Take cover! The shit is about to hit the fan!

 No News Is Bad News

For image info, go to https://theedgemalaysia.com/node/668118 

Take cover! The shit is about to hit the fan!

KUALA LUMPUR, Aug 23, 2023: Yes! Take cover as the shit is about to hit the fan!

And it begins on Sept 13 with the casse management of the lawsuit filed by tycoon Halim Saad over a Government “forced” takeover of the Renong-UEM group in 2001.

The open court hearing is likely to expose much “dirt” on Umno and the then federal government led by Dr Mahathir Mohamad

No News Is Bad News reproduces below a news report update on the super high-profile suit:

AGC to represent Mahathir in suit filed by Halim Saad

The Attorney-General’s Chambers is taking over the case as the alleged offence took place when the long-serving prime minister was in office.

V Anbalagan - 23 Aug 2023, 4:19pm

Tycoon Halim Saad (centre) claimed Dr Mahathir Mohamad (left) and Nor Mohamed Yakcop were the ‘prime movers’ of a takeover of UEM and Renong for which he was not adequately compensated.

PETALING JAYA: The Attorney-General’s Chambers (AGC) will represent former prime minister Dr Mahathir Mohamad and two others in a suit filed by tycoon Halim Saad over a government takeover of his holdings in the Renong-UEM group in 2001.

Earlier this month, Halim filed a suit against the government, Mahathir and ex-second finance minister Nor Mohamed Yakcop for “forcing” him to relinquish his stake in the Renong-UEM group and rights vested in him without adequate compensation 22 years ago.

Mahathir’s lawyer Rafique Rashid Ali said the AGC was taking over the matter as the alleged offence took place when the long-serving prime minister was in office.

“The plaintiff’s solicitors served the cause papers on Mahathir, but the AGC called and informed him that they will represent him in the suit,” he told FMT.

Mahathir, 98, was prime minister from July 1981 to October 2003 and from May 2018 to February 2020.

Rafique, however, said he would be applying to the High Court to hold a watching brief for Mahathir.

Meanwhile, FMT understands that the AGC entered an appearance for Mahathir, Nor Mohamed and the government yesterday.

The lawsuit is fixed for case management on Sept 13.

In a 34-page statement of claim filed at the Kuala Lumpur High Court, Halim claimed that Mahathir and Nor Mohamed were “the prime movers in respect of the said compulsory acquisition and deprivation”.

According to the filing, the stake comprised 372 million shares and represented 16% of Renong Bhd’s entire share capital.

Halim claims the shares, which were acquired by government investment arm Khazanah Nasional via its subsidiary in 2001, belonged to him personally and not to Umno, a fact acknowledged by current Prime Minister Anwar Ibrahim in Parliament on Nov 24, 1997.

Anwar was the deputy prime minister, finance minister and Umno deputy president at that time.

Halim claims that at that time, UEM held a 32.6% stake in Renong, while Renong held a 37.92% share in UEM.

He is seeking a court order for the government to pay him unspecified compensation or, alternatively, general damages to be assessed by the court, as well as exemplary and aggravated damages, interest, costs and other reliefs deemed fit by the court.

Mahathir has questioned the timing of Halim’s suit, which came just before the six state elections on Aug 12.

In a statement on Aug 11, Mahathir said the suit was “somewhat strange” as Halim had previously attempted to sue Nor Mohamed and Khazanah in 2013, but failed.

What was the RM2.3 bil UEM/Renong transaction 26 years ago that MACC is now investigating?

By The Edge Malaysia / The Edge Malaysia

31 May 2023, 09:30 pm

This article first appeared in The Edge Malaysia Weekly on May 22, 2023 - May 28, 2023

 

VARIOUS news media reported last Friday (May 19) that the Malaysian Anti-Corruption Commission (MACC) had opened investigation papers into a RM2.3 billion transaction that took place in the late 1990s that was allegedly linked to a businessman and a former senior minister without naming the companies involved in the transaction.

A senior MACC source has confirmed with The Edge that the transaction was the purchase of a 32.6% stake in Renong Bhd by United Engineers (M) Bhd (UEM) for RM2.3 billion that occurred in November 1997 — in the middle of the 1997/98 Asian financial crisis.

This newspaper had published a few articles that month about the controversial purchase by cash-rich UEM of the stake in its parent company Renong, which was laden with billions of ringgit worth of debt and whose stock price had been falling as investors sold their shares.

 

The Securities Commission Malaysia was to later compel Tan Sri Halim Saad, who was the then controlling shareholder of Renong Group, to buy back the stake from UEM and payments were to be made between February 2001 and April 2002. In July 2001, however, it was decided that Khazanah Nasional should step in to take over the entire Renong/UEM group — which not only had RM12 billion in debt but also important assets such as the PLUS highway and Commerce Asset Holdings (now CIMB) — for around RM4 billion.

Many deemed the move by Khazanah as a bailout. Halim has always insisted that he was able to buy back Renong but was forced to sell instead. In 2013, he filed a RM1.8 billion civil suit against the government, Khazanah and Tan Sri Nor Mohamed Yakcop alleging he was cheated. He fought all the way to the Federal Court but lost in 2015 (scan the QR code to read the articles “Truth on 2001 sale of Renong/UEM finally coming out?” published on June 10, 2013, and “Halim Saad’s RM2b suit against govt struck out by KL High Court” published on Oct 13, 2013). 

For context, it should be pointed out that Datuk Seri Anwar Ibrahim was the minister of finance in 1997, having replaced Tun Daim Zainuddin in 1991. In September 1998, Tun Dr Mahathir Mohamad sacked Anwar, and Daim returned as finance minister for the second time, only to resign suddenly in June 2001 to be replaced by Mahathir, who appointed Nor Mohamed as his special economic adviser. Nor Mohamed went on to devise the plan for Khazanah to take over the Renong/UEM group.

Halim grew his Renong corporate empire during Daim’s first stint as finance minister from 1984 to 1991, and he is credited for building the North-South Expressway.

The reason for the MACC probe into something that happened 26 years ago is unclear. To help refresh the memory of readers as well as enlighten those who are not aware of this transaction, we reproduce here in full the relevant articles: “Bashing for UEM and Renong”, “The RM2.3 billion question” and “A test case for transparency” (published on Nov 24,1997).