The government must submit its plans to restructure the debt-ridden United Engineers Malaysia Bhd (UEM) and its parent group Renong Bhd to the Parliament for approval, said DAP national chairperson Lim Kit Siang today.

Lim said the report should be submitted to ensure that the interests of taxpayers and minority shareholders are protected as well.

"The route Renong Group and its executive chairperson Halim Saad took to unload and restructure its RM26 billion debt was strewn with scandalous corporate governance sacrificing the interests of minority shareholders," claimed the opposition leader in a press statement.

Lim said that the public did not want to see another "charade of government bailouts" of selective companies and individuals with the use of public funds.

Earlier today, debt restructuring agency Danaharta confirmed that the government, through one of its agencies, will take over UEM as a prelude to restructuring its parent group Renong.

According to a New Straits Times report today, Khazanah Nasional, the government's investment arm, will take over the ailing company.

Yesterday, the Asian Wall Street Journal reported that the takeover is expected to cost as much as RM2 billion.

The report also said that at present, Renong, which has interests in banks, toll roads, oil and gas fields, and real estate, has some RM13 billion in outstanding group debt after it had undergone restructuring plans to settle other debts.

Three tests

"Any government rescue plan for UEM-Renong must pass the three tests of being fair to the minority shareholders of the companies, the taxpayers and the principle of accountability and transparency," said Lim.

Lim stressed that the Parliament and the country must be given full and satisfactory accounting of Umno's interests in the two companies and suspicions that the rescue was a "bailout of Umno interests in the conglomerate" should also be dispelled.

Yesterday, UEM and Renong shares were suspended for four days pending an announcement of a major corporate deal next week.

UEM has a 32.6 percent stake in Renong which in turn has a 37.1 percent stake in UEM.