SHAH ALAM, Sept 4 — A High Court here binned Yayasan Basmi Kemiskinan’s (YBK) defamation claim against Selangor Mentri Besar Tan Sri Khalid Ibrahim and PKR lawmaker Yaakob Sapari, ruling that both men had been right to criticise the state welfare body for its poor financial management.

Justice Datuk Yaacob MD Sam said Khalid and Yaakob had acted in their “social and moral obligation” to the public when they issued media statements chastising the foundation in 2010.

“It was a fair comment based on official records and documents available... to which the defendants had a qualified privilege too,” said Yaacob.

“Hence, as the first defendant as the mentri besar of Selangor and the second defendant as an executive councillor have the legal, social and moral responsibility to ensure the decision to alienate the plots of land to YBK is well founded and in public interest,” said the judge today, referring to Khalid and Yaakob.

The foundation, its subsidiary, YBK Sdn Bhd, and its chairman Datuk Zainal Abidin Sakom, sued Khalid and Yaakob in April 2010 for alluding in press statements and media reports that they were untrustworthy, had failed to manage properties entrusted to the foundation transparently and responsibly, and had pressured poverty-stricken Malays.

YBK was set up in 1990 to aid the hard-core poor in the country’s richest state.

“From the evidence presented and testimonies heard, the court concluded that the statements does mean that the first and second plaintiffs did not perform their duties responsibly,” said the judge.

“The first defendant (Khalid) and the second defendant (Yaakob) also did not deny making the statement or made any attempt to correct the media reports,” he added.

Justice Yaacob also upheld Khalid’s defence that it is in the latter’s duty to reveal details of YBK’s wealth management or the foundation’s fund received from the state government.

Prior to the Hulu Selangor by-election in April 2010, Khalid had appointed himself and former executive councillor Rodziah Ismail to YBK’s board of trustees, citing the foundation’s inability to settle quit rent arrears, amounting to more than RM7 million, for portions of its 1,642-acre land bank.

Zainal and the two plaintiffs subsequently sued Khalid for issuing a statement at a media conference on February 24 that year, and for a report based on the statement, which was published in Suara Keadilan newspaper, titled “Zainal Sakom Gadai Tanah YBK” (Zainal Sakom mortgaged YBK’s land).

The plaintiffs also claimed that on April 5, a website http://tvselangor.com, published an article titled “Kemelut YBK: MB Marah Orang Melayu Tipu Melayu” (YBK Controversy: MB angry at Malays, cheat Malays), which had also carried Khalid’s full statement.

Justice Yaacob, however, said the plaintiffs had failed to prove elements of malice in the reports and the statements.

The judge awarded Khalid and Yaakob RM30,000 and RM10,000 for costs respectively.