Azman Mohamad Yasi, a lieutenant-colonel, and retired brigadier-general Mohamad Adkaa Solahuddin were charged under Section 409 of the Penal Code.

They were accused of approving RM920,000 from the welfare fund to be invested in an unregistered financial institution.

Alternatively, they were charged with dishonestly misappropriating the same sum for the same “investment” purpose, under Section 403 of Penal Code.

The offences allegedly took place between Aug 3, 2016 and Sept 23, 2016 at the academy in Sungai Besi here.

If found guilty under Section 409, Azman and Adkaa face a jail term ranging from two years to 20 years, as well as a fine and whipping.

Section 403 carries a jail term of between two and five years, as well as a fine and whipping, upon conviction.

Judge Mahyon Talib allowed Azman and Adkaa bail of RM80,000 each in one surety.

She allowed Adkaa to settle the bail amount by Dec 7, after his counsel, Nor Asyikin Zakaria, said only RM15,000 could be raised today.

Deputy public prosecutor Nurshafini Mustafha had earlier asked the court to impose a RM100,000 bail.

But Azman’s lawyer, Mohd Amir Aizat Abdul Rani, told the court the amount was excessive. He said his client was also currently standing trial in the military court on charges related to this case.

Mahyon also instructed both men to surrender their passports to the court pending disposal of their cases and to report to the nearest Malaysian Anti Corruption Commission (MACC) office every month.

The court set Dec 22 for case mention.