KUALA LUMPUR (Jan 21): Former Federal Land Development Authority (Felda) chairman Tan Sri Shahrir Samad pleaded not guilty and claimed trial to the RM1 million money laundering charge brought against him.

He made the plea before Sessions Court judge Azura Alwi today.

Deputy public prosecutor (DPP) Norzilati Izhani Zainal @ Zainol sought for bail to be set at RM500,000, although Shahrir's lawyer Syahril Syazwan Salehin said the amount was too high and unreasonable, and that the bail amount should take into account the accused's conduct and behaviour.

"Since MACC's investigations commenced, he has never failed to be present to cooperate and assist the authorities.

"The related accounts have been frozen since the investigation began in 2018. He will need to use his savings and pension to pay the bail," said Syahril.

Meanwhile, Shahrir's second lawyer Fahmi Moin asked for the bail to be reduced to RM300,000 and said it is unlikely that Shahrir, 71, would flee the country, given his high social standing and his being one of the longest serving MPs in the country.

Justice Azura subsequently set bail at RM350,000 with the accused to surrender his passport to the court. The judge set Feb 24 as the next date for case mention.

Shahrir was charged with one count of money laundering due to his failure to report his actual income for the 2013 year of income tax assessment, breaching section 113(1)(a) of the Income Tax Act 1967, as he did not report a total of RM1 million received from former prime minister Datuk Seri Najib Razak.

The amount was received via an AmIslamic Bank Bhd cheque dated Nov 27, 2013, which was deposited into the accused's Public Islamic Bank account on Nov 28, 2013.

He was charged under section 4(1)(a) of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001.

If found guilty, Shahrir will be subject to a fine not exceeding RM5 million or jailed for no longer than five years or both.

In a statement yesterday, the Malaysian Anti-Corruption Commission (MACC) said it received consent to charge Sharir and had arrested him at the MACC office Monday morning.

The commission said the charge against Shahrir involved compound notices issued to him earlier to recover 1Malaysia Development Bhd (1MDB)-related money.