The 85-year-old politician was charged on January 29, 2024 for disobeying an order to declare his assets under Malaysia’s anti-corruption law.
Akbar struck up a friendship with Daim in the late 1980s, during Daim’s first term as finance minister between 1984 and 1991.
Akbar’s business empire took off when Daim served as finance minister for the second time in 1999.
In early 1999, Akbar received indirect support from the Mahathir government to take over MPHB, a conglomerate involved in banking, insurance, property development, gambling and lotteries.
This business acquisition caused controversy which later became the focus of MACC’s investigation.
MPHB’s business dealings were seen at the time as an attempt to get rid of companies and businessmen with close ties to former deputy prime minister Anwar Ibrahim, who was fired by Mahathir in September 1998 and later jailed.
Tycoon Lim Thian Kiat, a close ally of Anwar, who was in control of MPHB at the time was directed by the Mahathir government to only negotiate with Akbar over the sale of the conglomerate.
Government officials familiar with the case told CNA that the investigation into the MPHB takeover is focusing on the flow of how the deal was arranged.
Investigators are looking into how a unit of MPHB provided US$140 million in loans to Akbar-linked companies in the British Virgin Islands called Eightybridge United SA and Strykers Development Inc.
The loan was then used to acquire a crucial block of shares controlled by Lim, sources said.
Malaysian corporate law prohibits companies with financial interests from providing loans to related parties.
Akbar, who at that time owned commercial banks and insurance, did not only receive funding from related parties. The loan was also collateralized with MPHB shares which is another violation of Malaysian corporate law.
While preparing his takeover of MPHB, Akbar also obtained exclusive rights from the Ministry of Finance led by Daim to handle the repatriation of frozen shares worth more than US$4 billion registered with CLOB.
The shares of 112 Malaysian companies were frozen when Malaysia implemented capital flow controls in September 1998 to protect the Ringgit currency which had slumped due to the monetary crisis.
After months of negotiations, Akbar’s company Effective Capital was appointed to organize the repatriation of the frozen shares back to the Malaysian stock exchange.
Government officials noted that this appointment saw Effective Capital rake in nearly RM300 million to repatriate CLOB shares to more than 172,000 investors.
