The Court of Appeal today put off the prosecution's appeal on the dismissal of a Security Offences (Special Measures) Act charge on sabotaging the banking and financial institution against Khairuddin Abu Hassan and his lawyer Matthias Chang.

This came after the court allowed Khairuddin's application to recuse Justice Mohd Zawawi Mohd Salleh from leading the panel.

The lawyer for the former Umno Batu Kawan division vice-chief, Mohd Haniff Khatri Abdulla, informed the court that his client is applying for the recusal because Khairuddin's sister knows Justice Zawawi.

Justice Zawawi also informed the court that he knows Khairuddin and his sister.

"In the interest of justice, and so that the public would not have any perception, I agree to recuse myself to maintain the integrity partial.

"This is for the public to aspire confidence in the administration of justice in the country. The panel will be reconstituted later," the senior judge said.

The panel will be reconstituted by the number two judge in the country, Court of Appeal President Md Raus Sharif.

The case management on the matter has been fixed for March 7.

The other two judges on the panel sitting today are Justice Idrus Harun and Justice Vernon Ong.

Besides Haniff, senior lawyer Zainur Zakaria represented Chang, while DPP Awang Armadajaya Awang Mahmud and DPP Mohd Abazafree Mohd Abbas appeared for the prosecution.

Senior lawyer Tommy Thomas stood in for the Malaysian Bar, which held a watching brief for Chang, a member of the Bar.

Prosecution applies for stay

Awang Armadajaya told the court that the prosecution would make an oral application for a stay of the High Court decision on the Sosma charge.

“It is affecting other Sosma cases as a result of the judgment that ruled Sosma is not applicable,” he said.

However, Haniff told the court that the High Court decision is not applicable to Section 124L, which is only related to the banking and financial sector.

Haniff also told the court that he wanted their application on the validity of the notice of appeal filed by the prosecution.

Under Section 53 of the Courts of Judicature Act, the prosecution need not apply for leave if it wants to appeal a decision going against it, but the defence has to apply for leave before the appeal proper is heard.

“This application would have to be heard first, before the appeal by the prosecution,” Haniff said.

The lawyer explained outside court that such a procedure should be declared null and void as it violates the constitutional right of the accused person.

On Nov 18, Justice Mohd Azman Husin ruled that the charge against the Khairuddin and Chang of sabotaging the financial system of the country by lodging reports in five countries - Switzerland, United States, United Kingdom, Hong Kong and Singapore - does not fall under Sosma.

The judge held that financial services do not come within the ambit of Article 149 (1) of the Federal Constitution.