A written judgment that disclosed how Penampang Umno division leader John Ambrose used his position of influence and good relationship with Prime Minister and Finance Minister Najib Abdul Razak to help secure projects related to UMS Sabah has raised eyebrows among the legal circle.

The Court of Appeal judgment last month by Justice Tengku Maimun Tuan Mat showed how Ambrose met Najib twice, met with the PM's other officers and then Higher Education Minister Khaled Nordin (written as Nordin Khalid in the court judgment) to secure the projects for Asli Jati Engineering Sdn Bhd and its director Peter Anthony, whom he sued.

The projects in question are the electrical and mechanical maintenance work for Universiti Malaysia Sabah in Labuan (Labuan UMS project) and a comprehensive mechanical, civil and engineering maintenance work for UMS Sabah Phase 2 in Kota Kinabalu (KK UMS project), through direct negotiations, sometime between 2009 and 2010.

Subsequently, Asli Jati obtained the Labuan UMS project for RM90,000 a month for three years and RM1.2 million a month subject to variation for five years for the KK UMS project, according to the court documents.

The Penampang Umno leader sought a declaration that he was the rightful and beneficial owner of a Kota Kinabalu property held by Asli Jati for rendering his services to secure the project, an order directing Anthony to transfer the property, an account by the defendants of such sum amounting to 10 percent of the total contract value of the Labuan UMS project and the KK UMS project as commission.

In Asli Jati's and Anthony's defence, they claimed to have paid Ambrose RM1.29 million as payment of his professional fees, service charges and loan advance.

Ambrose, however, lost the case at the Kota Kinabalu High Court and the decision was upheld at the Court of Appeal as it did not recognise oral agreements and ruled them as illegal. However, both courts upheld the counter-claim by Anthony and the company to retrieve the property from Ambrose.

The appeal court's judgment reproduced transcripts of the controversial court proceedings in the lower court:

Q: Based on your experience in securing the Labuan UMS project and the KK UMS project, can Asli Jati apply for the said projects without first obtaining the necessary approval from the Federal Minister of Finance?

A: (answer from Ambrose): Cannot. Must come first from the minister, because only the Finance Minister has the power to negotiate contracts. This I am very sure. You can write, but still they have to ask for permission, but definitely must come from the Finance Minister. Only the Finance Minister can approve negotiated project. (This project is negotiated project.)

Q: Why do you say so?

A: Because it is only the Finance Minister (who) has the final say (as) to which project can be negotiated and which project to be open tender. In this case, I was the one who spoke to the PM to have this company Asli Jati to secure the project.

Based on this evidence, the COA ruled that it emerged in evidence that Ambrose had the position, influence and good relationship with the government and had used that position, influence and good relationship to procure the UMS projects for Asli Jati from the government.

Meeting the PM

The judgment also reproduced the transcript of Ambrose's meeting with the PM and several of its officers to secure the project.

Q: What steps did you take to secure the Labuan UMS project and the KK UMS project for the benefit of Asli Jati?

A: Subsequent to the oral agreements, I had brought Anthony to meet the Prime Minister cum Finance Minister at his office.... to discuss the company's interest in securing the Labuan UMS project and the Kota Kinabalu UMS project.

Q: Who was the PM cum Finance Minister you referred to?

A: YAB Dato Seri Najib Razak.

Q: Prior to the meeting with the PM cum Finance Minister, were you personally acquainted with him?

A: Yes, as a personal friend and in my capacity as the chairman of the Penampang Umno Division and as the political secretary to the State (Sabah) Minister of Finance.

Q: Prior to the meeting with the PM cum Finance Minister, was Anthony personally acquainted with him?

A: Absolutely not and it is for this reason that I had to obtain an appointment for Anthony to meet the PM.

Q: What transpired at the meeting with the PM cum Finance Minister?

A: The PM cum Finance Minister endorsed the minutes on the documents, in relation to the Labuan UMS project and the Kota Kinabalu project brought by the 1st Defendant...

Subsequent to the meeting with Najib, Ambrose met Najib's principal private secretary in the Prime Minister's Department, Ab Aziz Kasim, whom he knew personally but Anthony did not know him.

He met Ab Aziz again a few days later where he informed him that he had done the needful and handed him a sealed envelope for it to be delivered to Fauziah Yaacob, who was the division secretary of Perolehan Kerajaan Kementerian Kewangan (Finance Ministry government revenue) whom Ambrose also personally knew.

Ambrose gave the sealed envelope to Fauziah. He then met the Finance Minister's principal private secretary, Sh Mohd Sh Fuzy Sh Ali whom he also personally knew and he went there to make inquiries as to when the Ministry of Finance Tender Meeting was going to be held.

Second meeting with Najib and Khaled

Ambrose testified in court that he needed to know when the tender meeting would be held so he could meet the PM cum Finance Minister immediately before the Ministry of Finance Tender Meeting in order to remind him of the Labuan UMS project and the KK UMS project.

Q: Were you able to meet the PM cum Finance Minister immediately before the Ministry of Finance Tender Meeting?

A: Yes at the Ministry of Finance...

He said Anthony was not present at the meeting but he said he took further steps after the meeting, to meet then Higher Education Minister Khaled Nordin to inquire about the approval status.

Q: Were you personally acquainted with the said Khaled Nordin at that stage?

A: Yes.

Q: Was Anthony present at the meeting with Khaled?

A: No.

Q: What was the purpose of you meeting the said Khaled?

A: The Labuan UMS project and the KK UMS project came under the purview of the Ministry of Higher Education, which is the final approving authority for the aforesaid projects.

Q: What was the outcome of your meetings with Khaled?

A: I was informed that the Minister of Higher Education had approved the award of the Labuan UMS project and the Kota Kinabalu UMS project to Asli Jati and I was advised to liaise with the UMS vice-chancellor of University Malaysia Sabah pertaining to the issuance of the letters of award.

Q: Did you liaise with the UMS Sabah vice-chancellor?

A: Yes, I had liaised with Brig-Gen Prof Dr Kamaruzaman Hj Ampon, the then vice-chancellor of University Malaysia Sabah in order to expedite the issuance of the letters of award.

'Courts bound to note illegality'

Justice Tengku Maimun in dismissing Ambrose's appeal cited the Federal Court's decision in the Merong Mahawangsa vs Shazryl Eskay Abdullah's case where Shazryl who helped secure the crooked bridge project to replace the Johor causeway, had sought a RM20 million commission.

“In our view, the most pertinent principle encapsulated in Merong Mahawangsa is that the courts are bound at all stages to take notice of illegality, whether ex-facie or which later appears, even though not pleaded, and that it was contrary to public policy that a person should be hired for money or valuable consideration, to use his position and interest to procure a benefit from the government,” she said, in dismissing the appeal.