MDB investigating officer ACP R Rajagopal failed to show that the money is the result of theft, CBT or the proceeds of illegal activities.
“As predicate offences (such as CBT) were not fulfilled (proven), the issue of proceeds from illegal activity does not arise.
“So, it cannot be said that the seized cash (RM114 million) is the result of proceeds from unlawful activity, and the applicant failed to show it was the proceeds from a predicate offence,” Jamil said.
The judge also noted that the applicant did not succeed in proving that the money seized from Pavilion has anything to do with the predicate offences alleged to have been committed in relation to 1MDB.
However, both the prosecution and the legal teams acting for Umno and Najib sought clarification from the court on whether the ruling required the RM114 million to be returned to where it was seized from.
Deputy public prosecutor Muhammad Saifuddin Hashim Musaimi asked what is the impact of the order as the cash is currently being held in custody at Bank Negara.
He said clarification is necessary as the prosecution is applying for a stay on the decision, pending their appeal to the Court of Appeal.
Najib’s counsel Muhammad Shafee Abdullah, meanwhile, suggested that the money just be returned to Najib while the prosecution is appealing to the Court of Appeal.
Shafee submitted that as the forfeiture suit has been dismissed and that more than 12 months have passed since the seizure of the cash, the anti-money laundering law requires the money to be returned.
However, Jamil answered that he could not make a consequential order on what to do with the money, as his ruling was only in relation to the prosecution’s bid to forfeit the RM114 million.
“My decision is not to allow (the forfeiture suit over the RM114 million). I cannot make a consequential order for the money to be returned,” the judge said.
Jamil also refused the prosecution’s oral application to stay the ruling, directing them to instead file a written application seeking such a stay.
The court then fixed June 1 for case management of the main forfeiture suit over the RM680 million of cash and other assets allegedly linked to 1MDB.
Previously, the prosecution had contended that Umno has a secret unaudited account for political donation in order to rebut the bid by the party and Najib to claim the RM114 million.
Through the main forfeiture action, the government seeks to forfeit a total of allegedly 1MDB-linked RM680 million in cash, jewellery and other assets seized from the Pavilion Residences.
Umno and Najib are among third-party claimants to part of the RM680 million, namely RM114 million in cash.
Besides Umno and Najib, other third-party claimants are Najib's wife Rosmah Mansor and Lebanese jeweller Global Royalty Trading SAL.
However, the third-party claims by Rosmah and Global Royalty Trading have yet to be heard by the court. - Mkini
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