Explained: Why Federal Court Ordered Public Bank To Pay RM90 Million To NFCorp

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The Federal Court has ordered Public Bank to pay a staggering RM90 million in damages to the National Feedlot Corporation (NFCorp) and four others

According to The Edge, the case centres on the unauthorised disclosure of confidential banking information and marks a rare but decisive win for NFCorp, a company that has long mired in public controversy over alleged misappropriation of investments.

Here's a breakdown of how this case unfolded, and why the judgment matters:

What did the Federal Court decide?

A three-member Federal Court panel ordered Public Bank to pay RM30 million in equitable damages, RM30 million in exemplary damages, and RM30 million in aggravated damages.

The court also imposed a 2% annual interest on the total amount, effective immediately, 19 June, until full settlement is made.

This came after Public Bank's final appeal was dismissed on 26 May, cementing its liability in the case, reported the New Straits Times.

What was the case about?

The suit stems from a 2012 data breach, when NFCorp alleged that its private banking details had been leaked, including information about a planned property purchase at KL Eco City.

These documents were later publicised by then-PKR vice-president Datuk Seri Mohd Rafizi Ramli, who stepped down as Economy Minister last month, sparking a political scandal involving allegations of misuse of public funds tied to the national cattle-breeding project.

NFCorp and its chairperson, Datuk Seri Mohamad Salleh Ismail, along with four related companies, subsequently sued Public Bank for breach of banking confidentiality.

Here's how the legal battle played out:

The High Court initially ruled in favour of Public Bank, saying there was no breach. However, the Court of Appeal in August 2023 reversed that decision and found the bank liable, but only awarded RM10,000 in nominal damages.

Then, in May this year, the Federal Court first dismissed Public Bank's final appeal and increased the damages to RM90 million, citing unchallenged financial evidence submitted by NFCorp.

The apex court ruled that both the High Court and the Court of Appeal failed to properly consider NFCorp's audited accounts and expert testimony, which demonstrated financial loss due to the leak.

Chief Judge of Malaya Datuk Seri Hasnah Mohammed Hashim said Public Bank did not provide any evidence to counter NFCorp's financial documents or expert assessments; instead, it merely questioned the credibility of the plaintiff's experts.

The ruling sets a legal precedent for how courts handle breaches of bank confidentiality

This ruling may push financial institutions to tighten internal data security protocols, especially when handling politically linked accounts.