KUALA LUMPUR (Nov 5): The Railway Assets Corporation (RAC) is suing political activist Badrul Hisham Shaharin (also known as Chegubard) regarding the dissemination of statements allegedly defaming RAC and the Rolling Stock Strategy (RSS) initiative.
RAC has also obtained an interim injunction against Chegubard from the Seremban High Court, which restrains him from uttering, publishing, distributing, or causing the distribution of the statements specified in the order, including allegations that railway assets had been sold as scrap metal and that the RSS was awarded without proper procurement and company selection processes.
Chegubard has also been directed to take immediate steps to delete related videos and other publications uploaded on social media platforms.
David Mathew and Chong Jen Hui from the legal firm Messrs Steven Thiru appeared for RAC at Wednesday’s (Nov 4) proceedings, which were scheduled for an inter partes hearing of the injunction application.
The court then fixed Jan 20, 2027 for the inter partes hearing, after Chegubard’s counsel Amirul Ar Rashid Azman sought more time to file an affidavit in reply.
The suit stems from an online posting from Chegubard in September, claiming that he had discovered a corruption scandal involving national railway assets under the RAC that was "larger than 1MDB".
The project involves 44 locomotives and 246 freight wagons, under a 25-year leasing arrangement with a total commitment by Keretapi Tanah Melayu Bhd estimated at RM4.4 billion.
Chegubard alleged that RAC's RSS initiative involved selling the nation's railway assets as scrap metal.
He claimed that the RSS contract and initiative were awarded without going through proper procurement procedures and standard company selection processes.
He characterised the lease arrangement as a massive "RM40 billion concession".
In a statement by the RAC, it clarified that the RSS is not a sale of strategic national assets (such as land, tracks, stations, or depots). Instead, it is a sale-and-leaseback initiative involving the remanufacturing of 44 locomotives (20 active, 24 grounded/inactive) and the supply of 246 new 20-TAL wagons to support cargo operations without using government funds.
RAC refuted claims that the locomotives were sold as scrap. The project involves a 25-year lease scope that includes maintenance, complete overhauls, and asset availability guarantees.
RAC said that the total leasing commitment is approximately RM4.4 billion over 25 years (including maintenance costs), debunking the "RM40 billion concession" claim. Lease payments are handled via a pass-through basis with no profit made by RAC.
In the lawsuit, RAC is seeking a declaration that the statements were defamatory, and it wants an apology, damages, and a permanent injunction against the repetition of the statements.