SC: Cannot conclusively establish breach of rules in Azam Baki case

THE Securities Commission (SC) said that it has not been able to establish that there was a breach of regulation in the controversial acquisition of public shares Malaysian Anti-Corruption Commission (MACC) chief commissioner Tan Sri Azam Baki. 

The regulator began looking into the matter earlier this month after Azam openly admitted in a news conference that his brother Nasir Baki had used his share trading account – with his permission – to purchase shares in two public-listed companies in 2015. 

The SC noted that as a capital market regulator, its regulatory remit was set out under the Securities Commission Malaysia Act 1993 (SCA), Capital Markets and Services Act 2007 (CMSA), and Securities Industry (Central Depositories) Act 1991 (SICDA). 

“In this regard, the said inquiry relates to the issue of whether a potential breach under Section 25(4) of the SICDA occurred. Section 25(4) provides that a trading account must be opened in the name of the beneficial owner or authorised nominee,” it said in a brief statement on Tuesday (Jan 18). 

“The SC has concluded its enquiry and based on the evidence gathered, the SC is not able to conclusively establish that a breach under Section 25(4) SICDA has occurred. 

However, the SC did not elaborate on the next course of action or if it would make any recommendations to any other bodies. 

In a statement dated Jan 6, the SC said that all trades and securities accounts opened with the central depository must be made in the name of the beneficial owner of the account or an authorized nominee. 

Azam had insisted that he did no wrong despite accusations of conflict of interest and the abuse of his position. 

He had also initiated legal proceedings for defamation against the whistleblower who first published the shareholdings allegations against him. – Jan 18, 2022 

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