Land and Cooperative Development Minister, Kasitah Gaddam was charged with cheating and corruption involving share transactions worth between RM30 million (S$13.2 million) and RM40 million.The move comes just two days after businessman Eric Chia was charged over an unrelated criminal breach of trust involving RM76.4 million. Mr Kasitah pleaded not guilty yesterday. He was released on bail of RM1 million and ordered to surrender his passport.

He allegedly committed the offences in 1996 when he was executive chairman of the Sabah Land Development Board. He is accused of pushing a sale of 16.8 million shares in Sapi Plantations to Briskmark Enterprise in return for 3.36 million Sapi shares.

He is also alleged to have deceived fellow board members regarding an offer by PPB Oil Palms to buy Sapi shares as part of the former?s listing on the Kuala Lumpur Stock Exchange. His lawyer, Muhammad Shafee Abdullah, said he expects the case to be transferred to the High Court for trial, as Mr Kasitah is to be jointly tried with another person due to be charged in Kota Kinabalu. Mr Muhammad Shafee, one of Malaysia?s leading criminal defence lawyers, is also defending Mr Chia. Asked if he expects other high-profile arrests, he said: ?I don?t think so. I really hope not.?

Mr Kasitah is one of two federal Cabinet Ministers from the East Malaysian state of Sabah. His arrest comes just days after Prime Minister Abdullah Badawi said he will field only candidates who can withstand voter scrutiny at the next general election, due before November this year. In a dinner speech, Mr Abdullah said elected representatives hold positions of trust and can be voted out if they violate that trust. He also said he wants a ?higher level of accountability among representatives of the people?.

In his first three months of office, Mr Abdullah has focused on improving public service delivery systems, revamping the police force and eradicating corruption. The arrest of Mr Chia last week is a major step in what has been described as the country?s longest-running corruption investigation ? an eight-year probe into offences allegedly committed in 1994.

Mr Kasitah?s arrest has fuelled speculation that other arrests could follow before the general election is announced. Stockmarket observers said this arrest had no impact on share prices, as the benchmark KL Composite index closed 7.43 points up at 825.65.