The much-publicised fire at Asean Security Paper Mills Sdn Bhd warehouse in Kampung Acheh in Sitiawan 17 years ago was due to arson and not spontaneous combustion. The man who planned the fire and its execution was then company chairman, N. Balasingham, the Court of Appeal ruled today. The three-member panel's decision goes beyond attaching blame for the fire - it will save CGU Insurance Bhd RM32.4 million in claims by the security paper company. The Court of Appeal said it had established beyond a reasonable doubt that the fire was intentionally set by two persons acting on Balasingham's instructions, judges Datuk Gopal Sri Ram, Datuk Alauddin Mohd Sheriff and Datuk Abdul Kadir said in a 107-page judgment. They said the High Court judge had misdirected himself on the facts and evidence of the case without judicial appreciation of the evidence of relevant and material witnesses. Consequently, there had been a substantial miscarriage of justice, they concurred. The judges contended that Balasingham had planned the fire and its execution with the intention of causing ASPM to make a false and fraudulent claim against CGU. The judges said this case was, on its facts, one in which the circumstantial evidence, taken as a whole, was so compelling that it had led them to the conclusion that the claim was fraudulently made. The fire on Sept 11, 1989, reduced the building and its contents to ashes. ASPM subsequently made a claim but CGU (now known as Aviva Insurance Bhd) refused to pay. In its defence, CGU said the claim was fraudulent. The judges said Balasingham was repeatedly mentioned by more than one witness in relation to the part he played in the matter. "The respondent's (ASPM) failure to call him as a witness although he was present in court warrants the drawing of adverse inference." they said. Balasingham, also known as B. Nithiabala, still has an outstanding criminal charge against him in the appeal stage at the Ipoh High Court. He was acquitted by the Sessions Court on Nov 26, 1997, on a charge of abetting A. Wilfred Silva and L. Mathews Selwaraja in committing mischief by setting fire to the godown. Then Sessions Court Judge Choong Siew Khim acquitted him after calling for his defence.
Thanks to: 16 February 2006, By New Straits Times