Malaysia

Shafee tried passing off RM9.5 mil legal fees from Najib as loan: witness

MACC’s Mohamad Farid Jabar testifies money was for services rendered to Umno, BN in lawyer’s trial

Updated 4 years ago · Published on 12 May 2022 10:15PM

Shafee tried passing off RM9.5 mil legal fees from Najib as loan: witness
Prominent lawyer Tan Sri Muhammad Shafee Abdullah faces a punishment of a fine not exceeding RM5 million or up to five years’ jail, or both, if he is convicted for receiving money from unlawful activities. – The Vibes file pic, May 12, 2022

KUALA LUMPUR – The high court here was told today that lawyer Tan Sri Muhammad Shafee Abdullah had tried to hide the “identity” of RM9.5 million he had received from former prime minister Datuk Seri Najib Razak as a loan, when the money was actually payment for legal services rendered to Umno and Barisan Nasional (BN).

Malaysian Anti-Corruption Commission (MACC) investigating officer Mohamad Farid Jabar, 37, said that based on two statements taken by the MACC in 2017 and 2018, Shafee had said that the RM9.5 million was for legal fees, but in another recorded statement and in a media statement, the lawyer had said the money was in the form of a loan.

“Initially, Tan Sri Shafee had his statement recorded (recordings in 2017 and 2018) as a witness related to the receipt of RM9.5 million from Datuk Seri Najib, whereby Tan Sri Shafee was one of those who received money from Datuk Seri Najib, when the latter was being investigated by the MACC.

“Tan Sri Shafee’s explanation through the two recorded statements that I obtained clearly proves that the receipt of RM9.5 million was the payment of legal fees for the 2004 and 2006 election petition cases that had been completed,” Farid said, adding that the statements were recorded by two MACC officers.

The eighth prosecution witness said this during re-examination by deputy public prosecutor Afzainizam Abdul Aziz in Shafee’s trial for receiving RM9.5 million in funds obtained from illegal activities from Najib, and two counts of making false statements to the Inland Revenue Board (IRB).

Farid said he had lodged a complaint on September 4, 2018 over the allegations regarding the receipt of the money by Shafee, where the senior lawyer was a suspect in his investigation paper.

“The investigation done by me was aimed at finding out whether the receipt of two cheques amounting to RM9.5 million had been declared in Form B for the years of assessment (IRB) 2013 and 2014, from there, my investigation found that it was not reported.

“My investigation also found that, based on the recordings and media statements, he (Shafee) tried to hide the true identity of the RM9.5 million he received as a loan, when the RM9.5 million was actually payment for legal services provided by Tan Sri Shafee to Umno and BN,” he said.

To Afzainizam’s question as to why he did not issue a notice to Shafee and his law firm Shafee & Co to submit invoices for the legal fees to Umno and BN, Farid said Shafee himself had confirmed that he did not request any invoices from Najib, because he was “shy” to do so.

“Besides that, the cheque (RM9.5 million) was made personally by Datuk Seri Najib to Tan Sri Shafee because the 2004 and 2006 election petition cases had been completed,” he explained.

After the final prosecution witness finished testifying, Afzainizam informed judge Datuk Muhammad Jamil Hussin that the prosecution had rested its case.

“The prosecution rests its case today after calling eight witnesses. The prosecution does not offer any witnesses to the defence,” he said.

Counsel Harvinderjit Singh, who represented Shafee, thanked the prosecution and the judgel for hearing the case.

Jamil then ordered both parties to submit the notes of the proceedings on June 12 for the court to examine and compare them with the court recording transcript to determine their accuracy.

“Both parties must also file written submissions on or before July 26 and oral submissions have been set for September 15,” he added.

Among the prosecution witnesses called to testify at the trial, which began on May 21, 2021, were Ambank Jalan Raja Chulan branch manager R. Uma Devi, CIMB Bank Bukit Tunku branch manager Rosnita Ahmad and former IRB officer Syed Nasrul Fahmi Syed Mohamad.

On September 13, 2018, Shafee pleaded not guilty to receiving proceeds from unlawful activity via cheques issued by Najib, which were remitted into Shafee’s CIMB Bank Bhd 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 charges, under Section 4(1)(a) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, carry a fine not exceeding RM5 million or up to five years’ jail, or both, upon conviction.

Shafee is also facing two charges of being involved in transactions of proceeds from unlawful activity, that is by making inaccurate statements in contravention of paragraph 113(1)(a) of the Income Tax Act 1967 for the financial years ending December 31, 2013 and December 31, 2014.

He allegedly committed the offences at IRB’s Jalan Duta branch at the government office complex, Jalan Tuanku Abdul Halim here on March 3, 2015 and June 29, 2015.

For these charges, Shafee 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, if convicted. – Bernama, May 12, 2022

Related News

Malaysia / 16h

‘Corruption is the enemy of justice’: Malay Rulers’ warnings resurface amid Najib house arrest ruling

Malaysia / 2d

The question remains: Who paid Najib's RM50m fine?

Malaysia / 5d

Where did UMNO's RM50 million payment for Najib's release come from?

Malaysia / 5d

Tony Pua urges BNM, MACC to audit RM50 million fund used to pay Najib’s fine

Business / 1w

Businessman seeks MACC action after Customs disclosure on cargo irregularities

Malaysia / 1w

Sultan Nazrin warns Perak palace dignitaries against exploiting royal titles

Spotlight

Malaysia

Rosmah thankful as Najib returns home under house arrest

Malaysia

‘Quit Cabinet if you disagree with Anwar,’ Loke challenges BN MPs

Malaysia

‘If anything happens, we’ll crowdfund!’ Anwar jokes with Trevor Noah

Malaysia

UMNO prepared to disclose details of RM50m collected for Najib house arrest

Malaysia

Father arrested after 12-year-old son falls from car near Nilai toll plaza

Malaysia

Anthony Loke resigns as Transport Minister

Malaysia

Woman with disabilities found dead after two-hour search in Tawau

You may be interested

Malaysia

Anthony Loke resigns as Transport Minister

Malaysia

Six escape unharmed as fire destroys Umno leader's 43-year-old Kuantan home

Malaysia

Sultan Nazrin: Care sector investment offers economic returns beyond elderly support

Malaysia

MediAsas to extend affordable medical cover to eligible SME workers from January

Malaysia

Najib's discharge order could trigger immediate transfer to Kajang prison, says Ramkarpal

Malaysia

19 police reports lodged over offences during Melaka campaign

By Alfian Z.M. Tahir

Malaysia

MPs to question LHDN's power to impose travel bans over unpaid CP500 tax

Malaysia

Najib expected to return home today to begin house arrest, says Shafee