Pekan Umno, 40 others fail to get stay in MACC forfeiture suit

KUALA LUMPUR: The High Court here dismissed on Thursday (Oct 3) a stay application by Pekan Umno and 40 others over a forfeiture suit filed by the Malaysian Anti-Corruption Commission (MACC) against them.

The commission is seeking to recover RM700,000 in assets allegedly acquired using funds siphoned from 1Malaysia Development Bhd (1MDB).

In his judgement, Justice Mohd Nazlan Mohd Ghazali said the applicants, including former Umno president Datuk Seri Najib Razak, did not show any special circumstances to justify their application.

The judge also said the applicants’ argument that their appeal, which is pending at the Court of Appeal would become nugatory if the forfeiture suit proceeds, has no merit.

“In this case, the applicant has not, in my view, shown any special or exceptional circumstance to justify a stay, but instead merely highlighted fears of losing the property to a third party based on speculation and conjecture.

“This application is therefore dismissed, ” Justice Mohd Nazlan said here on Thursday (Oct 3).

The court earlier heard submissions from counsel Datuk M. Reza Hassan, who acted for the applicants.

Reza argued that there were special circumstances that warranted a stay as the applicants had filed an appeal.

“If this matter were to proceed and third parties are invited to stake their claim and succeed in doing so, and if at the same time, the Court of Appeal allows the appeal, it would be a burden to my client to try to allocate the monies to the third parties.

"And there would be a probability that the money would have been used, ” he said.

Deputy Public Prosecutor Maziah Mohaide argued that the stay sought by the applicants was based on mere speculation and fear of losing property since there were no third parties who had come forward yet.

On Sept 6, the High Court ordered the MACC to gazette a notice of forfeiture claim against Pekan Umno and 40 other individuals to call upon any third party interested in claiming the RM700,000 worth of assets linked to 1MDB.

Among other respondents in the MACC’s civil forfeiture application are Pekan Umno vice-chief Datuk Khairuddin Mahmud, Pekan Umno deputy chief Datuk Seri Zamri Ramly, Pekan Puteri Umno chief Sida Tatiana Sariat and Najib’s son – Pekan Umno Youth chief Datuk Muhamed Nizar.

The publication of the notice under Section 61 (2) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, is meant to summon any third party which may claim to have any interest in the property, to come before the court on the date specified in the notice, to show cause as to why the property shall not be forfeited to the government.