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The Malaysian Insider

Malaysia

Publisher sues DBP, demands public apology

October 20, 2011

KUALA LUMPUR, Oct 20 — Publishing firm Dawama Sdn Bhd is suing Dewan Bahasa dan Pustaka (DBP) and its director-general for defamation, following claims that the latter suggested on a radio show that the company was mismanaged.

According to a statement, the company is seeking general and aggravated damages as well as a public apology from the defendants.

Dawama claimed that the DBP director-general had made defamatory statements about the company on a radio programme called “Kerusi Panas” on Radio Bernama, or Radio 24.

“The company alleges that during the radio programme aired on April 21, 2011, the director-general of DBP injured their reputation through his comments which suggested that the company, among other things, was mismanaged and did not perform its obligations under the concession agreement signed with DBP.

“The company and DBP signed a concession agreement in 2002 following the government’s decision to privatise its pre-press, design and type-setting, printing, distribution and marketing activities,” according to the firm.

The company also alleged that the director-general had also made further defamatory statements against it which were reported in an online Bernama news article in June 2011 as well as a July 2011 article published in Berita Minggu.

Dawama had insisted that DBP, an agency under the Education Ministry, had forced it into financial crisis by violating its printing concession, in August.

Finally breaking its silence over the ongoing crisis, the publishing firm lamented that its finances had taken a severe hit since DBP decided to hire a third party to publish and market its books.

Dawama currently holds a 12-year contract to print and market DBP’s books and magazines until 2014.

It complained that DBP had caused the crisis in July when it took over the publication of textbooks for the 2012 school year without prior notice.

Dawama said DBP then made matters worse when it handed over printing and marketing rights to a third party and appointed its own printer without any consultation.

The company said it had no choice but to force its workers to take unpaid leave but stressed that it had agreed to pay its employees for 12 days of work, as provided for under the Employment Act 1955.

Dawama also claimed that since commencing its contract with DBP eight years ago, it had contributed over RM900 million to the agency and the government through both “direct and indirect” means.

These include the acquisition of DBP assets and liabilities in accordance with concession terms and annual fee payments; 30 per cent from the gross sales of textbooks and 20 per cent from gross sales through an open market; savings on costs for operations and human resources; payments to Bumiputera printers and distributors; and taxes paid to the government.

In June, The Malaysian Insider reported that the crisis between DBP and Dawama, the agency’s printing company and distributor, could affect the supply of school textbooks for the 2012-2013 term.

The DBP-Dawama crisis peaked when Dawama ordered all 380 of its mainly Malay staff to take leave without pay indefinitely, owing to financial difficulties, on August 1.