PUTRAJAYA (Feb 10): Tan Sri Mohd Isa Samad, Umno politician and former Federal Land Development Authority (Felda) chairman, has been convicted by Malaysia’s highest court for corruption.

He will serve six years’ jail and a fine of RM15.45 million in default two years’ jail, if fine not paid, after being found guilty on nine counts of graft in receiving RM3.09 million following the purchase of Merdeka Palace Hotel & Suites in Kuching 12 years ago.

Judge Datuk Nordin Hassan said the Federal Court bench found the appellate bench was wrong in granting the acquittal, noting that the trial judge's findings are supported by evidence and the law.

“The appellate bench had misapplied the presumption of corruption and this warrants appellate intervention,” he said. “The conviction is correct and safe and the prosecution’s appeal is allowed.”

“A deterrent sentence is warranted as corruption is a heinous act that would destroy the nation,” the judge added in reading his verdict for one hour and 45 minutes.

Nordin sat with Federal Court judges Datuk Lee Swee Seng and Datuk Che Mond Ruzima Mohd Ghazali in the unanimous decision.

Isa is guilty of receiving RM3.09 million in a bribe from Gegasan Abadi Properties Sdn Bhd (GAPSB) director Ikhwan Zaidel, following Felda’s acquisition of the Merdeka Palace Hotel & Suites in Kuching.

The offences occurred between July 21, 2014, and Dec 11, 2015, at Menara Felda, Platinum Park, Kuala Lumpur.

Isa, 77, a former Umno vice-president and long-time former Negeri Sembilan menteri besar, was initially convicted and sentenced by the High Court on Feb 3, 2021, only for the Court of Appeal to reverse and grant an acquittal on March 6, 2024, resulting in the prosecution’s appeal at the Federal Court.

Separately, in March 2024, the KL High Court ruled in favour of FGV Holdings Bhd in a lawsuit it brought against Isa and its former CEO Datuk Mohd Emir Mavani Abdullah. In that case, the court ordered Isa to pay RM990,502 to the company for the "wrongful use and unauthorised occupation" of two luxury condominium units acquired by the company. Mohd Emir was also ordered to reimburse RM2.33 million for similar breaches and for the misue of company cars and petrol benefits. Both Isa and Mohd Emir are appealing against the ruling.

In coming to Tuesday’s decision, Nordin, who was formerly a director of prosecution with the Malaysian Anti-Corruption Commission (MACC) before becoming a judge, said that the Court of Appeal had erred in its decision to acquit Isa.

The judge said that the appellate court had not appreciated Section 50 (1) of the Malaysian Anti-Corruption Commission Act 2009, on the presumption in certain (graft) offences, when it ruled that Isa had not solicited for the bribe.

Nordin said it is proven that Isa had solicited the bribe from Ikhwan through his special officer Muhammad Zahid Md Arip, when Ikhwan was seeking approval from Felda Investment Corporation Sdn Bhd, wholly owned by Felda, in the purchase of the hotel (that his company wanted to sell to Felda) from RM200 million to a reduced price of RM160 million.

“Zahid had told Ikhwan that Isa is a politician and needed funds, while Isa had also informed Zahid that if Ikhwan had offered anything to take it,” the judge said.

Nordin also noted that Isa had sent his salam (greeting) to Ikhwan several times, denoting the need for a bribe.

“We (the bench) acknowledge giving salam is a customary practice among Muslims; but to convene salam several times to GAPSB after it succeeded in its bid (to sell the hotel) expresses a different connotation and supports the solicitation (of bribe) demand,” the judge said.

The bench traced the RM3.09 million paid to Isa as having possibly originated from a RM10 million commission that was supposed to be paid to a company in the hotel sale, of which the company only took RM1 million.

Nordin noted that this amount set aside as commission was used to pay the bribe money.

Nordin also said that the Court of Appeal had not touched the notion that Zahid and Ikhwan are considered credible witnesses, and hence, the appellate court was wrong in not accepting their evidence.

The judge said that the High Court had found Zahid, who is Isa’s former aide, and Ikhwan, the former director of GAPSB, to be credible witnesses, yet the appellate bench did not touch on this.

“The Federal Court reiterates that both of them are deemed credible witnesses, and accepts the testimony based on the High Court’s findings of having observed them. Ikhwan had related how the withdrawals of cash money were made from the bank and related the meeting with Zahid,” said the judge.

Ikhwan had also admitted that the word “salam” itself — delivered by Zahid — was from Isa, and meant as a word to demand the bribe, the judge noted.

During trial at the High Court, the word “salam” was denoted by Ikhwan as a code word for demanding bribe money.

Nordin said Zahid had also testified that upon receiving the cash money on numerous occasions, which was placed in an envelope or bag, he had immediately gone into Isa’s office and placed it on Isa’s table.

He said it was the defence’s contention that Zahid had received the money without Isa’s knowledge.

“However, there is no single piece of evidence to show that Zahid had swindled the money. If he had done so, Ikhwan would have discovered the fact that the money was not delivered.

“The defence had not rejected that no money was received. There was complete silence from the respondent (Isa). Ikhwan and other witnesses testified the withdrawal of money and handing over the money to Zahid and the acceptance of RM3.09 million,” the judge said.

As mentioned and set-out, Nordin said the bribe money was a reward in approving the sale of the hotel, and evidence showed that the solicitation process began in July 2014, after approval was given, and is deemed as a corrupt reward.

This, the judge said, corroborates with the overall evidence of the factum of receipt (of money) against Isa and satisfies Section 50 (1) of the MACC Act, that stipulates the requirement for an accused person having deemed to have received the money, and it was the job of the defence to rebut the matter.

“Zahid’s testimony, which was credible, was confirmed by another credible witness (Ikhwan).”

“Isa’s defence is where he alleged that Zahid had made up the story to implicate him. However, this was never put to Zahid in the prosecution’s case. The defence cited by Isa is clearly an afterthought,” he said.

Nordin said defence witnesses saying that they did not see Zahid bringing an envelope or bag into Isa’s office, did not help the defence.

“Such testimony or analysis does not help the defence’s case. Further, the allegation that Zahid allegedly received some funds is considered by the court as an afterthought and does not rebut the presumption (of receiving bribe),” he added.

In the end, the apex bench ruled that the appellate bench that was led by Datuk Vazeer Alam Mydin Meera (now a Federal Court judge) had erred, and warrants appellate intervention and warrants a conviction.

Deputy Public Prosecutor Afzainizam Abdul Aziz appeared for the prosecution, while M Athimulan of Messrs Athimulan & Co and Datuk Abu Bakar Isa Ramat from Messrs Hafarizam Wan Aisha Mubarak appeared for Isa.

Immediately after proceedings, Isa was led away by police to serve his jail sentence at the Sungai Buloh prison. His wife, Puan Sri Bibi Sharliza Mohd Khalid, who is also the Negeri Sembilan Wanita Umno chief, and Juasseh assemblywoman in the Negeri Sembilan assembly, was seen in tears as she left the courtroom.

Read the full judgement here.

Read also:
High Court sentences Isa Samad to six years in jail, slaps RM15.45m fine
‘Salam’ was the secret code Isa’s ex-aide used to ask for bribe, court told
Appellate Court acquits Isa Samad of bribery charge