Hisyam Teh Poh Teik said the Court of Appeal decided this in a 2-1 majority ruling last year in acquitting former minister Tengku Adnan Mansor, who received RM2 million from businessman Chai Kin Kong.
Hisyam said that according to the majority judgment, the money was meant for Umno to fund two by-elections in 2016.
“Political donation is now a valid defence under Section 165 of the Penal Code,” said the lead counsel for Ahmad Zahid Hamidi, who faces corruption charges.
Hisyam said that in Zahid’s case, three prosecution witnesses – Ultra Kirana Sdn Bhd administrative manager David Tan and directors Harry Lee and Wan Quoris Shah Wan Abdul Ghani – had testified that it was a donation for Umno.
“In their witness statements, they said the money was for Umno and not for Zahid,” he said, adding that the testimonies of the trio had destroyed the prosecution’s case.
The lawyer said Zahid was a high-ranking officer in Umno, and that he was an Umno vice-president and also acting deputy president when he helmed the home ministry between 2013 and 2018.
Hisyam insisted that Zahid was undergoing “selective prosecution” and claimed that the attorney-general, who is also the public prosecutor, did not act fairly.
“We only knew about the selective prosecution after hearing the evidence of the three witnesses,” he said.
The defence is asking why other politicians had also not been charged “for receiving money from UKSB”.
Lawyer Ahmad Zaidi Zainal, who is also appearing for Zahid, submitted that the prosecution did not prove the source of funds his client was said to have received.
“The charges state the money is from UKSB but evidence in court revealed it was from Hong Kong and from dividends from an offshore company in Labuan,” he said.
Zaidi said the money was then sent to two money changers in Kuala Lumpur who sent the funds to Tan and Lee.
“The money changers were available but the prosecution did not call them to testify. Instead, they were offered to us (should defence be called),” he said, adding that the chain of evidence on the money trail was incomplete.
Zaidi also said the home ministry’s two contract extensions to UKSB were regular.
Zahid, who is also the Bagan Datuk MP, is facing 33 charges of receiving bribes amounting to S$13.56 million (RM42 million) from UKSB as the then home minister to extend the firm’s contract as the operator of the one-stop centre in China and the foreign visa (VLN) system as well as to maintain the contract agreement for the supply of the VLN integrated system.
The principal charges are framed under the Malaysian Anti-Corruption Act while the alternative charge comes under the Penal Code.
He is also accused of another seven counts, under the Penal Code, of obtaining for himself S$1.15 million, RM3 million, 15,000 Swiss francs and US$15,000 from the same company in connection with his official duties.
All the offences are said to have been committed at Seri Satria in Precinct 16, Putrajaya, and at Country Heights, Kajang, between October 2014 and March 2018.
The hearing before judge Yazid Mustafa continues tomorrow.