PUTRAJAYA (June 18): Malaysia’s highest court has ordered Public Bank Bhd (KL:PBBANK) to cough up RM90 million to the National Feedlot Corporation (NFCorp) and four others, including NFCorp chairman Datuk Seri Mohamad Salleh Ismail.
The plaintiff had sued Public Bank for leaking details of their accounts and a proposed purchase of properties at KL Eco City. The bank’s former clerk Johari Mohamad was implicated in the leak of confidential documents.
The three-member bench at the Federal Court led by Chief Judge of Malaya Tan Sri Hasnah Mohammed Hashim awarded RM30 million each in equitable, exemplary and aggravated damages to the scandal-plagued firm after dismissing Public Bank’s appeal on May 26.
Hasnah, who was flanked by Chief Judge of Sabah and Sarawak Tan Sri Abdul Rahman Sebli and judge Datuk Abu Bakar Jais, also ordered the bank to pay 2% interest on the total sum effective Wednesday, June 18, until the payment of damages is settled.
Hasnah said that as for the general damages, the bench had calculated net income suffered by NFCorp as at the year 2013.
She also added that the tabulation of quantification of exemplary and aggravated damages amounting to RM60 million were based on NFCorp’s audited accounts.
“We have thoroughly examined the financial reports, projected income reports and audited accounts (of NFCorp) and award the following equitable damages of RM30 million, exemplary damages of RM30 million, and aggravated damages of RM30 million as well as 2% from the date of this order,” the judge said.
Hasnah added that Public Bank had not rebutted or challenged the financial reports or audited accounts of NFCorp during its appeal.
“We are of the view that the Court of Appeal erred when it found that NFCorp failed to prove damages and only awarded nominal damages of RM10,000 with interest. The Court of Appeal erred when it concluded that there were insufficient evidence adduced to support its claims of damages. On the contrary, NFCorp produced audited accounts and financial reports through its expert witnesses,” she said.
She added that Public Bank did not rebut or challenge the reports and audited accounts through any witnesses or expert witnesses.
“Public Bank only challenged the expertise and credibility of (NFCorp’s) expert witnesses,” she said.
Brief history of NFCorp’s case from the High Court
The originating suit in the High Court was filed by NFCorp, Mohamad Salleh, National Meat & Livestock Corporation Sdn Bhd, Agroscience Industries Sdn Bhd, and Real Food Company Sdn Bhd against Public Bank for leaking details of their accounts and the proposed purchase of properties at KL Eco City.
The High Court did not find that Public Bank had breached confidentiality.
On Aug 30, 2023, the Court of Appeal overturned the High Court’s decision, finding Public Bank liable for breaching its duty of confidentiality. The COA only awarded nominal damages of RM10,000 and ordered Public Bank to pay RM500,000 in costs.
This resulted in NFCorp going to the Federal Court this year to appeal for more damages, while Public Bank appealed to reverse the COA’s decision against it, which led to Public Bank losing this appeal.
In their decision on May 26, the bench only awarded NFCorp RM300,000 in costs by Public Bank, and set June 18 to deliver the bench’s decision on damages to be awarded.
NFCorp’s lawyer Tan Sri Muhammad Shafee Abdullah told the bench previously that his clients were seeking RM560 million in damages: RM60 million in general damages, RM250 million in exemplary damages, and another RM250 million in aggravated damages.
Shafee said that the COA and High Court judges did not consider that his client had suffered serious loss due to the bank’s breach of confidentiality.
The COA, in overturning the High Court’s decision, ruled that the High Court judge had ignored vital evidence from the bank’s domestic inquiry on its former clerk Johari, who was implicated in the leak of confidential documents.
Politician and former economy minister Datuk Seri Mohd Rafizi Ramli had at the time held a press conference to disclose the information along with NFCorp’s customer profile and balance summary, which led to Mohamad Salleh complaining on March 30, 2012 about wrongful disclosure and thus filing the suit.