ANWAR Ibrahim alleged today that former prime minister Dr Mahathir Mohamad had used his executive position to award a multi-million-ringgit contract to his family members, in response to a RM150 million defamation suit filed by the nonagenarian.

In Anwar’s defence statement sighted by The Malaysian Insight, the prime minister showed he was relying on the defence of justification, citing, among others, the direct award of a RM214 million fibre optics contract to Opcom Cables Sdn Bhd (Opcom), on whose board he said Dr Mahathir’s family members sat.

“On September 15, 2003, Telekom Malaysia Bhd (Telekom) issued a letter to the Ministry of Finance (MOF) to request for, among others, approval to carry out direct negotiations with Opcom for the supply of fibre optic cables worth RM214.2 million.

“Telekom is a government-linked company in which the Minister of Finance Inc holds one golden share that grants the corporation the power to overrule the decisions of the board and other shareholders.

“At the material time, MOF Inc was under the control and direction of the plaintiff as he was the prime minister and finance minister of Malaysia.

“On October, 7, 2003, the MOF issued a letter approving Telekom’s request for direct negotiation as mentioned above. Thereafter, the direct negotiations between Telekom and Opcom took place between October and November 2003.

“By way of a letter of award dated November 17, 2003, Telekom appointed Opcom as the contractor for the supply of optical fibre cables and provision of engineering services for a contract sum of RM214,200,000,” the defence statement read. 

Anwar said Mahathir’s sona Mirzan, Mokhzani and Mukhriz were the directors of Opcom at the time, as was Mukhriz’s wife, Norzieta Zakaria.

Anwar’s defence statement was filed online last night to the Shah Alam High Court by law firm Thomas Philip.

At the time the contract was awarded, Dr Mahathir also held the finance portfolio.

Dr Mahathir initiated legal action against Anwar over claims that the former had amassed wealth for personal riches while in power.

Bailing out Konsortium Perkapalan Bhd

Among other things, Anwar also said Dr Mahathir had acted in his capacity as the prime minister to save Konsortium Perkapalan Bhd (KPB) in 1997.

KPB, which is now known as Pos Logistics Bhd, involved Dr Mahathir’s eldest son Mirzan, who was a majority shareholder.

“The net current liabilities for KPB for the financial year ending December 31, 1997 was RM423.94 million,” the document read.

“Sometime after July 1997, the defendant (Anwar) (who was the then finance minister) received an application or request for financial assistance from KPB and/or Mirzan on behalf of KPB. The said request was rejected by the defendant.

“Subsequently, the plaintiff approached the defendant and directed him to devise a special scheme for the purpose of disbursing about RM2 billion from the Treasury for the purpose of assisting KPB and/or Mirzan.

“Despite the defendant’s refusal to entertain KPB’s request for financial assistance, the defendant was later informed by Mohd Hassan Marican, who is the former president and chief executive officer of Petroliam Nasional Bhd (Petronas), that the plaintiff had directed for Petronas to bail out KPB.

“On March 6, 1998, Petronas announced its plan to acquire KPB’s shipping assets. This was done pursuant to instructions given by the plaintiff.”

Petronas is subject to the direction of a sitting prime minister per section 3 of the Petroleum Development Act 1974.

‘Dr Mahathir has ulterior motive’

Anwar also alleged that Dr Mahathir’s lawsuit was an abuse of the court’s process as it was filed with an ulterior purpose and motive.

The Tambun MP said Dr Mahathir had filed the suit to undermine his credibility as the prime minister and that of the present federal government.

Anwar also asserted that Dr Mahathir is intended to create racial divide in view of the elections in Selangor, Negri Sembilan, Penang, Kedah, Kelantan and Terengganu.

“The impugned statements (made during the PKR special national congress on March 18) were a reply to incessant, unfounded and malicious attacks by the plaintiff on the defendant and the current government,” he said.

Anwar said the statements were neither defamatory nor capable of bearing any defamatory meaning.

“(The) statements would not lower, injure or reduce his (Dr Mahathir’s) reputation in the mind of the right-thinking members of society, especially the Malaysian public,” he said.

Anwar is also relying on the defence of justification, fair comment, qualified privilege and free speech as guaranteed under article 10 of the Federal Constitution.

Dr Mahathir is represented by counsel Muhammad Rafique Rashid Ali while lawyer Alliff Benjamin Suhaimi acted for Anwar.

Rafique said he would get in touch with Dr Mahathir, who is in London on speaking engagements, to obtain instructions. – June 15, 2023.