Kuching: Tomorrow (3 July 2026), the Court of Appeal shall deliver its judgment on the 13-year long-drawn legal battle between the State Government and YB Chong Chieng Jen in respect of the “Black Hole” case.
The appeal from the High Court to the Court of Appeal was filed in November, 2022 by YB Chong, but the Trial judge took up to September, 2025 to provide the grounds of judgment.
The Court of Appeal heard the appeal in Kuching on 27.1.2026 and thereafter, tomorrow, the Court of Appeal will decide on the matter.
Just to recapitulate, the following is the chronology of events of the case:
In November, 2005, the Sarawak Government created a Trust Fund named “The Government Contribution Towards Approved Agencies Trust Fund”.
Starting from 2006 to 2013, the State Government of Sarawak had for each and every year, allocated appropriately 50% of the Sarawak State Government’s annual Development Expenditure to the Trust Fund.
By 2.1.2013, the total amount of the Trust Fund allocated by the State Government of Sarawak was RM11,373,179,400.00.
Since 2006, YB Chong Chieng Jen had questioned in Sarawak DUN who are these “Approved Agencies” receiving the money from the Trust Fund. On 31.10.2012 the answer given by the Minister was that these agencies were any “body corporate or company or association which had been approved in writing by the Chief Minister”.
On 2.1.2013, DAP Sarawak, led by YB Chong Chieng Jen, held a press conference and published a Pamphlet titled “Budget Black Hole” on this Trust Fund, questioned the RM11 billion fund and criticised the State Government for being non-transparent on the operation of the Trust Fund.
On 3.4.2013, the State Government of Sarawak sued YB Chong for defamation against the State Government. The action was based on the wordings in the Budget Black Hole pamphlet.
On 20.5.2013, for the first time, the State Government of Sarawak, laid before Sarawak DUN, the financial statements of the Trust Fund for the years 2006 to 2010.
On 28.4.2014, the High Court in Kuching, upon the application of YB Chong’s Counsel, struck out the State Government of Sarawak’s suit on the ground that Government has no right to sue for defamation. Being dissatisfied with the High Court Judgement, the State Government of Sarawak appealed to the Court of Appeal.
On 7.4.2016, the Court of Appeal overturned the High Court judgment and ruled that Government can sue for defamation and the Court of Appeal went on to enter judgment against YB Chong. Being dissatisfied with the Court of Appeal’s judgment, YB Chong appealed to the Federal Court.
On 26.9.2018, the Federal Court allowed the appeal in part and set aside the Court of Appeal judgment. It ruled that though Government can sue for defamation, the Court of Appeal erred in entering the judgment without a full trial. The Federal court sent the case back to Kuching High Court for trial.
On 7.1.2021, the trial of the case commenced in the High Court of Kuching before Judicial Commissioner (JC) Alexander Siew How Wai (as he then was). The trial lasted almost 6 months and was concluded on 5.7.2021.
On 30.8.2022 (one year after the conclusion of the trial), JC Alexander Siew How Wai delivered the judgment against YB Chong and ordered the latter to pay RM150,000 as damages and RM50,000 as costs.
Though judgment was made, no grounds of judgment was provided.
On 27.11.2022, YB Chong filed the Appeal against the High Court judgment made by JC Alexander Siew, but the hearing of the appeal could not proceed because JC Alexander Siew for many years, did not produce the grounds of judgment.
On 12.8.2025, the Court of Appeal ordered Y.A. Alexander Siew (who has by then already been confirmed as High Court judge) to write and produce the grounds of appeal within one month from the date thereof.
On 19.9.2025, YB Chong received the grounds of judgment from the High Court Registry.
With the grounds of judgment being produced, finally the hearing of the appeal of the Black Hole case is set in motion. The Court of Appeal heard the appeal on 27.1.2026. YB Chong Chieng Jen was represented by Chong Siew Chiang, Michael Kong Feng Nian, Brenda Chong, Sharon Lo and Chong Hong Hien.
Let’s hope for the best.
DAP Sarawak Publicity
2 July 2026
