Muhyiddin deposits RM1.35m to Guan Eng pending defamation appeal

Summary

• Ex-prime minister Muhyiddin Yassin makes a deposit of RM1.35 million in defamation damages to Lim Guan Eng’s lawyers pending appeal.

• Muhyiddin wants the Court of Appeal to nullify the defamation ruling favouring the former finance minister.

Former prime minister Muhyiddin Yassin has deposited RM1.35 million in defamation damages to former finance minister Lim Guan Eng pending appeal.

The defendant has also paid RM50,000 in costs to the plaintiff linked to a defamation suit over the alleged revocation of Albukhary Foundation’s tax-exempt status.

Lim’s counsel Guok Ngek Seong this morning confirmed Muhyiddin (above, right) made the deposit while awaiting the disposal of the Pagoh MP’s appeal before the Court of Appeal.

“Muhyiddin has paid the balance RM1 million to my firm’s client’s account yesterday.

“RM400,000 was paid in December (last year),” Lim’s lawyer told Malaysiakini today.

When contacted by Malaysiakini, Muhyiddin’s lawyer Chetan Jethwani confirmed the deposit of the judgment sum pending appeal.

“We have deposited the balance judgment sum to be held as a stakeholder to Lim’s solicitors,” Chetan said.

On Nov 8 last year, judicial commissioner Roz Mawar Rozain ordered Muhyiddin to pay RM1.35 million in damages to Lim.

She said the Bersatu president made no attempt to verify the statement before issuing it, and that the allegation was baseless.

‘No effort to verify’

Roz pointed out that Lim’s testimony - of the DAP chairperson never issuing any circular to revoke the foundation’s tax-exempt status - was unshaken during the full trial.

She noted that the defendant’s witness - an officer from the Finance Ministry - confirmed that Lim during his tenure helming the ministry never issued any letter to that effect.

“The statement is not only false but potentially harmful in a nation of a multicultural society,” said Roz, adding that the allegation was serious as it implied Lim committed an abuse of power involving an Islamic charitable organisation.

She pointed out that Muhyiddin had resources at his disposal to double-check the veracity of his statement, adding that the language of his words provoked racial sentiments.

She noted this was particularly so as this case involved two well-known politicians and touched on sensitive issues of race and religion.

Roz said that, as a result, the court could not accept Muhyiddin’s cited defence of justification and fair comment, among others.

She noted that the gravity of the transgressions was compounded by the defendant’s past position as prime minister which lent gravity to the allegation against the plaintiff.

“Good name in man and woman, dear my Lord, is the immediate jewel of their souls. These immortal words from Shakespeare’s Othello were cited in the plaintiff’s submissions and they resonate deeply in this case, where a man’s reputation - that fragile yet precious possession - has been put to trial.

“This action for defamation brings into sharp focus the delicate balance between freedom of expression and the right to protect one’s reputation,” said the judicial commissioner.

Quantum of damages and an injunction

Lim’s defamation suit was over the claim that the Bagan MP greenlit the revocation of the Albukhary Foundation’s tax-exempt status during the Pakatan Harapan federal administration.

The civil court’s breakdown of the damages was RM350,000 for each of the three statements leading to RM1.05 million in general damages, plus RM150,000 for aggravated damages and RM150,000 for exemplary damages, with a grand total of RM1.35 million.

The judicial commissioner issued an order for Muhyiddin to retract all three defamatory statements from all of his social media accounts immediately.

She further gave an injunction to prevent Muhyiddin from further repeating the statements.

Roz also ordered Muhyiddin to pay RM50,000 in costs to Lim.

“The quantum of damages this court awards reflects both the gravity of the defamation and its potential impact on our society.

“It serves not only to compensate the plaintiff but also to vindicate his reputation and to mark the court’s disapproval of the conduct displayed.

“Freedom of expression, while fundamental to our democracy, must be exercised responsibly, particularly by those who hold or have held high public office.

“The making of unsubstantiated allegations that play on racial and religious sensitivities cannot be countenanced by this court,” she said.

Suit details

DAP chairperson Lim was suing over Muhyiddin’s statement made to the media after the latter was summoned by the MACC on March 9 last year.

Lim was finance minister during the Harapan administration between May 2018 and February 2020, while Muhyiddin headed the Perikatan Nasional administration from March 2020 to August 2021.

On March 27 last year, Lim filed a writ of summons against Muhyiddin.

A month later, through his statement of defence, Muhyiddin contended that Lim has to prove in court that the Finance Ministry did not revoke Albukhary Foundation’s tax-exempt status.

The Pagoh MP also claimed that Prime Minister Anwar Ibrahim’s statement in Parliament - that there were no records of Lim revoking the foundation’s tax-exempt status - was “wholly irrelevant” and a mere deflection so that Lim would not be held accountable for the Inland Revenue Board decision on the issue.

In his reply to Muhyiddin’s defence, Lim questioned why Muhyiddin did not raise the issue of the alleged tax exemption revocation when they were both part of former prime minister Dr Mahathir Mohamad’s cabinet from 2018 to 2020.

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