Recent criminal breach of trust (CBT) prosecutions involving corporate directors, senior executives and individuals entrusted with institutional funds have renewed attention to the distinction between corporate mismanagement and criminal liability.
Among these are recent prosecutions involving former executives of UiTM Holdings Sdn Bhd and companies associated with Lembaga Tabung Haji.
These cases raise an important legal question: Does an unauthorised financial transaction, breach of corporate procedures or failure of governance necessarily constitute CBT?
In 2026, several CBT prosecutions were reported, including those involving a former senior military officer in relation to RM3 million belonging to the Armed Forces welfare fund; two company directors involving RM10.55 million connected with a glove manufacturing venture; former executives of three companies concerning contractor penalty payments; and the former CEO of UiTM Holdings Sdn Bhd involving approximately RM37.37 million allocated for a solar photovoltaic project.
