Sun, 9 Feb 2025
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Government agencies don’t need AG’s nod to initiate suit, appeals court says
Published on: Monday, July 08, 2024
Published on: Mon, Jul 08, 2024
By: FMT Reporters
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Government agencies don’t need AG’s nod to initiate suit, appeals court says
The Court of Appeal said a civil lawsuit is different from criminal prosecution.
PUTRAJAYA: The Court of Appeal has held that government agencies do not need the consent of the attorney-general before filing civil recovery lawsuits.

Justice Lee Swee Seng, in delivering the decision on a lawyer’s appeal to set aside a lower court’s decision on insider trading, said there was nothing “unconstitutional” about the Securities Commission’s lawsuit against E Sreesanthan.

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The court said the law on which the suit was based, the Capital Markets and Services Act, did not spell out the need for the attorney-general’s consent.

“One cannot imply or impute the need for prior consent with the effect that the whole proceeding becomes null and void.

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“That the same ingredients of an offence have to be proven in the civil action on a balance of probabilities does not equate to requiring the consent of the attorney-general as required in a criminal prosecution,” Lee said in his judgment dismissing Sreesanthan’s appeal.

Other judges who sat with him were Justices Hashim Hamzah and M Gunalan.

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The High Court had held Sreesanthan liable for insider trading and ordered him to pay RM1.99 million – three times the sum he gained.

He was also told to pay RM1 million in civil penalties and barred from holding the directorships of public-listed companies for a period of 10 years, effective November 2020.

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Lee also said that a civil lawsuit was different from criminal prosecution.

He said when individuals are found guilty, they may need to serve their jail sentences if the law requires, with a conviction recorded against them.

“A civil action would at best result in a civil penalty for which there is no criminal sanction or punishment.

“There is no record of a conviction in a civil action,” Lee said, adding that a judgement debtor would not need to serve time in jail if he or she failed to pay.
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