Against Prominent Businessmen Datuk Halim Saad and Anuar Othman For
Criminal Breach Of Trust And Former Finance Minister Tun Daim
Zainuddin For Abuse Of Power In The 756.7 Million Metramac Scandal.
Made By Tan Kok Wai
(Cheras Police Station , Monday):
Police Report By DAP National
Organising Secretary And MP For Cheras Tan Kok Wai In The Cheras
Police Station On 16 January 2006.
In or about September 1990, there
was a public demonstration at the toll booth established by the
defendant along the Cheras highway protesting at the imposition
of a toll. The Federal Government stepped in to deal with the
situation. By its letter dated 12 September 1990 DBKL asked
Syarikat Teratai KG Sdn Bhd (STKG) to suspend the collection of
toll at the Cheras tollbooth. This spelled disaster for it was
exposed to a loan repayment of RM 40 million which it had
planned to pay from toll collection. In the second place, the
whole of the shareholders funds amounting to RM 65 million would
be wiped out.
DBKL in its letter of 20 October
1990 agreed in principle to take the option of terminating the
first concession and paying compensation. But no figure was
mentioned although the defendant had put forward an estimated
sum of RM 764.2 million as compensation. An appeal to the then
Minister of Finance, Tun Daim Zainuddin, fell on deaf ears. He
simply told the defendant's then existing shareholders that the
Federal Government was not in a position to pay the defendant
By letters dated 12 November, 1990
and 24 November 1990 a company called UEM Bhd, a public limited
company made an offer to purchase all the shares in STKG for a
sum ofM$97.5 million. The shares were to be purchased by a
company nominated by UEM. That company was Metro Juara Sdn. Bhd.
which had merely two shareholders who were also its sole
directors. These gentlemen were one Anuar Othman and one Dato
Halim Saad. No one in his or her right mind will consider the
choice of selling of their shares to Metro Juara at RM 97.5
million as a choice at all. All the independent evidence on
record points to this being in reality a crude case of economic
duress presenting itself in a more subtle form.
Now, the offer by UEM to buy out
the defendant’s shares for RM 97.5million simply does not make
any commercial sense. Here you have a company that has just had
its loan and shareholders capital wiped out in one stroke. It
had no money in its coffers. It had huge debts. It had no
prospects of receiving any compensation from DBKL. So why pay RM
97.5 million for the shares of such a company? The answer is
simple enough. Anuar Othman and Dato Halim Saad had something
which the plaintiff did not. And that was the patronage of
the then Minister of Finance, Tun Daim Zainuddin.
An agreement called the Share Sale
Agreement dated 23 January 1991 was executed. Thereafter, the
defendant's name was changed to Metramac Corporation Sdn Bhd.
Not long after the take over, a strange thing happened. Where
doors were once closed to the defendant before its take over, as
if by the utterance of a magic spell all bureaucratic doors
were opened to the defendant after its take over by Metro Juara.
And, as if by the rub of a magic lamp, the Federal Government
and DBKL who hitherto claimed to be impoverished suddenly found
themselves flush with funds. They were now in a financial
position compensate the defendant. The figures are staggering.
In one way or another the defendant was to receiving total sum
of M$756 million.
In its letter of 30 August 1991,
DBKL said that it would pay the defendant RM312 million for the
cost of works done. On 13 February 1992, the Federal Government
in conjunction with DBKL agreed to subsidies the defendant with
a sum of RM405 million to enable the defendant to meet the cost
of financing the works to be undertaken under the agreement that
was to be entered into between DBKL and the defendant. Mark
you, at this point in time, not a stick of work had been done
under the new concession agreement. On that very day, that
is to say, '13 February 1992, two other events occurred. First,
DBKL entered into another concession agreement with the
defendant. I will refer to this as the second concession
agreement. Second, the Ministry for Public Works gave the
defendant an undertaking to pay it RM 32.5 million as "payment
for share premium" not "previously taken into account": So far
as this case is concerned, the words within quotation marks are
meaningless. Because they have no nexus whatsoever to any of the
agreements entered into between the several parties. You may
well ask how all this could have happened without the direct
involvement of Tun Daim. It is also incomprehensible why the
defendant as it was constituted immediately before the takeover
by Metro Juara was not given this same financial support by the
Federal Government. After all, at least two of the pre-takeover
shareholders were either Government concerns or Government
assisted concerns. And in the case of Tabung Haji, the ultimate
beneficiaries would have been the poorer section of our society.
I think that it is a fair question to ask why taxpayers'
money was channeled into the hands of two private individuals -
to profit them - instead of a wider section of the general
public. It is not at all clear why the Minister for Finance used
his power to favour Anuar Othman and Dato Halim Saad.
For the sake of completeness, it
must be mentioned that the RM 32.5 million mentioned earlier was
siphoned out of the defendant's account by Anuar Othman and Dato
Halim Saad. An international misappropriation of such a
company’s property, moveable or immoveable criminal breach of
trust within section 405 of the Penal Code and, if the
misappropriation is done by directors, as was the case here, it
is the aggravated form of criminal breach of trust under section
By doing so, the two businessmen
could face a maximum 20-year jail term with whipping and fine upon
conviction. The police should also investigate and take action
against Tun Daim for clearly abusing his powers to profit the two
individuals at the expense of public interest. This is my report.
TAN KOK WAI
532A, Batu 3 ½ , Jalan
56100 Kuala Lumpur.
Tel. No. 03-92857532
DAP National Organising Secretary And MP For Cheras