KUALA LUMPUR – The prosecution in Tan Sri Muhammad Shafee Abdullah’s money-laundering trial will prove that the accused, in his capacity as an advocate and solicitor, received RM9.5 million as his “fee” from Datuk Seri Najib Razak, but intentionally kept the fact from the Inland Revenue Board (IRB).
Deputy public prosecutor Afzainizam Abdul Aziz, reading out his opening statement in Shafee’s trial today, said the 69-year-old lawyer received the payment from the former prime minister in two tranches, in 2013 and 2014.
“A sum of RM4.3 million was received on September 5, 2013. The cheque for this sum was deposited into his personal account with CIMB Bank, at a branch close to his office. This payment forms part of the subject matter of the first charge. The accused did not declare this sum to IRB in the (tax) return he filed as required by law.
“The second tranche of RM5.2 million was deposited into the same bank account on February 17, 2014. This forms the subject matter of the second charge. The accused did not declare this to IRB in the (tax) return he filed as required by law. The prosecution will establish these facts later,” he told high court judge Muhammad Jamil Hussin on the first day of the hearing.
He said the prosecution’s case in respect of the first and second charges is that the circumstances in which the monies were received and concealed from IRB constitute evidence from which the court may irresistibly infer that the accused engaged in an unlawful activity, and thereby, committed the offence of money laundering contrary to Section 4(1)(a) of the Anti-Money Laundering, Anti-Terrorism Financing Act 2001.
On the third and fourth charges of making false statements to IRB, Afzainizam said the prosecution will prove that the accused contravened Section 113(1)(a) of the Income Tax Act 1967.
“This is a scheduled offence, hence, a serious offence, the commission of which constitutes unlawful activity, and therefore, amounts to money laundering, by definition. It is the prosecution’s case that on this basis, the accused committed the offence of money laundering contrary to Section 4(1)(a) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act.
“The prosecution will prove that the accused gave inconsistent versions as to the reason for the payments in question.”
He said on July 28, 2017, when Shafee gave his statement to a Malaysian Anti-Corruption Commission officer, he said the money in question was his fee, but the said sum was deposited into his personal bank account instead of that of his firm Shafee & Co.
“A further statement was recorded from the accused on September 11, 2018, and in that statement, Shafee said on September 5, 2013, he and Najib agreed that the money in question was to be a loan to the accused, pending rationalisation of the fee already payable to him.
“In the course of this statement being recorded, the accused handed to the recording officer a letter purported to have been written by him on September 12, 2013, and purporting to carry Najib’s initials. The prosecution does not accept this letter as genuine.
“It will be our case that the letter was brought into existence at a time well after July 28, 2017. We will rely on circumstantial evidence to support our case on this point. We will also rely on this circumstantial evidence to establish mens rea on the part of the accused in the commission of the offence.”
Afzainizam said the accused, in a written press statement dated September 8, 2018, said the payment of RM9.5 million comprised the fee due to him pending the rationalisation of paperwork as agreed by Najib.
The prosecution will contend that the press statement, when read as a whole, tells against the monies being a loan, he said.
On September 13, 2018, Shafee pleaded not guilty to receiving proceeds from unlawful activity via cheques issued by Najib that were remitted into his CIMB Bank account. He allegedly received a cheque for RM4.3 million on September 13, 2013, and another for RM5.2 million on February 17, 2014. The two offences were allegedly committed at the CIMB Bank branch at J2 & K1 in Taman Tunku, Bukit Tunku here.
The charges, under Section 4(1)(a) of the Anti-Money Laundering and Anti-Terrorism Financing and Proceeds of Unlawful Activities Act, carry a fine not exceeding RM5 million, or up to five years’ jail, or both, upon conviction.
Shafee also faces two charges of being involved in transactions of proceeds from unlawful activity, that is, by making inaccurate statements and in contravention of paragraph 113(1)(a) of the Income Tax Act for the financial years ending December 31, 2013 and December 31, 2014. He allegedly committed the offences at the IRB branch at Kompleks Pejabat Kerajaan in Jalan Tunku Abdul Halim here on March 3, 2015 and June 29, 2015.
For this, he is liable to be jailed a maximum of 15 years and fined not less than five times the amount of proceeds from the unlawful activity. – Bernama, May 21, 2021
