A 51-year-old businessman holding the “Datuk Seri” honorary title entered a not-guilty plea at a Kuala Lumpur Sessions Court on August 14, 2026, after being charged with criminally misappropriating RM37,099,999.67 in company funds — one of the larger corporate breach-of-trust cases to reach the Sessions Court level in recent months.
The Accused, the Company, and the Alleged RM37.1 Million Misappropriation
Datuk Seri Zul Azmi Abu Hussin, a company director at Xspec Resources Sdn Bhd, faces a single charge of criminal breach of trust (CBT) under Section 409 of the Penal Code. The offence is alleged to have taken place on February 15, 2022, at a bank located in Taman Tunku, Bukit Tunku, Kuala Lumpur.
Section 409 governs CBT by a person entrusted with property in a professional or fiduciary capacity. A conviction under this provision carries a maximum sentence of up to 20 years’ imprisonment, caning, and a fine — reflecting the gravity the Malaysian legal system assigns to the misuse of entrusted corporate funds.
Zul Azmi, now 51, claimed trial — meaning he contests the charge and the matter will proceed to full hearing.
Prosecution Sought RM500,000 Bail; Defence Argued for RM50,000 on Health and Family Grounds
Deputy Public Prosecutor Siti Suriatey Mohamed Yusoff applied for bail of RM500,000 with one surety, and sought an additional condition requiring Zul Azmi to surrender his passport to the court for the duration of proceedings.
The defence, led by lawyer Edly Mohammad Firdaus, pushed back firmly, requesting bail be set at RM50,000 — a tenth of the prosecution’s ask. In mitigation, counsel highlighted that his client is the primary breadwinner for a wife and five children, also supports elderly parents, and suffers from hypertension.
“My client was called in to give a statement today before being charged. He has fully cooperated with the investigation,” Edly submitted. “Bail is not a form of early punishment, but to ensure the accused’s presence in court.”
Judge Sets Bail at RM100,000 With Passport Surrender; Next Mention Fixed for October 5
Presiding judge Mohd Kafli Che Ali fixed bail at RM100,000 with one surety — landing between the two competing positions. The court also imposed the prosecution’s requested travel restriction, requiring Zul Azmi to surrender his passport until the case concludes.
The next case mention has been scheduled for October 5, 2026.
The bail quantum reflects a calibration between the scale of the alleged offence — nearly RM37.1 million — and the personal circumstances raised by the defence. Courts in Malaysia have generally treated passport surrender as a standard precautionary condition in high-value financial crime cases to prevent flight risk.
Section 409 CBT Charges: What the Law Provides
Under Section 409 of the Penal Code, criminal breach of trust committed by a merchant, agent, director, officer, or partner — or by a person entrusted with property in a professional capacity — is treated as a more serious category of CBT than ordinary misappropriation.
The provision is frequently invoked in corporate fraud cases where the accused held a position of authority or fiduciary duty over the funds in question. If convicted, Zul Azmi faces a maximum of 20 years in prison, in addition to caning and a financial penalty. The accused is presumed innocent unless and until proven guilty by the court.
Xspec Resources Sdn Bhd has not been named as a co-accused in this charge. The case is being prosecuted by the Sessions Court in Kuala Lumpur, with proceedings expected to continue following the October mention date.
Reporting based on proceedings at the Kuala Lumpur Sessions Court on August 14, 2026. Source: Bernama.
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