Muhyiddin to pay Guan Eng RM1.35 mil for defamation

High court finds ex-PM’s defence in Yayasan Albukhary’s tax exemption issue indefensible, also notes timing to ‘deflect from own graft charges’ and intent to stir racial and religious feelings

DAP chairman Lim Guan Eng gives the thumbs up after winning his defamation suit against former prime minister Tan Sri Muhyiddin Yassin over statements that he (Lim) revoked Yayasan Albukhary's tax exempt status while he was finance minister. - Bernama pic, November 8, 2024

KUALA LUMPUR —The High Court has ordered Tan Sri Muhyiddin Yassin to pay RM1.35 million in damages to Lim Guan Eng for defaming the DAP chairman over the revocation of Yayasan Albukhary’s tax exemption.

Judicial Commissioner Roz Mawar Rozain today ruled in Lim’s suit against Muhyiddin after finding that the former finance minister had proved his case against the former prime minister.

On March 27, 2023, Lim filed a lawsuit against Muhyiddin for allegedly making three defamatory statements on Facebook on March 9, 11, and 12, 2023, involving him in the tax exemption issue.

Reports on the matter were subsequently published in several newspapers and news portals.

The former Penang chief minister also claimed that the defamatory statements implied he had abused his position and power by authorising or directing the Inland Revenue Board (IRB) to impose taxes and penalties on the charitable foundation, despite being exempted. 

Roz Mawar in her judgement said Muhyiddin had resources at his disposal to verify whether his understanding was correct on facts.

Yet, Muhyiddin did not do so, she added, and had continued to make further defamatory statements against the Lim after the latter had brought to his attention the falsity of such allegations in the defamatory statement.  

“The learned counsel for the defendant (Muhyiddin) submitted that the language used in the defamatory statements was not inflammatory. This court is unable to accept such submissions as the context of the defamatory statements were in their natural and ordinary meaning provoked incitement of racial sentiments.

“Furthermore, now that the evidence has been adduced at trial, there was no justification to make such defamatory statements. This court finds that the defendant has failed to prove the truth of his allegations,” the judicial commissioner said.

Roz Mawar further said the court found Muhyiddin’s defence of fair comment also failed for several compelling reasons. 

Muhyiddin’s defence of justification, fair comment and qualified privilege were also unsustainable because his statements were not based on true facts.

She also said Muhyiddin had deliberately mixed his allegations with inflammatory references to race and religion by stressing Yayasan Albukhary’s role in helping Muslims through its charity work.

The judicial commissioner found that the timing of Muhyiddin’s comments suggested that they were calculated to deflect attention from his graft charges.

She also pointed out that the evidence of the Finance Ministry’s tax division head, Hazlan Abdul Aziz had strengthened Lim’s case and weakened Muhyiddin’s defence.

The court’s breakdown of the damages is RM350,000 for each of the three statements leading to RM1.05 million in general damages, plus RM150,000 for aggravated damages and RM150,000 for exemplary damages, totalling RM1.35 million.

The court issued an order for Muhyiddin to retract all three defamatory statements from all of his social media accounts immediately.

Roz Mawar also imposed an injunction to prevent Muhyiddin from further repeating the statements and ordered Muhyiddin to pay RM50,000 in cost to Lim.

Lim attended today’s proceedings with his lawyer, Guok Ngek Seong, while Muhyiddin was not seen in the court. 

Lawyer Chetan Jethwani, who appeared for Muhyiddin, confirmed that they will be appealing today’s decision. 

Meanwhile, Lim when met by reporters said he was grateful for today’s decision in which the court clearly stated that Muhyiddin’s statements against him were false and baseless.

“Today I got justice to clear my name because I really didn’t do it. Besides, it happened when Muhyiddin was Prime Minister and had nothing to do with me,” he said. – November 8, 2024