By Tarani Palani | The Edge Malaysia
Unusual and suspicious banking activities do not automatically point to unlawful activity, the High Court heard on Wednesday.
Testifying in former prime minister Tan Sri Muhyiddin Yassin’s ongoing power abuse and money laundering trial, banker Norazeanti Miswan also agreed with the defence that despite being flagged as suspicious, the transactions totalling RM19.5 million, which were channelled from a local construction firm to the former PM’s political party, were all subsequently approved.
The assistant branch manager at Bank Muamalat Malaysia Bhd’s PKNS Shah Alam branch said this in reply to defence attorney Datuk Amer Hamzah Arshad’s question regarding the internal red flags raised over the volume and frequency of funds given by Mamfor Sdn Bhd to Parti Pribumi Bersatu Malaysia (Bersatu) from May 12, 2021, to Nov 16, 2022.
Amer Hamzah: Unusual transaction doesn’t [necessarily] mean unlawful transactions?
Norazeanti: Agree.
Amer Hamzah: Just because there are internal Suspicious Transaction Reports (STRs) we can’t assume it is unlawful activity?
Norazeanti: Correct.
During her testimony on Tuesday (April 28), the ninth prosecution witness testified that internal STRs — also known as questionable-activity reports by the bank — were issued on all the abovementioned transactions, among others, as they were not in line with the nature of the company’s business. The continuous transactions ranged from RM500,000 to RM2 million, to the same recipient.
During Wednesday’s cross-examination, the ninth prosecution witness also testified that there were other transactions by the company which were flagged and that it was normal for construction companies to make transfers which were substantial in sum.
Amer Hamzah: It’s not just donations, but there are other transactions issued [questionable activity reports]?
Norazeanti: Ada (Yes).
Amer Hamzah: [The company is in] construction, so payment will be huge sums. Nak, tak nak (whether we want it or not), there will be [internal STRs] as a safety measure?
Norazeanti: Agree.
She also agreed with the defence that Mamfor was a legitimate business and had no red flags raised to indicate that it was engaged in unlawful activities.
She further agreed that it was the prerogative of any individual or entities to spend their legitimate earnings as they deem fit.
Amer Hamzah: Giving donations is not an offence?
Norazeanti: Yes.
The witness also testified that if the client did not make an honest disclosure, the bank need not proceed with the said transactions. But in this case, to date, there has been no action taken against the company over these transfers.
‘Party property is not its president’s property’
The defence counsel also pointed out that there were cover letters from the company addressed to the party’s treasurer, informing them of the incoming donations. A copy of the same was forwarded to the bank. Therefore, he said there was full transparency and nothing to hide. The witness agreed.
He also highlighted that the letters were not addressed to his client, who is Bersatu’s president.
On Wednesday, the witness also agreed that the party president and the political party were two different entities and the party’s property does not belong to its leader.
Amer Hamzah: A contribution to Bersatu is not a contribution to Muhyiddin. In fact, [Muhyiddin] can’t claim that, that the contribution is his?
Norazeanti: Yes.
Norazeanti also clarified that Mamfor’s account was opened in 1996 — with Bank Muamalat’s predecessor — and not 2016 as she had testified on Tuesday. The witness clarified that the 2016 date was the change of signatories.
An assistant registrar at the Companies Commission of Malaysia, R Harshini, also took the stand on Wednesday as the prosecution’s 10th witness. Among others, she verified details of Mamfor and other companies linked to this case.
In this trial, Muhyiddin faces seven charges in total. He faces four charges of using his position to obtain RM225.3 million in bribes linked to the Jana Wibawa project.
The bribes were allegedly obtained from three companies, namely Bukhary Equity Sdn Bhd, Nepturis Sdn Bhd, and Mamfor, as well as Datuk Azman Yusoff, for the party.
He also faces three charges of receiving RM200 million in proceeds from unlawful activities from Bukhary Equity, which were deposited into Bersatu’s Ambank and CIMB accounts.
The trial before High Court judge Noor Ruwena Md Nurdin continues on May 25.
Edited by Aniza Damis
