KUALA LUMPUR, Dec 14 — The funds belonging to Pekan Umno and Sarawak United People’s Party (SUPP) amounting to RM700,000 and RM188,138.26 respectively, which were seized by the Malaysian Anti-Corruption Commission (MACC), have been returned to the two parties.

The funds were allegedly linked to the 1Malaysia Development Berhad (1MDB) scandal and transferred from former Prime Minister Datuk Seri Najib Razak’s personal account.

Deputy public prosecutor from the MACC Abdul Rashid Sulaiman said this during case management before High Court Judge Datuk Ahmad Shahrir Mohd Salleh, today.

"The banks have returned the funds amounting to RM700,000 to Perak Umno and RM188,138.26 to SUPP.

"As such, the prosecution is withdrawing the application for stay of execution of the previous court decision in dismissing our application to forfeit the funds seized from Pekan Umno and SUPP,” he said and the court agreed.

On September 17, the court dismissed MACC’s forfeiture application against Pekan Umno after finding that the applicant had failed to prove that the RM700,000 seized from the party was the proceeds of an unlawful activity.

In his judgment, Ahmad Shahrir said the respondents contended that the sum of RM700,000 was fully utilised to defray expenses for utilities, purchase of equipment and other payments for the first respondent and that the account balance appearing in the account of the first respondent on the date the freezing order was served did not originate from the impugned accounts of Najib.

In dismissing the MACC’s application to forfeit RM188,138.26 from SUPP on August 19, Ahmad Shahrir said the court found that the anti-graft agency had not adduced sufficient evidence to support its application to warrant an order for forfeiture to be granted.

In June last year, former MACC chief commissioner, Latheefa Koya said the MACC had filed a civil forfeiture suit against 41 respondents to forfeit about RM270 million allegedly linked to the 1MDB fund scandal and received by the respondents from Najib.

She said the action was taken under the Anti-Money Laundering and Anti-Terrorism Financing Act 2001. — Bernama