Sabahan well-known businessman Michael Chia was today sentenced by the Sandakan Sessions Court to one year's jail and a stroke of the rotan after being found guilty of cheating businessperson Agus Hassan of RM2.5 million, 10 years ago.

A Malaysian Anti-Corruption Commission (MACC) press release said judge Elsie Primus found that Chia Thien Foh or Michael Chia's defence had failed to raise reasonable doubt to the prosecution's case.

“The businessman said Chia had demanded the RM2.5 million for the issuance of a letter of approval to extract timber where the fund is used for Umno's political fund,” said Primus.

“The witness further testified that this may hurt the image of the political party, but the prosecution witness said he had managed to verify that Umno did not ask for such money as political donation.”

Following this, the court found Chia guilty under Section 420 of the Penal Code for cheating, said the MACC in a statement.

Chia is charged with cheating Agus in leading him to believe that the logging operation related to Coupe BW12/02; extraction and purchasing of commercial timber in the Kalabakan forest reserve was given to the latter with the money to be used as political donations.

'Close ties to Sabah CM'

He is alleged to have cheated Agus in June 2004.

MACC was represented by DPP Joyce Blasius, while lawyer Rowiena Rashid represented Chia.

Rowiena applied for a stay of execution of the sentence, whereas Chia ( right in photo ) has applied to appeal at the High Court.

Chia is also said to be close to Sabah Chief Minister Musa Aman, where the businessman was also allegedly implicated in 2008 and detained by the Hong Kong authorities as he tried to board a plane to Kuala Lumpur carrying RM40 million worth of Singapore currency.

The money is said to be meant for political donations.

However, the MACC and the Attorney-General's Chambers have cleared Chia of any wrongdoing in the matter.