The suit, filed in July, concerns a government takeover of Halim’s holdings in the Renong-UEM group in 2001.
The defence statement filed by the attorney-general’s chambers (AGC) said Halim could not pursue his suit because of the Limitation Act 1953 and the Public Authorities Protection Act 1948 (PAPA).
The Limitation Act says an aggrieved party must file a suit against another individual or group within six years, while under PAPA, any suit against the government must be filed within three years.
The statement said a High Court had declared that there existed a 2003 agreement about the government making two tranches of payment totalling RM165 million for buying over shares in the company.
“The takeover was done in 2001 and compensation was paid in 2003. He is, therefore, barred from initiating a suit under the Limitation Act and the government is protected under PAPA,” the statement added.
Halim also named the federal government and former second finance minister Nor Mohamed Yakcop as defendants in the suit.
All the defendants are represented by the AGC.
The defendants said Halim had filed a similar suit in the High Court 10 years ago on the losses suffered following an alleged takeover but it was struck out.
“The plaintiff’s (Halim) appeal was also dismissed by the Court of Appeal in 2014 and the Federal Court also refused him leave to appeal in 2015,” the statement said, adding that the suit should be dismissed with costs.
In the statement, the defendants dismissed Halim’s contention that the acquisition and restructuring was done by force. They said it was instead done through mutual agreement.
The defendants also said they reserved the right to strike out the suit.
In the suit, Halim claimed 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 was the prime minister from July 1981 to October 2003 and later from May 2018 to February 2020.
Halim alleged in his 34-page statement of claim 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 Bhd through 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 Mahathir’s deputy and also the finance minister and Umno deputy president at the time.
Halim claimed that at the 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 relief deemed fit by the court.