UPDATED 5.04PM | The prosecution has failed to forfeit over RM37 million from Kuala Dimensi Sdn Bhd and eight others in relation to the controversial Port Klang Free Zone (PKFZ) project.

A three-member bench comprising Federal Court judges Vernon Ong Lam Kiat, Zabariah Mohd Yusof and Hasnah Mohammed Hashim dismissed the prosecution's appeal and upheld an earlier Court of Appeal decision on this matter.

Besides Kuala Dimensi, which was the main contractor of the PKFZ project, the prosecution named Bintulu MP Tiong King Sing, Transshipment Megahub Berhad, Coastal Skyline Sdn Bhd, Wijaya Baru Aviation Sdn Bhd, Wijaya Baru Sdn Bhd, Wijaya Baru Construction Sdn Bhd, and the Selangor State Development Corp (PKNS) as respondents.

The government’s appeal is over the decision of the Kuala Lumpur High Court on Nov 4, 2011, to dismiss its (government) application to forfeit properties valued at more than RM37 million owned by the two individuals and seven companies that managed the PKFZ project.

The properties - cash totalling more than RM32 million and six bankers cheques for RM5.491 million - were seized between November 2009 and May 2010.

The High Court ruled that the government failed to adduce evidence that the properties were obtained as a result of, or in connection with, an offence under the Anti-Money Laundering and Anti-Terrorism Financing Act 2001.

It also ordered the removal of the freeze on the properties and that the assets be returned to the respondents.

On Dec 15, 2011, the High Court denied the government’s application for a stay order.

The court proceedings today were conducted via Zoom, Bernama reported.

In her decision, Hasnah also said the affidavit merely described the money trail, in particular the movement of monies from KDSB to various other accounts.

She said in the instant appeal, the prosecution failed to prove the case on the balance of probabilities to satisfy that all the essential requirements as provided under Section 56 of AMLATFA had been established.

She said, on the contrary, the respondents, through their affidavits-in-reply, explained in detail and adduced sufficient documents to justify the manner the properties were procured. 

The prosecution had contended that the monies and properties of the respondents in question were procured in connection with the commission of a series of offences of criminal breach of trust and cheating preferred against the former general manager of Port Klang Authority OC Phang, KDSB chief operating officer Stephen Abok, architect Bernard Tan Seng Swee and former KDSB project manager Law Jenn Dong.

The prosecution had, however, withdrawn its case against Phang in 2016 while the Sessions Court had in March 2017 acquitted and discharged Law, Tan and Abok.

Lawyer Prem Ramachandran appeared for Tiong, Law, KDSB, Transshipment Megahub, Coastal Skyline, Wijaya Baru Aviation, Wijaya Baru and Wijaya Baru Construction while lawyer Shamsul Sulaiman for PKNS.

Appearing for the prosecution were deputy public prosecutors Faizah Mohd Salleh, Nahra Dollah, Hanim Mohd Rashid and Allan Suman Pillai.

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