Two company directors jailed 20 days for defying court order
Judicial Commissioner Yusrin Faidz Yusoff handed down the sentence against the directors of Alpha Capital (M) Bhd, Syed Mahadzir Fadaak Syed Jamil Fadaak, and his wife, Erna Elliyana Rosli, for defying the court orders dated Sept 5 and Nov 22 last year.
However, Yusrin allowed a stay of the execution of the jail sentence for two months from today, to give time for the couple to fully comply with the Mareva order issued on Sept 5, 2024.
"In the totality of the circumstances, the court is not persuaded that the fine would be sufficient for a just sanction.
"The great concealment of the material information, the failure to comply over an extended period and the strategic nature of the non-disclosure demand a stern response," said Yusrin in delivering his decision.
In addition to the jail sentence, the court also ordered the couple to pay a fine of RM10,000 each within seven days, failing which they would face an additional seven days in prison.
Last month, the court found Syed Mahadzir Fadaak and Erna Elliyana guilty of contempt for failure to adhere to the Mareva injunction filed by their investors in September last year.
Today's decision stemmed from an interlocutory application in a civil suit filed by the 64 investors against Alpha Capital for failing to pay monthly dividend returns, involving a collective sum of RM19,831,440.50.
A Mareva injunction is a temporary order preventing the defendant from disposing of assets until a decision is made in the case between the plaintiff and defendant.
Earlier in court, both Syed Mahadzir Fadaak and Erna Elliyana apologised, claiming they had no intention to disrespect the court.
"We did not intend to be in contempt of court, we do not understand what was being requested (in the Mareva injunction).
"The audit is currently in progress, but we have only received a draft audit report because we are unable to make payments to the audit company as all our bank accounts have been frozen," said Syed Mahadzir Fadaak.
Lawyers Sachpreetraj Singh and Simran Kaur appeared for the 64 investors, while the couple was represented by lawyer Ganesh Magenthiran. - Bernama
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
24 minutes ago
- The Star
ACCIM calls for enhanced tax incentives to boost Malaysian exports
PETALING JAYA: While praising the government's efforts to lower tariffs, the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCIM) urged for increased tax incentives and grants to support exporters and businesses. Its president, Datuk Ng Yih Pyng, said the Allowance for Increased Exports (AIE) should be widened and increased as part of this reduction in tariff. 'Currently, an allowance equal to 10% of the value of increased exports, deductible against 70% of statutory income,' he said in a statement on Friday (Aug 1). He said that the government should also increase the lifetime cap of the Market Development Grant to RM500,000, while raising the per-claim ceiling to RM35,000 for international trade fairs and exhibitions, and RM10,000 for locally held trade fairs and exhibitions. He claimed that the current limits of RM5,000 for local and RM25,000 for overseas reimbursement were not enough. However, he also mentioned that he supports the Investment, Trade and Industry Ministry to help exporters address the current tariffs by improving their efficiency and productivity. At the same time, he also agrees to explore further government support for businesses, particularly those in small and medium enterprises, to adapt to the new baseline tariff rate. Its minister, Tengku Datuk Seri Zafrul Abdul Aziz, said they would continue to work closely with stakeholders to maximise the opportunities from this development, including the strong momentum in approved investments, driven by ongoing infrastructure projects, a consistent realisation rate of over 85% for approved investments, as well as catalytic national development initiatives, in a statement on Friday. 'We remain committed to defending Malaysia's trade interests while fostering mutually beneficial partnerships with key economies, including the United States. Malaysia will also continue to pursue its industrial reform and strategic trade diversification initiatives to support the nation's growth,' he said.
Borneo Post
24 minutes ago
- Borneo Post
RM13 million agriculture, livestock projects launched to boost food security
Arthur (centre) with the MoU signatories. KOTA KINABALU (Aug 1): The signing of three Memorandums of Understanding (MoUs) between various parties here today marks the launch of agriculture and livestock projects worth RM13 million, aimed at enhancing sector growth and strengthening the country's food security. The first MoU, between the Farmers' Organization Authority (LPP) and Desa Keningau Livestock Industries Sdn Bhd (DKLI), involves a project to boost local grain corn production through a corporate approach and transfer of technology (ToT). Under the five-year partnership, LPP will provide land development and machinery support using a matching grant of RM3 million, while DKLI will oversee planting, planning and implementation. The second MoU, between the Keningau Area Farmers' Organisation (PPK) and Absolute Moringa Sdn Bhd, focuses on a RM10 million agricultural input marketing initiative. This collaboration aims to enhance PPK's services in Sabah by supplying higher-quality agricultural inputs to increase yields and improve business operations. Meanwhile, the third MoU was signed between LPP and Sawit Kinabalu Farm Products Sdn Bhd (SKFP) for a ToT-based integrated cattle breeding project. SKFP will serve as a reference model and provide technical expertise, while LPP coordinates implementation at the Farmers' Organization level. Deputy Agriculture and Food Security Minister Datuk Seri Arthur Joseph Kurup, who witnessed the exchange, said the initiatives would reduce Malaysia's dependence on imported products such as grain corn. He said the projects are expected to expand accessibility for breeders and lower food prices, especially for livestock. 'This collaboration between the government and private sector is crucial to ensure the economic benefits reach local communities,' he said. Arthur also praised the initiative for supporting Malaysia's target of achieving 50 percent self-sufficiency in the ruminant industry by 2030, up from the current 16 percent.
Borneo Post
an hour ago
- Borneo Post
Agrobank allocates RM200 million for Agrofood Financing Fund 2025
Arthur (back) witnessing Tengku Ahmad (left) handing over the DPA 2025 to KPKM Business Development and Investment Division Secretary Khalid Ibrahim. KOTA KINABALU (Aug 1): Agrobank has earmarked RM200 million for its Agrofood Financing Fund (DPA) 2025 to support national food security and promote the long-term sustainability of Malaysia's agricultural and agrofood sectors. The fund provides financing facilities to farming communities engaged in agricultural and agrofood production activities — ranging from upstream to downstream — including related support services. The goal is to encourage the adoption of agrotechnology and enhance the resilience of the agrofood industry. Agrobank Chief Executive Officer Dato Tengku Ahmad Badli Shah Raja Hussin said the bank, as the implementing agency, offers financing between RM50,000 and RM5 million to eligible agricultural entrepreneurs at a profit rate of just three percent per annum. 'The financing covers fixed capital needs such as asset purchases and development costs, as well as working capital,' he said. 'It also supports the entire agrofood value chain, including food production like planting, farming and fishing, along with processing, distribution, marketing, and food preparation services.' Tengku Ahmad said the initiative reinforces Agrobank's role as a development financial institution (DFI) committed to providing inclusive, sustainable and accessible financing to farming communities and agro-industry players. 'This effort is aligned with the government's aim to boost the competitiveness of the nation's agri-food sector,' he added. The handing over of the DPA 2025 was witnessed by Deputy Agriculture and Food Security Minister Datuk Seri Arthur Joseph Kurup during a ceremony held at the Sabah International Convention Centre here today.
