[UPDATED] Court orders Zuraida to pay RM10 mil for breaching PKR bond

KUALA LUMPUR – The high court here has ordered Datuk Zuraida Kamaruddin to pay RM10 million to PKR for breaching a bond binding her to the party.

Judge Datuk Akhtar Tahir made the ruling against the party’s former vice-president during an online proceeding today after finding that the party had succeeded in proving its claim against her.

The suit was filed by PKR secretary-general Datuk Seri Saifuddin Nasution Ismail on behalf of the party via Messrs William Leong & Co on September 28.

The suit claimed that she had breached the contractual bond by joining Bersatu following the Sheraton Move in late February 2020.

The party invoked Section 71 of the Contracts Act 1950 to establish its right to recover compensation from the benefits Zuraida enjoyed as Ampang MP as well as a minister.

Saifuddin claimed that on February 24, Zuraida announced her resignation from the party through a statement with 10 other PKR MPs without stepping down from her elected post of Ampang MP.

He said Zuraida had failed, refused and neglected to pay the sum the party was entitled to claim.

In her defence, Zuraida claimed that the bond was “unconstitutional”.

She said PKR could execute the terms under the agreement, as it breached one’s freedom of association under Article 10 of the federal constitution.

PKR counsel, Navpreet Singh said the court had found the bond to be a valid and binding contract. 

The court was of the view that the RM10 million was not disproportionate but a reasonable sum to act as a deterrence to party members from acting against the party’s interests and that any less sum would not be a deterrence.

A cost of RM50,000 was also awarded in favour of the plaintiff.

In May last year, Zuraida left Bersatu to join Parti Bangsa Malaysia (PBM).

However, in December, she, along with 10 other PBM members, were sacked following a leadership tussle with the incumbent president, Larry Sng.

Zuraida lost the Ampang seat to PKR’s Rodziah Ismail, who won with a 29,681 majority in the last general election.

Ivone Low (MCA), Sasha Lyna Abdul Latif (Perikatan Nasional), Dr Nurul Ashikin Mabahwi (Pejuang), and Bryan Lai (Warisan), as well as three independents also contested the seat.

Zuraida, who was the housing and local government minister from 2018 to 2021 and then plantation industries and commodities minister from 2021 to last year, was represented by Nizamuddin Abdul Hamid. – The Vibes, June 23, 2023