Boutique investment company ECM Libra Berhad has categorically denied its involvement in the controversial sale of 31 percent of Pantai Holding shares to Singapore-based Parkway Holdings.

Responding to the allegations by PAS vice-president Husam Musa against ECM Libra and one of its directors, Khairy Jamaluddin, chairperson Kallimullah Mashareehul Hassan said the company was never involved in the Pantai shares sale.

He made the response in an affidavit dated Jan 27 to support the company's application for an ex-parte injunction to restrain Husam and PAS online organ Harakahdaily from further publishing the allegations.

ECM Libra had successfully obtained an ex-parte injunction on Feb 8, and today the court was to hear an inter-parte proceedings, where both parties were to argue before the judge whether the injunction should remain in force.

"Khairy did not purchase his shares in the plaintiff (ECM Libra) using commissions from the Pantai sale as no such commissions were paid by the plaintiff," he said in the affidavit, which was made available to malaysiakini .

Kallimullah also said that the company received no fee from the sale of the Pantai shares and that it was not involved in getting the Finance Ministry's approval for the sale of the shares.

"To the best of my knowledge and belief, the Pantai sale did not even require the approval of the Ministry of Finance."

Kalimullah also claimed that the Pantai shares' sale was actually transacted through Avenue Securities Sdn Bhd, which is a subsidiary Avenue Capital Resources Berhad - a government-linked company that has since entered a conditional share-sale agreement with ECM Libra to make way for a merger .

He said the Avenue Capital Resources share-sale agreement does not effect the company's claim against Husam as it was executed after the sale of Pantai shares was transacted.

Letters sent late

ECM Libra filed the defamation suit against Husam and Edisi Prima Sdn Bhd - the company that manages the Harakahdaily website - on Jan 17, claiming that it was "seriously defamed" by the politician's statement entitled 'Bagaimana Khairy membeli saham ECM Libra?' (How did Khairy purchase ECM Libra share?) and 'Surat Saman ECM Libra tidak akan hentikan saya - Husam' (ECM Libra's demand letter will not stop me - Husam).

The articles among others questioned the acquisition of RM9.2 million of shares in ECM Libra by 30-year-old Khairy, who is Umno Youth deputy chief and the prime minister's son-in-law.

The legal action was initiated after Husam failed to respond to the demand letters ECM Libra sent to him and Edisi Prima seeking apologies and retractions for the alleged defamatory statements.

High Court judge Tee Ah Seng, who was supposed to hear an inter-parte application of the injunction this morning, has the matter deferred to April 20 after being told that ECM Libra had "short-serviced" the writ to Husam.

Husam's lawyer, Yusmadi Yusoff, who appeared before justice Tee in chambers, told reporters that he had sought a postponement as ECM Libra was late in serving the documents.

"The judge agreed to postpone the matter after we told him that our client (Husam) was served with the documents rather late and that the service fell short of the two-week grace he gets to reply the writ," he said when met outside the courtroom in Wisma Denmark.

Yusmadi also said that the ex-parte injunction will remain enforced pending the disposal of the inter-parte injunction application.

Goodwill and integrity lost

In its statement of claim, ECM Libra claimed that Husam in his statement were understood to mean that the company, among others:

  • was involved in sale of the shares in Pantai Holdings to Parkway Holdings

  • provided Khairy with his shares in the company in consideration of Khairy's obtaining and procuring government's approval

  • had indirectly profited from the sale of Pantai shares

    • "The website in which the article was published was open to general access by any user of the worldwide web which at all relevant times has millions of users, all of whom have free and open access to the defamatory words...," it claimed.

    It claimed that it can inferred that "large but unquantifiable number of users" have read the article which contained words which were "unfounded, untrue and defamatory in nature and constitute grave libel" against the company.

    "The contents, gravity, venom and scale of the defendants' libel have gravely injured and tarnished the plaintiff's commercial reputation, image, integrity and goodwill in the minds of right thinking members of the public."

    It claimed that the statements made by Husam was calculated to disparage ECM Libra in the industry, trade and business, and to bring it into public hatred, ridicule, contempt and odium.

    It further contends that there is a high likelihood that the company had suffered goodwill, integrity reputation and good standing as a result of the alleged defamatory words.

    ECM Libra is also seeking the court to order a full and unqualified retraction of the articles to be published in Harakahdaily and four major news dailies as well as:

    • general damages and exemplary for libel

  • restraining order against Husam and Harakahdaily from publishing similar libels in the future

  • costs and other relief deemed fit by the court

    • Husam and Harakahdaily have yet to file their reply to the suit.