The police are investigating a company controlled by a son of Prime Minister Abdullah Ahmad Badawi over allegations that it was involved in supplying parts for Libya's nuclear weapons programme. However, they denied any government involvement in producing nuclear components.

Allegations that Malaysia had produced centrifuge components for Libya's uranium-enrichment program were "unfounded", national police chief Bakri Omar said in a statement issued late last night.

"Investigations so far showed that not one company in Malaysia has the ability to manufacture a complete centrifuge unit because this requires technological capability and high expertise in the field of nuclear weapons," he said.

Bakri said he issued the statement after allegations about Malaysia's involvement were included in foreign media reports about Pakistan's top nuclear scientist admitting to the unauthorised transfer of nuclear know-how to Iran, Libya and North Korea.

Bakri said a Sri Lankan businessman known only as Tahir, who was identified by US and British intelligence as an alleged middleman, was not under arrest.

However he and the local company that was allegedly involved, Scomi Precision Engineering Sdn Bhd (Scope), were under police investigation and have both given full cooperation, Bakri said.

He said investigations were launched after the special branch received information on Nov 10 last year from US and British intelligence that Tahir was supplying centrifuge components made in Malaysia for Libya's uranium-enrichment programme.

Factory in Selangor

The intelligence revealed that five containers allegedly containing centrifuge components were seized from a ship, BBC China, in Taranto, Italy on Oct 4.

The containers had a "Scope" seal and Malaysian police investigations confirmed that Tahir had in 2001 contracted Scope to manufacture the components that he claimed were legitimate.

Scope had set up a factory in Selangor for the purpose, Bakri said.

But he said nuclear experts could not be sure that the components seized from the ship in Italy were for centrifuge and that early investigations showed that the components could also be used for petrochemical tools, water treatment and other health functions.

Bakri said a full statement would be issued "once investigations into this matter are completed".

PM's son

Scope is a unit of listed oil and gas firm Scomi Group, which is linked to Kamaluddin Abdullah, the son of Prime Minister Abdullah Ahmad Badawi.

Kamaluddin is a controlling shareholder in Scomi through his stake in Kaspadu Sdn Bhd. However, he does not hold any management position in Scomi.

The company's share price jump by 1,000 per cent last year after it was listed. It dropped on the Kuala Lumpur Stock Exchange today by RM0.40 to RM12.90 ringgit.

Scomi said in a statement that the contract, worth RM13 million, was arranged by Tahir to manufacture 14 semi-finished components to Gulf Technical Industries LLC (GTI) in Dubai.

It said it was never told of the end-use of these components and that it had shipped them to GTI in four consigmnents from December 2002. The pact accounted for less than four percent of its group turnover, it added.

Independent inquiry

Meanwhile, DAP leader Lim Kit Siang called for an independent inquiry into the affair.

The opposition politician questioned the credibility of a police investigation into a company controlled by the prime minister's son, pointing out that the premier also holds the Home Ministry portfolio governing the police.

The DAP called on Abdullah "to order an independent inquiry into the serious allegation of Malaysia's role in Khan's nuclear black market, as a police investigation and the weak statement by the inspector-general of police is most unsatisfactory," Lim said in a statement.