This article first appeared in The Edge Malaysia Weekly on December 25, 2023 - December 31, 2023

NEWS of the Malaysian Anti-Corruption Commission’s (MACC) seizure of the US$500 million (RM2.3 billion) Ilham Tower in the Kuala Lumpur city centre last Thursday made headlines not only in Malaysia but all over Southeast Asia.

The notice of seizure, dated Dec 18, notified the owner of the 60-storey building — namely, former finance minister Tun Daim Zainuddin — that it was taking the action under Section 38(1) of the MACC Act with regards to seizure of immovable property.

The notice was advertised in several Bahasa Malaysia and English newspapers as required under Section 38 of the Act.

Prime Minister Datuk Seri Anwar Ibrahim was asked to comment by reporters after Friday prayers. Anwar, who represents Tambun in parliament, quickly denied that his unity government had an ulterior motive that led to the seizure. He said it had nothing to do with the administration but it was the result of investigations done by the graft enforcement agency and it represented action taken regardless of the background of the individual, whether the person is influential or otherwise.

“The MACC is doing its job regardless of the position of that person, be it a Tun, Tan Sri. If not, there would be [criticism] that small fish are caught but bigger heads are considered untouchable.

“Let the MACC fulfil its responsibility to investigate and look into it. It is not necessary that when we [the enforcement agency] touch ‘a big person’ there is an ulterior motive to it. Our system must show the bravery to take action [against] those who allegedly committed major graft.

“If there is truth or otherwise, let it go [through] the due process and finally let the judiciary determine,” the prime minister was quoted by the Malay daily Berita Harian as saying.

Prior to this, it was reported that the MACC had confirmed with The Edge in May this year that it had been investigating a former senior minister since May, and that it was in relation to the Renong Bhd and United Engineers Malaysia Bhd deal in the late 1990s that cost RM2.3 billion.

Bernama also reported in June that the MACC had frozen close to RM40 million in bank accounts belonging to a former senior minister and two businesspersons with the title of Tan Sri and their family members following a probe into the RM2.3 billion deal.

At that time, the identity of the former senior minister was not revealed, but the MACC’s action taken on Ilham Tower last week shows that the investigation was focusing on Daim — the former lawyer turned businessman and former Umno treasurer’s family are said to own it.

The notice of seizure of the building in Jalan Binjai, Kuala Lumpur, under Section 38 (1) was signed by MACC deputy public prosecutor (DPP) Ahmad Akram Gharib. The section pertains to the seizure of immovable property that is found to be the subject matter of an offence under the MACC Act, or is evidence of the commission of such an offence.

The notice stipulates that those who disobey the seizure order can be fined RM50,000 or up to five times the value of that asset, as stipulated under Section 38(5) of the MACC Act.

“Under Section 38 of the MACC Act, the seizure of immovable property could be subject to Section 41 of the Act, which deals with forfeiture without prosecution or conviction. The public prosecutor may apply for forfeiture of the property within 18 months of the seizure order if there is no prosecution, or if there is no further action return the property,” says a source on condition of anonymity.

Prior to this, the MACC issued seizure orders to several individuals in relation to 1Malaysia Development Bhd, including Jasmine Loo Ai Swan, with the authorities seizing her condominium and cars.

Singapore-based Channel News Asia (CNA) reported that the seizure took place following the former minister’s refusal to submit to petitions issued by the MACC for him and his family to declare their assets. CNA also tried to get comments from Daim on the matter but the latter declined to comment.

Ilham Tower was where the Council of Eminent Persons, formed by former prime minister Tun Dr Mahathir Mohammed after Pakatan Harapan came to power in 2018, held its meetings. Daim was its chairman.

With a diagonal exo-skeleton, the tower comprises 33 floors of office suites and 22 floors of serviced apartments, according to its website. In 2017, the building won the Gold Award of Special Merit from the Association of Consulting Engineers Malaysia. The building also houses a hotel, an art gallery and offices.

Despite the seizure order barring its owners from having any dealings with the property, it is business as usual in the building.

It will be interesting to see whether the owners of the building will file a judicial review to challenge the seizure or possible forfeiture of the property in the coming months. 

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