Sarawak Chief Minister Abdul Taib Mahmud has withdraw his law suit after reaching an out-of-court settlement with Malaysiakini over a defamation case he filed against the independent online news portal five years ago.
The settlement involved Malaysiakini conceding that the Tokyo Regional Taxation Bureau has since reversed its decision on the alleged kickbacks involving the Japanese shipping companies paid to off-shore Hong Kong company Regent Star, said to be linked to Taib’s family. “Malaysiakini published those articles based solely on the news reports of several Japanese media that was published at the material time,”Malaysiakini lawyer Fahri Azzat read out in court today.
“We acknowledge that the articles caused the plaintiff embarrassment, distress and injury to his reputation and apologise for any inconvenience caused to him as a result.
“In keeping with our apology, we shall publish news that the Tokyo Regional Taxation Bureau had subsequently ruled that the sums paid by the Japanese shipping companies were legitimate payments.”
Taib withdrew his suit with no damages and no costs against Malaysiakini after the statement was read out. Justice Rozilah Yop, who heard the case, recorded the settlement and made no orders as to cost. She also cancelled the hearing dates fixed earlier.
Lawyers Fahri and K Shanmuga represent Malaysiakini while Robert Lazar acted on behalf of Taib.
Sarawak state legal advisor JC Foong, who was present in court, said he was holding a watching brief for the Sarawak state government.
Key witness died two years ago
In an immediate response, Gan said that Malaysiakini made the “difficult decision” to agree to the settlement after advice of its lawyers.
“We are confronted by the fact that the Japan taxation authorities has reversed in its position on the matter. Moreover, our defence is hampered by the death of our key witness,” said Gan.
Malaysiakini former Sarawak correspondent Tony Thien, who wrote the bulk of the 12 reports mentioned in the lawsuit, passed away two years ago while undergoing a heart surgery. Gan said that the Tokyo Regional Taxation Bureau and Thien were the two main planks of Malaysiakini’s defence.
“Without their testimonies, we are at a disadvantage,” he said.
Other than the issue involving the payments by the Japanese shippers, the settlement will not affect Malaysiakini’s existing and future reports on Taib Mahmud.
“We will continue to report on Taib and his family business without fear or favour,” said Gan.
Long legal battle
The defamation case has taken more than five years as both sides filed various legal actions before the commencement of court hearing.
Malaysiakini had petitioned the court to strike out the case based on constitutional grounds but it was thrown out in March this year.
On his part, Taib Mahmud had attempted to strike out parts of Malaysiakini’s statement of defence. His petition was dismissed by the Court of Appeal. He appealed to the Federal Court but it was rejected by a three-member bench in May this year
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