Islamic Finance Figure Mohd Daud Charged Over Unlicensed Securities Dealings

KUALA LUMPUR, Feb 23 (Bernama) -- Islamic finance figure Tan Sri Dr Mohd Daud Bakar was charged in the Sessions Court here today with abetting unlicensed securities dealing.

Mohd Daud, 62, who is also the former chairman of the Shariah Advisory Council (SAC) of Bank Negara Malaysia, pleaded not guilty after the charge was read before Judge Norma Ismail.

“Understood, I claim trial,” he said calmly.

According to the charge, Mohd Daud, acting as a representative of Energy Eco Berhad, is alleged to have abetted AUF MBZ Consortium PLT in carrying out a regulated activity, namely dealing in securities, despite the company not holding a Capital Markets Services Licence and not being a registered person for such activity.

The offence is alleged to have been committed between June 14, 2021, and Aug 9, 2023, at C6-1, Jalan Reef 1/2, Pusat Perniagaan Reef, Rawang, in Selangor.

The charge was framed under Subsection 58(1) of the Capital Markets and Services Act 2007 (Act 671), read together with Paragraph 370(c) and Subsection 367(1) of the same Act, which is punishable with a fine of up to RM10 million, imprisonment of up to 10 years, or both.

Earlier, Securities Commission (SC) Malaysia deputy public prosecutor Shoba Venu Gobal proposed bail of RM200,000 with two sureties, along with additional conditions requiring the accused to report monthly to the nearest SC office and to surrender his passport to the court until the case is concluded.

“This is a serious offence involving abetment. The accused was a representative of Energy Eco Berhad at the material time,” she said.

Mohd Daud’s lawyer, Mohd Haziq Razali, requested that bail be reduced to RM50,000 and said he did not object to the additional conditions, noting that his client had cooperated fully with investigators since 2024.

The court allowed the accused to be released on bail of RM50,000 with one surety, subject to the additional conditions sought by the prosecution, and fixed April 10 for case mention.

Meanwhile, in separate Sessions Courts, entrepreneur Datuk Mahadi Badrul Zaman, 43, pleaded not guilty to two charges of conducting a securities business without a valid licence, before Judges Norma Ismail and Azrul Darus.

Husband of celebrity Datin Heliza Helmi, Mahadi, was accused as a representative of AUF MBZ Consortium PLT of operating a securities business despite the company not holding a Capital Markets Services Licence or being registered to conduct the controlled activity.

The alleged offences took place at a villa in Sunway South Quay, Subang Jaya, between Sept 3, 2021, and Feb 15, 2024.

The charges were framed under Subsection 58(1) of the Capital Markets and Services Act 2007 (Act 671), which carries a maximum fine of RM10 million, up to 10 years’ imprisonment, or both upon conviction.

SC prosecutor Danial Imran Nasaruddin proposed RM250,000 bail with two sureties for Mahadi, along with conditions to report monthly to the SC office and surrender his passport, citing the seriousness of the offences.

Mahadi’s lawyer, Datuk Mohd Zamri Mohd Idrus, requested a reduction, noting his client posed no flight risk and had family obligations.

Judges Azrul Darus and Norma Ismail approved RM50,000 bail per charge with one surety, subject to the prosecution’s conditions.

Separately, QEW Group Berhad director Muhamad Iqbal Mohamad, 47, was charged with abetting AUF MBZ under Subsection 58(1) of the Capital Markets and Services Act 2007 (Act 671), carrying similar penalties.

He pleaded not guilty and was granted RM50,000 bail with one surety, required to report monthly to the SC office and surrender his passport.

The court fixed April 10 for the next case mention.

-- BERNAMA