High Court Upholds Conviction And Sentence Against Two For Deceiving FT Islamic Religious Council In PDB Share Deal

The High Court upheld on 24 August 2005 the earlier Sessions Court conviction and sentence against Haron Jambari and Nik Aziz Nik Mohd Amin for deceiving the
Federal Territory Islamic Religious Council (Majlis Agama Islam Wilayah Persekutuan – MAIWP) in relation to the purchase of Petronas Dagangan Bhd shares in 1994
(PDB shares transaction).

Haron, who is a former remisier at Arab Malaysian Securities Sdn Bhd, was convicted for making a false statement to his client, MAIWP, in relation to the PDB shares transaction, and was charged by the Securities Commission (SC) on 16 May 1995.

Nik Aziz, who was also charged by the SC on the same date, is a former accountant with MAIWP. He was convicted for abetting Haron in making the false statement to his employer on the PDB shares transaction.

As a result of their actions, Haron and Nik Aziz committed an offence under
section 87A of the Securities Industry Act 1993 (SIA) and were sentenced by the Sessions Court on 29 July 2002 to three years’ imprisonment and RM1 million fine (in default two years imprisonment). Their subsequent appeal to the High Court was rejected on 24 August 2005.

The High Court also on 24 August 2005 upheld the conviction and sentence of Haron and Nik Aziz for other offences committed under the Penal Code. Haron was convicted under section 409 of the Penal Code for criminal breach of trust in connection with the PDB shares transaction where RM2 million of MAIWP funds were misappropriated, for which he was sentenced to four years’ imprisonment and two strokes of the rotan.

Nik Aziz was convicted for abetting the said offence and received a similar sentence.
Nik Aziz was also convicted for an offence under section 165 of the Penal Code for corrupt practices in connection with the PDB shares transaction and was sentenced to two years’ imprisonment.

The Court has fixed 7 October 2005 for submission on stay of sentence and fine, following prosecution objection to the stay application by counsels for Haron and
Nik Aziz.

The prosecution of Haron Jambari and Nik Aziz Nik Mohd Amin in 1995 was the first case brought under section 87A SIA by the SC. It also became, in 2002, the first case in which the SC secured, upon conviction, a custodial sentence under that section.

In 1995, it was also the first case that was jointly prosecuted by the SC and the Attorney-General’s Chambers, following investigations conducted by the SC, the Police and the Anti-Corruption Agency. Similar inter-agency collaboration continues to this day.

All market participants have a fundamental role in upholding the integrity of the market; where there is sufficient evidence of professional and other misconduct from investigations, the SC will take relevant action.