Tuesday, September 14, 2010

PKA fails to set aside Kuala Dimensi defamation suit

The High Court in Kuala Lumpur today dismmissed an application by Port Klang Authority (PKA) to set aside a defamation suit filed by Kuala Dimensi Sdn Bhd (KDSB) over the publication of a controversial auditing report of PricewaterhouseCoopers Advisory Services Sdn Bhd, in relation to the Port Klang Freetrade Zone (PKFZ) issue.

Justice Datin Zabariah Mohd Yusof ruled that all the issues raised in the main suit required a proper trial.

After hearing submissions from both parties in her chambers for about two hours, she dismissed PKA's application with RM15,000 costs and ordered the matter to go for a full trial.

She set Nov 22 for the case management before a High Court deputy registrar.

KDSB counsel N. Nahendran told reporters that the court was not satisfied with the defendant's submission that the disclosure of the report was not defamatory or was of qualified privilege and there was no malice in their action.

KDSB filed the suit on July 1, last year, claiming the report contained various allegations which were highly damaging to its reputation and trade.

In the suit, KDSB did not state the actual amount of compensation sought from PKA.

In the statement of claim, KDSB stated the audited report OF PwCAS, among others, had implied that the company allegedly had overcharged on the works it carried out at PKFZ and had failed to be careful in carrying out its responsibility, as expected of the firm.

KDSB also had alleged they had entered into an agreement with PKA to develop the PKFZ project, even though it was aware that it was against the requirement of the law.

Plaintiff also claimed that by choosing to publish the audited report of PwCAS, the defendant intended to invite public scrutiny on the decision to appoint KDSB as the main developer and contractor.

KDSB, thus, seeks exemplary and aggravated damages from the defendant on the grounds that the report raised several other issues, which led the public to have a wrong impression on the firm.

Further, the plaintiff alleged that the defendant deliberately framed allegations against KDSB, without giving any chance to the company to make its defence over the publication of the report.

During today's proceedings, PKA was represented by Leong Wai Hong.-- Bernama

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