KUALA LUMPUR, Aug 9 — Distinguished businessman Tan Sri Halim Saad has initiated legal proceedings in the High Court of Kuala Lumpur, filing a civil lawsuit against former Prime Minister Tun Dr Mahathir Mohamad and former Minister Tan Sri Nor Mohamed Yakcop. The lawsuit, filed on August 2, also implicates the Malaysian government. Halim seeks compensation for substantial financial losses he incurred as a result of the government's acquisition of United Engineers Malaysia (UEM) Bhd and Renong Berhad.
In a statement released, Halim asserted that actions taken by Dr Mahathir and Nor Mohamed had infringed upon his constitutional rights, leading to significant losses. He stated, "The collective and concerted actions of the defendants resulted in my loss of control of Renong which also meant the indirect loss of control of UEM and its highly valuable assets."
The legal basis of Halim's lawsuit centers around alleged violations of several articles within the Federal Constitution. Article 8(1) ensures equality before the law and equal protection, while Article 13(1) stipulates that property cannot be seized without a lawful basis. Furthermore, Article 13(2) mandates appropriate compensation for compulsory property acquisition.
Halim argued that both Dr Mahathir and Nor Mohamed had instructed him to halt plans for Renong's acquisition and the subsequent joint takeover of UEM. Instead, he was urged to support the government's takeover of UEM through Khazanah Nasional Berhad's subsidiary, Danasaham Sdn Bhd. This, he claimed, led to his financial losses and infringement of his constitutional rights.
The lawsuit, presented on Halim's behalf by law firm Malik Imtiaz Sarwar, seeks several court orders, including compensation under Article 13(2), a declaration of beneficial ownership over Renong shares, and a declaration of the government's obligation to offer fair compensation for the loss of his controlling rights.
Halim maintained that he held a substantial shareholding in Renong, which in turn controlled UEM. The legal action revolves around UEM's put option exercised in December 2000, involving the acquisition of Halim's shares. He intended to initiate a general offer on UEM, privatizing it under Renong, which would have consolidated his control over the valuable assets.
Halim argued that Dr Mahathir and Nor Mohamed's actions hindered this plan, prompting him to relinquish control of Renong and UEM, ultimately leading to a significant diminution in his shares' value. He received payment from Khazanah, but he contended that it did not compensate for the loss of his rights.
The lawsuit is scheduled for case management on September 13. In response to the lawsuit, Dr Mahathir's lawyer confirmed the receipt of court papers and assured a timely response.
Halim emphasized that his current legal action differs from a previous lawsuit in 2013, focusing on constitutional rights infringement rather than contractual issues. The 2013 lawsuit was dismissed by the courts, citing limitations on the claims.
In essence, Tan Sri Halim Saad's lawsuit highlights a complex legal battle where allegations of constitutional rights violation converge with intricate corporate maneuvering and historical government actions.
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