KUALA LUMPUR — Former Chief of Defence Forces Tan Sri Mohd Nizam Jaafar pleaded not guilty in the Kuala Lumpur Sessions Court today to four corruption charges to obtain RM700,000 as gratification, and criminal breach of trust (CBT) involving RM3 million.
Nizam, 59, is accused of committing the offences while he was chairman of the executive committee of the Armed Forces Welfare Fund (TKAT) and assistant chief of staff (personnel services) of the Malaysian Armed Forces.
He had allegedly abused his power by awarding contracts totalling over RM3.5 million to several companies in which he had personal interests, to supply Hari Raya gifts such as batik cloths, bath towels, backpacks and multifunctional folding pliers for 2025 festival gift packages.
The first charge states that he secured RM267,481.90 for himself by awarding a RM468,000 contract to Sinar Bakti Global for the supply of sarongs, Bernama reports.
He also allegedly awarded contracts to Sinar Raudhah Global for RM52,000 to supply batik fabric, and to Zahra Jaya Global for RM750,000 to supply multifunctional folding pliers.
The second charge accuses him of using his position to secure RM285,000 for himself by awarding a RM600,000 contract to QMZ Resources for the supply of bath towels.
He is also accused of awarding a RM1,725,000 contract to Helmee Resources to supply backpacks for 2025 Hari Raya gift packages under the TKAT fund, in which he had a personal interest.
Both offences are alleged to have been committed at the Ministry of Defence, Jalan Padang Tembak, Kementah, on June 24, 2024.
The charges were brought under Section 23(1) of the MACC Act 2009 [Act 694], which carries penalties as outlined in Section 24(1) of the same act.
The section provides for a maximum prison sentence of 20 years and a fine of not less than five times the amount or value of the bribe, or RM10,000, whichever is higher, upon conviction.
For the third charge involving CBT, Nizam, as assistant chief of staff and TKAT investment committee chairman, is accused of misappropriating RM3 million of TKAT funds in October 2024 by making an investment in a company called Precious Amber International Bhd without the committee’s approval
This charge is under Section 409 of the Penal Code, which carries a maximum 20 years’ jail, whipping, and a fine.
On the fourth charge, Nizam is accused of accepting RM200,000 from Aspen Red Sdn Bhd director Wan Shafie Abdul Rashid in March last year, while knowing that this involved a conflict of interest.
This offence is under Section 165 of the Penal Code, which carries a jail term of up to two years, a fine, or both.
After each charge was read out, Nizam said, “I understand the charges and wish to stand trial”.
The case was prosecuted by Deputy Public Prosecutor Datuk Ahmad Akram Gharib with DPPs Eliza Amira Habeeb Rahman and Nidzuwan Abd Latip, while Nizam was represented by lawyer Abdul Aziz Hamzah.
Judge Rosli set bail at RM180,000 with one surety for Mohd Nizam on all four charges.
Additional conditions require the accused to surrender his passport to the court until the case is concluded and to prohibit him from interfering with prosecution witnesses.
The case is set for mention again on March 31. – January 23, 2026