Shafee's acquittal in RM9.5m money laundering case stays

 

Veteran lawyer Muhammad Shafee Abdullah’s acquittal in the RM9.5 million money laundering case remains.

Prosecutors have withdrawn their appeal to reverse Shafee’s acquittal in the case involving the money received from incarcerated former prime minister Najib Abdul Razak.

The counsel’s law firm Shafee & Co confirmed the withdrawal of the prosecution’s appeal before the Court of Appeal.

“We are pleased to inform that the attorney-general/public prosecutor has filed a notice of discontinuance to the appeal filed to the Court of Appeal, against the decision of the High Court in acquitting Shafee of all charges pursuant to Section 4(1) of Amla (Anti-Money Laundering Act) and accordingly, the said appeal before the Court of Appeal is deemed dismissed.

“The decision of the attorney-general/public prosecutor is not only an exercise of discretion without fear or favour, but underpins the impeachable nature of the High Court's decision, where the learned judge found, in both fact and law, that there was no element of a predicate offence (that is, illegal activity), to give rise to charges of money laundering and thus acquitting him of all charges without his defence being called,” the law firm said in a media statement today.

Former prime minister Najib Abdul Razak

Najib has been serving a 12-year jail sentence since late last year in relation to a corruption case involving RM42 million of funds from SRC International, a former subsidiary of troubled Malaysian sovereign wealth fund 1MDB.

On Oct 28, last year, the Kuala Lumpur High Court acquitted Shafee (above) of the four money laundering charges, ruling that the prosecution failed to establish a prima facie case against the veteran legal practitioner.

Trial judge Muhammad Jamil Hussin said the prosecution failed to prove that the two cheques - one worth RM4.3 million and the other RM5.2 million - were the proceeds from unlawful activities.

The judge noted that the prosecution’s own witnesses only showed that the cheques were deposited into Shafee’s account, whereby the accused himself does not deny receiving the monies.

“The prosecution failed to show that these monies were the result of unlawful activity,” Jamil said, adding that prosecutors failed to establish any predicate evidence that Najib or anybody else was linked to any unlawful activity.

“To prove that the RM4.3 million and the RM5.2 million are the proceeds of unlawful activity, the prosecution must prove the unlawful activity whereby the money was obtained.

“I find from the testimony proffered by the prosecution that there is no evidence on any predicate offence involving the RM4.3 million and RM5.2 million,” Jamil said.

The prosecution’s contention was that Shafee committed money laundering when receiving the RM9.5 million from Najib and allegedly made false declarations to the Inland Revenue Board (IRB).

The prosecutors rested their case on May 12 last year after calling eight witnesses in the trial which began on May 21, 2021.

Among the witnesses were Ambank Jalan Raja Chulan branch manager R Uma Devi, CIMB Bank Bukit Tunku branch manager Rosnita Ahmad, former IRB officer Syed Nasrul Fahmi Syed Mohamad and MACC investigating officer Mohamad Farid Jabar.

On Sept 13, 2018, Shafee claimed trial for receiving proceeds from unlawful activity via cheques issued by Najib, which were remitted into the accused’s CIMB Bank Bhd account.

He allegedly received a cheque for RM4.3 million on Sept 13, 2013, and another for RM5.2 million on Feb 17, 2014.

The offences were allegedly committed at CIMB Bank Bhd, Taman Tunku, Bukit Tunku in Kuala Lumpur.

The lawyer was also charged with two counts of engaging in transactions resulting from illegal activities, namely submitting incorrect tax returns, which is in violation of paragraph 113(1)(a) of the Income Tax Act 1967 for the financial years ending Dec 31, 2013, and Dec 31, 2014.

He was purported to have omitted income of RM4.3 million received on Sept 13, 2013, and RM5.2 million that was received on Feb 17, 2014, in his tax returns.

The money was allegedly received through two AmIslamic Bank Bhd accounts belonging to Najib and deposited into his two CIMB Bank Bhd accounts.

The offences were purportedly committed at IRB's Jalan Duta branch at Kompleks Pejabat Kerajaan, Jalan Tuanku Abdul Halim, on March 3, 2015, and June 29, 2015.

The charges were laid under Section 4(1)(a) of the Anti-Money Laundering and Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, specifying a fine of up to RM5 million or up to five years in jail or both upon conviction. - Mkini