Malaysia court overturns graft conviction of ex-palm oil agency head

KUALA LUMPUR — A Malaysian appeals court on March 6 overturned a corruption conviction and six-year jail sentence imposed on the former chairman of the state palm oil plantation agency, his lawyer and national news agency Bernama said.

Tan Sri Mohamad Isa Abdul Samad, Federal Land Development Authority (Felda) chief from 2011 to 2017, had been found guilty of nine counts of bribery in 2021 for illegally receiving about RM3 million (S$851,000) linked to the purchase of a hotel. He has denied wrongdoing.

On March 6, a three-member bench of the Court of Appeal reversed the verdict, finding there was merit in his challenge, Bernama reported.

At a televised news conference, his lawyer, Salehuddin Saidin, said the court had concluded there was no testimony that linked Mohamad Isa to the alleged bribery.

Mohamad Isa, who was a former Cabinet minister and Umno vice-president until 2018 when he quit the Malay party, said he was grateful and relieved by the decision.

The acquittal comes amid criticism of Prime Minister Anwar Ibrahim's administration over a string of dropped graft cases involving leaders linked to Umno, which partnered with Datuk Seri Anwar to form a government in November 2022.

Anwar has said he does not interfere in court cases.

Felda has been dogged by allegations of corruption and poor management for years, sending its losses and debts soaring over the past decade.

In 2017, Mohamad Isa was replaced as chairman of Felda and listed unit FGV Holdings, one of the world's largest palm oil plantation operators, amid reports of suspicious transactions and deals at both entities.

A government enquiry in 2019 cited mismanagement and bad investments among reasons for Felda's troubles.

The Finance Ministry in 2023 said the government has agreed to restructure its debts through the issuance of sukuk, or Islamic bonds, and revolving credit.

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