The suit was filed earlier this month against the government, Mahathir and ex-second finance minister Nor Mohamed Yakcop.
Halim claims Mahathir and Nor Mohamed “forced” him to relinquish his stake in the Renong-UEM group and rights vested in him without adequate compensation 22 years ago.
Mahathir’s lawyer Rafique Rashid Ali said the AGC was taking over the matter as the subject matter of the claim is said to have taken place during the long-serving prime minister’s initial term in office.
Mahathir, 98, was prime minister from July 1981 to October 2003 and later from May 2018 to February 2020.
“The plaintiff’s solicitors served the cause papers on Mahathir, but the AGC called and informed him that they will represent him in the suit,” he told FMT.
Rafique, however, said he would be applying to the High Court to hold a watching brief for Mahathir.
Meanwhile, FMT understands that the AGC entered an appearance for Mahathir, Nor Mohamed and the government yesterday.
The lawsuit is fixed for case management on Sept 13.
In a 34-page statement of claim filed at the Kuala Lumpur High Court, Halim claimed that Mahathir and Nor Mohamed were “the prime movers in respect of the said compulsory acquisition and deprivation”.
According to the filing, the stake comprised 372 million shares and represented 16% of Renong Bhd’s entire share capital.
Halim claims the shares, which were acquired by government investment arm Khazanah Nasional via its subsidiary in 2001, belonged to him personally and not to Umno, a fact acknowledged by current Prime Minister Anwar Ibrahim in Parliament on Nov 24, 1997.
Anwar was the deputy prime minister, finance minister and Umno deputy president at that time.
Halim claims that at that time, UEM held a 32.6% stake in Renong, while Renong held a 37.92% share in UEM.
He is seeking a court order for the government to pay him unspecified compensation or, alternatively, general damages to be assessed by the court, as well as exemplary and aggravated damages, interest, costs and other reliefs deemed fit by the court.
Mahathir has questioned the timing of Halim’s suit, which came just before the six state elections on Aug 12.
In a statement on Aug 11, Mahathir said the suit was “somewhat strange” as Halim had previously attempted to sue Nor Mohamed and Khazanah in 2013, but failed.