KK Mart Chairman Pleads Not Guilty Over Sock-Gate Issue (Updated)

KK Mart Group founder and group executive chairman of KK Group. Datuk Seri Chai Kee Kan has claimed trial for intentionally wounding the religious feelings of others over the sales of socks bearing the word “Allah” in some of his outlets.

The 57-year-old Chai, also known as K.K. Chai, pleaded not guilty to the charge when it was read to him before judge Muhammad Anas Mahadzir, according to an online news portal. The charge also being read to Chai’s wife, Loh Siew Mui.

As per the charge sheet, both Chai and Loh stand accused of intentionally hurting the religious sentiments of Muslims by displaying socks with the word “Allah” on the sales display rack at their convenience store in the Sunway branch on March 13, around 6.30am. 

The offence is cited under Section 298 of the Penal Code, carrying potential penalties of imprisonment for up to a year, fines, or both upon conviction, and Section 109 regarding abetment.

Chai’s legal representative Datuk Rajpal Singh requested the court to set bail at RM5,000 for his client, emphasising that bail serves to secure Chai’s attendance in court. He further requested RM7,000 in bail for Loh, considering her role as a housewife responsible for two children who are still studying. Singh also emphasised that the couple posed no flight risks, given their nationwide business operations. 

The judge then ordered bail at RM10,000 each for Chai and Loh. 

It was reported that the couple managed to elude media waiting for them around the court premises. Meanwhile, in the same court session today, directors of Xin Jian Chang Sdn Bhd were separately charged with abetting Chai and Loh in the distribution of the controversial “Allah”-printed socks. 

Xin Jian Chang is the company that supplied these socks to KK Supermart & Superstore Sdn Bhd. 

According to the charge sheet, Soh Chin Huat, 61; Goh Li Huay, 62; and Soh Hui San, 36, were accused of abetting the convenience store by intentionally hurting the religious feelings of Muslims by displaying these socks on its sales rack. Chin Huat, representing the company, faced an additional charge of a similar offence. 

Their offences are framed under Section 109, read together with Section 298 of the Penal Code, which carries a maximum one-year jail term, fines, or both upon conviction. 

They all pleaded not guilty to the charges before the judge today. 

The prosecution suggested RM5,000 bail for each accused, which was agreed upon by their lawyer, Lau Yi Leong. 

However, the court set bail at RM10,000 for each accused and scheduled mentions for all cases on April 29. 

The legal proceedings stem from a previous incident where police discovered 14 pairs of the contentious socks during a raid on the premises of the local importer. 

KK Mart had promptly recalled and returned the socks to its supplier after images of the socks sparked widespread outrage upon being spotted in one of the store’s outlets. In response to the public backlash, Chai issued an apology during a press conference last weekend. 

Additionally, the store’s outlets displayed banners and issued messages at their counters expressing regret over the incident. 

Xin Jian Chang also issued an apology, citing an oversight in its quality control process and asserting that it had taken measures to ensure the suitability of the products for the Muslim consumers it serves. 

The company denied any intentional wrongdoing and indicated its consideration of legal action against the overseas supplier for negligence. Amid the controversy, KK Supermart & Superstore Sdn Bhd has initiated legal action against Xin Jian Chang Sdn Bhd, seeking RM30 million in damages. The convenience store chain alleges sabotage of its business by the local importer.

The government will consider focusing on non-tax revenue as an alternative to increase national income, Anwar said, acknowledging, that non-tax revenue would require additional effort which includes the transformation of government-linked investment companies (GLIC) to ensure increased domestic investment

“In 2023, investment income represented 65 per cent of non-tax revenue. Currently, the highest non-tax revenue is from investment income including dividends from Petroliam Nasional Bhd (Petronas), Bank Negara Malaysia (BNM), and Khazanah Nasional Bhd which on average, contribute around 50 per cent to the national revenue,” the prime minister told the Dewan Rakyat.

Non-tax revenue consists mainly of licences and permits, petroleum royalty, interest and returns on investment.

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