Malaysia's former armed forces chief charged with receiving almost US$190,000 in bribes, misappropriating welfare fund
Mohd Nizam Jaffar, 59, pleaded not guilty to abuse of power and misappropriation in offences linked to the Armed Forces Welfare Fund.
by Aqil Haziq Mahmud · CNA · JoinRead a summary of this article on FAST.
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KUALA LUMPUR: Malaysia’s former armed forces chief was on Friday (Jan 23) charged with abuse of power and misappropriation in offences linked to the Armed Forces Welfare Fund.
Mohd Nizam Jaffar, 59, was charged with two counts of abuse of power in the procurement of items for Hari Raya hampers distributed by the welfare fund, and one count of criminal breach of trust for investing some of its funds without authorisation.
The welfare fund helps Malaysian Armed Forces (MAF) personnel, veterans and their families who are in need, including through financial assistance and support with essential items like milk powder or disposable diapers.
Nizam faces another charge of accepting valuable items as a public servant from someone involved in official dealings. He allegedly received RM200,000 (US$49,720) from a company director.
In total, Nizam allegedly received about RM752,000 for the abuse of power and graft charges.
Nizam pleaded not guilty to all four charges and claimed trial after the charges were read at the Kuala Lumpur Special Corruption Court. The judge set bail at RM180,000.
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OFFENCES ALLEGEDLY COMMITTED IN 2024 and 2025
Nizam is accused of abusing his position to get bribes from companies supplying items for Hari Raya hampers on Jun 24, 2024. At the time, he was an assistant chief of staff in the MAF who chaired the executive committee of the Armed Forces Welfare Fund.
He allegedly received a total of RM552,481.90 in bribes for appointing companies to supply items like prayer garments, folding pliers, bath towels and backpacks.
If found guilty of abuse of power, he could be jailed up to 20 years and fined RM10,000, or not less than five times the amount of bribes received, whichever is higher.
Also on Jun 24, 2024, Nizam allegedly used his position at the Armed Forces Welfare Fund to misappropriate RM3 million of its funds by making “additional investments” in a company named Precious Amber International Berhad without approval from the welfare fund’s investment committee.
If found guilty of criminal breach of trust, he could be jailed between two and 20 years and caned, with the additional possibility of a fine.
In March 2025 when he was the armed forces chief, Nizam allegedly received a “valuable item” – RM200,000 in cash – from Wan Shafie Abdul Rashid, a director of a company named Aspen Red Sdn Bhd. According to its website, Aspen Red provides defence technology solutions.
If found guilty of accepting valuable items as a public servant from someone involved in official dealings, Nizam could be jailed up to two years and/or fined.
Nizam’s case comes a day after Malaysia’s former army chief Muhammad Hafizuddeain Jantan, 58, and his wife Salwani Anuar, 26, were charged with money laundering involving nearly RM2.2 million. They also pleaded not guilty.
Hafizuddeain was on Friday hit with two more charges of receiving RM145,000 in proceeds allegedly linked to illegal activities between February 2024 and May 2025.
CORRUPTION SWEEP
The legal actions are part of a broader anti-graft campaign targeting irregularities in military procurement following a series of high-profile arrests and asset seizures since late 2025.
The Malaysian Anti-Corruption Commission (MACC) had said on Jan 15 that it had completed its investigation into allegations that several high-ranked MAF officers had asked for and accepted bribes from companies linked to the procurement of supplies at the Armed Forces Welfare Fund.
“They are also suspected of misusing funds for personal gain and activities not related to the welfare fund,” the commission said.
The investigation, which was launched on Oct 7 last year, led to the seizures of more than RM2 million in local and foreign currency, 66 gold bars estimated to worth RM1.7 million, and several luxury vehicles.
Nizam was appointed Malaysia’s 23rd Chief of Defence Force on Jan 31, 2025. He reportedly went on leave from Jan 1 this year ahead of his mandatory retirement in August upon turning 60 years old.
Defence Minister Khaled Nordin had said last November Nizam’s retirement did not have anything to do with an MACC probe into a weapons smuggling syndicate allegedly masterminded by senior MAF officers.
Prime Minister Anwar Ibrahim also thanked Nizam for his service when the latter paid a courtesy call to him on Dec 17 last year, ahead of his retirement.
Nizam had served in many important positions, the Malay Mail reported, including as commandant of the National Resilience College, the Malaysian Army Training and Doctrine Command training management director and commander of the 2nd Malaysian Army Infantry Brigade.
The Johor Bahru native was also aide de camp to the Deputy Chief of Army from 1989 to 1990, then to the Chief of Defence Force from 1990 to 1992, and to the 14th king of Malaysia from 2011 to 2016.
In August last year, Nizam scrapped the military’s plans to buy four ageing Black Hawk helicopters after current king Sultan Ibrahim Sultan Iskandar called them “flying coffins” and warned against the role of “agents” in military procurement.
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