Former Inspector-General of Police Abdul Rahim Nor today publicly apologised to former deputy premier Anwar Ibrahim for assaulting him in 1998 while in police custody.

His apology is part of an out-of-court settlement whereby Anwar agreed to withdraw the suit in return for the open apology and an unspecified sum in compensation - which he later described as "a small amount...".

The apology was read out by Rahim's lawyer Joseph Ting in open court this morning before High Court judge Hishamuddin Yunus.

"I, Tan Sri Abdul Rahim Noor accept responsibility for the (1998) assault. The pain and hurt caused to you and to your family is deeply regretted. I sincerely apologise to you Datuk Seri Anwar Ibrahim and your family for the same," read Ting before he passed the written apology to Anwar.

Senior federal counsel Mary Lim, representing the home minister and the government - concurred with the agreement to settle the suit.

Justice Hishamuddin formally struck out the suit and commended the parties for settling the matter amicably.

It is unknown who among the three defendants - Rahim, then home minister Dr Mahathir Mohamad and the government - will foot the bill, as confidentiality is among the conditions set.

"We can neither disclose the amount to be paid to our client nor who is going to pay. That was agreed upon by both parties," said Gobind Singh Deo, a member of Anwar's legal team.

'Time to move on'

Outside the court, Anwar told reporters that he had accepted the apology and was relieved that an episode of "the darkest time" of his life is finally over.

"At least one episode has passed and we have to move on. To my mind there is no reason to go on with this," he said.

"I am not saying this because it was easy for me... the pain, anguish and humiliation was huge but I feel we have to move on. I have said my piece in court and I don't intend to repeat it."

When it was pointed out that the government had not issued an apology as he had hoped, Anwar said that although other parties did not show equal remorse, he was satisfied with the agreement.

"Our concern was not a personal vendetta, but to (set) an example that no other citizen should be victimised, and to teach a lesson that no one can be spared when they abuse the law or when you inflict harm on innocent people or when you show so much arrogance..."

"I appeal to my friends and the entire police force to take heed of this and conduct their affairs professionally for the sake of this country."

As to the damages, Anwar said he has decided not to "touch the money at all".

"I have already discussed with my lawyers that, apart for the legal costs, my family and I will not be touching the money. I would like it to be used for victims (of alleged police brutality) in the past, in particular those surrounding the case," he said referring to those facing illegal demonstration charges.

Meanwhile Ting told the press outside the court that Rahim cited religion as the catalyst for his willingness to apologise.

"Tan Sri Rahim has never been and is not a man who is afraid to take responsibility for his actions...Furthermore, he wants me to say that as a Muslim, this is a proper thing to do."

The lawyer, who claimed that the apology could not have been made earlier "due to unresolved legal issues and their far-reaching ramifications", read out the apology for the benefit of the press.

'Cover-up' claim

In the hearing which started on Monday, Anwar had claimed that he was assaulted while in police custody in 1998 and sought a public apology and damages from Rahim, the home minister and the government.

Rahim had pleaded guilty to inflicting injury on Anwar at the Kuala Lumpur Sessions Court on March 15, 2000 and was jailed two months and fined RM2,000. He served the sentence and paid the fine after the Appeals Court upheld the imposition of both penalties on May 22, 2001.

Anwar had testified that after his arrest at his Bukit Damansara home on Sept 20, 1998, he was taken to the Bukit Aman police headquarters where he was placed in a cell, blindfolded and handcuffed from behind. He was then assaulted.

He claimed that there was an attempt to cover up the incident and that Rahim and Mahathir had misled the public into thinking that he (Anwar) was "safe and sound" when he had been left unattended without medical assistance after being beaten.

Yesterday's hearing - during which Anwar was to have been cross-examined by lawyers for the defendants - was adjourned to today after the lawyers informed the court of a possible settlement.

Anwar was sacked from his posts as deputy premier and finance minister in September 1998, after a fallout with Mahathir, who was then prime minister.