Lands and Cooperative Development Minister Kasitah Gaddam, charged last week with corruption in a crackdown led by new Prime Minister Abdullah Ahmad Badawi, has resigned his cabinet post.

Abdullah said Kasitah quit so he could "focus on clearing his name in the court case", local media reported today.

The prime minister was speaking to Malaysian journalists in Tehran where he is attending a meeting of the D-8 economic grouping.

Kasitah had submitted his resignation letter to Abdullah yesterday morning before the premier left for Iran.

Abdullah said that he had not decided on Kasitah's replacement yet.

Out on bail

Kasitah, 56, was charged last week with corruption over a share transaction by the state-owned Sabah Land Development board involving up to RM40 million.

He pleaded not guilty and was released on bail of RM1 million.

The move against Kasitah was the second high-profile arrest last week over alleged corruption during the period when retired prime minister Dr Mahathir Mohamad was in power.

The former head of troubled steel giant Perwaja, Eric Chia, was earlier charged with embezzling RM76.4 million.

Abdullah, who took over the premiership on Oct 31 when Mahathir stepped down after 22 years in office, has repeatedly declared the fight against corruption to be a priority for his new administration. - AFP