Bersatu's RM195 million bank account freeze stays, court rules

New Straits Times

a day ago

KUALA LUMPUR: Parti Pribumi Bersatu Malaysia's (Bersatu) bank account containing RM195 million will continue to be frozen pending the outcome of two judicial review applications and related criminal proceedings, the High Court ruled recently.
Judicial Commissioner Gan Techiong made the ruling in CIMB Bank's application seeking a court declaration on whether it should maintain the freeze on the account or release the funds following conflicting instructions from the Malaysian Anti-Corruption Commission (MACC) and Bersatu's executive secretary, Datuk Muhammad Suhaimi Yahya.
The bank filed the interpleader application after receiving a letter of demand from Suhaimi seeking the release of the funds, which were deposited into the party's account by Bukhary Equity Sdn Bhd.
CIMB, as the sole plaintiff, named the MACC, the public prosecutor and Suhaimi as defendants.
Gan said the dispute could not be resolved summarily, as the issues raised were already the subject of pending judicial review proceedings and a criminal trial involving former prime minister and Bersatu president Tan Sri Muhyiddin Yassin.
"The disputes between the defendants are not suitable to be determined summarily by this court in hearing the bank's interpleader.
"They are questions of law and disputed facts forming the subject matters of the judicial review applications at the Special Powers Division of this court and the aforesaid criminal prosecution at the Sessions Court – all of which are still pending hearing and trial, respectively.
"If this court is to delve deeper, the effect would be to usurp the domain of other courts that ought to be making the final determination on a wider range of issues," he said in his ground of judgment dated April 9 this year.
He said Muhyiddin had been charged in March 2023 in his capacity as Bersatu's president over funds allegedly received by the party, which fulfilled the requirement under Section 52A of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA) to sustain the seizure order on the account.
Gan said a society like Bersatu does not have a separate legal personality, as the law allows charges to be brought against its office bearers.
The court said in this case, the president (Muhyiddin) was charged in relation to the very funds in question.
The court also rejected a late 376-page affidavit filed by Suhaimi's lawyers, saying it was inadmissible as it was filed without leave of court and at a very late stage of proceedings.
"The fact that such a lengthy affidavit was filed at the eleventh hour reinforces my view that the matter is not suitable to be summarily determined in this interpleader."
Gan then ordered CIMB to continue holding the funds until the High Court's Special Powers Division disposes of the judicial review applications filed by Muhyiddin and Suhaimi, which are still pending.
The first judicial review challenges the legality of the freezing order issued by MACC in January 2023, while the second seeks to quash the seizure order issued by the public prosecutor in April of the same year.
Leave to proceed with both reviews was granted last year, but the substantive hearings have yet to take place.
Muhyiddin is facing four charges under the MACC Act and two under AMLA involving a total of RM200 million, including RM195 million allegedly transferred into the Bersatu account held with CIMB Islamic Bank.
Lawyers Sathya Kumardas and Daud Sulaiman appeared for the bank while senior federal counsel Nurhafizza Azizan and federal counsel Mohammad Salehuddin Md Ali represented the MACC and the public prosecutor.
Bersatu was represented by lawyers Chethan Jethwani and Tang Jia Yearn.