KUALA LUMPUR: Tycoon Tan Sri Halim Saad has filed a lawsuit against former prime minister Tun Dr Mahathir Mohamad and several others over the government's takeover of United Engineers Malaysia (UEM) Bhd and Renong Bhd.
The 70-year-old businessman filed the suit via Messrs. Malik Imtiaz Sarwar at the High Court on Aug 2 by naming Dr Mahathir, former minister Tan Sri Nor Mohamed Yakcop and the government as the defendants.
The plaintiff (Halim) in his statement of claim contended that the first and second defendants had acted on behalf of the government and were the prime movers in respect of the said compulsory acquisition and deprivation in 2001.
"The plaintiff's Renong shares belonged to him and not the Umno Baru. At the material time, Renong held 37.92 per cent in UEM.
"The plaintiff had intended to make a general offer on UEM, either through Renong or jointly with Renong, to take it private as a subsidiary of Renong.
"This would have enabled the plaintiff, by virtue of the plaintiff's Renong shares, to acquire control and full ownership of UEM through Renong.
"The plaintiff was, however, directed by Dr Mahathir through Nor Mohamed, not to proceed with the take over as the government wanted to acquire all the shares in UEM through a designated entity, Khazanah Nasional Bhd.
"The plaintiff was also directed to exit both UEM and Renong, both as shareholder and director including in subsidiaries of the said companies," claimed Halim.
Halim claimed this had required him to cede his control over Renong and UEM to the government and to eventually dispose his Renong shares at a loss.
The plaintiff claimed he complied with Dr Mahathir's directive as the latter was the then prime minister and finance minister.
He claimed that this had breached his rights as enshrined in Article 8 and Article 13 of the Federal Constitution.
Article 8 and Article 13 of the FC stipulates that all persons are equal before the law and no person shall be deprived of property save in accordance with law, respectively.
Halim claimed three former UEM's board of directors met with the first and second defendants to express their view over the government's intervention in the company.
He claimed the trio wanted to express their views that the government should not interfere with the UEM-Renong Group's plans and that the matter should be left to the shareholders to decide.
"However, they were asked to stay away from the matter.
"In July 2000, the then Securities Commission chairman Datuk Ali Kadir summoned the whole UEM board of directors to his office and reprimanded the board for allowing the cross-shareholding between UEM and Renong to take place," he claimed.
Halim claimed he was not compensated for the acquisition of UEM and the deprivation of his rights as a controlling shareholder of Renong.
The plaintiff is seeking a court declaration that he was the beneficial and legal owner of Renong shares and not Umno Baru.
He is seeking a declaration that the government was obliged to provide the plaintiff adequate compensation within the meaning of Article 13 of the FC.
Halim also seeks compensation from the government as well as exemplary and aggravated damages.