Former Bank Negara executive sentenced to three months in prison and fined RM157,925
In a high-profile corruption case, Mahathir Shahabudin, a former high-ranking executive at Bank Negara Malaysia, has been sentenced to three months in jail and fined RM42,875. The charges against him involve the misuse of his position to award contracts, leading to financial irregularities and abuse of power.
The case, which has garnered significant attention, alleges that Mahathir manipulated the tender process to favour certain companies in which he had undisclosed financial interests. These contracts, for services and goods procured by Bank Negara, were reportedly awarded at inflated prices, causing financial losses to the institution. Investigations suggest that kickbacks or illicit commissions were received in return for favouring specific vendors.
Mahathir has been charged with multiple counts, including abuse of power, criminal breach of trust, corruption under the Malaysian Anti-Corruption Commission (MACC) Act, and money laundering related to proceeds obtained via illicit deals. If convicted, he faces substantial fines and imprisonment, with potential jail terms totaling more than 15 years.
The Sessions Court in Kuala Lumpur convicted Mahathir on five counts of corruption. The conviction stems from cheques he received totaling RM1,400 from two directors of companies involved in carpet cleaning works and garbage disposal contracts with Bank Negara.
The judicial system has provisions for imprisonment and fines, with the severity of penalties depending on the number and severity of counts. Each offence under section 11(a) of the Anti-Corruption Act carries a jail term of 14 days to 20 years and a fine not less than five times the amount of graft involved.
However, Judge Mohamed Sakeri Mamat allowed a stay of execution of the sentences pending appeal and also an application by Mahathir to pay the fines in instalments over three months starting from the day after the sentencing.
The case underscores the importance of transparency and accountability in public financial institutions. The ongoing investigation by the MACC and Special Task Forces, with additional charges possible if further evidence emerges, highlights the commitment to rooting out corruption in Malaysia. Authorities have also frozen bank accounts and assets believed to be acquired through corrupt means, with efforts toward asset recovery in place to restitute losses to Bank Negara.
The case serves as a reminder of the consequences of financial misconduct and the need for stringent measures to prevent such abuses in the future. Mahathir's trial and sentencing are significant milestones in the ongoing fight against corruption in Malaysia.
The conviction of Mahathir Shahabudin, a former high-ranking executive at Bank Negara Malaysia, highlights the intersection of business, politics, and crime-and-justice, as well as the general-news worthiness of such cases. With allegations of manipulating the tender process for financial gain, this case emphasizes the importance of maintaining transparency and accountability in financial institutions, and the ongoing efforts by the Malaysian Anti-Corruption Commission and Special Task Forces to root out corruption.
