Ex-minister Daim not being probed: Deputy premier

Ex-minister Daim not being probed: Deputy premier

KUALA LUMPUR (Agencies): Malaysia's deputy leader on Friday dismissed speculation that former finance minister Daim Zainuddin is being investigated by police.

"There is no police action against Tun Daim, there was so much rumor that he was arrested - it is not true," Deputy Prime Minister Abdullah Ahmad Badawi told reporters.

"There is no reason why we at the moment should take any action against him," he said.

Markets, political opposition and media circles have been buzzing for longer than a week with rumors that police had or were about to raid Daim's house and that he had been or was about to be arrested. The source of the rumors has been elusive.

Daim, one of Malaysia's wealthiest men, resigned as finance minister early this month amid market talk that he had fallen out with Prime Minister Mahathir Mohamad.

Daim, 63, was widely considered Malaysia's most powerful man after Mahathir and was born in the same village as the premier.

But there were persistent rumors of disagreements in recent years although both men denied it.

Daim was finance minister from 1984-91. He returned to the cabinet in June 1998 as special functions minister to promote economic recovery amid the regional financial crisis.

He was appointed finance minister in January 1999 following the sacking of Anwar Ibrahim.

Daim took "leave" in April around the time Mahathir appointed former central bank governor Ali Abul Hassan Sulaiman as one of his own economic advisers.

Mahathir announced on April 19 that Daim was taking two months' leave because he was "tired".

Mahathir, 74, Malaysia's leader for 20 years, announced Daim's resignation June 2, and soon afterward said he would act as finance minister for the time being.

Daim's resignation came three weeks before the annual general assembly of the dominant United Malays National Organization, and at a time when potential successors to Mahathir are jostling for position.

Asked about the rumors regarding Daim at a press conference, Abdullah, who is also Home Minister in charge of police, said: "What he does in the future I do not know, but for the time being Tun Daim is not the subject of a police investigation.

"Rumor, rumor, maybe some people are not happy with him, if we are driven by rumor we can't govern the country," he said.