Teo Chee Kong, one of four key suspects involved in the “Sabah watergate scandal”, one of the biggest corruption cases in the country, was facing 146 counts of money laundering charges involving RM32.93 million.
Judge Abu Bakar Manat granted the DNAA after being informed the prosecuting team led by the Malaysian Anti-Corruption Commission (MACC) opted not to proceed with the case.
The MACC and the federal Attorney-General has, however, decided to impose a RM30 million compound against Teo, 58.
This is based on the provisions under Section 92 of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Amla).
Teo was charged over various counts of money laundering involving land titles, cash and bank accounts.
It was said that Teo had committed the alleged offences at separate locations at land district offices and bank branches in the state capital, Penampang and Beaufort between 2005 and 2016.
Speaking to reporters after the proceedings, MACC legal and prosecution division senior director Faridz Gohim said the compound is a form of punitive action against Teo and enables asset recovery of the lost funds.
“This amount is a big success for the prosecution in terms of asset recovery,” he said.
He said it is provided for under Section 92 of Amla which allows the prosecutor to offer a reasonable compound in its asset recovery efforts.
Teo has 14 days to settle the compound, failing which the charges against him will be resumed.
Teo was represented by Ram Singh, Timothy Daut, Kimberly Yee and Chen Jwe as counsels. MACC was represented by Faridz and deputy public prosecutor Mahadi Abdul Jumat from the federal Attorney-General’s office.
Faridz said the compound will not in any way affect the trial of three other people accused in the same scandal which is still ongoing.
They are former Sabah water department director Awang Mohd Tahir Mohd Talib, 59, his wife Fauziah Piut, 56, and state finance ministry advisor and retired state water department deputy director Lim Lam Beng, 67.
They are facing 31 counts of money laundering involving RM61.5mil.
The scandal caught the nation’s attention after the MACC, in several raids, found RM45 million in the director’s home and another RM3 million at his deputy’s office in 2016.
It was reported the MACC had quizzed 200 witnesses in their investigations. They had also seized RM114.5 million in cash and frozen bank accounts, unit trusts and other assets in relation to the cases in Malaysia and abroad.