High Court rejects bid to forfeit over RM21 million from Aman Palestin
The Shah Alam High Court rejected the prosecution’s application to forfeit RM21.1 million and US$139,650 (RM564,500) in frozen funds plus a 1kg gold bar held by Aman Palestin Bhd.
Source: Free Malaysia Today · August 24, 2026 at 9:45 AM · AI-assisted report
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KUALA LUMPUR, 24 AUGUST 2026 —
PETALING JAYA, Aug 24 — The Shah Alam High Court has rejected the prosecution’s attempt to forfeit RM21.1 million and US$139,650 (RM564,500) frozen in 12 bank accounts, along with a 1kg gold bar, all belonging to non-governmental organisation Aman Palestin Bhd. Justice Latifah Tahar ruled that the funds, sourced entirely from public donations, were under the organisation’s full control and that liability for any alleged misappropriation would rest with individuals involved—not the NGO itself.
Market Impact
The decision marks a setback for the prosecution, which had sought to freeze the assets pending an appeal. Deputy Public Prosecutor Farah Ezlin Yusop Khan argued that investigations indicated over RM64 million had been diverted for investments, property purchases, and gold acquisitions. However, Justice Latifah found that the prosecution failed to prove the transactions violated the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.
Donations and Control Justice Latifah noted that Aman Palestin, a non-profit, received donations exceeding RM123.9 million between 2018 and 2023 through online transfers, bank deductions, and cash donations. The court acknowledged that donors voluntarily entrusted funds to the organisation, which exercised unrestricted control over them. Transfers to entities such as Samudra Champa Sdn Bhd, Kerengga Merah Sdn Bhd, Isra Travel Sdn Bhd, and Yayasan Persahabatan Al-Insaniah Sejagat were deemed legitimate unless proven otherwise.
The prosecution had frozen the accounts in November and December 2023 before filing for forfeiture on Nov 15, 2024. Justice Latifah ruled that the applicant had not met the burden of proof required under Section 4(1) of the 2001 Act, dismissing the forfeiture bid entirely.
Legal Proceedings and Pending Charges Farah Ezlin subsequently applied for a stay of execution, seeking to delay the return of assets until the outcome of an appeal. Justice Latifah scheduled Sept 4 for case management on this application. Meanwhile, three Aman Palestin executives—executive chairman Abdullah Zaik Abdul Rahman, CEO Awang Suffian Awang Piut, and Samudra Champa director Khairudin Ali—remain on trial in the Sessions Court.
They face 164 charges, including money laundering, criminal breach of trust, and cheating, involving RM39.5 million. All three pleaded not guilty on Feb 15, 2024, after a two-hour reading of charges.
Malaysia’s NGO Sector Under Scrutiny The case has drawn attention to regulatory oversight of charitable organisations in Malaysia, particularly those involved in international aid. While the court’s ruling underscores the legal principle that NGOs are not automatically liable for the actions of individuals or entities they transact with, it also highlights the challenges authorities face in investigating financial irregularities within non-profits.
Aman Palestin’s legal team, led by Hisyam Teh Poh Teik, Zamani Ibrahim, and M Athimulan, argued successfully that the organisation’s funds were held in trust and that donors’ contributions were managed in accordance with its stated charitable objectives. The defence did not dispute the transfers but maintained that the transactions were legitimate business dealings rather than criminal misappropriation.
Regional Implications for Charity Oversight The ruling may influence future cases involving frozen assets of NGOs, particularly those with cross-border financial activities. Legal experts suggest that prosecutors will need to present clearer evidence linking organisations directly to criminal conduct, rather than relying on circumstantial transactions. This could prompt tighter due diligence requirements for charities receiving foreign donations.
Malaysia’s financial intelligence unit, the Malaysian Anti-Corruption Commission (MACC), and Bank Negara Malaysia have previously flagged risks of abuse in charitable financing, including the potential for funds to be diverted for illicit purposes. The case against Aman Palestin reflects broader efforts to balance regulatory vigilance with the operational independence of non-profits.
Stakeholder Reactions Farah Ezlin, representing the prosecution, has not commented beyond the court proceedings. Aman Palestin’s legal team declined immediate statements, citing ongoing litigation. Abdullah Zaik, the NGO’s chairman, has previously stated that all financial dealings were transparent and aligned with the organisation’s humanitarian mission.
Civil society groups have expressed concern that aggressive asset seizures could deter legitimate charitable work. A spokesperson for the Malaysian Council of NGOs (MINCONG) said the ruling reinforces the need for fair legal processes that do not conflate organisational accountability with individual wrongdoing.
Forward Outlook With the stay application pending and the appeal process likely to extend into 2027, Aman Palestin’s frozen funds remain inaccessible. The Sessions Court trial for the three executives continues, with no confirmed trial date. Legal observers anticipate further legal arguments on the interpretation of financial control within NGOs, particularly where funds are pooled from multiple sources.
For Malaysia’s charity sector, the case serves as a cautionary tale about the importance of internal financial governance. Organisations may now review their donation tracking and transaction approval processes to mitigate future legal risks. Meanwhile, authorities are expected to refine investigative approaches to distinguish between legitimate charitable operations and potential financial misconduct.
Related: Bank Negara Malaysia