Hari Raya sarong-and-towel contracts cited in RM4mln abuse-of-power charges against former Defence Forces chief Mohd Nizam

KUALA LUMPUR (Jan 23): Former chief of Defence Forces Tan Sri Mohd Nizam Jaffar was charged today with four criminal counts, including alleged abuse of power, involving the Armed Forces Welfare Fund.

Mohd Nizam, 60, was charged at the Kuala Lumpur Special Corruption Court with two counts under Section 23 of the Malaysian Anti-Corruption Commission (MACC) Act 2009 for allegedly using his position for gratification.

He also faces one count of criminal breach of trust under Section 409 of the Penal Code, and one count under Section 165 of the Penal Code for allegedly obtaining valuable items without consideration in connection with his official duties.

The charges were read before Sessions Court judge Rosli Ahmad.

When asked whether he understood the charges, Mohd Nizam replied that he did. He then pleaded not guilty to all four charges and claimed trial.

The court subsequently allowed Mohd Nizam bail of RM180,000 after Deputy Public Prosecutor Datuk Ahmad Akram Gharib requested that bail be set at RM300,000. The court also ordered him to surrender his passport and travel documents.

According to the charge sheets, Mohd Nizam is alleged to have committed the offences between June 2024 and March 2025 while holding senior positions in the Malaysian Armed Forces, including as Assistant Chief of Staff for Personnel Services (AKSPA) and chairman of committees overseeing the Armed Forces Welfare Fund (TKAT).

For the two abuse of power charges, he is alleged to have used his position to obtain gratification totalling RM552,481.90 by approving the award of contracts for the supply of Hari Raya gift items — including sarongs, batik cloth, towels, backpacks, and tools — to companies in which he allegedly had an interest.

The combined value of the contracts was stated to exceed RM4 million.

For the CBT charge, Mohd Nizam is accused of dishonestly misusing RM3 million belonging to TKAT by making an additional investment in a company without approval from the fund’s investment committee, despite having been entrusted with control over the funds.

In the fourth charge, he is accused of receiving RM200,000 in cash without consideration from a company director whom he allegedly knew had dealings connected to matters he was handling in his official capacity.

If convicted, the offences under the MACC Act carry a maximum jail term of 20 years and a fine of not less than five times the value of the gratification or RM10,000, whichever is higher.

The CBT charge under Section 409 of the Penal Code carries between two and 20 years’ imprisonment, whipping and a possible fine, while the offence under Section 165 of the Penal Code is punishable with up to two years’ jail, a fine, or both.

The court fixed March 31 for case management.

Mohd Nizam is the second senior army officer to be charged in court following the exposé on corruption and embezzlement of funds in defence procurement.

Earlier this week, former army chief General Tan Sri Muhammad Hafizuddeain Jantan and his wife, Salwani Anuar, faced four charges under Section 4(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA) at the Kuala Lumpur Special Corruption Court.

Both pleaded not guilty and claimed trial. — Malay Mail

Armed Forces Welfare Fund lead Mohd Nizam Jaffar Muhammad Hafizuddeain Jantan onsite Salwani Anuar @ Kamaruddin