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.