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Wednesday, September 8, 2010

Malaysia Today at the centre of the MAS-Tajudin scuffle (part 1)

Tajudin alleges that he had been defamed by the actions of MAS, among others, in making a report against him to the Malaysian Anti-Corruption Commission (MACC). Additionally, Tajudin also accuses the airline for allegedly causing the publication on Malaysia Today of various articles relating to him.

THE CORRIDORS OF POWER

Raja Petra Kamarudin

Ex-chairman Tajudin counterclaims RM500 million from MAS

Former Malaysia Airlines (MAS) chairman Tan Sri Tajudin Ramli has served a statement of defence and counterclaim on MAS, seeking among others, damages of RM500 million for defamation.

MAS told Bursa Malaysia yesterday that the statement of defence and counterclaim was served on its solicitors Messrs Lee Hishammuddin Allen & Gledhill.

According to MAS, Tajudin had alleged that he had been defamed by the actions of MAS, among others, in making a report against him to the Malaysian Anti-Corruption Commission (MACC).

The airline said Tajudin had also claimed that MAS had instructed its lawyers to complain to, among others, the MACC Advisory Board and the MACC Special Committee on Corruption about MACC’s disclosure of its report to bodies which were the subject of the report.

Additionally, MAS said Tajudin had also accused the airline for allegedly causing the publication on the Malaysia Today blog of various articles relating to, inter alia, Tajudin.

MAS, however, said it had been advised by its solicitors that it had a good defence against Tajudin’s counterclaim.

“MAS has instructed its solicitors to take the necessary action to set the matter down for trial as soon as possible,” it said. “This is to avoid further interlocutory proceedings that have already delayed this matter for over four years and which may further delay this matter.”

To recap, in a filing to Bursa on Oct 19, 2005, MAS announced that it and its subsidiary Malaysia Airlines Cargo Sdn Bhd (MASkargo) had sued Tajudin, former MASkargo vice-president Ralph Manfred Gotz, ex-MAS consultant Uwe Juergen Beck and the airline’s former director Wan Aishah Wan Hamid for various breaches of fiduciary and statutory duties and for defrauding MAS in several related-party transactions. It had sought, among others, damages of RM174.6mil for its losses and indemnity against any sums that MAS is ordered to pay from any award made in an ICC Arbitration involving ACL Advanced Cargo Logistics GmbH.

In September 2004, ACL had initiated arbitration proceedings against MAS. In June 2009, the airline was ordered to pay 6.9 million Euros in damages by the Arbitral Tribunal of the International Chamber of Commerce in favour of ACL for breach of contract for not maintaining its European cargo hub at the Frankfurt-Hahn airport for 10 years. -- The Star

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MALAYSIAN AIRLINE SYSTEM BERHAD ANNOUNCEMENT

Malaysian Airline System Berhad ("MAS" or "the Company") - Shah Alam High Court Civil Suit No: MT3-22-365-2006 MAS & Anor v Tan Sri Tajudin bin Ramli & Ors

We refer to the announcement dated 19 October 2005 that Malaysian Airline System Berhad and its subsidiary Malaysia Airlines Cargo Sdn Bhd (“collectively referred to as “MAS”) had sued Tan Sri Tajudin b. Ramli, Ralph Manfred Gotz, Uwe Juergen Beck and Wan Aishah Wan Hamid in Shah Alam High Court Civil Suit MT3-22-365-2006 for various breaches of fiduciary and statutory duties and for defrauding MAS in several related party transactions seeking, among others, damages of RM174,620,695.00 for its losses and indemnity of Malaysian Airline System Berhad against any sums that it is ordered to pay from any award made in an ICC Arbitration involving ACL Advanced Cargo Logistics GmbH. MAS wish to announce the following developments in the litigation:

a) on 23 August 2010, the Shah Alam High Court dismissed interlocutory applications by both Tan Sri Tajudin b. Ramli and Wan Aishah Wan Hamid to strike out MAS’ claim;

b) on 3 September 2010, Tan Sri Tajudin b. Ramli served a Statement of Defence and a Counterclaim on MAS’ solicitors, Messrs Lee Hishammuddin Allen & Gledhill, seeking among others, damages of RM500 million for alleged defamation. In his Counterclaim, Tan Sri Tajudin b. Ramli has alleged that he has been defamed by the actions of MAS in:

i. making a report to the Malaysian Anti-Corruption Commission (“MACC”) about amongst others, Tan Sri Tajudin b. Ramli ("the MACC Report");

ii. instructing its lawyers to complain to, amongst others, the MACC Advisory Board and the MACC Special Committee on Corruption about the disclosure by the MACC of the MACC report to bodies which were the subject of the report;

iii. allegedly causing the publication on a blog known as Malaysia Today by Raja Petra Kamarudin (RPK) of various articles relating to, inter alia, Tan Sri Tajudin b. Ramli.

MAS has been advised by its solicitors, Messrs Lee Hishammuddin Allen & Gledhill, that it has a good defence to Tan Sri Tajudin b. Ramli’s counterclaim. MAS has instructed its solicitors to take the necessary action to set the matter down for trial as soon as possible, so as to avoid further interlocutory proceedings that have already delayed this matter for over 4 years and which may further delay this matter.

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