May 14 hearing for Halim Saad’s bid to refer constitutional queries in UEM-Renong suit to apex court

Saturday 16 Nov 2024

KUALA LUMPUR (Jan 10): Businessman Tan Sri Halim Saad's application to refer two constitutional questions to the Federal Court relating to the UEM-Renong suit against former prime minister Tun Dr Mahathir Mohamad, former minister Tan Sri Nor Mohamed Yakcop and the government will be heard on May 14.

The application for the two constitutional questions are in relation to a bid by the Attorney General's Chambers (AGC) to dismiss Halim's lawsuit against the government.

The High Court will hear Halim's application as well as the AGC’s bid to strike out the suit on the same day, the date set at a case management on Wednesday.

Both matters will come before Judicial Commissioner Dr Suzana Muhamad Said.

The first question Halim is seeking to refer to the apex court is whether his claim against the defendants on a breach of his right to equal treatment and right to property under the Federal Constitution is time barred.

The second is whether he is estopped from raising the issue on breaches of fundamental rights by reason of a previous suit filed by him in 2003.

In his current suit, Halim claimed that Dr Mahathir, Nor Mohamed and the federal government had caused him to suffer losses as a result of concerted efforts by the authorities to stop his bid to take over United Engineers Malaysia Bhd (UEM), which then owned prized assets including the North South Expressway’s toll concession.

This is Halim’s second attempt at legal action against the three parties over the same matter.

In 2013, he filed a RM1.8 billion civil suit against the government, Khazanah Nasional Bhd and Nor Mohamed alleging that he was cheated, and fought all the way to the Federal Court, but lost in 2015.

In the latest suit, Halim said it was filed on Aug 2 last year and is premised on the breach of his constitutional rights under Articles 8(1) and 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 — the government proceeded with the purchase of a 32.69% stake in Renong Bhd from UEM, a unit of Renong.

The breach, Halim added in a statement, was pursuant to a 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 until Sept 12 that year was granted for the second instalment, as Halim needed more time to raise funds.

According to court documents, Halim was summoned to meet Dr Mahathir, and subsequently Nor Mohamed on July 12, 2001, whereupon Halim alleged he was directed not to execute his takeover plan and not to complete the purchase of UEM shares via the put option.

According to Halim, he was required by Dr Mahathir and Nor Mohamed to support the government’s initiative to take over UEM.

The plan then was to have Khazanah’s wholly owned subsidiary Danasaham Sdn Bhd launch a voluntary general offer to buy out UEM — which then owned the toll concession of the North South Expressway plus a construction business — via a general offer.

Halim claimed that the government’s bid to take UEM private would not have happened without his support, which he was obliged to provide.

He said the assets under UEM included, but were not limited to, Projek Lebuhraya Utara Selatan (PLUS), Elite expressway, Laluan Kedua Malaysia (Linkedua) Intria Bina Sdn Bhd, Ho Hup Construction Sdn Bhd, Pharmaniaga Bhd and Kualiti Alam Sdn Bhd.

Halim claims he suffered financial losses as the parties' actions had breached his constitutional rights.

On Nov 16, 2023, the AGC — acting for the government, Dr Mahathir and Nor Mohamed — had filed to strike out the suit saying it is frivolous, vexatious and an abuse of the court process. It also applied to stay all proceedings until the determination of this striking out application.

The application to strike out the suit is supported by an affidavit in support by Nor Mohamed, in which he affirmed that Halim had supported the general offer for UEM on his own choice, without any inducements from the defendants.

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