Deputy public prosecutor Afzainizam Abdul Aziz said the money, which was said to be “legal fees” from Najib Razak, was deposited into Shafee’s personal bank account, instead of his firm’s account.
Afzainizam said the RM9.5 million from Najib was paid to Shafee in two tranches – on Sept 5, 2013 and Feb 17, 2014.
“The accused did not declare this to the Inland Revenue Board (LHDN) in the tax returns,” he said in the prosecution’s opening statement.
Shafee is standing trial for four counts of money laundering involving a sum of RM9.5 million, purportedly from Najib.
The prosecution contended that since the RM9.5 million payment was concealed from LHDN, it constituted evidence from “which the court may irresistibly infer that Shafee was engaged in an unlawful activity”.
It argued that Shafee had breached Section 4(1)(a) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act (AMLA) by receiving proceeds from unlawful activities.
Afzainizam said that for the third and fourth charges on making inaccurate statements to LHDN for the 2013 and 2014 tax years, the prosecution would prove that Shafee contravened Section 113(1)(a) of the Income Tax Act.
“He gave inconsistent versions on the reasons for the payment in question.
“In his statement to MACC (Malaysian Anti-Corruption Commission) on July 28, 2017, the accused said the RM9.5 million was his legal fees.
“However, on Sept 11, 2018, he told MACC that he and Najib agreed for the money to be a loan, pending rationalisation of the fee already payable to him.”
Afzainizam said Shafee presented a letter, purportedly carrying the former prime minister’s initials, to MACC officers during the 2018 recording session.
“We do not accept this letter as genuine and it will be our case that the letter was brought into existence at a time after July 28, 2017,” he said.
Najib issued two cheques to Shafee
The court also heard testimonies from two bank officers – Jalan Raja Chulan Ambank manager R Uma Devi and Bukit Tunku CIMB manager Rosnita Ahmad.
Uma said Najib issued two cheques amounting to RM9.5 million to Shafee between September 2013 and February the next year. However, she was not aware of the reason for the RM9.5 million payment.
Questioned by Shafee’s lawyer, Harvinderjit Singh, on whether Ambank was aware of any red flags being raised about Najib’s accounts or 1MDB accounts, Uma said she only knew investigations had begun as early as December 2014.
Harvinderjit: You have testified in the SRC International trial and are scheduled to testify in the 1MDB trial later?
Uma: Yes.
Uma had previously testified in the former prime minister’s RM42 million SRC International case.
Rosnita told the court that Shafee had been a client of the bank since 1998.
She confirmed that RM4.3 million was deposited into Shafee’s account on Sept 13, 2013, and another RM5.2 million into the same account on Feb 17, 2014.
The hearing before High Court judge Muhammad Jamil Hussin continues next Friday.