Court orders Dr Mahathir, two others to file defence in UEM-Renong suit

Ex-PM, Tan Sri Nor Mohamed Yakcop, Putrajaya are defendants in Tan Sri Halim Saad’s legal action

5:27 PM MYT

 

KUALA LUMPUR – The high court here today ordered Tun Dr Mahathir Mohamad and two others to file their statement of defence by October 6, in the suit filed by tycoon Tan Sri Halim Saad over the government’s takeover of United Engineers Malaysia (UEM) Bhd and Renong Bhd.

The two other defendants named in the suit are former second finance minister Tan Sri Nor Mohamed Yakcop and the government.

Federal counsel Imtiyaz Wizni Aufa Othman, representing the three defendants, said the court also ordered Halim to file his reply to the defence by or on October 23.  

“The court set November 20 for the next case management and any interlocutory application must be filed by November 20 as well,” she said when contacted after the e-review case management before high court senior assistant registrar Nik Nur Amalina Mat Zaidan today.

Halim filed the suit on August 2 seeking compensation for the losses he suffered after the takeover of Renong and UEM shares by the government, nearly 23 years ago.

Based on his statement of claim, Halim, who is Renong’s former executive chairman and director, had intended to make a general offer to buy out UEM and privatise it as a subsidiary of Renong, which would have enabled him to gain full control and ownership of the company.  

However, the plaintiff alleged that he was instructed by Dr Mahathir and Nor Mohamed not to pursue the deal as the government intended to take over all UEM shares through Khazanah Nasional Bhd, or a party selected by the sovereign wealth fund.

“I was also directed to divest my shareholding in UEM and Renong as well as my directorship of the two companies and their subsidiaries. This obligated me to relinquish control over Renong and UEM to the government and dispose of my shares at a loss,” he said in the statement of claim. 

Halim claimed that Khazanah had acquired the entirety of UEM shares through its subsidiary, Danasaham Sdn Bhd, and gained control over UEM, which owned 32.6% of Renong shares. 

Therefore, Halim is seeking compensation for the forced takeover by the government between July and October 2001 and a declaration that he is a Renong shareholder.  

In 2013, Halim filed an RM1.8-billion suit against the government, Khazanah and Nor Mohamed. but the high court here dismissed the suit and he also failed in his appeal at the Federal Court in 2015. – September 13, 2023

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