Malaysian Resources Corporation Bhd (MRCB) and its executive vice-chairman, Salim Fateh Din, have filed a RM100 million defamation lawsuit against veteran journalist P. Gunasegaram. The legal action, lodged at the Shah Alam High Court on July 29, follows a dispute over an article written by Gunasegaram regarding the LRT3 Shah Alam Line project. The plaintiffs allege that the article damaged their reputations and negatively impacted the company's share price and investor confidence.
The core of the dispute centers on claims made in the article, which MRCB and Salim argue falsely suggested that the company secured the rail project through cronyism, political patronage, and influential connections rather than a merit-based procurement process. The lawsuit also contends that the article incorrectly linked the company to project cost escalations and delays. MRCB and Salim maintain that these allegations are baseless and untrue.
Prior to filing the lawsuit, the plaintiffs issued a letter of demand on July 10, requesting that Gunasegaram remove the article, issue a full retraction, and provide an apology. Gunasegaram, however, declined these demands. He has defended his writing as fair comment on a matter of significant public interest, citing the project's fluctuating costs as a legitimate subject for journalistic scrutiny.
In addition to the RM100 million in damages, the plaintiffs are seeking injunctions to force the removal of the article and to prevent the journalist from publishing similar content in the future. The case highlights the ongoing tension between corporate entities seeking to protect their market standing and the role of the media in questioning the governance of large-scale public infrastructure projects.