Tycoon Halim Saad fails RM2b court bid against government

(MM) – The High Court threw out today tycoon Tan Sri Halim Saad’s RM2 billion case against Putrajaya and state investment arm Khazanah Nasional over a deal on the Renong-UEM shares.

In explaining her decision, the judge found that there was no basis to say that there was fraudulent misrepresentation by former minister Tan Sri Nor Mohamed Yakcop over the compensation to Halim.

“But based on the core bundle, the documents before the court, the contemporaneous documents, in my view there is no basis for the matter to go on trial,” High Court judge Datuk Hanipah Farikullah said after almost three hours of oral submissions by both sides.

She then ordered Halim to pay a total of RM50,000 in costs, with Nor Mohamed and the government to receive RM25,000 while the third defendant Khazanah Nasional would get RM25,000.

The lawyers who represented Halim today are Gopal Sreenevasan and Ranjit Singh.

When asked if Halim would be filing an appeal, Gopal said that they would consult their client first.

Halim filed the suit in April, claiming he had suffered losses due to alleged fraudulent misrepresentation and fraud by the three defendants against him.

Nor Mohamed was named the first defendant, with the Malaysian government and Khazanah Nasional listed as the second and third defendants respectively.

Nor Mohamed was the special economic adviser to the then Prime Minister Tun Dr Mahathir Mohamad, between 2001 and 2003.

Halim claimed that he was “induced” by Nor Mohamed to enter into two agreements in 2001 and 2003 respectively despite the government and Khazanah’s lack of intention to pay him in the acquisition of the shares.

The businessman claimed that he had only received RM165 million from Khazanah as a refund for the RM100 million he paid to purchase the Renong shares through a “put option” and an additional RM65 million.

In the suit, Halim had sought a compensation of RM1.3 billion for giving up his shares in the Renong and UEM group, as well as a separate sum of RM508 million.

But on July 8, the three defendants filed an application to strike out Halim’s claim, arguing that no agreement was ever reached between the government and the magnate.

The lawyers for the defendants also argued that Halim had taken legal action too late, years after the six-year period under the Limitations Act of 1953 had expired.

Halim’s lawyers argued today that their client had only found out through an August 2010 meeting with the now-retired Dr Mahathir that there was allegedly never an intention to pay Halim as the assets purportedly belonged to Umno.

But the judge today agreed with the defendants’ argument that Halim had found out about a change of situation in 2002 and should have taken legal action then instead of waiting more than ten years.

Halim previously controlled around 70 per cent of the shares in Renong Berhad.

In October 2011, he gave up his posts as executive chairman and director in Renong, as well as other companies under the Renong and UEM Group.

UEM, which was then a listed company, was then taken off the stock market and is now a wholly-owned subsidiary under Khazanah.