Metramac: Should Halim refund or govt sue Daim for RM32.5 million?

The Sun, Kuala Lumpur
25 January 2006


Should Halim refund or govt sue Daim for RM32.5 million?

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 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 payment out of the public coffers ending
up in the hands of two individuals, Halim Saad and Anuar Othman.