PUTRAJAYA: The government’s bid to forfeit millions of ringgit, linked to 1Malaysia Development Bhd (1MDB) funds, has failed again at the Court of Appeal in several appeals involving nine entities that received monies from Datuk Seri Najib Razak.
It also has to return some RM2.5mil to the Pahang Umno liaison committee after the appellate court allowed Pahang Umno’s appeal against a High Court’s decision that favoured the government in the 1MDB-linked forfeiture suit.
In a three-man bench chaired by Court of Appeal judge Justice Abdul Karim Abdul Jalil, the appellate court said the High Court judge had erred when he disregarded that the monies, which came from the former prime minister, had been spent and the monies seized had come from other sources.
Other judges on the bench were Justices Hadhariah Syed Ismail and Abu Bakar Jais.
“We allow the appellant’s appeal and set aside the High Court order,” said Justice Hadhariah, who read the decision here via Zoom proceedings yesterday.
Pahang Umno appealed against a Kuala Lumpur High Court decision on Jan 9 last year, which allowed the prosecution to forfeit RM2,479,300.18 from it.
The appeal was one of the nine appeals before the Court of Appeal panel in multimillion forfeiture suits filed by the government to retrieve monies allegedly from 1MDB.
Eight other entities, including political parties and businesses, were also allowed to keep their millions as the appellate court dismissed the prosecution’s appeal against them in the same proceedings.
The prosecution also appealed against the dismissal of forfeiture applications of five businesses: Habib Jewels Sdn Bhd (RM100,000); Binsabi Sdn Bhd (RM827,250); Perano Sdn Bhd (RM337,634.78); K&Z Enterprise Sdn Bhd (RM138,359.60); and Hattatex Trading (RM111,590).
Justice Hadhariah said all of the respondents did not deny receiving monies from Najib by way of the monies banked into their accounts and through cheques.
The political groups, the judge said, contended that they had spent all the monies given to them and that the monies seized from them currently were from other sources, while the businesses said the monies they received from Najib were payments for services rendered.
Justice Hadhariah said the appellate court found no good reason to disturb the finding of facts by the High Court judge and therefore dismissed the appeal by the prosecution on the three political parties.
For the business category, Justice Hadhariah said the panel agreed with the presiding judge that the monies were payment for services rendered as the respondents had substantiated their argument with invoices.