[UPDATED] 1MDB audit case: appellate court upholds Najib, Arul’s acquittal

KUALA LUMPUR – The Court of Appeal has struck out the prosecution’s attempt of another appeal against the acquittal granted to former prime minister Datuk Seri Najib Razak, and former president and chief executive officer of 1Malaysia Development Bhd (1MDB) Arul Kanda Kandasamy in the audit-tampering case.

The three-member bench led by judge Datuk Hadhariah Syed Ismail said the prosecution had until July 6 to file their appeals, and was told to ask for an extension.

However, she said the prosecution failed to file for a time extension, so the notices of appeal lapsed and are now invalid according to the law.

The other two bench members were judge Datuk Ahmad Zaidi Ibrahim and Datuk Azmi Ariffin.

In today’s proceedings, deputy public prosecutor Datuk Yusaini Amer Abdul Karim appearing for the prosecution told the panel that the prosecution had intended to file an application to seek an extension of time to file its petition of appeal. 

However, Arul Kanda’s lawyer Datuk N. Sivananthan and Najib’s lawyer Tan Sri Muhammad Shafee Abdullah objected.

Meanwhile, one of the defence counsel, Muhammad Farhan Shafee, in a statement said: “This turn of events…reinforces the unassailable innocence of both our client and Arul Kanda.”

“In this case, the prosecution evidently found no grounds for appeal, resulting in no petition being filed. 

“Given the overwhelming evidence presented in court, charges should never have been filed against our client in the first place. This decision alone has caused additional hardship to our client over the past five years – let alone if the appeal against the acquittal of the high court decision had continued.”

On March 3, high court judge Mohamed Zaini Mazlan acquitted Najib of charges of tampering with 1MDB’s 2016 audit report, citing that the prosecution failed to present evidence to show that the former prime minister ordered the amendments to the audit report.

Meanwhile, Arul Kanda, who was earlier charged with Najib, was discharged and freed.

In 2022, Arul Kanda took the stand as a witness in the case after the judge allowed the prosecution’s application under Section 63 of the Malaysian-Anti Corruption Commission (MACC).

The prosecution closed its case on September 7 last year after calling 16 witnesses, including former chief secretary to the government Tan Sri Ali Hamsa (now deceased), former auditor-generals Tan Sri Ambrin Buang and Tan Sri Madinah Mohamad, former 1MDB chairman Tan Sri Mohd Bakke Salleh, and former National Audit Department audit director Saadatul Nafisah Bashir Ahmad.

Najib was charged with abusing his position as prime minister and finance minister to order amendments in February 2016 to the auditor-general’s audit report on 1MDB before its finalisation and presentation to the Public Accounts Committee to avoid any civil or criminal action against him, while Arul Kanda was charged with abetting Najib in the report’s tampering.

Purported changes to the audit report include the removal of four items in the report, including 1MDB’s two conflicting 2014 financial statements.

Najib, 70, also has two other cases involving criminal breach of trust amounting to RM6.6 billion over payments to the International Petroleum Investment Company and money laundering involving SRC International funds worth RM27 million. 

He is currently serving a 12-year jail sentence in Kajang Prison for misappropriating SRC International’s funds. – September 12, 2023