The Attorney-General (AG) and the Anti-Corruption Agency (ACA) must investigate the findings of the Court of Appeal over the possible criminal improprieties and corrupt deal among a high ranking ministerial figure and prominent businesspersons in the Metramac case, said corruption watchdog Transparency International (TI) today.

"Even if the court had not directed the papers before it to be referred to the office of the AG to investigate criminal improprieties on the part of those involved yet it is still open to the AG to direct such investigations," said TI Malaysia president Param Cumaraswamy Left) in a statement.

The statement was in response to the Court of Appeal's ruling on Thursday that toll concessionaire Metramac Corporation Sdn Bhd is to pay RM65mil to Fauziah Holdings Sdn Bhd for claims under a signage and advertising agreement between the two parties.

The case involved Fawziah Abdul Karim and her mother Maimon Bee, who were directors and shareholders of Syarikat Teratai K.G. Sdn Bhd (STKG), now known as Metramac.

In July 1986, Fawziah obtained a tender to design, construct and operate the privatisation of a number of roads, including one in Jalan Cheras.

But toll collection was suspended in September 1990 after a demonstration at the Cheras toll plaza.

As a result, compensation of RM764 million was payable by Kuala Lumpur City Hall to STKG. The then Finance Minister Daim Zainuddin (right) told the shareholders that the government did not have money to compensate them.

STKG was then bought over by Metro Juara for RM97.5 million. Prominent business figures Anuar Othman and Halim Saad were the shareholders of Metro Juara.

After the transaction, the federal government suddenly found the funds to compensate Metro Juara (or Metramac then).

'Criminal breach of trust'

In a New Straits Times report today, Judge Gopal Sri Ram (left) was quoted as saying: "You may well ask how all this could have happened without the direct involvement of Tun Daim. It is also incomprehensible why the defendant, as it was constituted immediately before the takeover by Metro Juara, was not given this same financial support by the federal government."

He noted that at least two of the pre-takeover shareholders were either government concerns or government-assisted concerns.

"I think that it is a fair question to ask why taxpayers' money was channeled into the hands of two private individuals - to profit them - instead of a wider section of the general public.

"It is not at all clear why the Minister of Finance used his power to favour Anuar Othman and Datuk Halim Saad," said the judge in the report.

It was reported that Sri Ram also noted that Halim and Anuar had siphoned from the defendant's account RM32.5 million.

He said that he had asked the lawyer representing the company how this could have happened.

The judge said the counsel's reply was 'stupefying' as he had submitted that Anuar and Halim, as shareholders paid this sum into Metramac's account and were now reimbursing themselves.

Sri Ram had said an intentional misappropriation of such a company's property, moveable or immoveable was a criminal breach of trust.

Take action

Following the finding of the judgement, Param said the investigation into the case could lead to revelation of instances of grand corruption at high level of government during the previous administration in the light of widespread speculation then.

"We urge the AG to do so. As the Court's findings also impute possible ministerial corruption we urge the director of the ACA to commence investigation and take appropriate action, if the evidence warrants, against those involved," he added.

Param said the findings made by the court was most welcome.

"It also raises questions on the manner in which the NEP was administered during the previous administration under Tun Dr Mahathir Mohamad," he said.