KUALA LUMPUR — Former prime minister Tun Dr Mahathir Mohamad had apparently used Renong to shore up Umno’s political war chest while Datuk Seri Anwar Ibrahim was adamant at utilising it to stabilise the country in the wake of the Asian financial crisis.
A writ of summons from then Renong executive chairman Tan Sri Halim Saad against Dr Mahathir and former economic advisor and chairman of government wealth fund Khazanah Nasional Bhd Tan Sri Nor Mohamed Nor Yakcop claims that while Dr Mahathir was forcing Halim to release Renong (worth RM2.1 billion) for a mere RM165 million.
However, Anwar who was the then-finance minister wanted Halim to use it to buffer the country from the crisis.
“Renong shares belonged to the plaintiff and not to Umno Baru or any other person,” read the 72-page claim filed last week at the High Court here.
“At the material time, Renong held 37.92% in the issued and paid-up capital of UEM, then listed on the Kuala Lumpur Stock Exchange (KLSE). Renong’s shareholding made it the single largest shareholder in UEM,” the claim added.
Anwar who was also then deputy prime minister on November 24, 1997 said in Parliament that the company remained independent of political ownership.
“I want to explain something. I am the deputy president of Umno. As far as I know UEM-Renong have no connection with each other.”
He was sacked the following year, with the Renong deal one of the many instances he disagreed with his boss Dr Mahathir.
The statement of claim goes on to say: “During the Asian Financial Crisis in 1997-1998, as the KLSE was badly affected, Anwar as the then Finance Minister, requested that the Plaintiff acquire shares in Renong to help shore up the KLSE and to prevent the country from losing prized assets, including the PLUS Highway, which was then a 100% subsidiary of UEM.”
Halim said three members from UEM’s board of directors, Datuk Syed Amin Al-Jeffri, Datuk Ramli Mohamad and Datuk Yahya Ahmad had met with Dr Mahathir and Nor Mohamad to express their views that the government should not interfere with UEM-Renong Group’s plans and that the matter should be left to the shareholders to decide.
Halim, in his suit served yesterday 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.
There is also an implied accusation of abuse of power by Dr Mahathir when he instructed the then Securities Commission chairman Datuk Ali Kadir to in turn instruct the Board of UEM not to support Halim’s intended General Offer although the latter had already paid RM100 million for his Put Option.
The Board was also asked to resign.
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 Dr Mahathir and Nor Yakcop.
He is also seeking adequate compensation.
In a press statement yesterday, Halim said in December 2000, he was instructed by then Prime Minster Dr Mahathir and Nor Yakcop in his capacity as the special economic adviser to the Prime Minister not to proceed with the acquisition of 32.69% of Renong from UEM pursuant to a put option exercised on him by UEM.
Halim claimed he was also instructed not to proceed to undertake a take-over of UEM, which he was about to undertake with Renong jointly.
“Instead, I was required 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 said 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”. — August 10, 2023