Former Tanjung Offshore Berhad MD acquitted of fraudulent inducement worth RM34.4m

KUALA LUMPUR: Former Tanjung Offshore Berhad managing director Datuk Harzani Azmi was discharged and acquitted of fraudulent inducement involving shares worth RM34.4 million and money laundering by the sessions court today.
Judge Mardihah Harullah discharged and acquitted Harzani after the prosecution failed to prove a prima facie case against him.
On Feb 16 last year, Harzani, 50, was alleged to have misled Tanjung Offshore Berhad's board of directors to enter into a share sales agreement between Appolusa Sdn Bhd and Tanjung Offshore Berhad, for the purchase of Gas Generators (M) Sdn Bhd in 2013, valued at RM34.3 million.
He was alleged to have committed the offence at the conference room of Tanjung Offshore Berhad, Wisma UOA in Damansara at 10am on Oct 21, 2013; and was charged under Section 366 (1)(a) of the Companies Act 1965, which carries a 10-year jail term, or a RM250,000 fine, or both.
Harzani was also charged with money laundering for allegedly instructing legal firm Mathews Hun Lachimanan to transfer RM13.3 million from the Standard Chartered bank into a "client trust" account at Kenanga Investment Bank Berhad (KIBB).
For the second offence, Harzani was charged under Section 4 (1)(a) of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001 (Act 613), which carries a fine not exceeding RM5 million or a jail term of up to five years, or both, upon conviction.
Judge Mardihah said the court found that the prosecution had failed to prove that RM34.4 million was exceeding the real value (of the shares), as there was a report from an expert stating that the price was right for the sale and purchase.
She added that the prosecution also failed to prove that the accused had the intention to mislead the board of directors into making their decisions on the sale and purchase of the shares.
Counsel Datuk N. Sivananthan represented the accused, while deputy public prosecutor Mohd Zaki Mohd Salleh prosecuted.