Prosecution failed to prove RM9.5m received by Shafee was proceeds from unlawful activities - Judge

KUALA LUMPUR: The High Court today ruled that the prosecution in the case of Tan Sri Muhammad Shafee Abdullah, who is charged with money laundering, failed to prove that the RM9.5 million received by the lawyer from Datuk Seri Najib Tun Razak was proceeds from unlawful activities.

Judge Datuk Muhammad Jamil Hussin, in his summary judgment, said that based on the testimony of the prosecution witnesses, there was no evidence of predicate action (illegal activity) involved and also where the money was obtained from.

"On the other hand, the testimony of the 8th prosecution witness (SP8), Malaysian Anti-Corruption Commission (MACC) investigating officer Mohd Farid Jabbar, confirmed during cross-examination that there was no illegal activity involved in the accused receiving the money through cheques and that the money was not proceeds from unlawful activities," said the judge.

He said since there was no predicate offence nor proceeds from unlawful activities involved, the (alleged) predicate offences could not be proven.

Following which, judge Muhammad Jamil acquitted Muhammad Shafee, 70, on charges of money laundering involving RM9.5 million allegedly received from the former prime minister and making false declarations to the Inland Revenue Board (IRB).

On the first and second charge made against Muhammad Shafee, namely for allegedly receiving proceeds from illegal activities amounting to RM9.5 million through two cheques from Najib, judge Muhammad Jamil said there was no evidence of unlawful act committed either by Najib or any other persons who could contaminate the money.

"In my opinion, the date at the time of receipt is important to determine that the money in question is from unlawful activities.

"The conduct of a predicate offence must be before or on the date of receipt of proceeds from unlawful activities as in the charge. The dates of receipt of proceeds from unlawful activities that were stated in the first and second charge were Sept 13, 2013, and Feb 17, 2014," he said.

However, he said, the prosecution failed to show that an act of predicate offence was committed before or on the date of receipt of the money.

In relation to the third and fourth charges, for engaging in transactions resulting from illegal activities by submitting incorrect tax returns to IRB, judge Muhammad Jamil said that both charges could not be proven because there were no transactions involving proceeds from illegal activities that took place on March 3, 2015 and June 29, 2015 as stated in the charge.

"The act by the accused is more of an offence under Section 112 and Section 113 of the Income Tax Act and not an offence of money laundering under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001," he said.

He said the court found that the prosecution failed to establish a prima facie case against the accused for all the charges made against him.

"From all the evidence adduced, it is not safe for me to call the accused to defend himself on the four charges. I am also not prepared to convict the accused if the defence is called and the accused chooses to remain silent.

"Therefore, the accused is acquitted and discharged of the four charges without being called to enter his defence. The RM1 million bail is to be returned to the surety and the passport to be returned to the accused," he added.

Meanwhile, deputy public prosecutor Afzainizam Abdul Aziz, when contacted after the proceeding, said the prosecution would get instructions from the Attorne -General on whether to appeal against today's decision.

Muhammad Shafee, when met by reporters, thanked his legal team, comprising lawyers Harvinderjit Singh, Farhan Read and Muhammad Farhan Muhammad Shafee.

He also hoped that the case would just end at the High Court today and not continue with the appeal stage.

-- BERNAMA