Court invites govt lawyer to submit on ‘questionable’ public-private contract

(AFP pc)

PUTRAJAYA: The Court of Appeal has invited a senior government lawyer to submit whether a contract entered into between a developer and a subsidiary of the Selangor government should be recognised on the grounds of public policy.

A three-member bench, chaired by Hamid Sultan Abu Backer, has requested Ikram Anggun Sdn Bhd and Permodalan Negeri Selangor Bhd to submit the required papers on the Attorney-General’s Chambers (AGC).

“We would like a senior member from the AGC to address the court whether such a contract should be recognised on public policy grounds related to exchequer principles,” he said.

Hamid said that allowing Ikram Anggun’s appeal on damages would shortchange the state government.

The bench, also comprising of Hanipah Farikullah and Kamaludin Md Said, adjourned the hearing to April 18.

Ikram Anggun and Permodalan Negeri Selangor had entered into an agreement in 2003 to build residential homes and an institutional centre in Sungai Buloh.

However, the agreement was discontinued in 2008 and Ikram Anggun filed a suit for unlawful termination.

The Shah Alam High Court dismissed the appeal in 2013. However, it was reversed by a Court of Appeal in 2015.

The High Court registrar only awarded RM50,000 in nominal damages but the amount was raised to RM100,000 by a judge.

Today, Hamid said the developer wanted RM35 million with interest and costs for loss of profit.

Hamid, in an explosive affidavit last week, had claimed that certain members of the judiciary have been aiding private parties to defraud the government.

He claimed the act of defrauding was done through nominees of politicians creating contracts with the government.

Once the government reneges on the contract, he alleged the private parties would take it to court in order to claim compensation.