A PAS member of parliament told the House that businessman Mokhzani Mahathir has a 26.93 percent stake in Kamunting Corporation and not 0.2 percent as claimed by his father, Prime Minister Dr Mahathir Mohamad.

On April 30, the Business Times Singapore reported that it was in Kamunting Corporation that Mokhzani has an indirect interest through Tongkah Holdings Bhd, where he has 12.6 percent direct interest, and Pantai Holdings Bhd, where he holds a 32.9 percent stake.

Mahathir was earlier reported to have said that his second son's effective interest in Kamunting amounted to a paltry 0.2 per cent.

Kubang Kerian MP Husam Musa said that on March 21, Mokhzani declared to the Kuala Lumpur Stock Exchange (KLSE) and Security Commissions that he owned 26.93 percent of Kamunting Corporation.

"This information is also available on the KLSE website. It is not right for anyone to speak contrary to facts," said Husam, referring to Mahathir when debating the amendment to the 1965 Company Act, tabled today in Parliament.

Husam said that through privatisation projects, many corporate companies that opened in the KLSE ended up in Mokhzani's hands, giving the example of Fomema, a foreign workers agency in which the prime minister's son was reported to have bought a 30 percent majority stake.

He added Mokhzani had announced that the stake in Fomema will up Pantai Holdings' profits by 20 percent.*

"We'd like to think these businesses have nothing to do with politics but what is the connection between..." Husam was cut off by the Speaker Mohamad Zahir Ismail, who told him not to drag the issue.

Unidentified buyer

Mokhzani, 40, made headlines late last month when he announced that he was quitting business because of allegations of nepotism that had tarnished his and his father's names.

Mokhzani, who was chief executive officer of Pantai Holdings and Tongkah Holdings, said he would dispose all of his stake in both firms and in all other locally listed companies.

However, Husam said that business tycoon Lim Tong Yong who bought Mokhzani's stake in Tongkah Holdings was reported to have divested the shares 10 days later to an unidentified company at a price lower than market value.

"Do people buy shares in order to make a loss? Who is the unidentified person or company?" queried Husam.

He said in order to encourage good corporate governance, the names of the trustees as well as buyers of shares in the KLSE must be made public.

Tongkah Holdings is involved in manufacturing, information technology, healthcare and financial services while Pantai is involved in healthcare-related businesses.

Mahathir's other two sons, Mirzan and Mukhriz, are also high flyers in the corporate world.

Reduce paperwork

Domestic Trades and Consumer Affairs Ministry Parliamentary Secretary Wong Kam Hoong today tabled the amendments to the 1965 Company's Act.

Section 69P of the 1965 Company's Act which was amended in 1998 stated that those who have a stake of two percent or more in a company or those trustees who have major stakes in a company, have to declare their share trading activities.

However, the proposed amendment today sought to have only those who owned five percent or more of a company's shares to declare their share trading activities.

Wong said this was to reduce paperwork.

* Editor's note

: Details on the link between Fomema and Pantai Holdings corrected on May 9.