Singapore High Court rejects Zim suit against ex-executive

SINGAPORE High Court Judge Lai Sui Chiu rejected all eight counts against a former Zim Asia president for allegedly siphoning off Malaysian port rebate money and being in breach of contract by working for a rival firm.

Repeatedly she told the plaintiffs Zim, its Gold Star Line and Seth Shipping units and its partly owned Star Shipping Agencies (Singapore) Pte that they had failed to produce enough evidence to prove that Dafni Igal, or his associates, were involved in a breach of contract or had committed other offences alleged.

Being a Jewish Israeli company, Zim is unable to service Muslim Malaysia directly, so its unit Gold Star Line, incorporated in Hong Kong, does so, and Capt Dafni was in charge of such operations.

Capt Dafni started as a humble Zim seaman in 1966, but rose to become the managing director of Gold Star Line, Zim Asia president and a director of Star Shipping Agencies.

Capt Dafni claimed that he was working for another company with the permission of his old Zim boss so to acquire Singapore citizenship so he could visit Muslim countries which he could not do as an Israeli.

As director of Star Shipping Agencies, a joint venture between Zim and other interests, he had handled Zim and Gold Star shipments in and out of Malaysia.

The plaintiffs charged Capt Dafni and his associates Ng Koo Kay Benedict and Rajathurai Suppiah of being guilty of putting Capt Dafni into breach of contract, after he left Zim in May 2006.

Capt Dafni started work with Cheng Lie Navigation Co, but he said in non-container areas where Zim had no plans to enter.

Mr Benedict and Mr Suppiah set up Starship Agencies, not to be confused with the one of the plaintiffs, Star Shipping Agencies, and formed another company with Capt Dafni, Maxwin International Development Ltd, and transferred US$80,000 into it. Capt Dafni held 60 per cent of Maxwin.

The plaintiffs alleged that this action was broke terms of the contract by Capt Dafni who was not supposed to engage in such activities during the period after his departure. The plaintiffs further alleged that Mr Benedict and Mr Suppiah shared culpability in this and should be found liable too.

But the judge said: "The plaintiffs plainly had no evidence to show how this transfer of US$80,000 caused Capt Dafni to be in breach of the Employment Agreement of his fiduciary duties."

She said there was not sufficient evidence to show that Capt Dafni was guilty of breach of contract or that Mr Benedict and Mr Suppiah were aware of what they might be doing even if such a thing were taking place.

The plaintiff got no further with its charge that the trio had retained rebates and waiver fees that they felt belonged to the carrier.

The plaintiffs said Starship Agencies had breached its duty as agent in failing to account for the money it received from Westports belonging to Seth Shipping. According to the plaintiffs out bound rates totalled MYR1,477,474 (US$442,622) transshipment rebates of MYR2,921,935 with charge waivers of MYR1,231,239. This money was received by Starship Agencies but not passed on to Gold Star or Zim, it was alleged.

Source: www.schednet.com