Former CNC chief lied about his links to agent in Malaysia, court told

A top Hong Kong shipping executive

would probably not have been recruited by a leading French container line if it had known about his links to Southeast Asian cargo agents, the deputy head of the box line said yesterday.

Farid Salem, director-general of CMA CGM, said Captain Igal Dafni, who was hired as managing director and chief executive of Taiwan's CNC Line by the carrier in 2007, had lied about his links to the agent in Malaysia.

Dafni is claiming US$1.15 million in unpaid salary plus profit-sharing bonuses from CMA CGM, which has countered by accusing him of misconduct and breach of trust. Salem approached Dafni in mid-2006 as the French container line was targeting the acquisition of CNC. Dafni had recently resigned as Asia president for Israeli container line Zim Integrated Shipping Services when talks with Salem started. Dafni had also been managing director of Zim's intra-Asia subsidiary, Gold Star Line.

The discussions resulted in Dafni and Salem signing a three-year heads of agreement in November 2006 under which Dafni would initially be employed through Singapore-based Charter Shipping Agencies. CMA CGM signed the consultancy contract with Charter to procure Dafni's services so as to reduce the latter's tax liability.

The High Court heard Benedict Ng Koo Kay was one of the major shareholders in Charter and was connected to about 20 companies, including a ship agency business, Starship Agencies, in Malaysia. Charter and Starship were CNC's agents, while Dafni and Ng had formed a business relationship when Charter was Gold Star's agent.

Salem said he was unaware of the links between Dafni and Ng before Dafni was recruited, even though Starship was Gold Star's agent when it operated a joint service with CMA CGM. This was despite Dafni being an "experienced and good businessman", said Salem, and being known as "Mr Asia" for his extensive business contacts, according to Dafni's counsel, Jeremy Bartlett.