KUALA LUMPUR (Feb 22): The former managing director of Johor Land Bhd (JLand), AFM Shafiqul Hafiz, and another person, were charged with insider trading by the Securities Commission Malaysia today for communicating non-public information relating to the company.  

SC said in a statement that Shafiqul had allegedly revealed information relating to the proposed privatisation of JLand to Datuk Harjit Singh Gurdev Singh, 60, between March 22 and April 6, 2009. 

The proposed privatisation — via a voluntary general offer at RM1.55 per JLand share — was announced on Bursa Malaysia only on April 13, 2009, said the commission. 

Shafiqul, 71, was charged under section 188(3)(a) of the Capital Markets and Services Act 2007 (CMSA) at the Sessions Court.  

Harjit, 60, was separately charged with three counts of insider trading under section 188(2)(a) of the CMSA for acquiring 346,500 JLand shares between March 23 and April 6, 2009, while in possession of the information. 

The shares were acquired through HSBC Private Bank Singapore’s account for Star Honour Ltd, a British Virgin Island incorporated company, SC said. 

The charge against Shafiqul was read out before judge Azman Ahmad, while Harjit was charged before judge Hasbullah Adam, the statement added. 

If found guilty, Shafiqul may face imprisonment not exceeding 10 years and a fine of not less than RM1 million.  

Harjit’s offence of acquiring shares while in possession of inside information is also punishable with the same penalty, SC said.

Both the accused claimed trial, with Shafiqul granted bail of RM250,000 with two sureties, while Harjit was granted bail of RM180,000, also with two sureties. Both were ordered to surrender their passports, SC said.