Former finance minister Daim Zainuddin today broke his silence over a court judgment that suggested he played a role in the siphoning of more than RM30 million from a toll concessionaire.

In a brief statement issued via his lawyer Cecil Abraham of Shearn Delamore & Co, he dismissed the headline-making Jan 14 Court of Appeal judgment as 'erroneous'.

The statement dated Jan 17, said that Daim was currently abroad and was expected to issue a detailed response upon his return next week.

"Our client's attention had been drawn to the recent decision of the Court of Appeal in Fauziah Holdings vs Metramac, where certain findings have been made against him.

"We are instructed by our client that these findings are erroneous," it read.

In his judgment, Court of Appeal Judge Gopal Sri Ram suggested that Daim (photo, left) had helped business tycoon and protege Halim Saad (photo, right) and his ex-partner Anuar Othman siphon RM32.5 million from Metramac Corporation Sdn Bhd.

Allegations denied

Yesterday, Halim rebutted the allegations in a nine-page statement.

The businessman denied he and Anuar had siphoned the money or that they had the patronage of Daim who had allegedly conspired in oppressing Fawziah Holdings in relation to the Cheras toll concession.

Halim said the judge had condemned the trio without giving them an opportunity to defend themselves during the court proceedings.

He also pointed out that Daim was no longer the finance minister when the matter arose in 1992.

Daim quit as finance minister in March 1991 and was replaced by former deputy premier Anwar Ibrahim. He rejoined the government briefly in the late 1990s but quit as Special Functions Minister in June 2001.

Justice Gopal had ordered Metramac to pay about RM65 million to Fawziah Holdings in compensation for the loss 'of advertising rights'.

Fawziah Abdul Karim and her mother Maimon Bee, owners of Fawziah Holdings, were the former owners of Syarikat Teratai KG (STKG) Sdn Bhd, which is now known as Metramac.

In July 1986, Fawziah procured a road privatisation tender but toll collection for these roads was suspended in September 1990 following a public outcry and demonstrations at the Cheras toll plaza.

STKG had sought RM764 in compensation for the loss of toll revenue. Gopal noted that in 1990, Daim, who was then still finance minister, said the government could not afford to pay the sum.

Later, Metro Juara, of which Halim and Anuar were shareholders purchased STKG for RM97.5 million and was subsequently renamed Metramac.

Following this, the government paid the compensation due to STKG.


Background to Metramac scandal