UMNO has withdrawn its application to initiate contempt of court proceedings against CIMB Bank after it received a favourable ruling from the Court of Appeal last Friday on RM193 million in disputed funds, Kuala Lumpur High Court was told today.

Last week, the appellate court dismissed an application by prosecutors to freeze the money.

Kuala Lumpur High Court judge Mohamed Zaini Mazlan today ordered that the money be released immediately to the party.

Umno was represented by Tania Scivetti, while Rabinda Nathan appeared for CIMB.

Umno initiated contempt action against the bank last week, after it failed to comply with a June 19 ruling, in which the high court dismissed the prosecution’s attempt to stay the decision on a forfeiture application.

The prosecution had sought to recover RM193 million Umno, which it alleged had been given to the party by former prime minister Najib Razak.

The funds, believed linked to the 1Malaysia Development Bhd scandal, were sought by the Malaysian Anti-Corruption Commission.

In the June ruling, the court found that the prosecution failed to prove on the balance of probability that the money came from 1MDB.

CIMB had previously told the court that it was waiting for an order from the Malaysian Anti-Corruption Commission (MACC) to release the funds.

MACC had instead filed an appeal, and the bank feared legal repercussions should it lift the freeze from the bank account, the court heard in June.

The anti-graft agency sought to recover from 41 individuals and organisations some RM270 million allegedly linked to the 1MDB case.

The government had sought to forfeit RM192,965,413.65 from Umno, saying the balance in the party’s account was linked to money allegedly deposited by Najib when he was Umno president.

The high court ruled with Umno, which in its submission, said the money had long been used up on the 2018 general election. – July 6, 2020.