NOW, the Securities Commission (SC) and the Attorney-General’s Office have to answer to the nation!
The explanation given by Anti-Corruption Advisory Board chairperson, Tan Sri Abu Zahar Ujang on the Malaysian Anti-Corruption Commission (MACC) chief Tan Sri Azam Baki allowing his brother to use his trading account to acquire shares in two companies in 2015 has raised more questions.
The SC has the duty to state if Azam has breached any securities law. Also, has the Attorney-General carried out a full investigation into Azam’s case and cleared him of any wrongdoings?
Section 25 (6) of Securities Industry (Central Depositories) Act 1991 (SICDA) provides that “Any person who contravenes subsection (1), (2) or (5) shall be guilty and shall, on conviction, be liable to a fine not exceeding three million ringgit or to imprisonment for a term not exceeding ten years or to both.”
Subsections (1), (2) and (5) of that section basically say that no trading of securities shall be carried out using the trading account of another person unless he/she is an authorised depository agent who has opened and maintained a securities account with the central depository.
Section 25A of SICDA also states that an authorised nominee shall hold deposited securities for one beneficial owner in respect of each securities account. Section 25A (3) of the same act provides that any person who contravenes this act shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding three million ringgit or to imprisonment for a term not exceeding ten years or to both.
In May 2011, the SC compounded a woman RM25,000 for allowing another person to use her central depository system (CDS) account at Arab-Malaysian Securities Sdn Bhd (now known as AmInvestment Bank Bhd) to trade in Nexnews Bhd shares for the period between May 7 and May 10, 2007.
This is in breach of section 25(4) of SICDA which provides that any securities account opened must be in the name of the beneficial owner.
If what Azam Baki did was not wrong at all under our existing law, can any person now start using their securities account to trade on behalf of their relatives, friends and others, whether for a fee or on a voluntary basis? – Jan 6, 2022
Lim Lip Eng is the Member of Parliament for Kepong.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
