Tun Dr Mahathir Mohamad has refuted claims that he is exerting his influence on the government over the affairs of national carmaker Proton Holdings Bhd, whose chairperson resigned early this week.

"I have never applied any pressure on the government, I have always said once I step down I will not disturb the government.

"Therefore, don't point fingers at me for the resignation of (Datuk) Abu Hassan Kendut," he said in a Bernama report.

Yesterday, foreign wire service AFP reported that Abu Hassan has stepped down over Mahathir's continuing influence in the company.

Abu Hassan Kendut resigned early this week because he felt Mahathir, as an adviser to Proton with no formal executive position, was interfering with management efforts to revamp the long-protected automaker to face foreign competition as trade barriers come down in Southeast Asia, the Asian Wall Street Journal said.

"I have had nothing to do with Hassan Kendut and whoever," Mahathir told a press conference in Putrajaya today in reference to the report which also alleged that Hassan's resignation was prompted by his (Mahathir's) appeal to block moves by the Proton's board to remove the company's chief executive Tengku Tan Sri Mahaleel Tengku Ariff.

Stressing that he is not giving the government "any headache", Mahathir, who is Proton's advisor said :"I didn't appeal to the board of Khazanah (Nasional Bhd, Proton's majority shareholder) or Proton's board of directors."

Opinion given when asked

Mahathir said that he was rarely in contact with the government regarding Proton's affairs.

"But if the government asks me something, then of course I give my opinion. And I was asked whether Tengku Mahaleel should be retained or not. I said, of course, I do not see why he should not be retained."

He said the impression he got from a meeting with four of Proton board members, including Abu Hassan, about five months ago was that they did not want Tengku Mahaleel to stay on.

However, he said that there was no real complaint that Proton was not well run.

In a subsequent meeting with the entire board, Tengku Mahaleel gave a briefing on Proton's performance but there was no suggestion at that meeting that he should be removed, disclosed the former prime minister.

Proton, which is in talks with Volkswagen AG to develop new vehicles, had 44 percent of the domestic market last year, down from 48 percent in 2003.

The New Straits Times reported today that former Kuala Lumpur Stock Exchange executive chairperson Azlan Hashim was expected to be appointed Proton chairperson to replace Abu Hassan.