RM38 million defamation suit! That's what DAP MP Teresa Kok will face should she fail to apologise for her allegations of impropriety involving a politically-connected cargo company.

Malaysia Airlines (MAS) Dhaka-based general sales agent - Silkways Cargo Services Ltd - has served a legal letter to the feisty opposition politician demanding she immediately cease making allegations of weight cheating involving the cargo company.

In the four-page letter dated May 29, Silkways through its Bangladeshi legal firm Sobhan & Sobhan, called the MP to "retract and apologise" over her public statements made against Silkways in seven days.

"(Otherwise) our client shall be not constrained to commence legal action, both civil and criminal, in appropriate court of law against you and others for defamation, seeking damages in excess of US$10 million (RM38 million)," said lawyer Masood R Sobhan in the letter.

Kok said she received the registered letter last week.

Asked whether she would bow to Silkways' demand, Kok said the next course of action would depend on her discussion with her lawyer, Francis Brigged

The opposition politician however vowed that she would press on with her campaign and urged MAS to conduct a thorough probe to unearth the "truth of the matter".

'False and fabricated'

Kok has called several press conferences since April after a senior MAS employee lodged two police reports on the alleged weight-cheating which resulted in the national carrier being defrauded of millions of ringgit.

The reports claimed Silkways committed fraud through under-declaring the weight of cargo, manipulating the shipment data and offering inducements worth millions of ringgit to MAS officials.

However, MAS had denied the allegations at a meeting with Kok two weeks ago ( left ).

The legal letter, a copy of which was made available to malaysiakini , said Kok has made "false fabricated and baseless allegations of weight-cheating" against Silkways.

"Your actions were negligent, reckless and with total disregards to the truth and done with a political purpose to humiliate and embarrass another political person who happens to be a leader of the backbencher in the Parliament in Malaysia."

Silkways is co-owned by Shah Alam MP and parliamentary Backbencher Club chairperson Mohd Zin Mohamed. He has headed the company's board of directors for the past three years. The other shareholder is a Bangladeshi.

The letter accused Kok of trying to slander Mohd Zin for political mileage.

"You have raised the matter in Parliament on April 9 while the matter was pending for investigation, you politicise the issue and also submitted memorandum to concerned ministries. Furthermore, the matter was posted in the Internet so that you could gain political mileage out of it.

"(This is to) slander fellow MP belonging to another party, Mohd Zin Mohamed, who has substantial share in Silkways, and our client has reasons to suspect that these allegation are being raised by his business opponents whose interest you are serving for ulterior motive and malicious intention," the letter said.

"Your utterances and distribution of the copies containing false allegations against our client have slandered and defamed the company and its executives and has caused loss financially and brought mental sufferings, for which you are totally liable."

Mohd Zin, when contacted this afternoon by malaysiakini, refused to comment. He also declined to elaborate on the board meeting which supposedly held last month in Dhaka to discuss the police reports.

"Don't ask me, I do not involved myself in the company's operation matter," he said.

Contradictory statements

Meanwhile, MAS corporate services senior general manager Dr Mohamadon Abdullah rebutted a statement from Bangladeshi national carrier Biman Airlines which denied any role in any weight manipulation.

Biman had stated in a letter to Kok that they only assisted MAS in supplying the necessary handling equipments and was not responsible for handling cargo shipments for MAS ( right )

This followed a MAS' claim that it uses Biman - not Silkways - as it sole ground handler with the tasks to accept, weigh, document and load cargo onto aircraft.

This, MAS said, cleared Silkways form any weight manipulation involving hundreds of kilogrammes, as alleged by the unnamed senior MAS employee who had lodged the reports.

The senior employee had alleged that, based on various documents, a lower weightage was indicated when the goods left Dhaka to Kuala Lumpur, thus depriving MAS millions of ringgit.

However, MAS said that the differences were due a different weighing system used in Dhaka by Biman.

"According to an agreement we signed with Biman on Oct 10, 1995, the agreement outlined that Biman is responsible for every ground handling work of cargo and passenger for MAS in Dhaka airport. The agreement is still effective," Mohamadon said when contacted late evening yesterday.

"(There is) nothing for me to hide. I don't want to continue with this never-ending argument. We already explained to Kok. I welcome her to come to our office again and see the agreement," he said.

However, according to another set of documents obtained by malaysiakini , Silkways is the sole body responsible to issue the airway bills - a document recording the weight done at the airport at point of origin.

The general sales agreement signed on Sept 21, 2000 between MAS and Silkways also stipulated that the cargo company is responsible to advise consignors concerning "import, export and other custom regulations applicable to their shipments and ensuring that such regulations are observed by all such consignors".

Mohamadon also denied that MAS has found the whistle-blower and that it plans to take disciplinary action against the employee.