(AFP) Prime Minister Mahathir Mohamad today dismissed rumours that ex-finance minister Daim Zainuddin was under police investigation and said there was no rift between them.

Daim quit as finance minister and treasurer of the ruling United Malays National Organisation (Umno) at the end of May.

Last Friday Mahathir's deputy, Abdullah Ahmad Badawi, denied rumours that Daim had been arrested.

"There is no investigation," Mahathir told a press conference.

Mahathir, who temporarily took over the finance portfolio, said he had asked Daim for details of certain issues and this could have led to rumours that Daim had been arrested and placed under investigation.

"I am now minister of finance, I want to know details of certain things. I don't know if this is the reason why anybody should ask him anything," he said.

"We are not at war with each other...he asked to step down, I gave him two months to think it over and he felt he had to quit, so he quit."

Mahathir said Daim came to see him yesterday "bringing him all the files and handed over everything."

Work 48 hours

"I am still looking for someone suitable (as a replacement)... now I work not 24 hours but 48 hours a day but there is no problem. I am used to working hard day and night and I can still talk to the press."

The premier was speaking after giving an informal briefing to some 2,000 Umno delegates before the party's annual congress which begins Thursday.

Mahathir said Daim was still an Umno member but would not be attending the Umno congress as he has quit his party post.

There has been persistent rumours of disagreements in recent years between the two men although both have denied it.