Ex-MP Loh Gwo Burne defeats bid to remove him as executor of father’s estate

KUALA LUMPUR: Former Kelana Jaya MP Loh Gwo Burne, who recorded the video that triggered the VK Lingam judge-fixing scandal, has defeated a High Court suit by his younger brother seeking his removal as executor of their late father’s estate.

Judicial Commissioner Moh Kok Wai said that while Gwo Burne’s administration of the estate had its shortcomings, the plaintiff failed to prove dishonesty, lack of fidelity or incapacity that would justify removing an executor appointed under a will.

The judge said courts exercise the power to remove executors sparingly, as doing so would override the deceased’s choice of administrator.

“Mere disagreement between beneficiaries, administrative shortcomings, or strained family relationships are insufficient unless the executor’s conduct endangers the estate or demonstrates dishonesty, incapacity or a lack of fidelity,” he said in his judgment released earlier this week.

The suit was filed by Loh Gwo Fynne, the youngest of three brothers, who accused Gwo Burne of failing to properly administer the estate of their late father, Loh Mui Fah.

He alleged prolonged delays, failure to provide proper accounts, concealment of information, mismanagement of estate assets, and breaches of fiduciary duties.

Gwo Fynne also claimed his brother failed to inform him promptly after obtaining probate in 2019, did not provide bank statements or proper financial records despite repeated requests, and allowed estate funds to pass through personal bank accounts.

Gwo Burne denied any wrongdoing, saying the estate was complex, burdened with substantial liabilities and complicated by litigation that their father had instructed him to pursue.

He also cited disruptions caused by the Covid-19 pandemic and said his younger brother’s repeated legal actions had further delayed the process of administration.

Moh accepted that Gwo Burne should have communicated more openly with beneficiaries and informed his brother after probate was granted.

However, he said poor communication alone did not amount to dishonesty or misconduct.

“The court is not concerned with whether the administration was ideal, but whether the shortcomings reveal such dishonesty, incapacity or want of fidelity as to justify the drastic remedy of removal,” he said.

Although refusing to remove Gwo Burne as executor, the judge stressed that executors have a continuing duty to ensure transparency and accountability to beneficiaries.

He said the estate had been under administration for several years and that narrative updates were no longer sufficient.

Moh ordered Gwo Burne to prepare a proper account of the estate, including a verified inventory of assets, a comprehensive statement of liabilities, detailed records of receipts and expenditure, and supporting bank statements where necessary.

Yong Yee Yen and Roger Lo represented Gwo Fynne while Walston Wai and Ramesh Ravichandran appeared for Gwo Burne.

Gwo Burne served as Kelana Jaya MP from 2008 to 2013.

He rose to national prominence after his secret recording of Lingam appearing to illegally orchestrate the appointment of top judges with a senior judge entered the public domain in 2007.

The controversy led to a royal commission of inquiry which made several proposals, one of which was to establish a Judicial Appointments Commission to propose judges for elevation.