Judicial commissioner Roz Mawar Rozain said former finance minister Lim had proved his case against Muhyiddin on a balance of probabilities.

“The statements had lowered his reputation in the eyes of an ordinary person,” she said in a judgment read out in court today.

Roz Mawar, who is expected to be elevated to High Court judge next week, awarded Lim RM350,000 in general damages for each statement, RM150,000 in aggravated damages and an additional sum of RM150,000 in exemplary damages.

She also ordered Muhyiddin to pay RM50,000 in costs and directed that he retract the offending statements and not republish them.

In the suit, Lim said Muhyiddin had on March 9 alleged that Lim, as finance minister, had wrongfully caused the inland revenue department (LHDN) to revoke Muslim charitable organisation Yayasan Albukhary’s tax exempt status.

The statement was said to have been published shortly after Muhyiddin was released from arrest by the Malaysian Anti-Corruption Commission.

He said the second statement, made in a media release on March 11, alleged that Lim had imposed a tax on the foundation and a 45% penalty on tax payable for preceding years.

Lim also complained about a statement Muhyiddin made to the media after he had delivered his winding-up speech at Bersatu’s annual general assembly on March 12. He said Muhyiddin had claimed that the instructions to cancel the foundation’s tax exempt status must have come from Lim as the LHDN fell under his purview.

Lim said the statements, in their natural and ordinary meaning, were meant to show that he had abused his position and power by authorising the imposition of taxes and penalties on a welfare foundation.

He said the statements were also meant to depict him as being racist, anti-Malay, anti-Islam and a vindictive person, and that he had acted in bad faith.

Roz Mawar agreed, holding that Muhyiddin’s defences of justification, fair comment and qualified privilege were unsustainable.

She said the statements implied that Lim had abused his power against Muslims.

“This exposed him to hatred in a multi-racial society,” she said.

Ros Mawar said Muhyiddin’s conduct as a former prime minister was unwarranted as his statements were laced with religious and racial overtones, including by repeatedly highlighting the foundation’s role in Islamic charitable work.

“This is a case of public importance as it involved two public figures and sensitive religious issues were raised that could affect the fabric of the society,” she said.

She said Muhyiddin did not care to verify the truth of his statements with either the foundation’s chairman, Syed Mokhtar Al-Bukhary, or the finance ministry before making them.

Muhyiddin had resources at his disposal to verify and confirm whether his statements were correct, she said.

“Yet, he did not do so and continued to make further defamatory statements against the plaintiff (Lim) who had brought to the defendant’s (Muhyiddin’s) attention the falsity of such allegations.”

Ros Mawar said Muhyiddin did not tender an apology when asked to do so.

In fact, she said, the timing of the statements also suggested they were not honest comments but rather made to deflect attention.

She said Lim, who is also a former chief minister, was a credible and reliable witness.

“He was unshaken even under cross-examination,” she said.

Roz Mawar also said the testimony of Hazlan Abdul Aziz, head of the finance ministry’s tax division, strengthened Lim’s case and weakened Muhyiddin’s defence.

Hazlan, a witness for Muhyiddin, said under cross-examination that there were no records to show Lim revoked the tax exemption given to Yayasan Al-Bukhary’s 27 subsidiaries.

Lim was represented by Guok Ngek Seong and Phyllia Lim.

Counsel Chetan Jethwani, who acted for Muhyiddin, said he has instructions to file an appeal.