KUALA LUMPUR: Acquitted and discharged of all four charges related to money laundering and making false declarations to the Inland Revenue Board (LHDN), Tan Sri Muhammad Shafee Abdullah described the reasons for the decision by the judge as “groundbreaking.”
The charges were related to funds amounting to RM9.5mil allegedly received from former prime minister Datuk Seri Najib Razak, who is currently incarcerated, as well as for making false declarations to LHDN.
“You heard what the judge said this morning about the reasons provided for acquittal on all four charges without my defence needing to be called,” he told a press conference at the court complex after the decision was delivered yesterday.
“I think the reasons provided are not only sound, they are also original and groundbreaking in (anti-money laundering) law.
“This is especially so in the element of transactions – the definition, and whether or not my activity fell within it,” he added.
Justice Muhammad Jamil Hussin, in delivering his decision, said: “I found that in the first and second charges, the prosecution had failed to prove that the RM4.3mil and RM5.2mil were from unlawful proceeds. I have given the reasons.
“My findings also apply to the third and fourth charges.”
Muhammad Jamil also said the prosecution failed to prove a prima facie case for the third and fourth charges.
“The accused is released and freed from the four charges without being called to enter his defence,” he said.
Deputy public prosecutor Afzainizam Abdul Aziz acted for the prosecution while lawyers Harvinderjit Singh, Farhan Read and Muhammad Farhan Muhammad Shafee appeared for Muhammad Shafee. Eight witnesses were called in the trial which started on May 21, 2021, after the prosecution closed its case on May 12.
Muhammad Shafee pleaded not guilty on Sept 13, 2018, to receiving proceeds from unlawful activities through cheques issued by Najib.
The money was allegedly deposited to Shafee’s CIMB bank account. He had allegedly received cheques amounting to RM4.3mil on Sept 13, 2013, and RM5.2mil on Feb 17, 2014. The offences were allegedly committed at CIMB Bank Bhd in Taman Tunku, Bukit Tunku.
He was also charged with two counts of engaging in transactions resulting from illegal activities, which is submitting incorrect tax returns 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.
This was in relation to allegations of omitting the income received via the two cheques in his tax returns.
The offences were allegedly committed at the LHDN’s Jalan Duta branch at Kompleks Pejabat Kerajaan, Jalan Tuanku Abdul Halim on March 3 and June 29, 2015.
The charges under Section 4(1)(a) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, carries a fine not exceeding RM5mil or up to five years’ jail, or both, upon conviction.
