JustUpdateOnline.com – Kuala Lumpur, The former head of Malaysia’s defense forces, Mohd Nizam Jaffar, has been formally charged in court following allegations of financial misconduct and abuse of his official position. The 59-year-old retired officer faces several counts related to the mismanagement of a military welfare fund intended to support soldiers and their families.
During a session at the Special Crimes Court on Friday, Nizam entered a plea of not guilty to four separate charges. These include two counts of using his authority for personal gain regarding the procurement of holiday gift packages, one count of criminal breach of trust involving unauthorized investments, and one count of accepting illegal gratification.
Prosecutors allege that the former general received approximately RM752,000 (roughly Rp3.2 billion) in illicit payments. Furthermore, he is accused of directing RM3 million from the Armed Forces Welfare Fund (TKAT) into a private entity, Precious Amber International Berhad, without the necessary board approval in mid-2024. This specific fund is designed to provide essential aid, such as financial support and basic necessities like infant formula, to active personnel, veterans, and their dependents.
The court heard that the alleged misconduct occurred while Nizam held high-ranking roles, including his tenure as the military’s assistant chief of staff. He is accused of facilitating contracts for various supplies—ranging from prayer attire to tactical gear—in exchange for kickbacks. Additionally, in early 2025, he reportedly received a cash payment of RM200,000 from a director of a defense technology firm while serving as the top commander.
This legal action is part of a broader crackdown by the Malaysian Anti-Corruption Commission (MACC) on defense sector irregularities. The investigation, which intensified late last year, has already led to the seizure of luxury vehicles, large sums of cash, and over 60 gold bars. The case against Nizam follows similar charges brought against another former army chief, Muhammad Hafizuddeain Jantan, who was recently indicted for money laundering.
Nizam, who served as the 23rd chief of the nation’s armed forces, had recently commenced leave ahead of his official retirement scheduled for August. Throughout his career, he held several prestigious appointments, including serving as an aide-de-camp to former Malaysian monarchs. If convicted, the former general faces severe penalties, including potential prison sentences of up to 20 years and substantial fines. The court has set his bail at RM180,000 pending further proceedings.