KUALA LUMPUR - Malaysia’s Deputy Prime Minister Zahid Hamidi was granted a discharge not amounting to an acquittal in relation to graft and money laundering charges on Monday, in a court decision celebrated by his Umno party but decried as political interference by his rivals.

Datuk Seri Zahid, who is also Rural and Regional Development Minister, had faced 47 counts covering criminal breach of trust for more than RM31 million (S$9 million) belonging to his charitable foundation Yayasan Akalbudi, money laundering of over RM72 million and RM21 million in bribes.

On Monday morning, Deputy Public Prosecutor Mohd Dusuki Mokhtar applied to the Kuala Lumpur High Court for a discharge not amounting to an acquittal, which means Mr Zahid can still face trial for the same charges in the future if the prosecution decides to reinstate them.

The application was made midway through the trial, in which Mr Zahid’s defence had been called.

Judge Colin Lawrence Sequerah ordered a discharge not amounting to an acquittal, on the grounds that the Malaysian Anti-Corruption Commission is still investigating the case after Mr Zahid’s legal team made representations to the Attorney-General’s Chambers in December and January.

“The representations are about 200 pages, and it is justified for further examination to be conducted,” Justice Sequerah said.

The court said it must also take into account the Royal Commission of Inquiry (RCI) that is investigating the allegations made against Mr Zahid by former attorney-general Tommy Thomas in his memoirs.

Mr Zahid’s defence team, led by senior lawyer Hisyam Teh Poh Teik, had earlier argued that its client should be fully acquitted of all the charges.

Datuk Hisyam said he will file an appeal at the Court of Appeal on Tuesday for a full acquittal of Mr Zahid.

In a press conference, Mr Zahid voiced his thanks to God, his family and supporters for the court ruling, but noted that he has not been fully acquitted.

“The judge has decided to discharge me. However, I have not been fully acquitted as the RCI based on the issues raised by the previous attorney-general, Tan Sri Tommy Thomas, is still (ongoing).

“Secondly, the probe into representations made by my lawyers has not been fully completed,” he said.

Mr Zahid was first charged with corruption in 2018, after Umno and its Barisan Nasional coalition were voted out of power due to public anger over the multibillion-dollar scandal at state fund 1Malaysia Development Berhad.

In September 2022, he was acquitted in another graft case, where he was accused of receiving bribes totalling RM42 million relating to a foreign visa system for the Home Ministry.

Umno is now a partner in the Pakatan Harapan-led ruling government, after a hard-fought general election in November 2022 resulted in a hung Parliament.

Prime Minister Anwar Ibrahim appointed Mr Zahid as his deputy despite the dozens of criminal charges still facing him at the time.

Monday’s decision was celebrated by Mr Zahid’s supporters in Umno, and comes ahead of two by-elections that the party is contesting in Johor.

Umno Women’s chief Noraini Ahmad was jubilant, saying that the “truth” has been revealed with Mr Zahid’s discharge and that it will boost the party’s spirit, especially in the by-elections in Johor.

“This will not have an adverse impact on our election campaign (in Pulai parliamentary seat and Simpang Jeram state seat). We will campaign as usual, and Umno’s machinery will work hard to ensure our candidates’ victory,” Datuk Seri Noraini told reporters.

Universiti Utara Malaysia’s Professor Mohd Azizuddin Sani said the court ruling is unlikely to affect voters, who have already decided which party to back. But it could win back some support for Mr Zahid within the party.

“This can definitely strengthen Zahid’s position among his doubters in Umno,” said Prof Azizuddin.

Meanwhile, two MPs from the federal opposition Perikatan Nasional told The Straits Times that this decision will reflect badly on Datuk Seri Anwar’s administration.

Tasek Gelugor MP Wan Saiful Wan Jan said comparisons would likely be made between Mr Zahid’s case and that of Parti Pribumi Bersatu Malaysia chief Muhyiddin Yassin, who recently had four charges of abuse of power involving RM232.5 million dropped.

“We must know that they are very different. In Muhyiddin’s case, it was the defence who applied for the charges to be dropped. But in Zahid’s case, it is the prosecution who applied for the discharge,” he said.

Jerai MP Sabri Azit from Parti Islam SeMalaysia said the Malaysian public will speculate on political interference in the case, whether it is true or not.

Dr Oh Ei Sun from the Singapore Institute of International Affairs echoed these views.

“At the very least, it would appear to be a politically expedient move, which could strengthen the cohesion of the unity government. But it comes at the expense of public sentiments, which apparently do not look too favourably on Zahid’s prospects in these cases,” he observed, referring to the alliance of Pakatan Harapan, Umno and East Malaysian parties led by Mr Anwar.

“So the ruling coalition’s short-term cohesion comes at the expense of its longer-term electability. The general public would also perceive that there could be political interference,” he said.