Malaysiakini is disappointed at Deputy Prime Minister Abdullah Ahmad Badawi's remarks yesterday that the government's allegation against the news website as being funded by infamous currency speculator George Soros has now been proven true.

Abdullah was quoted by the media today as saying that the allegation has been proven correct following the latest revelation by the web-based daily's former news editor. He added that the government is disappointed at malaysiakini 's denial of the link.

Malaysiakini chief executive officer Premesh Chandran in return said that he, too, is disappointed at the deputy prime minister's comments.

"Abdullah apparently did not do his homework, or was not properly briefed by his advisers, before speaking on the matter," said Chandran.

He said Abdullah's comments were based on the disclosure by a disgruntled former employee of malaysiakini , who, among other things, was dissatisfied with his pay rise, and who proceeded to retaliate against his former colleagues by telling his story to the national news agency Bernama the day after his resignation took effect.

"It is obvious that ex-news editor Chong Yen Long omitted the full facts when he went to Bernama with his story, and it is regrettable that the national news agency failed to double check this with malaysiakini before the article was released."

On Friday, Bernama reported that Chong has alleged that malaysiakini received RM188,000 from the Media Development Loan Fund (MDLF), which he "believed to be well-funded by Soros".

Business deal

According to Chandran, however, the money was payment for a business deal between the Centre for Advanced Media, Prague (C@MP), the technology division of venture capital MDLF, and Kini Technologies, the technology arm of malaysiakini 's publisher Mkini Dotcom.

Kini Technologies is working in collaboration with C@MP on the online advertising engine project and other projects as part of the C@MP's software group, C@MPW@RE. C@MPW@RE will be marketed to other online media start-ups, especially in Third World countries, as a solution to their own online advertising needs.

Chandran said that the RM188,000 was a payment for these projects.

"True, C@MP's parent company, MDLF, does have among its 20 funder organisations, the Open Society Institute funded by Soros. But to say that malaysiakini receives funding from Soros is clearly distorting the facts," he said.

"Following the Soros controversy last month, we have been assured in writing by C@MP project director Martin Hala that none of the funds for the software development project originated from Soros' Open Society Institute."

Kini Technologies is currently developing a number of digital media solutions to provide better services to malaysiakini readers and clients. One of its projects is an integrated online advertising engine that will power various forms of online advertising including banners, classified and directory ads, discount coupons and other new online ad formats.

"The software will also help malaysiakini to introduce a variety of online advertising products which will help boost our revenues," said Chandran.

Perceived enemies

Chandran said that this not the first time an attempt has been made to link malaysiakini to outside forces, especially perceived enemies of the government.

"Before this, there was the false information in the Far Eastern Economic Review which stated a link between malaysiakini and Soros through the Bangkok-based Southeast Asian Press Alliance (Seapa) - a regional body made up of Indonesian, Thai and Filipino journalists," he said.

This attempt was unsuccessful after Seapa, which gave a grant as seed capital to malaysiakini last year, showed that no Soros money goes directly or indirectly to the website.

Later, there was another effort to cast aspersions on malaysiakini after the US Embassy bought banner ads in the website.

"That attempt again fell flat when it was found that the US Embassy also took similar ads in a mainstream newspaper's website," said Chandran.

Explaining that malaysiakini is a business entity, he said, "Over the past year, we have made deals with a number of business partners and have signed up a long list of advertising clients. No doubt, some of these companies can be controversial, perhaps even backed by unsavory characters whom we are not aware of.

"But let this be clear: Malaysiakini strictly adheres to a policy where any editorial interference by our investors, business partners and clients will neither be accepted nor tolerated by the website's editors and journalists."

Legal action

Chandran expects further attempts to cast aspersions on malaysiakini in the months and years to come to discredit the website and to distract its journalists from doing their job - which is to bring independent news and views to their readers.

"As a media organisation that strongly believes in press freedom, we maintain that legal action should be taken as the last resort. However, the situation has become untenable," he said.

He added that the allegations against malaysiakini have been based on untruths. The website has been put under an undeserved cloud of rumour and suspicion, and contempt through allegations of foreign interventions and harbouring an 'unpatriotic' agenda.

"There were also false reports made by RTM and others that editor Steven Gan had fabricated news stories. To date, no correction or apology has been forthcoming," he said.

"We have thus informed our lawyers to take necessary legal action against those who have, and continue, to make unsubstantiated allegations against malaysiakini , to defend the reputation of the website and our journalists."