The Anti-Corruption Agency's (ACA) probe into the Perwaja Steel scandal stumbles upon another obstacle as the Japan banking authorities have refused to cooperate with the agency officers, Minister in the Prime Minister's Department Dr Rais Yatim disclosed today.

As a result of this block, the agency could not "penetrate several areas" in the investigation although probes into Hong Kong and Switzerland connections have been completed, said Rais during the winding up of the debate o­n the royal address at the Dewan Rakyat today.

Earlier the minister replied to Husham Musa (PAS-Kubang Kerian) who had wanted to know when the probe could be completed.

The agency is trying to gather evidence o­n the missing RM76.4 million from Perwaja funds through transactions with financial institutions in Hong Kong and Japan.

Further delay

Speaking in the Parliament lobby later, he told reporters that he was worried that without the documents from Japan, the case might be further delayed.

"I have to check with the Attorney-General (Abdul Gani Patail) whether the prosecution could proceed or not with the evidence that we have gathered so far," he said.

He said he had no idea whether the obstacle was due to an absence of legal provisions in Japan to allow banks to divulge information of their clients and transactions.

Perwaja Steel was planned as a centrepiece of Malaysia's industrialisation drive of the early 1980s but become o­ne its most spectacular corporate disasters.

The company, which has accumulated losses and liabilities estimated by industry officials at RM10.7 billion, has been under investigation for alleged abuse of funds since 1996.

The government has blamed former Perwaja chairperson Eric Chia for the misappropriation of the billions of ringgit.

Chia was also accused of approving the transmission of the RM76.4 million to a Hong Kong-based company, which was later found to be non-existent while the missing funds were said to have been channeled to Swiss accounts.

Chia was personally appointed by Prime Minister Dr Mahathir Mohamad in 1988 to helm the national steel company and turn it into a profit-making industry.

Still investigating Mohd Khir

Meanwhile, during the winding up debate in the House, Rais also said the ACA was still investigating Selangor Menteri Besar Dr Mohd Khir Toyo for alleged corruption.

Mohd Khir has been accused of abusing his powers by awarding land and government project deals worth over RM100 million to a dubious band of cronies.

Rais however, citing the Anti-Corruption Act 1997, said no details of the investigation should be made public until charges are filed in court.

He stressed that ACA was not biased in taking action against government leaders, as often accused by the opposition.

A few reports have been lodged against Mohd Khir. Media activist Ahmad Lutfi Othman was the most persistent complainant .

Mohd Khir has dismissed the allegations as "unfounded", insisting that he has no personal interest in all the projects approved by the state council.

25 others under probe

On Tuesday, Parliamentary Secretary in the Prime Minister's Department Noh Omar revealed in parliament that 25 senior government leaders, some as high up as minister and deputy minister, are being investigated by the ACA.

"As of March 23 this year, a total of 25 (whose positions range from) minister, deputy minister, menteri besar, chief minister, state exco member and state assembly representative, are under ACA's investigation," he said during the question-and-answer session.

Among those being probed is Transport Minister and MCA chief Dr Ling Liong Sik, for possible commercial offences.