Local government entities can legally operate outside the Societies Act if established under constitutional powers, and actions must comply with principles of natural justice.

[1] This was an appeal by the State Government of Penang (the State Government) against the decision of the High Court in dismissing its application for judicial review.

[2] We heard the appeal and had unanimously allowed it. We now give our reasons.

Background Facts

[3] The State Government, at its Executive Council Meeting ("Majlis Mesyuarat Kerajaan") on 27 April 2011 proposed the establishment of Pasukan Peronda Sukarela Pulau Pinang ("PPS"). PPS was to contribute to the safe, secure and conducive environment for Penang residents in their respective neighbourhoods. Members of PPS are volunteers and their role was not to carry out enforcement activities but to complement the police. The proposal was approved by the Majlis Mesyuarat Kerajaan ("MMK") on 4 May 2011.

[4] On 14 September 2011, the Polis Diraja Malaysia ("PDRM") was informed of the State Government's decision to establish PPS. On 17 September 2011, PPS was officially launched by the Chief Minister where PPS units were formed in neighbourhoods within a State Assembly constituency ("KADUN") under the purview of the respective State Assemblyman ("ADUN").

[5] There are four levels of administration and management of PPS, namely:-

(i) State: Chaired by a member of the State Executive Council responsible for Welfare, Caring Society and Environment. The committee members include State Assemblymen, the Units and Government agencies such as the District Office and the Economy Planning Unit (UPEN).

(ii) District: Chaired by the respective District Officers. The committee members include State Assemblymen under the respective districts.

(iii) KADUN: Chaired by the respective ADUN. The committee members include the Patrol Leader, the Deputy and the Assistant Patrol Leader of the PPS Unit in that State Assembly constituency and the Chairman of the Village Security and Development Committee (JKKK).

(iv) Unit: Chaired by the PPS Patrol Leader who is assisted by the Deputy Unit Leader and the Assistant Patrol Leader The committee comprises the unit members who are at least 15 in number

[6] PPS is funded by the annual allocations received from the State Government which is annually allocated to each KADUN as follows:-

(i) 1 PPS unit : RM10,000.00

(ii) 2 PPS units : RM20,000.00

(iii) 3 and more PPS units : RM30,000.00

[7] The allocation received by each KADUN is controlled by their respective ADUN and it is used for the management of the PPS unit(s) in his constituency.

[8] The membership of PPS is open to interested individuals, subject to the following criteria:-

(i) 18 years old and above;

(ii) of sound mind;

(iii) of good character;

(iv) no criminal record;

(v) healthy and active;

(vi) not involved in negative social activities; and

(vii) disciplined and ready to follow orders.

[9] Since its formation in 2011, members of PPS whose names were to be submitted to PDRM for vetting (exh PBP 7 at Rekod Rayuan Jld 2 Bhgn C: p 233) received training from various agencies, including but not limited to PDRM, Persatuan BOMBA Sukarela and other private bodies. Courses provided to PPS members which were conducted in their respective KADUNs and districts include medical aid and emergency; cardiopulmonary resuscitation (CPR); handling emergencies, in particular techniques on bandaging wounds and bone fracture treatment and treatment of bites and stings of insects and other venomous animals.

[10] Members also attended compulsory courses on natural disasters and emergency briefings on flash floods, hurricanes, fires and accidents; briefings on PPS Standard Operating Procedure; information pertaining to important government agencies and the methods of data entry in PPS log books for emergencies and submission of reports to ADUN.

[11] Meetings and briefi