In a big blow to former Deputy Minister in the Prime Minister's Department and PPP president, M Kayveas, the Kuala Lumpur High Court upheld the Bar Council's disciplinary board decision to fine him for professional misconduct committed in 2005.

Justice Lau Bee Lan dismissed Kayveas and his wife's Blanche O' Leary's appeal and ordered the two to pay costs.

Lau agreed with the submission from the Bar Council that the breach of contract by the two lawyers was not only in the form of a contract, but a breach of trust as well.

"Although the Legal Profession Act 1976 did not stipulate in depth what actions can be stipulated as professional misconduct, it does not have a closed category on what it constitutes.

"The Disciplinary Board is in the best position to determine the conduct of its members. Hence, the court rejects the motion to intervene in the decision by the Disciplinary Board dated March 17, 2005. Both applications are dismissed with costs," said Lau.

It is learnt a full written judgement would be provided later.

Blow to BN as well

The decision is seen as a big blow to Kayveas and Barisan Nasional's credibility, especially when he had lost the Taiping parliamentary seat in the March 8, 2008 general elections and compounded by the present turmoil in the PPP.

m kayveas This comes after the Registrar of Societies had barely a month affirmed Kayveas as the legitimate PPP president, and not his rival T Murugiah on Aug 12.

The former Deputy Minister and O Leary had named the Bar Council as the sole respondent in the appeal filed on April 14, 2005.

The complaint or allegations made against the two were that they had breached their undertaking in respect of monies received as stakeholders for the sale and purchase agreement (SPA) between Jordone Corporation and Avacado Corporation Sdn Bhd.

The two, were solicitors for Avacado Corporation, which had entered into a RM2 million property sale and purchase transaction with Jordone Corporation.

Kayveas and his wife were said to have received the money paid under the agreement but did not release it in accordance with the terms of the agreement.

On March 17, 2005, Disciplinary Board chairman Khalid Ahmad Sulaiman said that after considering a report made by its committee, it ordered Kayveas and Blanche to pay a penalty of RM5,000 each.

Failure to pay the fine would result in their practising certificate to be suspended until full payment was made.

Kayveas and O'Leary filed a memorandum of appeal on June 2005, where they stated that the board did not take into consideration their reply to the complainant on Dec 20, 2004.

Kayveas and O' Leary were represented by M Puravalen while the Bar Council was represented by Rabindra Nathan and Allister Tan.

Also present was counsel S Siva representing the Bar Council disciplinary board.