Retract DEIG report or we’ll see you in court, Selangor MBI tells Utusan, NST, TV3

(Malay Mail Online) – Faced with unfavourable reports over the set-up of its new state investment unit, PKR-led Selangor took the first legal step demanding several news outlets linked to Umno retract their allegedly defamatory articles within seven days or face court action.

The Selangor Mentri Besar Incorporated (MBI) said in a statement that letters of demand have been issued to several parties, including but not limited to Sistem Televisyen Malaysia Bhd or TV3, Utusan Malaysia and the New Straits Time Press which it said had published articles that contained defamatory allegations.

“These publications have tarnished the reputation and further caused considerable distress to DEIG and ultimately MBI resulting in hatred, contempt or ridicule, suspicion towards the DEIG and MBI respectively.

“The allegations made by the publications are entirely inaccurate, baseless, malicious and false, and made without care, diligence and devoid of ‘fair journalism’ practice,” MBI said in a statement.

The letters were served to the respective companies on September 25.

MBI claimed the defamatory allegations contained in the publications made by the aforementioned parties meant and would have been understood by readers of such publication to mean amongst others that DEIG has or will undertake dishonest and corrupt business practices by misusing public funds.

Criticism against DEIG, which is expected to absorb the state’s assets currently under MBI, have largely revolved around it being set up as a company as opposed to MBI, which has to adhere to an enactment of its own that requires it to be answerable to the state government.

Following parallels drawn by Umno members between DEIG and debt-laden federal investment arm 1 Malaysia Development Bhd, the Malaysian Anti-Corruption Commission deputy chief commissioner (operations) Datuk Seri Mohd Shukri Abdull said the commission would be gathering information and monitoring how DEIG would operate before determining if there are elements of corruption involved.

While some Selangor lawmakers from the federal opposition pact had themselves criticise the proposed setting up of DEIG, they claim the issue had been blown up out of proportion by political rivals to divert public attention from the 1MDB scandal.