Shafee freed in RM9.5 million money laundering case

The Kuala Lumpur High Court today acquitted and discharged lawyer Muhammad Shafee Abdullah of two counts of money laundering involving RM9.5 million allegedly received from former prime minister Najib Razak, and of making false declarations to the Inland Revenue Board (LHDN).

Judge Muhammad Jamil Hussin made the ruling after finding that the prosecution had failed to prove a prima facie case against Shafee at the end of its case.

He said in his summary judgment that based on the testimony of the prosecution witnesses, there was no evidence of predicate action (illegal activity) involved or where the money was obtained.

"On the other hand, the testimony of the eighth prosecution witness, Malaysian Anti-Corruption Commission investigating officer Mohd Farid Jabbar, confirmed during cross-examination that there was no illegal activity involved in the accused receiving the money through cheques and that the money was not proceeds from unlawful activities," Jamil said.

He said since there was no predicate offence or proceeds from unlawful activities involved, the alleged predicate offences could not be proven.

On Sept 13, 2018, Shafee pleaded not guilty to receiving proceeds from unlawful activity via cheques issued by Najib, remitted into his CIMB Bank account.

He allegedly received a cheque for RM4.3 million on Sept 13, 2013, and another for RM5.2 million on Feb 17, 2014.

Shafee was also charged with two counts of engaging in transactions resulting from illegal activities, namely submitting incorrect tax returns, in violation of Paragraph 113 (1) (a) of the Income Tax Act 1967 for the financial years ending Dec 31, 2013, and Dec 31, 2014.