KUALA LUMPUR (June 6): The High Court on Tuesday (June 6) ordered British author Michael Backman to pay a total of RM1.2 million in damages to former banker and The Edge Media Group chairman Tan Sri Tong Kooi Ong for defamation in the book "Daim Zainuddin: Malaysia’s Revolutionary and Troubleshooter".

The court also ordered Backman to also pay costs of RM100,000, and upheld a prohibitory injunction against Backman granted last March, from repeating the defamatory posts in his book that defamed Tong.

Backman, however, did not enter an appearance in the court proceedings.

Judicial commissioner Roz Mawar Rozain in her decision in awarding damages said the damages are awarded for causing immeasurable harm by defamation which the court could only compensate.

The award, she said, is based on Tong’s standing in the business realm in Malaysia, regionally and worldwide.

“This court finds RM600,000 as reasonable for general damages. Since the defendant (Backman) did not enter an appearance as he felt he does not fall under jurisdiction, this court agrees Backman’s conduct warranted aggravated damages.

“Hence, the court grants an additional RM600,000 in aggravated damages,” Roz Mawar said.

The court also awarded RM100,000 in costs to Tong.

Roz Mawar in March entered a judgement in default against Backman for his non-appearance in court proceedings and the prohibitory injunction.

Tong was represented by K Shanmuga and Allyna Ng in Tuesday’s proceedings.

He was present in the proceedings in the afternoon.

Tong filed the suit against Backman in September last year over the publication of the 2018 book — perceived to be a hagiographic biography of Daim, a former finance minister of the country. The book was published by the author’s Thai publisher.

Tong was the founder and substantial shareholder and chief executive officer of the PhileoAllied Bhd group of companies, including Phileo­Allied Bank Bhd, of which it was the holding company until May 31, 2000.

PhileoAllied Bank was sold to Malayan Banking Bhd that year in what was regarded as a forced merger of Malaysian banks after Bank Negara Malaysia identified several banks as anchors to take over a number of smaller banks, including PhileoAllied Bank.

Tong, who testified before Roz Mawar in the assessment of damages on Tuesday, said the impugned words in the book, which was widely published, had damaged his reputation as the face of PhileoAllied Bank by suggesting that he had mismanaged the bank in a serious way as to cause it to be investigated in 2000.

Tong said that in Backman's book, the author defended Daim’s scheme and his choice of anchor banks, stating that PhileoAllied Bank was under investigation for breaches of lending limits at the time.

“The impugned words suggest that it was because of this investigation that the bank was not chosen [as an anchor bank], and not for any other reason.

“I contend that this allegation is clearly false. The ‘investigation’ into the bank was, in the words of the finance minister at the time of the investigation, ‘a routine move’. Backman was also aware of this since the author referenced a Business Times newspaper article of the same date in the footnote to the impugned words,” he said.

Tong, who is also the executive chairman of Avarga Ltd, Singapore, and The Edge Media Group Pte Ltd, Singapore, said that in the end, the bank was never penalised for any breach after the investigation, and he believes that Daim’s decision not to select the bank as an anchor bank had nothing to do with the investigation.

“Phileo, the bank and I have always been closely linked. As the founder of the Phileo Group and therefore founder of the bank, I was the 'face' of the entire group, including the bank. Therefore, to impugn Phileo is to impugn me.

“This is shown by the impugned words themselves, where the defendant (Backman) acknowledges that many believed the reason Phileo was not chosen was that I was perceived to be close to [Datuk Seri] Anwar Ibrahim,” Tong said.

He added that in 1999, Phileo made RM214 million in profits after tax, and the bank recorded a 26% return on equity, a 38% non-interest income ratio, and 204% growth in share investment income.

“In other words, Phileo and the bank were both very successful,” Tong said.

Tong said the bank was a very successful bank, innovative in its time, and beloved by its employees.

“It was built from my passion, and supported by many others who shared my vision and excitement for the future of the Malaysian economy. I am still active in the corporate industry, and a large part of my reputation has been built upon the success of Phileo in its time. The impugned words which cast doubt upon my quality of my leadership of Phileo and the bank have caused me to suffer damage to my business reputation,” he said.

“Given that I am a director of public companies in Singapore and Canada, and in view of my business interests in Malaysia and my hard-earned reputation over these many years of doing business, Backman’s reckless attitude of not fairly settling out the circumstances of the bank directly affected my reputation,” he said.

Tong, in answering further oral questions from Shanmuga, said Backman is not accustomed to writing autobiographies, as he is a successful antique dealer who has a store in Mayfair, London, and had possibly commissioned the job of writing the book to someone.

He also said that Backman does not seem to respect Malaysian law by not entering an appearance in this case.

Tong has pledged that whatever sum awarded would be channelled to Malaysian charitable organisations.

Read also:
Court: Tong obtains prohibitory injunction against British author, court to assess damages