A foreign investor today lodged a police report against Transport Minister Dr Ling Liong Sik, his son and businessman Soh Chee Wen, claiming that the trio owed him RM100 million when a business deal which they negotiated fell through in 1997.
Soh was a close associate of Ling until their relationship turned sour following the financial crisis in 1997.
Franz Christoph Heldwein, an Austrian, said he lodged the report at the Jalan Travers police station in Kuala Lumpur to pave the way for legal proceedings against the trio to recover his losses.
He said he first met the trio when he and his colleagues predicted difficulties to get a company called Isuta Electronics Sdn Bhd, later renamed as IST Amalgamated Sdn Bhd, listed on the Kuala Lumpur Stock Exchange (KLSE) due to tight regulations by the Securities Commission.
"We then approached one Soh Chee Wen (photo) who was then known in the Malaysian corporate arena as a corporate leader, to aid and facilitate with the listing of IST," he told a press conference at Sunway Resort Hotel in Selangor.
Business associate
He said Soh introduced himself as a business associate of a senior cabinet minister in Malaysia who could not only help with the listing of IST but also create a market base for IST products in both the government and private sectors.
"Soh then proceeded on my request to arrange for a meeting with the minister. To my surprise, the meeting between Soh, myself and Dr Ling was fixed immediately at his office... Hee Leong was also present but arrived late," he added.
He said Ling (photo) confirmed at the meeting that "Soh was his business associate and partner" and that he could indeed facilitate with the marketing of IST products which included vehicle tracking device and black boxes for commercial vehicles.
He added to give his assurance, "Ling said that he would use his 'connection and authority' to procure Malaysia's original survey maps which IST could not have obtained."
Heldwein said after the meeting, he notified his business associates and everybody was convinced "that Soh and Ling were business partners and that Ling was using Hee Leong to front his business interests".
Sell controlling stake
The Austrian businessman and his associates thus agreed to sell their controlling stake in another listed company called Isuta Holdings Bhd at a price 30 percent below the market value to a company called Winning Virtue Sdn Bhd, indirectly controlled by Ling and Hee Leong.
"The transaction was done at the time when Ling and Hee Leong also wanted to buy a block of shares in IST through Soh prior to its listing," he said.
However, IST was not listed and did not make any business deal with the Transport Ministry in the end.
According to Heldwein, this was because "after seeking legal counsel, we felt it not prudent to take the survey maps as promised by Ling and it may violate the Official Secrets Act and Internal Security Act".
"There could be implications with regards to the Anti-Corruption Act," he added.
He said he informed Soh of his concerns and called off the release of the survey maps which were then "already in the possession of Ling and Hee Leong".
Transaction completed
But Heldwein said the loss to Isuta Holdings which amounted to RM100 million was already incurred because the share transaction to Winning Virtue had been completed.
When asked, the Austrian businessman said he chose to reveal his business dealings with Ling, Soh and Hee Leong now because Soh was back.
Soh was charged with defrauding a now defunct stockbroking firm of RM490 million before he fled the country four years ago. He returned last May to face his charge.
He became a member of both the MCA central committee and presidential council in mid-1990s due to his close ties with Ling, who has been MCA president for 17 years.
Last week, Soh called his former mentor a "liar" for having denied repeatedly their business relationship.
Soh said he was given the top party posts in MCA then because he had helped to develop Dr Ling's business as well as propel Hee Leong into the corporate world.
