What role did personal acquaintance play in the RM10 million loan dispute?

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Personal Acquaintance Facilitated RM10 Million Loan Dispute

The RM10 million loan dispute involving fashion designer Datuk Jovian Mandagie and two companies, Bina Pragmatik Sdn Berhad and Cekap Air Sdn Bhd, was significantly influenced by personal acquaintance. The High Court ordered Jovian Mandagie to pay RM5 million to each company after ruling in their favour for summary judgment. These loans were explicitly described as "friendly loans" extended informally and verbally due to the pre-existing acquaintanceship among all parties involved.
Informal Loan Agreements Stemming from Familiarity

The nature of the financial arrangements between Jovian Mandagie and the two companies was informal, relying on verbal agreements rather than formal contracts. Cekap Air reportedly provided RM5 million on February 25, 2022, and Bina Pragmatik allegedly provided a similar amount on March 25, 2022. The funds were transferred directly to the client account of a law firm representing Jovian Mandagie, underscoring the reliance on trust built through personal connections.
Trust Placed in Jovian Mandagie Due to Relationships

The individuals involved, Yong Zhen Wei and Azirul Salihin, directors of Cekap Air and Bina Pragmatik respectively, considered Jovian Mandagie an acquaintance. This familiarity, coupled with Jovian Mandagie's status as the son-in-law of the then-Prime Minister Datuk Seri Ismail Sabri Yaakob and his involvement in other businesses, led the companies to extend the loans without extensive due diligence or formal contractual safeguards. The plaintiffs stated that there was no reason to doubt him at the time the loans were granted.
Breach of Trust and Alleged Default on Repayment

Both Bina Pragmatik Sdn Berhad and Cekap Air claim that Jovian Mandagie breached the terms of these informal loan agreements. According to their statements of claim, the agreed repayment period was 12 months, a timeframe that has since elapsed without the funds being returned. This alleged failure to repay has resulted in financial losses for both lending companies, leading to the legal action and the subsequent court order for a total of RM10 million in repayment.

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What role did personal acquaintance play in the RM10 million loan dispute?

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