A hearing of a RM1.47 million suit by Rizana Mohamad Daud has yesterday provided glimpses of how Naluri Corporation Bhd, which once owned Malaysia Airlines, was managed by former tycoon Tajudin Ramli.

Rizana, 46, who is sister-in-law of Tajudin, the former MAS and Naluri chief, conceded at the Kuala Lumpur High Court yesterday that she did not have a legal background or qualifications, but was yet allowed to head Naluri's legal and corporate secretarial unit between 2002 and 2005.

Rizana, who had been company secretary for Naluri since 1996 and drew a salary of RM20,000 a month, also admitted that her personal lawyer had drafted her own letter of appointment with Naluri, not the firm's human resources department.

As a result, there is a disputed Clause 18 in her contract which is not in the other Naluri employees' contracts.

Naluri lawyer Ben Chan Chong Choon suggested that the contract was irregular and this was due to her special patronage as Tajudin's sister-in-law since she was married to Bistamam Ramli - a former Naluri director and Tajudin's brother - to which Rizana strenuously denied.

"I admit the letter of appointment was drafted by my lawyers on my instructions and not through the company," she testified.

Chan: You are the only staff member in Naluri which has this Clause 18.

Rizana: I disagree.

Chan: Your appointment as the head of the legal and company secretary unit was dated Aug 1, 2002.

Rizana: Yes.

Chan: Who drafted the letter of appointment?

Rizana: It was my solicitor.

Chan: Who gave the draft of the appointment letter?

Rizana: I did. He is my personal lawyer and not the company's lawyer.

Chan: I put it to you that you do not have legal qualifications but yet you are appointed as head of the legal and company secretary unit because of your relationship with your husband and Tajudin?

Rizana: I disagree.

36 months pay on leaving company

Rizana was testifying in her claim to seek RM1.47 million for not receiving her emoluments, which she said she was entitled to under Clause 18.

One of the terms included was that should she leave the company either through resignation or dismissal, Naluri must pay her RM1.46 million.

In her statement of claim filed on April 6 this year, Rizana claimed that she was entitled to the 36 months total emoluments, or RM1.46 million.

She tendered her resignation on Jan 14, 2005. She claimed that despite repeated demands, the company failed to pay her the due amount.

When asked by Chan, Rizana also conceded that she had no necessary secretarial qualifications, but was a registered company secretary.

The witness also admitted that as she was company secretary to other companies, and she had the liberty to attend to company secretarial matters of other companies.

When shown that her work contract bars her from serving with other companies, she said she did not know about that then.

Naluri, which once owned MAS, was placed under receivership sometime in 2008 when its business dealings were brought into question and the board was suspended.

Company cannot pay the amount

Naluri director Mohd Ridzuan Abdullah, testifying for the defendant, said that he had no idea that Rizana did not possess the necessary qualifications.

He said the company was under receivership and would not be able to pay such high compensation to Rizana.

"If she says she is not the only person who has the Clause 18, then other persons will have it and the company could ill afford to pay them," he said in replying to questions from Chan during re-examination.

Another director, Lee See Siang, 41, also testified that Rizana was not entitled for such payment as she did not do any job for the company.

"She was not performing her duties," he said.

In its statement of defence, Naluri claimed that there were no documents before them showing that Rizana was appointed the head of the legal and company secretarial unit.

The company also claimed that her writ was also filed out of time and hence her claim should be dismissed.

Rizana is represented by lawyer Terrence Chan.

Justice VT Singham is scheduled to deliver his verdict on Jan 13.