Wednesday, 15 June 2016

24th May 2016 marked the end of our long legal tussle with Lynas. The Appeal Court in Putrajaya dismissed with costs Lynas' appeal on a point of law whether the High Court Registrar has the legal authority to determine the quantum of taxation.

The taxation issue arose out of the defamation suit being dropped by Lynas against SMSL, me and 4 others in 2013. Since then our legal counsels had been busy sorting out documents and items on which we can claim expenses in regards to the case.

Before this Lynas offered to compensate us with RM3,000.00 for all the troubles they caused in instituting the defamation suit!

Though we spent hundred of thousands in getting experts from both local and overseas institutions in preparation of our defence, the court ruled that not all were admissible. In the end we were awarded a total of RM 80,505.10 for all claims inclusive of preparation of legal documents.

There is a lesson to be learnt here: Corporations will resort to any means money can employ to harass any party that raised a legitimate protest against their clandestine activities that might have a serious negative impact on the environment.

As can be seen, an e-portal which was sued together with us had no financial means to defend itself had decided to comply with Lynas' demand for an open apology.

We stood firm and were ready to wade through the challenges to prove ourselves. This had the effect of rattling them in their consideration of the possible negative perception of their corporation image internationally ! Thus the defamation suit was dropped!

Sometimes one has to stand firm to allow truth to prevail and this is one incident where we did!

Quick Update On Lynas:

Lynas owes Jogmec/Soljitz US$205 million. They are referred to as the senior creditors and interest rate payable is 6.5% p.a

It technically also owes US$225 million as bonds held by Mt. Kellet with annual interest of 2.75%

On their last submission to ASX, Lynas informed their shareholders that:-

1. All interests due to the creditors from May to Sept 2016 are postponed to Dec 2016
2. The US$2 million payable on 30 June 2016 to Soljitz will be paid thru special redrawing rights agreed upon by both Lynas and their creditors from the restricted JARE account. (What it means is that the US$2 million will be taken from the pool of interests paid by Lynas to both the creditors.
3. The JARE restricted account has a balance of US$1.37 million. Lynas needs the sum and has acquired permission from the creditors to allow them to withdraw it completely. It shall be paid back by Lynas in Dec 2016.

There will be no penalty or interests charged for these arrangements. Therefore, please judge for yourself the chances of Lynas' continued survival in operating the RE business.

Save Malaysia! Stop Lynas!