Crime & Courts

Govt fails in bid to seize 1MDB cash from Jakel Trading, JB BN

KUALA LUMPUR: The government's bid to seize RM1.31 million of 1Malaysia Development Bhd (1MDB) -linked money from Jakel Trading and Johor Baru Barisan Nasional (BN) was dismissed by the High Court here, today.

Judicial commissioner Datuk Ahmad Shahrir Mohd Salleh dismissed the application to forfeit RM628,314 from Jakel Trading and RM677,872.55 from the coalition party when the cases were called up this morning.

Jakel Trading and Johor Baru BN were accused of receiving the money from former prime minister Datuk Seri Najib Razak between 2011 and 2013.

In his ruling on the Jakel Trading case, Shahrir said it was not disputed that the company received the money in three payments of RM180,000 each on July 27, 2011 and Sept 8, 2011 respectively, and another RM268,314 on Aug 27, 2013.

He said Najib had issued cheques payable to Jakel Trading and it was clear the monies were connected with the decisions and actions taken by the Umno president and Finance Minister pertaining to investments and business ventures of 1MDB.

However, he said the RM628,314 paid to Jakel Trading was for goods sold and delivered to the prime minister's department.

Shahrir said one must not lose track of the timeline of the transactions which was between 2011 and 2013.

"Whereas the case against Najib only made the headlines in 2015.

"At the time Jakel Trading received the payments, how could it tell that something was rotten in the city of Denmark?"

Shahrir said in the absence of anything potentially suspicious in the purchase of the goods and subsequent transactions, Jakel Trading could not be faulted for the source of payments.

He said based on these reasons, the court was of the opinion that Jakel Trading had sold and delivered the goods in the ordinary course of its business, and the payment of RM628,314 was made for the goods which it sold and delivered.

Jakel Trading was represented by Habizan Habeeb Rahman and Thevini Nayagam, while the prosecution was conducted by Mahadi Abdul Jumaat.

The prosecution has applied for a stay pending an appeal.

Shahrir later also ordered RM677,872.55 seized by the Malaysian Anti-Corruption Commission (MACC) from Johor BN to be returned.

That decision will be appealed by the prosecution.

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