The Kuala Lumpur Sessions Court has fixed March 27 for mention of the case against Perwaja Steel Bhd former managing director Eric Chia.

The 73-year-old tycoon has been charged with criminal breach of trust involving RM76.4 million.

According to Bernama , Judge Akhtar Tahir fixed the date pending Chia's appeal to the Federal Court against the decision of the High Court which had allowed evidence obtained in Hong Kong to be used in the case against him here.

The Federal Court has yet to fix the date to hear Chia's appeal.

Chia was alleged to have committed criminal breach of trust at the Perwaja Rolling Mill and Development Sdn Bhd, Level 13, Menara UBN, No 10, Jalan P.Ramlee, here on Feb 18, 1994.

He was alleged to have allowed the payment of RM76.4 million into the account of Frilsham Enterprise Incorporated at the American Express Bank Ltd, Hong Kong for technical aid given by NKK Corporation for the Beam and Section Mill Plant in Gurun, Kedah, although the payment was not required.

Alternative charge

He also claimed trial to an alternative charge of committing breach of trust by disposing of RM76.4 million when making an agreement with NKK Corporation without the green light from the board of directors or the tender board.

Chia was arrested on Feb 9, 2004. This followed nine years after the Anti Corruption Agency (ACA) launched a probe - in October 1996 - when it was revealed that the company suffered losses of RM2.98 billion as at Dec 31, 1995, including bank loans amounting to about RM7 billion.

Former finance minister Anwar Ibrahim - who told Parliament of the stunning losses - also disclosed that Perwaja's RM815 million interest payments on a yen loan were bleeding the company.

By 1988, Perwaja was insolvent but the government continued to inject additional funds to keep the company alive.

When it was shut down last year, Perwaja had registered losses of RM11 billion.

Perwaja - a plant that processed iron ore to pure iron - was to be the cornerstone of the industrialisation drive that former prime minister Mahathir Mohamad began in the early 1980s.