Redzuan withdraws suit against gov't in RM18m legal tussle

Entrepreneur Development Minister Mohd Redzuan Md Yusof has withdrawn his counterclaim against the government, in his company’s RM18 million legal tussle with a bank.

“Our clients’ counterclaim was based on the breach of promises by the previous regime.

“For the sake of maintaining the good name of the current administration and as a sacrifice for national stability, our clients have today withdrawn their counterclaim against the Finance Minister, Agriculture Minister and the government of Malaysia without liberty to file afresh,” his counsel Su Tiang Joo said to Malaysiakini in an email today.

Malaysiakini reported last week that Redzuan, his company Gagnar Corporation Sdn Bhd and two others had been sued by Bank Pertanian Malaysia Berhad in 2015 over a RM18 million financing facility.

The loan, disbursed in 2011, was meant to finance the company’s sea farming project using high impact farming systems.

In response to the civil lawsuit, Redzuan, Gagnar and three others had filed a counterclaim against the bank, as well as the Finance Minister, Agriculture Minister and the government of Malaysia.

The counterclaim sought higher damages than the bank’s initial RM21 million claim.

“(The amount of damages is) from losses which arose from the inept management of the financing by the bank and the failure by the previous government to make good on its representations and promises,” Su had said previously.

Redzuan, who was a businessperson at that time, joined Bersatu in 2016. He won the Alor Gajah parliamentary seat in the 14th general election and was subsequently appointed a federal minister.

While the suit against the government has been dropped, Su clarified today that his clients' counterclaim against Bank Pertanian would proceed.

“Our clients will continue to pursue their counterclaim against the bank for taking over the financial management of the fish farming project which turned out to be inept, leading to our clients suffering huge losses,” he said.

He added that the trial will continue at the Kuala Lumpur Commerce Court tomorrow for the bank to decide whether they need to amend its pleadings. - Mkini