The Securities Commission (SC) today said that the taking of statements from of several journalists in relation to a corporate scandal involving Kenmark Bhd was a normal practice in getting evidence and details from the witnesses.

SC's chairperson Zarinah Anwar said the interviews were done in accordance with SC regulations and by its well-trained officers.

No pressure was put on any of the witnesses, she said.

So far, 19 witnesses have been called, of whom four were journalists, she told reporters at the Fourth International Islamic Capital Market Forum 2010 in Kuala Lumpur today.

The local journalists had their statement taken for reporting about the troubled furniture maker.

Kenmark, a public listed furniture company, was recently reprimanded by Bursa Malaysia for late submission of its quarterly financial report.

'Excellent cooperation from witnesses'

"We have to rely on evidence and statements of hosts of people depending on the nature of cases that we are investigating at a particular time and of course this includes members of the media," Zarinah said.

"We had excellent cooperation from most of the witnesses we have taken statements from.

"The procedures in the law are very clear, very certain and our investigaton officers are well-trained and subjected to a code of conduct," she said when asked on why SC was being hard on the messengers of news.

The SC was recently criticised by a tabloid newspaper, which claimed the journalists had been treated badly during the interview sessions.

Zarinah said that the SC had received excellent cooperation from journalists in the past, adding that "some also appeared in court on our behalf".

"We all are doing a public service here and we all are working in the interest of the public.

"We, the SC, have a statutory role to protect investors. We have to ensure that our market is fair, orderly and transparent to make sure that the level of confidence of investors in the market is high," she added.

The Star, Sidhu seeks judicial review

Meanwhile, The Star and its deputy business editor BK Sidhu have filed a leave application at the Kuala Lumpur High Court for a judicial review challenging a SC notice for their lawyer to be present at the commission for an investigation.

They were granted an interim order by Judge Aziah Ali for a stay of the notice pending the outcome of their leave application.

The journalist was called up by the SC over her recent report on Kenmark.

The English daily and Sidhu, whose full name is Berjan Kaur, named the SC and its investigation officer Arif Adnan Zain as first and second respondents.

Stating their grounds for relief, they said Sidhu was requested by the SC to present herself at its premises on June 26 to assist in an investigation for an offence under the Securities Commission Act 1993.

She was asked to go again on June 29 and she brought lawyer Tharminder Singh but he was only allowed as an observer and not allowed to advice or interject during the recording of a statement from Sidhu.

Lawyer allegedly intimidated

Sidhu was denied a copy of the statement and Tharminder Singh was allegedly intimidated by the investigation officer and was served with a notice by hand on June 29 to have his statement recorded today.

They alleged the SC so far had not disclosed the nature of the investigation and failed to respond to their counsel's letter to retract the June 29 notice.

They want a declaration that SC does not have the power to impose restrictions on a counsel's role or to insist on any statement from counsel as well as to compel any advocate and solicitor to disclose privileged information.

They also want the June 29 notice be declared vague, ineffective, an abuse of process and ultra vires the Securities Commission Act 1993.

Counsel Amer Hamzah Arshad acted for the two applicants.

- Bernama