KUALA LUMPUR (July 3): The prosecution is appealing against the High Court's decision last month to acquit former Felda chairman Tan Sri Mohd Isa Abdul Samad from a criminal breach of trust (CBT) charge over the purchase of the Merdeka Palace Hotel and Suites in Kuching six years ago.

The appeal notice was filed last Tuesday, which theedgemarkets.com has separately confirmed with both the Appeals Unit head of the Trials and Appeals division in the Attorney-General's Chambers, Datuk Mohd Dusuki Mokhtar, and the deputy public prosecutor of the case, Afzainizam Abdul Aziz.

In criminal cases, the prosecution has up to 14 days to file its appeal against the court's decision.

On June 16, High Court Justice Mohd Nazlan Mohd Ghazali acquitted Isa, 70, of CBT but ordered him to enter defence for nine graft charges involving him allegedly receiving RM3.09 million as bribes linked to the purchase of the hotel.

Justice Nazlan ruled that criminal liability under CBT could not be found in the use of company funds by Felda Investment Corp Sdn Bhd (FIC), a subsidiary of Felda, to buy the hotel, as the purchase had the agency's consent. 

This was because Felda needed to approve any investments made by FIC if they were in excess of RM100 million, the judge noted.

However, the judge said witnesses confirmed that there were no set procedures as to how the approval from Felda for investments above RM100 million should be sought, and that the relevant standard operating procedures were only established after the Malaysian Anti-Corruption Commission started its investigation into the hotel purchase deal.

"In fact, it was shown by the defence that in respect of certain investments which exceeded RM100 million, the tabling of information papers by FIC to the board of Felda sufficed, without the necessity for a specific paper for approval," the judge ruled.

He also fixed Aug 17, 18 and 19 to hear Isa's defence on the nine graft charges.

Isa was alleged to have committed CBT by approving the hotel purchase for RM160 million without the consent of Felda's board of directors. He was charged with committing the offence at Menara Felda here on April 29, 2014. The charge was framed under Section 409 of the Penal Code, which carries a maximum jail term of 20 years, together with whipping and a fine, upon conviction.

As for the nine graft charges, Isa was accused of dishonestly receiving RM3.09 million as cash gratification from Ikhwan Zaidel, a board member of Gegasan Abadi Properties Sdn Bhd, through his aide Muhammad Zahid Md Arip, in return for his help in approving the purchase of the same hotel by FIC.

The graft charges were made under Section 16 of the MACC Act 2009, under which Isa stands to face a maximum of 20 years in jail and a fine of up to five times the amount of bribes he received.

As the prosecution's appeal bid over the acquittal of the CBT charge will have to be heard first, it is unlikely that the trial on the graft charges will be held as scheduled in August.