The manner in which MCA central committee led by Dato Seri Dr Ling Liong Sik rushed through the completion of the deal involving Nanyang Siang Pau and China Press is hard to understand in the face of objections from the public, 245 Chinese associations and guilds, and even cabinet ministers and stalwarts of MCA.

It makes no sense from the political angle because it alienates major patrons and supporters within the Chinese community. The only justification from the political angle (not stated by Ling) is that if MCA does not acquire Nanyang , commercial or political interest inimical to the political interest of the Chinese community would acquire it instead from Hume/Hong Leong Group led by Quek Leng Chan.

So is there is choice but for MCA to come in (with the government's blessings)?

Or maybe Ling is right after all, that it is purely business considerations. p> But what is the angle of such business considerations? For the takeover of Nanyang Holdings at the cost of RM230 million requires MCA's investment arm, Huaren Holdings Sdn Bhd to gear and leverage up to its eyeballs pledging its entire asset comprising 68 million shares in Star Publications and the 40 million shares of Nanyang Holdings acquired. One can imagine the extent of Huaren's interest obligations.

The deal was rushed through with unholy haste as a fait accompli . Health Minister Datuk Chua Jui Meng said something to the effect that no meeting of Huaren was convened for its shareholders or trustees to deliberate. Instead the MCA central committee voted 32 out of 40 for the acquisition. Chua said that by law and common sense, the deal required Huaren's shareholders and trustees' approval.

Chua could be wrong here. As a trustee he has to act according to the directive of beneficiaries whom he represents regardless of his personal feelings. And who are the beneficiaries?

On Chua's point about the requirement of shareholders' approval, Huaren being a Sendirian Berhad (a company limited by shares), is governed by the Malaysian Companies Act by which under Section 132(c), no director of any Malaysian company shall carry into effect any acquisition of property of substantial value which would materially and adversely affect the performance or financial position of the company unless the proposal or transaction has been approved by the company's shareholders (by majority vote) in a general meeting.

This section will be contravened if Huaren's shareholders did not endorse the deal.

The more paramount question is who are Huaren's shareholders or whether there is any shareholder in Huaren in the first place. Very likely, Huaren shares are held by trustees like Chua for trusts beneficiaries who are MCA members represented by the MCA central committee. This being the case, the MCA central committee could, as if they were representing 'shareholders' of Huaren, approve the transaction.

Besides Section 132(c) of the Companies Act, a transaction of such magnitude would require approval of the Foreign Investment Committee. If it involves publications licensed under the Printing Presses and Publications Act, perhaps even the approval of the registrar stated in that Act. Again if the government supports the transaction, these approvals would be forthcoming.

As failure to conform to these basic procedures may impugn and taint the entire transaction, it is unlikely even in the rush to complete the transaction as a fait accompli , the MCA would have neglected the observance of these procedures.

The basic conundrum that defies understanding remains: What is the nature of business interest (or for that matter other considerations) that is so important to Huaren and by extension MCA, that the transaction is rushed through as a fait accompli regardless of political costs in terms of internal divisions within MCA and alienation of Chinese community support?

I believe this is the mystery not yet divined by all those who clamour against the transaction on grounds that it would enable MCA to build up political ground through the two additional newspapers. I think this is not true because the political costs at the outset outweigh any political advantage that may possibly accrue in the future from acquiring these papers.

Ling may yet be ultimately right after all - the deal is based primarily on business considerations. But the detractors are too ready to jump the gun and whilst not quite in the loop on the real nature of how these business considerations weigh, chase after a red herring of a political agenda.