MACC's stay application denied, paving way for release of alleged 1MDB-linked money to Jakel Trading

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KUALA LUMPUR (July 24): The High Court today dismissed the Malaysian Anti-Corruption Commission's (MACC) application for a stay of execution of a ruling that would lead to the release of RM10.75 million that was seized from Jakel Trading Sdn Bhd.

The money was seized for being allegedly linked to the 1Malaysia Development Bhd (1MDB) fund scandal.

Counsel Habizan Rahman, who represented Jakel Trading, told theedgemarkets.com that the court order implies that the account will be unfrozen and that the money will be returned to the textile wholesale supplier.

Justice Muhammad Jamil Hussin held that the prosecution had failed to show special circumstances for the court to grant a stay.

The application was filed on March 17 to stay the ruling and prevent the money from being released to Jakel pending MACC's appeal to the Court of Appeal.

Counsel Thevini Nayagam, another lawyer for Jakel Trading, earlier submitted that the company had an annual income of hundreds of millions and the financial capacity to repay the money if the MACC succeeded in its appeal.

Justice Muhammad Jamil rejected MACC's application to forfeit the sum on March 14.

The judge made the decision after he was satisfied that the payment received by Jakel Trading was a regular business transaction.

In June last year, the MACC filed a civil forfeiture suit against 41 entities, comprising individuals, companies and political parties, under the Anti-Money Laundering and Anti-Terrorism Financing Act to recover about RM270 million believed to be linked to 1MDB.

The anti-graft agency believed the money was illegally transferred from accounts of former prime minister Datuk Seri Najib Razak.