The truth behind Halim Saad’s lawsuit against Dr Mahathir & his “Top Cat”

Bukit Kiara, 11 Aug: Just when I thought I had covered all the lawsuits that are keeping our lawyers and judges busy these days, here comes a big one: Halim Saad vs Nor Mohamed Yakcop aka the Top Cat and Dr Mahathir Mohamad himself! 

Halim, we all know, was once Mahathir’s the poster boy of Mahathir’s privatization policy (and, to some, Umno’s capital cronyism). So far and wide was Halim’s corporate reach back in the day he even helmed the New Straits Times Press and TV3 during Nineties when whoever controlled the media controlled the hearts and minds of the voters. His reign in that media conglomerate was brief and stormy, though, and preceded a management buy out by the Empat Budak Melayu, which was seen as a proxy war between the powerful Daim and the then Finance Minister and Umno deputy president Anwar Ibrahim. 

The SCOOP’s Aug 9 scoop puts Halim’s lawsuit in the following context:

KUALA LUMPUR – The true story behind the controversial RM2.3 billion Renong-UEM deal is expected to be unravelled in court following a suit by Tan Sri Halim Saad against former prime minister Tun Dr Mahathir Mohamad, former finance minister Tan Sri Nor Mohamed Yakcop, and the government of Malaysia.

Halim, in his suit filed today in the high court here, claimed that the then Mahathir-led government and Umno – some 26 years ago – had forced the acquisition of the company, which eventually led to its collapse.

Halim is seeking a declaration that he was the beneficial and legal owner of Renong shares and not Umno Baru; a declaration that the government compulsorily acquired his vested right to effect a general offer on UEM; and a declaration that, with respect to the said acquisition of his vested right, the government had acted through Mahathir and Nor Yakcop.

He is also seeking a declaration that, in acquiring his vested right, the government was obliged to provide him with adequate compensation.

Halim was Renong’s executive chairman. 

In a statement today, Halim said the then-government’s plan to take over UEM and eventually privatise it would not have been possible without his support, which he was obliged to provide. 

“I was instructed by (Mahathir) in his capacity as the then prime minister and (Nor Yakcop) in his capacity as the special economic adviser to (Mahathir) not to proceed with the acquisition of 32.69% of Renong from UEM pursuant to a put option exercised on me by UEM in December 2000. 

“I was also instructed by (Mahathir) and (Nor Yakcop) not to proceed to undertake a take-over of UEM, which I was about to undertake with Renong jointly. 

“Instead, I was required by (Mahathir) and (Nor Yakcop) to support the government’s initiative and or plan, through Khazanah Nasional Bhd’s wholly-owned subsidiary company Danasaham Sdn Bhd, to undertake the take-over of UEM via a general offer,” Halim said. 

He added that the collective and concerted actions of the defendants resulted in his loss of control of Renong, which also meant the indirect loss of control of UEM and its “highly valuable assets”. 

The assets he named include the North-South Expressway (PLUS) project, the Elite Expressway, the Malaysia-Singapore Second Link Expressway (LINKEDUA), Pharmaniaga Bhd, Intria Bina Sdn Bhd, Ho Hup Construction Sdn Bhd, and Kualiti Alam Sdn Bhd. 

He said he had suffered financial losses as a direct result of the defendants’ action, which constituted a breach of his constitutional rights under the federal constitution.

Halim’s suit filed today comes after he unsuccessfully sued the government, Khazanah, and Nor Yakcop in 2013 for RM1.8 billion.  

In November 1997, the nation’s biggest infrastructure firm, UEM, purchased a 33% stake in its heavily-in-debt parent, Renong, for RM2.3 billion, leading to Renong’s value plummeting as investors dumped shares in both firms.

Following public uproar over the deal, which was said to be in opposition to stock exchange reporting rules, the Securities Commission urged Halim, as the controlling shareholder of Renong, to buy back the stake from UEM, with payments to be made between February 2001 and April 2002. 

However, in July 2001, the government determined that Khazanah Nasional would take over the entire Renong group – including a RM12 billion debt – for RM4 billion. – August 9, 2023

In May, Dr Mahathir’s filed a defamation suit against Anwar Ibrahim over the PMX’s purported claim that the former Prime Minister had used his position to enrich himself and his family members.That’s the other context Halim’s lawsuit, if you like.

Halim’s court action against the former PM won’t be the last, I’m hearing. Tajudin Ramli, the founder of Celcom and former owner of Malaysia Airlines, may follow suit, pardon the pun.

Wee threat to sue MCMC

Bangsar, 1 Aug: Another potential lawsuit, which may well lead to a counter-suit, involves the beleaguered (although some prefer belligerent) Tourism Malaysia former chairman Wee Choo Keong, 70, whose blog has been taken down by the MCMC, the authority in charge of regulating and promoting the telecommunications and multimedia industry. 

In a strongly-worded letter to the MCMC Wee, a lawyer and former MP, has given the authority an ultimatum to “unblock my blog or see you in coourt”. 

Excerpts from the news  report:

"Kindly take notice that if our client's blog continues to be blocked and remains inaccessible for service of this letter, our instructions are to file proceedings against you and/or your minister and/or the government of Malaysia, without prejudice to a claim for compensation or damages.

"Our client hopes that it will not be necessary for him to resort to legal action if you act with due dispatch within the above time frame to comply with his demands."

I’ve always been amazed, when not perplexed, by Wee’s combative nature. The blocking of his blog, therefore, did not come as a surprise. I’m not privy to why exactly the MCMC has blocked his blog but fellow bloggers have suggested it may have something to do with his incessant attacks on a former Tourism Malaysia chairman and people associated with the individual. 

The MCMC is not obliged to inform anyone prior to blocking a site or a blog deemed “undesirable” or to have flouted the law. In fact they could, if they so decide, invite themselves (in the company of the police) to your home or office and confiscate your equipment which they believed have been used to post stuff considered defamatory or seditious or undesirable. You can challenge them, of course, this is a free country. I did in 2010, when they took my Ferrari but I didn’t sue them. I guess that’s because I’m a journalist.

Wee did not stop at the ultimatum. In the sane letter to the MCMC, his lawyers reportedly accuse the MCMC of acting like a “secret society” even though Malaysia is a “civil society”. I think that’s where things will go sideways and where Wee can expect to get a letter of demand from Cyberjaya soon. 

Defamation suit over Stadium project: Party Hijau’s Razak Ismail has no cause to whine, unless …

Amirudin is trying to silence (me) with the lawsuits - Razak Ismail, Green Party sec-gen 

Damansara, 30 July: I don’t quite understand why Razak Ismail, the sacked PKR leader who is now Green Party secretary general, is whining about being sued by MRCB for the things he had accused the conglomerate of. If his claims can be backed by facts, he should see it as a great opportunity to promote his integrity. The court is where Razak will prove to all and sundry that he speaks the truth and nothing but the truth, that he didn’t make up any of it. Berani kerana benar. 

So now, the whining, could  it be that Razak knows he won’t be able to back up his allegations and will lose to MRCB in court?

If that is so, you asked for it! Kerana mulut badan binasa. But even if that is the case, Razak, it is an opportunity: you can instruct your lawyers to approach MRCB, the party that is suing you to protect its own integrity, and negotiate some kind of agreement that is acceptable to both sides. Usually, that would be you making a public apology to MRCB for defaming them and you giving an undertaking not to repeat your defamatory remarks.. (You may have to pay some legal costs but usually the amount won’t be as crippling as the damages you would have to pay when you lose the case().

Either way, here’s what we all need to constantly remember: we are accountable for what we say, whether it is in the real world or in cyberspace. The law is blind in this country where even former prime ministers know they can be hauled up to court for alleged indiscretions. Even the sitting PM Anwar Ibrahim is going to court to answer allegations he made against Tun Dr Mahathir Mohamad. Heck, the mighty Royalty of this country too are no longer spared; the only difference is, perhaps,  their court is called  “special”. In short, nobody is above the law.

The social media, my friends, is not a place where you can slander, defame and get away without having to account for whatever you Facebook, tweet or tiktok. I speak from experience. I was sued by a conglomerate in 2006, a case that lasted 5 years against  plaintiffs who were powerful individuals close to the government of the day. Did I whine?

And remember this, too: Nobody can silence you with a letter of demand. Unless what you have written or said was utter rubbish in the first place. 

READ the article

Stadium Project: Okay to crtiticise, not slander, warns MB

by the SCOOP for context:

Amirudin to Razak: We have lawyers and you have your lawyer, so let’s settle it (in court) 

SHAH ALAM – The right to criticise should not be abused by issuing slanderous statements. 

Selangor caretaker Menteri Besar Datuk Seri Amirudin Shari said while criticism helps keep administrators on their toes, slander and spreading misinformation is a different story.

“If we (the state administration) don’t initiate legal action against false claims, then the public will assume that we are in the wrong (since) we are keeping quiet,” Amirudin told a town hall session organised by Sinar Harian at the Karangkraf Media Complex here last night.

“It’s fine if you want to criticise us, but don’t make false accusations.”

The Gombak MP was responding to heated inquiries from Green Party pro-tem secretary-general Abdul Razak Ismail.

Razak accused Amirudin of misusing government linked corporations (GLCs) to “silence” critics by filing suits.

Razak, who was sacked from PKR in January, pointed out he and four media sites were being sued by Menteri Besar Selangor Inc (MBI), the state government’s major investment vehicle.

The suit was initiated after Razak issued several statements questioning terms of a deal regarding the Shah Alam Stadium redevelopment project, alleging that the project was awarded without an open tender. In response, Amirudin highlighted how he has consistently maintained that the state government undertook the necessary governance procedures prior to the project’s implementation.

“This was a process that goes back to 2008. The proper process has been followed. Tenders were called and tens of companies put in their bids,” he told the audience of 500 which included viewers following the dialogue on Facebook.

“GLCs have their dignity and credibility at stake (when accused of wrongdoing).

“Your (Razak’s) claims (against MBI) were false allegations, so they have to take action to protect their interests.”

Amirudin added that Razak had defamed him before but the former decided not to pursue legal action.

“I don’t simply sue for anything that is trivial. Last time you accused me of misappropriating football club money. I thought the allegations were frivolous so I didn’t take legal action,” he said.

“But these claims (on the stadium project) are not criticism but false allegations so the GLC has to take action as they need to protect their interests.”

Amirudin said far from silencing critics, the courts are the best place to get to the truth.

“We have lawyers and you have your lawyer, so let’s go and settle it there.”

In July last year, MBI handed over a non-binding letter of intent to engineering and construction firm Malaysian Resources Corporation Bhd (MRCB) to conduct and deliver a proposal on how to redevelop the stadium.

Amirudin had previously said that the cost of repairing and renovating the current outdoor stadium, which is home to Selangor FC, as well as the indoor Malawati Stadium next door, is in the range of RM787 million.

So, the state government needed to decide if it was more prudent to build an entire new facility with supporting features such as a people’s park and areas for small businesses; or simply refurbish the current 30-year-old arena.

Amirudin had also revealed then that MRCB was invited to put in its proposal out of 15 other companies due to its strong financials and track record, having redeveloped the Bukit Jalil National Sports Complex in 2017.

 A public display to gain feedback was also held with the final decision on the scope of the project and cost yet to be decided by the state government. – July 25, 2023