KUALA LUMPUR, Jan 5 — The High Court today acquitted Tan Sri Shahrir Ab Samad from a money-laundering case over his alleged failure to include a RM1 million cheque from Datuk Seri Najib Razak in his income tax declaration, after the prosecution decided to discontinue the case.

This morning, Najib was expected to testify as a prosecution witness in Shahrir’s case.

But deputy public prosecutor Rasyidah Murni Azmi today informed the High Court that the prosecution no longer wishes to continue the case against Shahrir.

"Yang Arif, based on the latest developments, the prosecution applies to use Section 254 of the Criminal Procedure Code and we do not intend to continue prosecution against the accused in this case, Yang Arif, and in relation to that, the prosecution applies for the accused to be discharged not amounting to acquittal,” she said in seeking for a DNAA.

Under Section 254, the public prosecutor can at any stage of any trial inform the court that he will not further prosecute the accused and the accused shall be discharged of the charges, with such discharge not amounting to an acquittal, unless the court decides to also acquit the accused.

But Shahrir’s lawyers pressed for him to be acquitted, instead of just being given a DNAA which would leave Shahrir open to being charged again in the future over the same matter.

After hearing from both sides, High Court Judge Datuk Muhammad Jamil Hussin ordered for Shahrir to be acquitted.

"DPP confirms that the prosecution will not be continued against the accused in the near future (masa terdekat), in such a situation, it is appropriate that the accused be discharged and acquitted,” the judge said, also ordering for Shahrir’s passport to be returned to him.

Having applied Section 254 when ordering for Shahrir to be discharged and acquitted from this case, the judge also ordered for the bail money to be returned and for documents produced in this case to be returned to both the prosecution and defence team.

Shahrir, 73, is an Umno member who was formerly the MP for Johor Baru seven times, with his last term being from 2013 to 2018. He had held positions as a minister and deputy minister of different portfolios in the past.

What the lawyers argued

Earlier, Shahrir's lawyer Datuk Firoz Hussein Ahmad Jamaluddin applied for his client to be both discharged and acquitted, saying it would be "unfair" if he is not acquitted and argued that the evidence was in favour of him.

Shahrir's lawyer Tan Sri Dzulkifli Ahmad similarly sought for his client to be fully acquitted from this criminal case, saying that it was already at the last stages and the Malaysian Anti-Corruption Commission (MACC) investigating officer Nurzahidah Yacop had already been called in to testify. (Nurzahidah, who was the 22nd prosecution witness, had yet to complete her testimony as Shahrir's lawyers were expected to continue cross-examining her.)

"Based on the evidence before Yang Arif, it is clear that this case is a prosecution that was made based on insufficient evidence, which was admitted by the investigating officer herself. The prosecution that was made hastily at that time and the decision that was made by the attorney-general at that time was not based on sufficient evidence to prosecute Tan Sri Shahrir Ab Samad," Dzulkifli, who is also a former MACC chief, said.

Rasyidah then said the prosecution leaves it to the discretion of the court.

Asked by the judge on why the prosecution is not continuing the case against Shahrir, Rasyidah replied: "The instructions which we received is not to continue the prosecution, that's all."

Asked if the prosecution intends to continue the case against Shahrir in the near future, Rasyidah said no.

Shahrir's lawyer Datuk Syed Faisal Al-Edros Syed Abdullah Al-Edros said his client and his family had faced embarrassment over the charge against him.

Syed Faisal Al-Edros said his client should be fully acquitted, as he would otherwise be left wondering if he will be hauled to court again in the future and as his client had been charged previously when investigations allegedly had not been completed.

The judge then decided to fully acquit Shahrir.

Najib was present in the court complex here, while his wife Datin Seri Rosmah Mansor was spotted in the courtroom. Najib's lawyers Tan Sri Muhammad Shafee Abdullah, Muhammad Farhan Muhammad Shafee and Alaistair Brandah Norman held a watching brief today.

On January 21, 2020, Shahrir — who was the Johor Baru Umno chief at that time — was charged with committing money-laundering by allegedly failing to disclose his actual income for the year 2013, after receiving the RM1 million cheque from then prime minister Najib in November 2013.

Shahrir was accused of failing to declare income received from Najib in the form of the RM1 million AmIslamic Bank cheque dated November 27, 2013, and which was deposited into Shahrir’s Public Islamic Bank account on November 28, 2013.

Shahrir was accused of committing the offence on April 25, 2014, at the Inland Revenue Board office’s Duta branch in Kuala Lumpur.

The offence under Section 4(1)(a) of the Anti-Money Laundering, Anti-Terrorism Financing Act 2001 carries a penalty of a maximum fine of RM5 million or a maximum five-year jail term, or both.

The trial began in the High Court on July 26 last year, with 22 prosecution witnesses already called and Najib was initially expected to testify as the 23rd prosecution witness.

Previously, investigating officer Nurzahidah had testified that Najib himself had written and signed the AmIslamic Bank cheque — issued from his account with the account number ending 906 — before personally handing it over to Shahrir at the Prime Minister's Office in Putrajaya on November 27, 2013.