Ibrahim & Sons Engineering Sdn Bhd claims the Steel Hawk group’s actions indicated a 'pre-planned media strategy to portray the company and its directors as fraudsters'.
In its statement of defence, Ibrahim & Sons Engineering Sdn Bhd (IBSE) said the allegations were published by a local news portal less than two hours after Steel Hawk Engineering filed the suit and Steel Hawk made the announcement on the bourse.
IBSE denied the allegations by Steel Hawk Engineering and accused its former partner in a RM14 million Tenaga Nasional Bhd (TNB) project of carrying out a pre-planned media strategy to tarnish the reputation of the company and its directors before the case was heard.
“The statement of claim was filed at 5.55pm on April 21 and posted on Bursa soon after. The article was published online by a news outlet at 7.31pm. This indicates a pre-planned media strategy to portray the company and its directors as fraudsters.
“Steel Hawk voluntarily broadcasted the fraud allegations to the outside world but intentionally delayed the service of the writ to the defendants for seven days,” it said in its counterclaim suit.
IBSE claimed that Steel Hawk Engineering’s suit and the accompanying publication were initiated for a collateral purpose: to destroy IBSE’s relationship with TNB and facilitate the novation of the projects to Steel Hawk Engineering.
Steel Hawk Engineering alleged in the suit filed in April that IBSE and its directors had committed breach of trust, misappropriated funds collected from TNB, and made fraudulent misrepresentations linked to a collaboration involving projects for the power company.
Under the contract, Steel Hawk Engineering was to act as the primary financial backer for the projects by providing 60% of the working capital for each purchase order issued by IBSE.
Steel Hawk Engineering was also to provide an advance of RM9.2 million, to be paid in stages, and obtain the necessary bank guarantees in favour of TNB for the contract works, among other obligations.
The defendants denied failing to notify their partner of payments received from TNB, saying they had communicated all information regarding payments, claims, invoices and project progress to Steel Hawk Engineering from time to time via email.
IBSE said the dispute arose after it refused to sign a balance confirmation document for last year because it did not owe Steel Hawk Engineering the RM14.4 million stated in the document.
“We found that the amount stated by the plaintiff was inaccurate and contradicted the actual transaction records.
“Our records show that the total amount actually received from them as of Dec 31 last year was only RM4.7 million. This created a very significant unreconciled difference of RM9.6 million,” IBSE said.
It added that Steel Hawk Engineering failed or refused to provide any feedback, explanation, or supporting documents to support its balance statement.
IBSE also said Steel Hawk Engineering was mistaken in claiming that RM2.76 million had been paid by TNB into a Bank Islam Malaysia Bhd account as part payment for the three projects.
“This payment was instead related to other contracts and operational matters not involving their agreement,” it said.
Disputing the defence of privilege
The defendants claimed that the voluntary publication of the announcement to the general public, separate from the judicial process and before service of the writ, was not protected by absolute privilege.
“Furthermore, the defendants issued a letter of demand dated May 8 to Steel Hawk to withdraw the publication, but they refused to do so.”
IBSE is seeking judgment against Steel Hawk Engineering for RM8.3 million, which it says is a valid debt owed to the company, as well as general and aggravated damages, an injunction restraining the plaintiff from further publishing the impugned remarks, and exemplary, punitive and additional damages.
Law Chambers of Vin Sa & Ian filed the defence on behalf of IBSE. - FMT
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