PETALING JAYA: The Securities Commission (SC) said Malaysian Anti-Corruption Commission (MACC) chief commissioner Tan Sri Azam Baki operated the trading account he had opened, in that he had given instructions to buy, sell and transfer securities from the said account.
The SC, in a statement yesterday, said the independent evidence gathered at the inquiry into Azam’s trading account showed Azam was the named account holder and had control of the trading account.
“Therefore, the SC arrived at the decision that there was no breach of Section 25(4) of the Securities Industry (Central Depositories) Act 1991.” (SICDA)
On Jan 5, Azam said he gave permission to his younger brother, Nasir, to use his account for the purpose.
Azam was answering allegations that surfaced that he owned a substantial number of shares in GETS Global Bhd as well as Excel Force MSC Bhd between 2015 and 2016 when he was the MACC director of investigations.
Azam explained in a media conference that day that the shares were bought in the open market, adding that Nasir had financed the purchases himself.
“I allowed my brother to use my trading account because I didn’t see it as an issue as he is my brother.
“If this is wrong, please let me know if this is actually an offence,” he said.
“I took the initiative to inform my superiors back then. I informed them what was going on and that I did not have any interest in the acquired shares,” he said, adding that his superiors were satisfied with the explanation given.
The SC investigated whether Azam broke the law in allowing his brother to trade on his account. It issued a statement after its inquiry into Azam’s public disclosure was completed.
“The SC has concluded its inquiry and based on the evidence gathered, the SC is not able to conclusively establish that a breach under Section 25(4) SICDA has occurred,” it said in a statement on Tuesday.
As a capital market regulator, the SC’s regulatory remit is set out under the Securities Commission Malaysia Act, Capital Markets and Services Act and Securities Industry (Central Depositories) Act (SICDA).
“In this regard, the said inquiry relates to the issue of whether a potential breach under Section 25(4) (SICDA) occurred.
“Section 25(4) SICDA provides that a trading account must be opened in the name of the beneficial owner or authorised nominee.”
The SC has been clamping down on breaches of Section 25(4), although it is unclear how many individuals have been charged to date.
Meanwhile, a lawyer told StarBiz that a civil servant in Malaysia is allowed to buy shares, bonds and other securities.
“Under the government’s Service Circular 3/2002, it is mentioned that a civil servant can own shares as long as the value of the securities are below RM100,000 or not more than 5% of the paid capital of the company.
Minister in the Prime Minister’s Department (Parliament and Law) Datuk Seri Dr Wan Junaidi Tuanku Jaafar said that the shares in Azam’s account were only valued at RM330,000 when they were first bought.