KUALA LUMPUR (Feb 11): What was supposed to be a focus on the forfeiture hearing of assets worth between RM900 million and RM1.1 billion linked to 1Malaysia Development Bhd (1MDB) has shifted to the revelation of a secret unaudited bank account held by Umno since 1988.

The ongoing case concerns Datuk Seri Najib Razak’s suit over some RM114 million in cash that was part of the loot seized from his home by police in 2018.

During proceedings last week, the prosecution led by DPP Muhammad Saifuddin Hashim Musaimi told the court that during the course of their investigations, the police discovered the existence of a secret unaudited bank account held by Umno.

The bank account, as revealed in the High Court, was opened in Southern Bank (which was acquired by CIMB Bank in 2006) at Wisma Genting in 1988, and the then party leaders — including the president, deputy president and treasurer — knew about it. The president was Tun Dr Mahathir Mohamad and his deputy was the late Tun Ghafar Baba, while Tun Daim Zainuddin was party treasurer.

Subsequent Umno presidents, deputy presidents and treasurers would also have known about this secret bank account, as it was managed by them. The bank account was not audited by external auditors and the money is believed to have never been accounted for in the party’s annual financial statements.

“The evidence of Umno’s treasurer (not named) was that there was another unofficial, unaudited bank account that had been used by Umno since 1988 to receive political donations. The unaudited political donations in cash also contravened Section 14(1)(d) and (b) of the Societies Act 1966,” the prosecution told the court.

“The unaccounted, unverified and unaudited nature of cash seized is also in contravention of various provisions of the Societies Act, which may result in the de-registration of Umno by the Registrar of Societies,” the prosecution added.

It is understood that the account previously had more than RM193 million. However, in the middle of last year, that amount was withdrawn and given to a non-governmental organisation called Kelab Prihatin Graduan, police investigation revealed.

Nothing much is known about the club, but investigations into the bank account revealed that its present balance is slightly above RM2,700.