KUALA LUMPUR (Aug 23): The Attorney General's Chambers (AGC) is said to be preparing to defend Tun Dr Mahathir Mohamad and Tan Sri Nor Mohamed Yakcop, along with the government, against the suit filed earlier this month by corporate figure Tan Sri Halim Saad.
Halim claimed in his suit that he suffered losses due to efforts by the authorities to stop his bid to take over United Engineers Malaysia Bhd (UEM), which owned prized assets such as the North South Expressway’s toll concession.
Sources told The Edge that the offer had been made to Nor Mohamed and Dr Mahathir. Nor Mohamed, a former minister in the Prime Minister’s Department, is said to have agreed to the chambers representing him.
The chambers had filed to represent the duo on Tuesday (Aug 22) as the events took place in 2001, when they were part of the government.
When contacted by The Edge, Dr Mahathir’s counsel Rafique Rashid Ali confirmed that the AGC would represent the former premier, but he would apply to the court to hold a watching brief for the 98-year-old statesman.
Halim had named Dr Mahathir, Nor Mohamed and the federal government as defendants in the suit, which is premised on the breach of his constitutional rights under Article 8(1) and Articles 13(1)(2) of the Federal Constitution by the Malaysian government where upon the instructions of Dr Mahathir and Nor Mohamed — in his capacity as special economic adviser to Dr Mahathir — proceeded with the purchase of a 32.69% stake in Renong Bhd from UEM, a unit of Renong.
This, Halim added, is pursuant to the put option exercised by UEM in December 2000, giving Halim the right to buy the 32.6% stake in Renong from UEM for RM3.165 billion.
The Renong shares would only be transferred to Halim upon full settlement. Halim claimed that he made the first payment of RM100 million to UEM on Feb 14, 2001 for the share purchase. An extension till Sept 12 was granted for the second instalment, as Halim needed more time to raise funds.
At the same time, Halim was also planning a bid to take UEM private. He claimed that he had acquired financing for the share purchase and the general offer to buy out UEM then.
As a result of the intervention from Dr Mahathir, Nor Mohamed, and the government, Halim alleged that he suffered financial losses and this constituted a breach of his constitutional rights under the constitution.
Article 8(1) stipulates that all persons are equal before the law, and entitled to the equal protection of the law while Article 13(1) stipulates no person shall be deprived of property save in accordance with the law and (2) no law shall provide for the compulsory acquisition or use of property without adequate compensation.
Dr Mahathir, in his reaction to the suit, questioned the timing and manner in which Halim filed it, as it took place right before the six state elections on Aug 12.
The former prime minister said he would contest the suit and answer the allegations in court through his lawyers.
“I have nothing to hide," the 98-year-old statesman said.
The suit has been fixed for case management on Sept 13 at the KL High Court.