KUALA LUMPUR – The Court of Appeal has dismissed attempts by two defendants in a RM565 million fraud suit to disqualify Lim Chee Wee Partnership (LCWP) from acting for Bank Pembangunan Malaysia Berhad (BPMB), ruling that the allegations of conflict of interest were speculative and unsupported.
The appeals were filed by Shailen Poptalal and Roslina Ibrahim, two of the 30 defendants being sued by BPMB over the alleged diversion of nearly RM565 million.
Both defendants argued that LCWP should be barred from representing the bank due to alleged previous business links between the firm’s founding partner, Datuk Lim Chee Wee, and a former defendant in the main trial, Ranjeet Singh Sidhu.
Ranjeet is no longer a defendant in the main trial following a settlement agreement with BPMB.
Shailen claimed that Lim’s previous minority investment in one company linked to Ranjeet compromised LCWP’s position and possibly influenced the settlement Ranjeet reached with BPMB in March 2024.
The Court of Appeal rejected the argument, finding that although Lim owned shares, this interest was merely that of an investor, noting that he was never a controlling shareholder in the company.
The court also held that BPMB’s claim against the defendants had no relation whatsoever to the company in which Lim previously owned shares.
Further, the court also said that BPMB’s decision to enter into a settlement with Ranjeet, who agreed to repay RM500,000 and provide cooperation, was made by the parties’ own free will.
Meanwhile, Roslina presented an additional narrative, arguing that Lim should be called as a witness for allegedly failing to disclose his past connection with Ranjeet and for not lodging complaints over Ranjeet’s alleged corruption.
The Court of Appeal dismissed that attempt as well, ruling that there was no necessity for Lim or his firm to be called as witnesses to testify, as his testimony would not be relevant to the central issues in the suit, which concerns an alleged conspiracy and large-scale diversion of funds.
The Court described the bid to call Lim onto the witness stand as a “fishing expedition” aimed at discrediting the lawyer rather than addressing any legitimate matter at trial.
On October 31, both appeals were dismissed with RM25,000 in costs awarded to BPMB for each appeal.
The appeals arise from BPMB’s ongoing civil action alleging that almost RM565 million was siphoned out of the bank through a network of individuals and companies.
The funds were originally channeled by BPMB as part of an investment and financing package for a telecommunications venture, but the bank claims the money was diverted almost immediately, and the project never took off.
The bank alleges that various defendants misled BPMB into releasing the money and then routed it through multiple companies, including Paneagle Sdn Bhd, a company linked to him.
During the proceedings, two individuals originally named as defendants, Ranjeet Singh Sidhu and Noorusa’adah Othman, reached settlements with BPMB.
The pair, who had begun discussions with the bank as early as 2021, eventually agreed to cooperate and provide evidence.
Noorusa’adah entered into a consent order to repay RM2.5 million, while Ranjeet agreed to return RM500,000, with BPMB reserving the right to recover further damages if he was later shown to have received additional funds. – November 22, 2025