Former Pahang menteri besar Adnan Yaakob has failed in his final attempt to overturn a summary judgment requiring him to pay a RM84,000 penalty to the Securities Commission (SC) over a disclosure omission in a state-owned company’s prospectus.
A three-member Court of Appeal bench chaired by Justice Azimah Omar said Adnan ought to have sought a judicial review to quash the penalty.
“On this ground alone, the appeal is bound to fail,” said Azimah, who sat with Justices Wong Kian Kheong and Brahim Ismail.
Azimah said Adnan had also failed to raise any triable issue to prevent summary judgment from being entered against him.
“We are constrained to dismiss this appeal as it has no merit,” the judge said.
The court also ordered Adnan to pay RM10,000 in costs to the SC.
Counsel Lambert Rasa-Ratnam, Chia Oh Sheng and Lim Jun Xian represented the SC while Adnan, a qualified lawyer, represented himself in court.
According to the facts of the case, Adnan, the state’s menteri besar between 1999 and 2018, was a director on the board of Pasdec Holdings Bhd, a subsidiary of the Pahang Economic Corporation.
The SC, a statutory body established under the Securities Commission Malaysia Act 1993 (SCMA), is empowered by that Act and the Capital Markets and Services Act 2007 to carry out its regulatory functions.
On May 16, 2018, Pasdec issued an abridged prospectus which omitted material information.
The corporation failed to disclose that its application for approval from the finance ministry – to subscribe to its entitlement at RM3.50 per rights share – was still pending.
Pasdec’s board of directors, which included Adnan, assumed responsibility for the oversight.
On July 22, 2020, the SC notified Adnan that he had breached provisions in the Capital Market and Services Act and imposed a RM84,000 penalty.
Since no payment was made, the SC filed a civil suit, and the magistrate in Kuantan on Aug 25, 2022 entered a summary judgment against Adnan, with costs of RM1,000.
The High Court also dismissed Adnan’s appeal on Feb 17, 2023.
