Deputy minister ordered to settle RM1.6 mil debt

M Saravanan, now Federal Territories deputy minister, has been ordered to pay RM1.6 million to VPN Marketing Sdn Bhd to settle an outstanding payment.The Kuala Lumpur High Court also ordered Project Penyelenggara Lebuhraya Bhd (Propel) to pay an additional RM690,000 to the company, for breach of contract in the supply of guard railings for the North-South Expressway among others.The decision was made in chambers today by Justice Anantham Kasinater.Two witnesses from VPN Marketing and another two from Propel had testified during the trial.Saravanan (right) was sued in his personal capacity, before he was made deputy minister, after his company RMW Manufacturing Bhd - of which he was manager and director - wound up.


VPN Marketing, a company based in Bandar Puncak Alam, said in its statement of claim that the company had since 2004 supplied steel materials to RMW Manufacturing.It said RMW Manufacturing had not settled RM2.337 million that was due.VPN Marketing claimed that Saravanan through his lawyers had agreed via a letter dated Nov 28, 2007, to issue a letter of guarantee to personally pay RM1.647 million while Propel was to pay RM690,000.

Payment requested several times

VPN Marketing had at numerous times asked the two defendants to pay up, but they failed to do so resulting in this action.It had sent a notice of demand on Sept 7, 2009 but the two defendants failed to act on this.
This resulted in the company filing the suit two days later.Saravanan in his statement of defence denied ever issuing a letter of guarantee of payment.However, Justice Anantham ruled the letter to be valid and hence, Saravanan is required to pay.

VPN Marketing was represented by its counsel C Shanmugaiah, while Lawyer G Govind appeared for Saravanan and Daya Baskaran for Propel.Shanmugaiah said this was purely a commercial suit filed against Saravanan, who is also MIC vice-president, as it was before his appointment as deputy minister.Justice Anantham also ordered Saravanan and Propel to pay interest at eight percent from 2007, as well as costs.
The judge will write his grounds of judgment later.

Source : http://www.malaysiakini.com/news/143952