KUALA LUMPUR (Nov 1): Controversial businessman Victor Chin Boon Long has once again applied to testify remotely from China in a RM49.85 million lawsuit over the management and control of an air cargo venture, citing medical grounds.   

The application was filed on Thursday (Oct 29), ahead of the start of the defence’s case on Monday (Nov 2), with Chin offering to testify first instead of last, as originally planned. In the application filed through Messrs KH Wong & Co, Chin seeks permission to give evidence by video conference from Zhuhai, Guangdong, claiming he is “medically unfit to travel by air”.

The application is fixed for case management at the Kuala Lumpur High Court on Monday. 

Chin is the first defendant in a countersuit filed in July 2023 by former M Jets International Sdn Bhd directors Gunasekar Mariappan and Philip Phang Kin Ming. The countersuit followed MMAG’s April 2023 lawsuit against the duo over alleged breaches of fiduciary duties, seeking RM23.17 million in damages.

The eight other defendants are Kenny Khow Chuan Wah, Chong Koon Meng, MMAG Holdings Bhd (KL:MMAG), M Jets International, Shanmugananthan Ratnam, Saysu S Michael, Anton Alex Schubert and JT Aerotech Solutions Sdn Bhd (JTAS).

The latest application by Chin follows the rejection of his earlier request in April, when High Court judge Leong Wai Hong ruled that a letter from his lawyers was insufficient and that a formal application supported by a sworn affidavit was required. That earlier request cited concerns for Chin’s safety if he returned to Malaysia. The court found those concerns to be insufficiently substantiated.

Gunasekar and Phang completed presenting their case in April. During his testimony, Gunasekar maintained that Chin exercised decision-making authority over the venture, while the defence challenged his account of Chin’s role.

Mediation talks on Aug 24 also failed due to the absence of some parties.

The entire dispute arises from a joint venture formed in November 2020 to acquire and transform M Jets — then a private jet charter company — into an air cargo operator. Under the deal arranged by Chin, MMAG Holdings was to own 80% of M Jets and invest RM46 million, while Gunasekar and Phang’s group (JTAS) would hold 20% and invest RM10 million.

The duo claim they were responsible for running the business and converting M Jets into an operational cargo airline, including securing aircraft leases, renewing licences and managing fuel arrangements.

However, both of them allege that issues arose when additional funding of about RM20 million was needed for expansion in late 2021 and early 2022, and not provided. The duo then claim Chin and MMAG reversed their position on the venture, leading to operational disruption, estimated losses of about RM16 million, and failure to scale the business as planned.

Gunasekar and Phang were suspended in February 2023 following a Malaysian Anti-Corruption Commission (MACC) investigation and a raid on M Jets’ office, and were subsequently removed from their roles. 

Read also:
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Ex-M Jets director says Victor Chin had real authority in collapsed M Jets JV