DAP today conceded that it had made a 'wholly unfounded' allegation against former Melaka chief minister Rahim Thamby Chik, whom it accused of committing statutory rape, or having sexual relations with a minor below the age of 16.

The party said this in a statement which was read in the Kuala Lumpur High Court by its lawyer Karpal Singh in the presence of Justice James Foong and Rahim.

Following this, the former chief minister withdrew his defamation suit against the opposition party.

The former politician had filed the suit in 1999 after he was accused of having sex with the girl in a book entitled Lim Guan Eng - MP in Jail and 'Sympathy, Support and Solidarity with Lim Guan Eng' posters.

Lim, the former Kota Melaka MP, was later found guilty of sedition and jailed for 18 months.

"We must stress that we made the allegations in relation to Tan Sri Abdul Rahim Tamby Chik contained in the book and the poster as we believed them to be true at the material time..." read the letter.

Karpal said their conviction were founded on the statements made by Pendek Ahmad - the grandmother of the minor who later identified herself as Noryati Mohamad Yusop - to Lim and one assistant commissioner of police Mok Siew Hoong, who testified at Lim's sedition trial.

"However, in view of the subsequent events, in particular the retraction of the allegations by Noryati under oath by way of a statutory declaration and the fact that similar allegations made by Time and Asiaweek magazines have resulted in an apology being given to Tan Sri Abdul Rahim.

"We now realise that the basis for the allegation we made in the book and poster no longer exist and in view of this, the said allegation is wholly unfounded," he added.

'Great distress'

Karpal said the party also acknowledged that the events have caused "great distress and anguish" to all parties including Rahim and his family.

In recording the settlement, Justice Foong commended both parties for ending the legal tussle amicably and made no order as to cost.

Contacted later, Karpal - who is also DAP deputy president - said the agreement to end the suit did not involve any form of payment.

"Recent developments had led us to make the decision," he added.

In early 1995, the nation was shocked by the allegation made by Lim and the girl's grandmother. This eventually led to Rahim's resignation as Malacca chief minister.

Rahim, who was considered a rising star in Umno and the blue-eyed boy of Prime Minister Dr Mahathir Mohamad, also stood down as Umno Youth chief.

When the scandal broke, the then 15-year-old girl was brought before the Juvenile Court in Kuala Lumpur and ordered to be put under protected custody for three years.

'Insufficient evidence'

Later, then attorney-general Mohtar Abdullah told a press conference that he found 'insufficient evidence' to charge the former chief minister.

In a much criticised move, Mohtar also voluntary revealed at the press conference that the girl was eight-weeks pregnant and had conceded to having sexual relations with a dozen of men.

"The girl has lodged 17 police reports against 14 individuals for having sexual relations with her," said Mohtar, adding that the girl's background was a factor in his decision not to prosecute Rahim.

Instead, Mohtar filed charges against Lim for prompting "disaffection with the administration of justice in Malaysia" under the Sedition Act and for "maliciously printing a pamphlet containing false information" under the Printing Presses and Publications Act.

In 1999, Noryati made a sworn public testimony in court stating that she did not have an intimate sexual relationship with Abdul Rahim.