Print Print edition: 2004-08-03

Trial opens for Malaysian steel tycoon

Published August 3, 2004 Updated August 3, 2004 12:00am

The former head of Malaysia's national steel company went on trial Monday for allegedly embezzling 20 million dollars, in one of the most high profile signs yet of Prime Minister Abdullah Ahmad Badawi's anti-corruption drive.
Ex-boss Eric Chia is the focus of an investigation into the payment of 76.4 million ringgit from Perwaja Steel to the Japanese steel company, NKK Corporation, through a non-existent company in 1994.
He is the first prominent person to be charged with corruption since Abdullah took over power in October last year from Mahathir Mohamad.
Chia was handpicked by Mahathir in 1988 to turn Perwaja around when it ran into financial difficulties six years after it was set up as the cornerstone of Malaysia's industrialisation drive.