KUALA LUMPUR (Nov 2): The High Court has dismissed separate stay applications by the Malaysian Institute of Accountants (MIA) and its disciplinary committee (DC) for a previous court order to halt a second disciplinary proceeding against Deloitte PLT partner Ng Yee Hong.
The order was granted on April 5 this year, after High Court judge Datuk Wan Ahmad Farid Wan Salleh ruled in favour of Ng's judicial review, and ordered for the DC's earlier decision — not to strike out then Damansara Member of Parliament Tony Pua's complaint against Ng — to be quashed on the grounds that it was "tainted with procedural impropriety".
The judge had also issued an order directing the DC to take necessary steps to dismiss the disciplinary proceedings.
Both the DC and MIA are appealing against the decision in the Court of Appeal (COA).
The applications to stay the High Court decision — which were dismissed on Wednesday (Nov 2) — were filed in the meantime. In summary, they had argued that if the applications were dismissed, that would render their appeals in the appellate court nugatory.
In dismissing the applications, judge Wan Ahmad said that he was of the view that the DC could continue with the complaint if the COA reverses his decision.
"In the event that my decision in this judicial review were to be reversed by the COA later, it will have the consequential effect of restoring the impugn decision of the DC...it will mean that the DC can continue with the complaint," he said.
He added that he cannot agree with the argument that the complaint cannot be resurrected in the event the appeals by the DC and MIA are successful.
"In any event, it is not shown to me that the potential resurrection of the [disciplinary] proceedings would run foul [among others] of the Accountants Act [1967]. Since my findings that the complaint can be revised and resurrected...the question of the appeals being nugatory is no longer tenable," he said.
He added that the DC and MIA had also failed to establish special circumstances that would warrant a stay. The applications were dismissed, with costs of RM6,000.
The DC was represented by John Mathew, while the MIA was represented by Shaarvin Raaj. Ng was represented by Khoo Suk Chyi and Wong Ming Yen.
Interim stay granted
Both the DC and MIA then informed the court that they would file a stay application with the COA, and asked the High Court for an interim stay.
Ng's counsels did not object to it, and the court granted the interim stay.
Pua filed a complaint with the MIA on May 25, 2015 regarding 1Malaysia Development Bhd's (1MDB) accounts in 2013 and 2014, which Ng had signed off.
However, prior to Pua's complaint, a preceding complaint was lodged with the MIA by Andrew Anand Solomon Devasahayam on March 31, 2015. The DC had decided on Devasahayam’s complaint, while Pua's complaint is understood to be ongoing.
Ng filed a judicial review in October 2019 against the DC's decision to not strike out Pua's complaint based on the principle of res judicata — a legal doctrine meant to bar the relitigation or duplicate hearings between the same parties.
Ng also filed a judicial review over the complaint lodged by Devasahayam.
However, High Court judge Datuk Ahmad Kamal Md Shahid dismissed Ng's first judicial review last Dec 9. Ng is appealing against the decision.
Deloitte took over the audit of 1MDB's accounts from KPMG in December 2013 — after KPMG was reportedly dismissed by the company following a difference in opinion on the fair value of 1MDB's investment in Bridge Global SPC through Brazen Sky Ltd.
Deloitte verified the accounts for the 2013 and 2014 financial years, with an unqualified opinion, without any qualification or emphasis on the matter. It quit as 1MDB's auditor in 2016.
1MDB subsequently said the audited reports issued by Deloitte in connection with its 2013 and 2014 financial statements should no longer be relied upon.