This article first appeared in The Edge Malaysia Weekly on September 24, 2018 - September 30, 2018

LAST week, the police commenced investigations under Section 499 of the Malaysian Penal Code on a story in The Edge (Issue 1231, Sept 10), titled “Protasco asks AG to reopen case against Tey, associate”, following police reports lodged by Datuk Larry Tey Por Yee and his associate Datuk Ooi Kock Aun.

The Edge also received a letter from the lawyers acting for them, alleging that the article had defamed their clients and demanding, among others, that it be retracted.

As a result of the police reports, two editors of The Edge were summoned to Ibu Pejabat Daerah (IPD) Putrajaya on Thursday afternoon to give a statement. They were questioned on the merits of the article and the motives for writing it. They were also asked to reveal their source of the information, which they refused to do.

Section 499 of the Malaysian Penal Code, which provides for the offence of criminal defamation, states: “Whoever, by words either spoken or intended to be read or by signs, or by visible representations, makes or publishes any imputation concerning any person, intending to harm, or knowing or having reason to believe that such imputation will harm the reputation and shall also be liable to fine of such person, is said, except in the cases hereinafter excepted, to defame that person.”

There are 10 exceptions mentioned in Section 499, which in a nutshell, include truth, if it is for the public good that the imputation should be made or published, if done in good faith, to express an opinion, among others.

The police were professional and polite in discharging their duties when the statement was taken from The Edge editors. Nevertheless, the process took 2½hours at the station.

The Edge Media Group’s publisher and CEO Ho Kay Tat says, “The Edge stands by our report and will not be intimidated by attempts to stop us from reporting on what is happening at Protasco, a company that is listed on Bursa Malaysia.”

On Sept 10, The Edge had written that Protasco had requested the Attorney-General’s Chambers (AGC) to consider reopening a criminal breach of trust, and other cases against Tey and Ooi, its former directors.

The Edge also cited a letter addressed to Attorney-General Tommy Thomas, dated July 2, in which Protasco requested the AG to reopen the cases, previously withdrawn by the prosecution.

To recap, Tey and Ooi were granted a discharge not amounting to an acquittal (DNAA) by the Sessions Court in Kajang in September 2017.

Tey was charged under Sections 420 and 181 of the Penal Code for cheating and making a false statement to a Commissioner for Oaths on Jan 15, 2016, while Ooi was charged under the same section on Feb 3, 2016.

Meanwhile, Ooi was also charged under Section 409 of the Penal Code for criminal breach of trust, and both were charged under Section 131 (1), read together with Section 131 (8) of the Companies Act 1965, on July 11, 2016, for failing to disclose their interest in a contract for Protasco to purchase a stake in an Indonesian oil and gas company.

Tey was made a director after emerging as the second largest shareholder of Protasco in late 2012. He and Ooi acquired a 27% stake in the construction, maintenance and property development company through Kingdom Seekers Ventures Sdn Bhd.

Their entry was initially welcomed by Protasco’s largest shareholder and group managing director Datuk Seri Chong Ket Pen as the duo had come in with a plan to diversify into the oil and gas sector, which was booming then.

But things turned sour, and Protasco sought legal recourse against Tey and Ooi for US$27 million (RM88.41 million then) in September 2014 for breach of fiduciary and statutory duties.

Protasco claimed that Tey and Ooi had failed to disclose their interest in the transaction and had conspired to defraud the company and undertake secret profit-making, according to filings with Bursa Malaysia.

After a lengthy process, the case was scheduled to go to trial in the Kajang Criminal Sessions Court on Sept 28, 2017. However, two days before the case was to be heard, the prosecution applied to the court to withdraw all charges against Tey and Ooi. The court granted both of them a DNAA.

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