KUALA LUMPUR – The Kuala Lumpur High Court has discharged and acquitted Datin Seri Rosmah Mansor of 17 money laundering and tax evasion charges today.
The application filed by former prime minister Datuk Seri Najib Razak’s wife was granted by justice K. Muniandy, who struck the 12 charges of money laundering involving RM7 million and five charges of Rosmah failing to declare her income to the Inland Revenue Board (IRB).
The application was based on the grounds that the charges were defective and failed to disclose the essential elements of the alleged offences, Bernama reported.
Rosmah, who just turned 73 on December 10, filed the application to strike out the charges in September 2023.
The hearing started on December 12 of the same year, following partial proceedings during which two witnesses had testified.
Previously, Rosmah was charged in the sessions court in October 2018 before the case was transferred to the high court.
She faced 12 charges of money laundering involving RM7,097,750 and five charges of failing to declare her income to the IRB. The offences allegedly took place between December 4, 2013 and June 8, 2017.
Rosmah arrived at the court premises around 9am wearing a red outfit with a matching headscarf, accompanied by an entourage and her lawyers.
In his judgment, judge Muniandy explained that the charges against Rosmah lacked crucial details, failing to establish her direct involvement in any transaction involving illegal proceeds or to clarify the nature of the transaction.
“The charges do not disclose the key elements of the offence of money laundering, including the transaction involving money laundering, the conduct of the accused, and the monies referred to in the charges. Additionally, the charges do not reveal a transaction as envisaged under Act 613 of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001.
“The unlawful activity that was tied to the charges was also not disclosed but the proceeds of unlawful activity have appeared from nowhere,” he said.
The judge noted that, without these elements, the charges amounted to merely describing the act of depositing money into a bank account, which is not an offence under the law.
Judge Muniandy further explained that even if someone fails to disclose income to the IRB, it must be proven that they were involved in transactions related to that undisclosed income for it to qualify as money laundering.
“Some of the charges under the Income Tax Act 1967 overlap as the dates and amount stated correspond but the offences alleged to have been committed by the accused is still money laundering, wherein it has to emanate from a serious or predicate offence, forming unlawful activity, so there are no proceeds of it being laundered,” he added.
“Failing to file an income tax return falls under Section 77(1) of the Income Tax Act 1967 (ITA). The offence under Section 112 of the ITA only applies if all the procedures under the ITA have been followed, but that was not done in this case,” he said.
He clarified that these procedures include the director-general of the Income Tax Department issuing an income tax assessment, after which the taxpayer can appeal under Sections 99 to 102 of the ITA or Part VI of the act.
The final decision on the tax owed is then made by the Special Commissioner of Income Tax. After that, the taxpayer can still seek a judicial review if needed.
Based on these findings, judge Muniandy ruled in favor of the accused and dismissed the charges.
“The application is granted, and all 17 charges against the accused are struck out. The court acquits and discharges the accused of all 17 charges,” he said.
Rosmah was charged on October 4, 2018, with 12 counts of money laundering involving RM7,097,750 and five counts of failing to declare her income to the IRB. These offences were alleged to have taken place between December 4, 2013, and June 8, 2017, at Affin Bank in Jalan Ampang, and between May 1, 2014, and May 1, 2018, at the IRB office in Jalan Tuanku Abdul Halim.
The money laundering charges were filed under Section 4(1)(a) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.
If convicted, this law carries a penalty of up to 15 years in prison and a fine of at least five times the illegal amount or RM5 million, whichever is higher.
The tax evasion charges were under Section 77(1) of the ITA, which requires taxpayers to file income returns by April 30 for the assessment years 2013 to 2017. Failing to do so without a valid excuse would breach Section 112 of the Act.
Rosmah is also appealing a separate conviction, where she was sentenced to 10 years in jail and fined RM970 million for corruption involving the 369 solar hybrid rural schools project. The appeal hearing is scheduled for March 5 next year at the Court of Appeal.
After the court’s decision, deputy public prosecutor (DPP) Ahmad Akram Gharib announced that the prosecution would appeal the ruling. Meanwhile, Rosmah thanked her legal team and expressed her gratitude.
“Alhamdulillah, today I have been fully acquitted, and I would like to thank all my lawyers who worked tirelessly. From the beginning, they told me these charges were baseless,” she said, calling the decision a birthday gift in conjunction with her December 10 birthday.
DPP Ahmad Akram was assisted by DPPs Poh Yih Tinn and Deepa Nair, while Rosmah’s legal team included Datuk Firoz Hussein Ahmad Jamaluddin, Amer Hamzah Arshad, Mohamed Reza Abdul Rahim, Ravijan Nambiar, and Joshua Tay. – December 19, 2024
