The government will act against opposition parties if it finds that their recent police reports against former prime minister Dr Mahathir Mohamad are defamatory, said Minister in the Prime Minister's Department Dr Rais Yatim today.

DAP

had lodged a police report against Mahathir two weeks ago based on the latter's alleged involvement in the multi-million ringgit Perwaja Steel scandal, while Barisan Alternatif (BA) Youth last Friday lodged another report claiming wrongdoing on his part.

"If the reports are defamatory, both the government and the person - Dr Mahathir - should consider legal action," Rais, who is also de facto law minister, told reporters at the Parliament lobby.

He described the opposition's latest moves against Mahathir as "revising the same old story".

Commenting on the BA Youth police report, Rais said the Attorney-General's Chambers has not received any report so far.

"This is a mere political game to smear the good name of the ex-prime minister," he said, adding that the opposition should base their allegations on facts.

The minister said the Perwaja Steel issue was already been referred to the Anti-Corruption Agency and that it was now up to the police to act on the DAP report.

"Whoever puts forward any allegation of wrongdoing by any party should couch this in legal terms. If (all that is said) is merely a series of verbal attacks, then we should regard it as political rhetoric," Rais said.

Stalled investigations

In a 10-point complaint, BA Youth had accused Mahathir of stopping or delaying investigations against "Barisan Nasional cronies".

The report listed the stalled investigations into the alleged abuse of power and corruption by International Trade and Industry Minister Rafidah Aziz and former Malacca Chief Minister Rahim Thamby Chik.

Two other prominent cases listed are the Perwaja Steel scandal and the botched investment of RM200 million Tabung Haji funds approved by Abdul Hamid Othman, the former minister in the Prime Minister's Department.

The BA leaders also accused Mahathir of abusing laws such as the Internal Security Act, Official Secrets Act and the Printing Presses and Publications Act to stifle dissent.

On Oct 25, DAP Perak leaders lodged a police report against Mahathir at the Ipoh police station based on two letters sent by Mahathir to former Perwaja managing director and tycoon Eric Chia in approving the setting-up of two plants.

In one of the letters dated March 23, 1990, Mahathir had approved a plan for Perwaja to build new infrastructure in Terengganu with a capital sum of RM575 million.

DAP deputy secretary-general M Kula Segaran later issued a press statement saying that Mahathir should be investigated for having approved a sum of more than half a billion ringgit for the management of Perwaja.

He added that Mahathir also has been closely involved in the running of the company since its inception in 1982.

The ACA, which has been investigating the Perwaja scandal, has said it had run into a wall in relation to tracing funds held abroad.