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Malaysiakini fights ‘muzzling’ lawsuit Quoting a Japan Times report, Malaysiakini alleged that the Chief Minister and his family had been receiving kickbacks via a company registered in Hong Kong called Regent Star. This was uncovered by Japanese tax authorities who deemed the payments made by nine companies, which is part of a shipping cartel, as 'illegitimate expenses' since the Hong Kong agency – believed to be a paper company – did little 'substantive work' to justify the payments. According to tax authorities, the shipping companies had tried to disguise the payments as business expenses and were thus not taxed. Japan Times reported that the shipping firms were likely to be slapped with well over $3 million in back taxes, along with heavy penalties for 'hiding' the funds from tax authorities. The newspaper added that the shipping companies were believed to have used the money as a ‘lubricant to facilitate their lumber trade’. The shipping firms, which have rejected the tax authorities' claim and argued that the transactions with Regent Star were legitimate, have denied any wrongdoing. Malaysiakini editor-in-chief Steven Gan said the online news website intends to fight the law suit. "Over the past seven years, we have published numerous reports on corruption. Malaysiakini is not in the business of apologising every time we report on such scandals. As journalists, we have a duty to report on such matters, which are of public interest," he added. According to Mr Gan, the law suit was aimed at muzzling Malaysiakini. "If by filing the law suit, Taib hopes to intimidate us, he is dead wrong. When we go to court, we have a long list of witnesses whom we plan to call – starting with the Anti-Corruption Agency and Japan's tax authorities," he said. "This could turn out to be the mother of all court battles." Article and graphics by Malaysiakini.com |
