Sunday, August 10, 2008

UMNO SUED FOR RM218 MILLION AND NOW ORDERED TO PAY


Malaysiakini reported that the Kuala Lumpur High Court had last month ordered UMNO to pay a whopping RM218 million claimed by Kelana Jaya based Elegant Advisory Sdn Bhd being payment for supplies of posters, badges, banners and caps during the March 2004 general elections, which UMNO had refused to pay.

The decision was a judgment in default delivered by High Court's Assistant Registrar Ahmad Faizadh Yahaya on 17 July 2008 after UMNO's lawyers failed to appear in court.

The poll merchandise scandal was highlighted by Malaysiakini in a series of exclusive reports three months after the 2004 general elections, where Barisan Nasional won with a landslide victory.

In the suit, which was initiated by Elegant Advisory Sdn bhd in June this year, the company had claimed a sum of RM218,013,475 as compensation from UMNO for the supply of the election campaign materials include posters, banners, buntings, flags, souvenirs, mineral waters and other transportation costs.

The claim was made on the basis of Section 71 of the Contracts Act 1950 in which UMNO is obliged to pay the campaign materials to Elegant Advisory Sdn Bhd.

UMNO's treasurer Abdul Azim Mohd Zabidi was named as the sole defendant on behalf of the party in the suit filed through Elegant Advisory's counsel, Termizi & Co while UMNO was represented by Hafarizam Wan & Aisha Mubarak.

"With the supply of these campaign materials to UMNO, UMNO has enjoyed the benefits from it when UMNO (as a Barisan Nasional component party) won the 11th General Elections with an overwhelming poll victory," said the statement of claim.

The company revealed UMNO had tried to settle the matter once by requesting a meeting with Elegant Advisory in September 2006 and this effort however failed as "no reasonable amount" was offered.

Elegant Advisory said it had also tried to contact UMNO numerous times later to settle this matter, including sending e-mails to Prime Minister Datuk Seri Abdullah Ahmad Badawi through his website, but to no avail.


The company claimed as a result of the unsettled payment, it has suffered losses and jeopardised its business reputation among its suppliers.

With UMNO's failure to make an appearance in court, the High Court on 17 July 2008 ordered the ruling party to pay Elegant Advisory the entire sum, with interest, as demanded by the company. Nevertheless, UMNO is now making effort to set aside the judgment in default by claiming that it was Barisan Nasional and not UMNO that ordered and used these items.

news n photo courtesy of Malaysiakini

6 comments:

Azisirikit said...

UMNO and BN will now bark at each other! RM 200m for one election??? gosh!!!

Huang said...

It is a normal customer-shop-keeper transaction. A custoemr buys the goods and pays the shop-keeper. It is a contract! You buy, you pay.

It is the same with customer-banker relationship. The custoemr takes a loan and agrees to pay back within a certain tenure and at a certain interest rate. The banker, taking the customer's written agreement, agrees to lend him the money.

Where there is a dispute, the cliamant goes to Court to settle the case. And this is where a CLEAN Judge hears the case and decides it. No Judge-fixing, no case-fixing. If ever the judgement is faulty and doubtful, the confidence of the claimant is shaken. So, what happens if an INVESTOR brings in money to invest on certain terms and conditions; and BOTH parties agree to them; and later one of the parties fails to live up to his side of the bargain?

You want INVESTORS to put them money here, you need an IMPARTIAL Judiciary!

Now that teh Judge has ordered UMNO to pay back RM218 million to the claimant, it is bound by the contract. The sooner the bill is settled , the better it will be, for the sake of its IMAGE!


S.H. Huang

chong said...

c'mon lah UMNO, RM218M is just a peanut to you. just pay lah in this critical time.
the merz ben incident by trengganu already cost more than that.

khlaw said...

dalam politik, ia tipu rakyat. Dalam niaga, ia tipu pembekal.

puspawangi said...

this piece of news have been " circulated" for about two weeks (?) but so far no comment from either UMNO or BN..so what to do?

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