Kedah FA, Mukhriz hit with RM500,000 court order over players’ EPF contributions

The High Court rejects their contention of selective action, ruling that EPF is entitled to proceed against any or all office-bearers.

The High Court held the Kedah FA and four office-bearers, including former menteri besar Mukhriz Mahathir, liable for RM503,681 in unremitted EPF contributions and related charges.

PETALING JAYA:

 The High Court in Alor Setar has ordered the Kedah Football Association (KFA), its former president Mukhriz Mahathir, and two other office-bearers to pay more than RM500,000 to the Employees Provident Fund for failing to remit contributions on behalf of several players.

Justice Johan Lee ruled that the plaintiff, EPF, had successfully established its case against the four defendants on a balance of probabilities.

Mukhriz Mahathir.

“The four are jointly and severally liable to the plaintiff for the sum of RM503,681, representing the outstanding balance of EPF contributions,” he said in a 36-page written judgment posted on the judiciary’s website today.

Lee also ordered the defendants to pay statutory dividends on the outstanding balance calculated at 5% per annum from Jan 1, 2019 until full payment of the judgment sum.

The defendants were also held liable for late payment charges calculated at 6% per annum from Jan 1, 2019 pursuant to Section 46(1) of the EPF Act 1991.

The judge said it was undisputed that Mukhriz, then honorary secretary Anas Hafiz Mustaffa and committee member Asmirul Anuar Aris were office-bearers during the default period, as evident from the corporate and KFA records tendered as evidence.

Mukhriz helmed KFA when he was the Kedah menteri besar.

In his ruling, Lee rejected the defendants’ contention that EPF had been selective in naming the trio as defendants, pointing out that the statutory body was entitled to proceed against any or all office-bearers.

“The defendants’ remedy, if they believe others should contribute, lay in seeking indemnity or contribution from those persons and not in resisting liability in this action,” he said.

The suit was discontinued against five other office-bearers – Abdul Rahman Abdullah, Khamal Idris Ali, Yusuri Yusof, Shahrul Samsudin and Ruzaini Radzi – after they paid just over RM1 million.

EPF brought the action after KFA, as employer, failed to remit monthly contributions for its players in accordance with the provisions of the EPF Act 1991.

According to EPF, the unpaid principal contributions stood at RM1,519,801.

Lawyers Abd Shukor Ahmad, Aaron Aiman Thangarajoo and Michelle Liew appeared for EPF, while Ahmad Taufiq Baharum represented the KFA.

Counsel Mior Haidir Suhaimi represented Mukhriz, Hafiz and Anuar. - FMT