KUALA LUMPUR: The Sessions Court today ordered Malaysian National Cycling Federation (MNCF) president Datuk Abu Samah Abd Wahab and his former deputy to pay RM288,275.56 to Sime Darby Foundation over breach of a sponsorship agreement involving a cycling race team.
Judge Siti Noraida Sulaiman made the order after allowing the lawsuit by the foundation against Abu Samah, 74, and Datuk Naim Mohammad, 62, who tendered his resignation on Aug 20.
Filed on Jan 21, the lawsuit was over alleged unaccounted use of a portion of the RM1,961,571.07 in funds given by the foundation to the defendants to sponsor the seven-man cycling team.
According to the Statement of Claim, the foundation alleged that the defendants could only justify proper spending of RM1,673,295.51 of the total sponsorship funds.
Per the sponsorship agreement, the defendants were to help register the team for cycling races; provide the team with support staff, sports equipment and services; and preserve the foundation's brand and its reputation, image, and good name, among others.
The foundation claimed that the defendants had used RM25,106.46 of the sponsorship funds on administration fees without the permission and knowledge of the foundation.
The foundation alleged that RM42,873.30 of the sponsorship funds were not used and were still in the defendants' account, among others.
It also claimed that the defendants had failed to provide documentation that the remainder sponsorship amount of RM220,295.86 were spent in accordance to the agreement.
Having taken effect on Jan 26, 2010, the sponsorship agreement lasted until Mac, 2012.
Counsel Alvin Muhammed acted for the foundation while Sugandra Rao appeared for both Abu Samah and Naim.