The Kuala Lumpur High Court has yet to reach a decision on the striking out application by Umno, which is being sued for RM218 million for allegedly non-payment of party campaign material used for the 2004 general elections.

Former Umno treasurer Abdul Azim Zabidi has earlier asked the court to quash the suit which was filed by Elegant Advisory Sdn Bhd against him on June 23, last year.

Abdul Azim was then the party’s treasurer and he was subsequently replaced by Ahmad Husni Hanadzlah three months ago.

Meanwhile, Elegant Advisory is seeking to amend its statement of claim to replace Abdul Azim's name after the court ruled that the company should have named another Umno public office bearer and not the party's treasurer as defendant.

elegant advisory barisan nasional posters in 2004 election 110808 Both applications were fixed for hearing in the chambers of justice Azahar Mohamed today. However, as there was still no clear indication of where both applications were going, Azahar fixed Sept 3 for continued submission.

Azahar also directed both parties to file additional written submissions before the matter is heard again.

Abdul Azim was represented by Mohd Hafarizam Harun, while lawyer Ahmad Termizi Abdullah represented Elegant Advisory.

In July last year, Elegant Advisory obtained a judgment in default against Abdul Azim after his representatives were not present in court.

However, Abdul Azim managed to set aside the order on Jan 21 this year, to compel him and Umno to pay the amount.

It was reported that the sum awarded by the High Court was the highest ever that the ruling party - which forms the backbone of the ruling Barisan Nasional coalition - has been ordered to pay by the court.

Suit filed in June 2008

The poll merchandise scandal was highlighted by Malaysiakini in a series of exclusive reports three months after the 2004 general elections, where BN won with a landslide victory.

The suit initiated by Elegant Advisory was filed in June 2008 where the company has claimed a sum of RM218,013,475 as compensation from Umno for the supply of the election campaign materials.

The materials include posters, banners, buntings, flags, souvenirs, mineral waters and other transportation costs.

The claim was made on the basis of Section 71 of the Contracts Act, in which Umno is obliged to pay the campaign materials to Elegant Advisory.

Abdul Azim was named as the sole defendant on behalf of Umno in the suit filed through Elegant Advisory's counsel, Termizi & Co.

The statement of claim stated that in March 2004, Elegant Advisory had supplied the campaign materials to Umno on its request and order as agreed between the both parties.

"The plaintiff has fulfilled the defendant's request and order [...] in a huge quantity and in a short period by appointing third parties as printers for the posters, banners, bunting, flags and other necessary items for the 11th General Election and for Umno.

"The plaintiff also had appointed printers and suppliers for the mineral water and souvenir from China," the court document stated.

It also pointed out that these materials were again used by Umno during the August 2004 Kuala Berang by-election in Terengganu, as spotted by Malaysiakini during the campaign.

"With the supply of these campaign materials to Umno, Umno has enjoyed the benefits from it when Umno (as a BN component party) won the 11th General Election with an overwhelming poll victory," said the statement of claim.