Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily, on January 28, 2016.

 

KUALA LUMPUR: The Federal Court has ruled that the statements recorded by an investigating officer of the Securities Commission Malaysia (SC) in the course of its investigation do not need to be disclosed in civil proceedings.

In a statement yesterday, the SC said the Superior Court said the statements made by persons to the SC under Section 134 of the Securities Commission Act 1993 are protected from disclosure in both civil and criminal proceedings as a matter of public interest.

According to the SC, the Federal Court rendered a unanimous verdict, overruling the Court of Appeal’s decision, that Section 134(4) of the Securities Commission Act must be read subject to the rules of privilege and public policy.

Justice Tan Sri Ahmad Maarop said in a written decision that these rules of privilege and public policy apply to civil as well as criminal proceedings.

“The statements given by individuals to the SC were considered to be communications made to a public officer in official confidence and if the witness statements were ordered to be disclosed, future witnesses would not give information to the SC and this would greatly prejudice the SC’s ability to carry out future investigations into offences under the securities laws,” the judgement read.

The decision was made following civil proceedings that the SC commenced at the Kuala Lumpur High Court in 2010 against Datuk Ishak Ismail for alleged breaches of the securities laws in relation to his purchase of shares in Kenmark Industrial Co (M) Bhd in 2010.

The Court of Appeal, in affirming the earlier decision of the High Court, ruled that statements made by persons to the SC under section 134 of the Securities Commission Act 1993 must be disclosed in civil proceedings.

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