Mahathir's son quits corporate roles

Finance Minister Daim Zainuddin also wants a break from office

KUALA LUMPUR, Malaysia -- Malaysian businessman Mokhzani Mahathir, a son of Prime Minister Mahathir Mohamad, is withdrawing from all his businesses for now over allegations involving government projects.

Mokhzani, 40-year-old second son of Mahathir, on Thursday stepped down from his posts in three listed companies, Tongkah Holdings, Hospital Pantai and Avenue Assets.

Singapore's Business Times reported he also appeared to have sold his stakes in the three companies, which have a combined market capitalization of about $95 million.

Mokhzani has been part of the Malaysian corporate scene for more than a decade. His elder brother, Mirzan, controls the freight logistics firm Konsortium Logistik.

"I am stepping away from the corporate scene. I am attracting undue attention from what the companies I am managing are doing and a lot of it is untrue," Mokhzani told the Reuters news agency.

Mahathir attacking 'money politics'

Mahathir, facing an opposition campaign accusing his coalition of cronyism, has stepped up the rhetoric against members of the United Malays National Organisation (UMNO) engaged in so-called money politics.

Mokhzani's decision to step down from the three companies is sure to add to rumour and uncertainty swirling through the capital Kuala Lumpur since last week's news that Finance Minister Daim Zainuddin was to take two months' leave.

Mahathir said Daim was "tired," and the 63-year-old himself was quoted on Thursday as saying the leave was to allow him time to clear files on development projects.

"I need to ensure that economic activities continue to move in the midst of a sluggish economy," Daim was quoted by the national Bernama news agency as saying in northern Kedah state.

Neither man has categorically denied speculation that Daim may leave government for good.

Talk of a rift between Mahathir and Daim surfaces regularly despite their periodic assurances that all is well.

In power since 1981, the 75-year-old Mahathir is Asia's longest-serving elected leader, and is now on a visit to Dubai.

Mahathir has said he will not serve after an election due by 2004, but remains vague over exactly when he will go.

Mokhzani 'disappointed' by allegations

Mokhzani said he was disappointed by allegations made in parliament tarnishing his own and his father's names.

"Things are raised in parliament linking me to companies we have no management or control over and is all done in the name of politics," said Mokhzani, a senior figure in UMNO's youth wing. He would now have more time to look at politics, he added.

The soft-spoken businessman said he had told his father of the decision.

"I mentioned to him that all of this is taking a lot of time, having to answer because he is also concerned," Mokhzani said.

"He has to check with me and all my other siblings as to what we are doing because the opposition tends to just hurl accusations without knowing the facts," he added.

Mokhzani said he was spending more time fending off the allegations rather than concentrating on the businesses.

"So, in the long run, I think other shareholders of Pantai or Tongkah will be penalized unnecessarily for all these things that are hurled at me."

Reuters contributed to this report.

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