When one mixes business with politics, which happens often in this country, the concoction can be explosive. The latest explosion may mark the political demise of MCA president Ling Liong Sik.

While certain political observers feel the MCA president's sudden announcement this afternoon that he has decided to resign as transport minister was a "political tactic", some quarters doubted whether Prime Minister Mahathir Mohamad would accept Ling's resignation.

According to the "political tactic" theory, Mahathir's "rejection" of the resignation letter would offer Ling an "escape" route back into the Cabinet, and to show the party grassroots that the No. 1 stands by the embattled leader.

Reliable sources, however, said the motivation for Ling's "sudden" action could be more "personal" than party-related.

Ling's decision conveyed via an emergency meeting had "shocked and saddened" the whole MCA presidential council (whose membership varies from 15 or more of MCA stalwarts) and the party central committee, comprising currently 44 elected and appointed members, but no "official and plausible" explanation was offered when deputy Lim Ah Lek read out the one-page press announcement after the four-hour meeting.

But surely party politics cannot move Ling's rock-solid position as it is well known that the majority of the central committee comprise his yesmen.

His acknowledged nemesis, deputy president Lim Ah Lek, could only count on a few supporters like vice-president Chua Jui Meng (now overseas), who is also health minister, another vice-president Chan Kong Choy, a deputy finance minister and several central committee members who wield some influence because of their loyalty and long service with the party.

So what can be a plausible explanation for Ling's "sudden" move?

Hovering over Ling's head like a Damocle's sword that refused to go away are the "business" ventures, or misadventures, undertaken by his son Ling Hee Leong in the months before the Asian financial crisis started in mid-1997.

These investments which amounted to some RM2 billion to gain control of four KLSE-listed companies were trumpeted then by the local media welcoming the arrival of a new kid on billionaires' row - at 27 years old!

The young tycoon himself said he did borrow some RM1 billion to anchor these investments. In an environment where the press is freer, these investments would have raised many eyebrows by more discerning members of the public, who could only murmur their "disbelief" over dinner and kopi tiam talk.

But the much-heralded multi-million dollar conquests soon turned into a nightmare.

The financial meltdown started in Thailand in June 1997, quickly spreading its "contagion" like wildfire, and the regional stock markets, including the KLSE, went into a tailspin. Hee Leong incurred huge losses on his investments, especially on the Promet deal.

Ling junior's misfortunes were tied up with tycoon Soh Chee Wen, who aspired to win the MCA president's heart by becoming a business adviser/associate to the president's son.

And the rest, we all know, is history.

Soh made a disappearing act overseas. Ling junior, assuming he borrowed RM1billion at 8 per cent annual interest, would have a Herculean task just paying interest of some RM7 million a month.

When Hee Leong's investments went up in smoke when the KLSE fell through its bottom, the Securities Commission had no choice but investigate, and one of the "miscreants" sought after with a warrant of arrest issued in 1999 was for Soh.

Soh, who has been on the run for about a year now, and whose relations with Hee Leong had by now become more than a little strained., is reported to be "prepared" to face the music.

Soh's return would mean the "details" of Hee Leong's misadventures on the stock market would likely be revealed ... implications of "offences" would be a consequence, and that would make Ling's position in the Cabinet "untenable".

So perhaps Ling's resignation would be accepted by Mahathir (as Barisan Nasional chairman) and Ling's and his son's fate would then not do "unnecessary damage" to the government's image.

That opens another chapter in MCA's political saga. Lim Ah Lek would definitely be forced out of his planned retirement and very much the "man to watch" at Wisma MCA.

The latest twist in MCA affairs does have a familiar ring to it ... reminiscent of another former MCA chief Tan Koon Swan's. That's another Waterloo arising from mixing business with politics, of his own making, not his offspring's.