The veteran Galatasaray coach was furious with the official after his side's 3-0 Champions League first-leg loss against Real Madrid
Madrid emerged victorious after goals from Cristiano Ronaldo, Karim Benzema and Gonzalo Higuain, but the Gala boss believed his side should have been given two penalties, firstly when Sami Khedira appeared to handle the ball before the interval, and then when Burak Yilmaz was fouled in the second half.
And he questioned the referee's competency, telling reporters after the match: "The referee was scared of Real Madrid's name. He's not a referee for this level.
"If you can't see a penalty for handball, then he shouldn't be here. Everyone says penalty, but the referee - he says nothing. Real Madrid are the favourites for this tournament. It didn't happen for us. What can we do?
"Did he defeat us? No. He blew his whistle at some very interesting parts of the game. I haven't seen the penalty shouts, but everyone says it was a penalty.
"Real Madrid don't need referees, but when they don't see what is there, you don't get anywhere. He also gave lots of wrong decisions. However, referees aren’t the subject of the conversation."
Despite the three-goal deficit, Terim refused to rule his side out of the tie, but he admitted it would be a tough task.
"The goals we could have scored in the first half could have changed everything. We will work hard in the second game, but Madrid are better-placed to go through."
“I don't like talking about referees," he added. "I never talk about them. But, the referee was awful."