There is an attempt to protect high profile figures linked to the Perwaja scandal, jailed ex-deputy premier Anwar Ibrahim claimed today.

He said this is apparent since the authorities have failed to record a statement from him although he was the first - as then finance minister - to discover the alleged embezzlement which led the steel company to suffer colossal losses.

"Obviously, certain quarters are trying to avoid taking a statement from me to protect high profile individuals linked in the scandal," he said in a statement.

Anwar was responding to the arrest of Perwaja's ex-managing director Eric Chia, who was yesterday charged with criminal breach of trust.

The businessman was charged under Section 409 of the Penal Code for allegedly channelling funds worth RM76.4 million from Perwaja to a non-existent company.

If found guilty, he can be sentenced to a maximum of 20 years in jail, whipped and fined. He has pleaded not guilty and is currently out on a RM2 million bail

Anwar said that, while the Anti-Corruption Agency (ACA) must be congratulated for finally taking the tycoon to court following a nine-year probe, its conduct of the investigations was questionable.

Chia, 71, is a close associate of former premier Dr Mahathir Mohamad, who had sacked Anwar in 1998.

Anwar claimed that the charge against Chia involved only the first part of the investigations conducted up to 1996.

"What about the further probe into the scandal conducted from 1996 onwards involving misappropriation of funds worth more than RM76 million?" he asked.

Auditor's report

Recalling the scandal, Anwar said in December 1996, he presented to Parliament a report by independent auditor Price Waterhouse Cooper which revealed that Chia's administrative 'weakness' had caused the company to suffer a RM11 billion loss.

He claimed that among others, the report also revealed allegedly suspicious payments made to a legal firm connected to renowned lawyer, involving a sum of RM13 million.

Anwar said he had then instructed the auditor to conduct further investigations, and subsequently a full report was released in 1998.

"The (1998) report confirmed the misappropriation in Perwaja including the release of financial assistance which was not (approved) by the Finance Ministry but by then prime minister Dr Mahathir Mohamad. I had full confidence in the ACA to follow up on the report," he said.

In the absence of any action, the former deputy premier lodged a police report against Chia and Mahathir in 1999, after he was sacked.

Anwar urged the authorities, namely the ACA, not to be involved in any conspiracy to protect corrupt individuals.

"Action must be taken against corrupt individuals including the cabinet ministers involved (who received) hundreds of millions of ringgit in commission from the sale of firearms and share distribution," he claimed.

The ex-deputy premier, who is serving a 15-year prison term for corruption and sodomy, has alleged that the charges against him were fabricated. This has been denied.