Malaysia

Bung Moktar denies influencing Finance Minister in Felcra’s RM150 million investment approval

Former Felcra chairman told the Sessions Court that he had no role in urging the then Second Finance Minister to approve Felcra’s RM150 million investment in Public Mutual unit trust funds

Updated 11 months ago · Published on 02 Sep 2025 4:11PM

Bung Moktar denies influencing Finance Minister in Felcra’s RM150 million investment approval
Court testimony marks the first day of Bung’s defence against three charges of corruption involving RM2.8 million - Sept 2, 2025

DATUK Seri Bung Moktar Radin has denied influencing the then Second Finance Minister to approve a RM150 million investment by Felcra Berhad in Public Mutual unit trusts, asserting that the decision was made independently through proper government procedures and risk assessment.

The UMNO Supreme Council member gave his testimony at the Kuala Lumpur Sessions Court on Tuesday, marking the first day of his defence against three charges of corruption involving RM2.8 million. The proceedings took place before Judge Rosli Ahmad.

When questioned by his lawyer Ridha Abdah Subri, the Kinabatangan MP said the investment scheme had been approved by Datuk Seri Ahmad Husni Mohamad Hanadzlah, who held the post of Second Finance Minister at the time.

“The approval was granted based on several procedures and a thorough review by the Ministry of Finance,” he said, adding that various factors, including investment risk, were taken into consideration.

“The Second Finance Minister approved the scheme based on a comprehensive analysis by the Ministry of Finance Incorporated,” Bung Moktar said. “Felcra’s Board of Directors had also followed the established procedures when submitting the application for approval.”

To a question on whether the approval was entirely dependent on the board’s recommendation, Bung replied, “No. The Second Finance Minister relied on many factors and procedures.”

When asked if he had personally communicated with the Minister regarding the investment, he said simply, “No.”

Responding to further questions from his second counsel M. Athimulan, the former Sabah state minister also denied expediting the Finance Ministry’s approval process.

During the prosecution’s earlier case, a witness, Madhi Abdul Hamid, testified that there had been no discussions in June 2015 regarding any commission or bribe to Bung Moktar, nor any demand for RM3.5 million in exchange for the investment approval.

The court also heard that no “introduction fee” or inducement was ever brought up during meetings.

On 3 May 2019, Bung Moktar, who was then Felcra’s Non-Executive Chairman, was charged with two counts of receiving bribes totalling RM2.462 million to secure Felcra’s RM150 million investment in Public Mutual unit trusts.

He allegedly received the bribes from Public Mutual agent Madhi Abdul Hamid through his wife, Datin Seri Zizie Izette A. Samad, and via a Public Islamic Treasures Growth Fund account in her name.

The alleged offences were committed at Public Bank’s Taman Melawati branch between 12.30pm and 5.00pm on 12 June 2015, and again at 12.16pm on 19 June 2015.

A third charge accuses him of accepting a further RM337,500 in cash from another unit trust consultant, Norhaili Ahmad Mokhtar, also under Zizie Izette’s name, on 19 June 2015 at 12.28pm.

He faces charges under Section 17(a) of the Malaysian Anti-Corruption Commission (MACC) Act 2009, punishable under Section 24(1) of the same Act. If convicted, he could face up to 20 years in prison and a fine of no less than five times the value of the bribe or RM10,000, whichever is higher.

Zizie Izette faces three related charges of abetting her husband at the same locations, dates and times.

The trial continues on Wednesday. - Sept 2, 2025

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