Former Batu Kawan UMNO division vice-chief Datuk Seri Khairuddin Abu Hassan and lawyer Matthias Chang Wen Chieh remain free on bail pending completion of their trial on a charge of allegedly attempting to sabotage the country's banking and financial services.

This follows a decision of the Court of Appeal three-man panel led by Justice Datuk Tengku Maimun Tuan Mat in unanimously dismissing the prosecution's appeal against the Kuala Lumpur High Court's decision last year to release the duo on bail.

In her decision, she said the charge faced by the two under Section 124L of the Penal Code was not a security offence, thus the procedures under the Security Offences (Special Measures) Act 2012 (SOSMA) did not apply to their case.

SOSMA procedures allow an accused person to be denied bail and be detained pending disposal of that person's trial.

Khairuddin, 54, was seen embracing Chang, 66, after the court's verdict was announced and there was also applause from some people seated in the public gallery.

Justice Tengku Maimun said Parliament could not have intended the charge faced by the duo to be a security offence to invoke SOSMA.

She said the court panel found no merit in the prosecution's appeal. Presiding with her were Justices Datuk Ahmadi Asnawi and Datuk Kamardin Hashim.

Khairuddin and Chang were jointly charged with attempting to sabotage Malaysia's banking and financial services at five locations between June 28 and Aug 26, last year. Both face a jail term of up to 15 years, if convicted.

The locations are the office of the France Economic and Financial Crimes Division chief in Paris; Charing Cross police station, London, United Kingdom; office of the Switzerland Attorney-General in Bern; Wai Chan police station, Hongkong; and Cantonment police headquarters, Singapore.

The High Court had on Nov 18, last year, granted the two bail after ruling that the charge they faced was not a security offence and it did not fall under SOSMA.

After the court's verdict, Khairuddin's lawyer Mohamed Haniff Khatri Abdulla told reporters that the matter was fixed for mention in the Sessions Court in Kuala Lumpur tomorrow for the court to give direction on the next step.

Meanwhile, Chang's counsel Zainur Zakaria said the Court of Appeal ruling today affirmed the High Court's decision that only procedures under the Evidence Act and Criminal Procedure Code would apply for the offence faced by the two men.

Deputy public prosecutor Awang Armadajaya Awang Mahmud told reporters that he would brief his superiors on whether to bring the matter to the Federal Court.

Lawyer Tommy Thomas held a watching brief on behalf of the Malaysian Bar. - Bernama