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Metramac Scandal - Should Halim Saad refund RM32.5 million to treasury or should government sue Daim for wrongful disbursement of RM32.5 million?

Media Statement (2)
by Lim Kit Siang  

, Wednesday): More light has been thrown in the decade-and-a-half-old  RM756 million Metramac concession scandal since the Court of Appeal judgment by Justice Datuk Gopal Sri Ram that Halim Saad  and Anuar Othman  “had flirted with an aggravated form of criminal breach of trust, an offence carrying a maximum 20-year jail term with whipping and fine upon conviction”, involving  misappropriation of RM32.5 million from the Cheras toll concessionaire.

In a letter to The Sun, Muhamad Fawzi Abdul Karim, the Project Advisor and brother of Datuk Fawziah Abdul Karim, the then director of Syarikat Teratai KG Sdn Bhd, a family company (now known as Metramac Corporation Sdn Bhd) who primarily assisted his sister in the affairs of STKG until 1990, sought to put certain facts stated in Halim's earlier statement in proper perspective.

Muhamad Fawzi contended that there was “absolutely no justification for public funds to be used to pay RM32.5m to Metramac or Metro Juara, which are companies controlled by Halim for his private investment.”

He said Halim in his press statement did not produce the entire content of the letter dated Feb 13, 1992, from the Ministry of Works. The relevant part of the letter which is not reproduced sets out the condition for the payment of the RM32.5 million.

The paragraph is as follows:

“Walaubagaimanapun pembayaran tersebut akan hanya dibuat selepas tuan mendapatkan persetujuan bertulis daripada peminjam-peminjam tuan membatalkan perjanjian konsensi asal serta segala hak-hak dan tuntutan di bawah perjanjian itu pada atau sebelum 31.3.1992.”

Muhamad Fawzi said:

“When this letter is examined in full, it will be seen that the note in the audited accounts of Metramac for the financial year 1992 as referred to by Halim in his press statement is incorrect.

“The notes to Metramac's Accounts for the year ended March 31, 1992 stated that:


‘The Government of Malaysia has agreed (via their letter dated Feb 13, 1992) and has paid an amount of RM32.5 million to the Concession Company on the condition that the Concession Company pay the premium to the shareholders of the Company.’

“This is not found in the letter dated Feb 13, 1992, from the Ministry of Works.”

An appeal to the Federal Court has been filed by against Metramac Corp.Sdn. Bhd.against the Court of Appeal judgment in favour of Fawziah Holdings Sdn. Bhd and I do not want to prejudge its outcome.

Without getting involved in the dispute between the two parties in the appeal case before the Federal Court, there is the  public interest question that must be asked -  whether the RM32.5 million was properly paid out by the Treasury, and if not, whether  Halim Saad  should refund  the RM32.5 million to treasury or whether the  government should  sue for  reparations from the Finance Minister at the time responsible for this payment, Tun Daim  Zainuddin for wrongful disbursement of RM32.5 million?

The Finance Minister, Datuk Seri Abdullah Ahmad Badawi should publicly declare the government’s stand on this  extraordinary and most improper RM32.5 million out of the public coffers ending up in the hands of two individuals, Halim Saad and Anuar Othman.


*  Lim Kit Siang, Parliamentary Opposition Leader, MP for Ipoh Timur & DAP Central Policy and Strategic Planning Commission Chairman

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