Umno supreme council today decided not to take any disciplinary action against former party chief Dr Mahathir Mohamad despite calls for him to be punished over his attacks on the government.

The council, the ruling party's highest decision-making body, also said that it will not strip the former premier of his advisory role to various government-linked agencies and companies.

"The council has deliberated on the matter and have decided that Mahathir will not be stripped of his position as advisor to several government-linked organisations," said party president Abdullah Ahmad Badawi.

"(And) for the time being, we are not taking any (disciplinary) action against him."

Mahathir is advisor to national oil company Petronas, carmaker Proton and the development authority on Langkawi Island.

In recent weeks, a number of Umno leaders have called for the party to sack Mahathir from all government-linked positions. There were also calls for Mahathir to be suspended or expelled from the party.

The former premier had accused his handpicked successor of nepotism and economic mismanagement, and for dismantling the legacy he built up during his 22 years in power.

"Let him say whatever he wants, we can hear all that he likes to say," said Abdullah.

He also denied that Umno was afraid to take action against Mahathir, and declined to specify how far Mahathir would have to go in his attacks before he faced retaliation.

"It is not a question of being afraid. But we don't think we should take action against him now," he said.

He also rejected suggestions that the 82-year-old political veteran was immune from punishment.

"Nobody is immune. It is a matter for us to decide whether to take action or not. For the time being, we are not taking any action against him."

Zakaria not reappointed

Meanwhile, the supreme council has also barred embattled Umno leader Zakaria Md Deros from the upcoming swearing-in ceremony of the Klang Municipal Council, where he held the post as a councillor.

"It is necessary that Zakaria withdraws himself from the list of members that will be sworn in on Nov 8," he said.

Abdullah said that Zakaria, who is also Selangor state assembly representative, would not be reappointed as councillor.

However, no further action will be taken against Zakaria.

Zakaria, a party strongman in Selangor's Klang, has been accused of building of a 17-room mansion without proper approval from the municipal council of which he was a member.

Abdullah, who is also the prime minister, told reporters after the three-hour meeting that he did not see the need to publicly declare his assets and those of his family's amidst charges that his son, Kamaluddin, has obtained lucrative government contracts.

Similar accusations have been levelled against his son-in-law, Umno Youth deputy chief Khairy Jamaluddin.

"There is no need for me to declare (my assets). There has been no transgression on their (Kamaluddin and Khairy) part that would warrant them to declare their assets."

In the rather short 15-minute press conference, Abdullah also announced that RM1.5 billion has been allocated for government projects which will be opened to Class F bumiputera contractors.