breaking news

In a dramatic twist to the controversial takeover of dailies Nanyang Siang Pau and China Press by MCA, two of the four trustees of the party's investment arm Huaren Holdings would most likely not sign the agreement to seal the deal.

According to a party source, MCA deputy president Lim Ah Lek and vice-president Chua Jui Meng will not ink the deal on Thursday.

This latest development may pose a legal obstacle to the deal as the takeover must have the unanimous approval of Huaren's board of trustees, thus giving any one of the four board members veto powers.

In addition to Lim and Chua, the other two trustees are party president Dr Ling Liong Sik and secretary-general Dr Ting Chew Peh, both of whom have backed the takeover of Nanyang Press, the parent company of the two Chinese dailies.

Chua, who has just returned from overseas this afternoon, expressed grave reservations to the takeover bid in a seven-page handwritten statement which was faxed to Ling.

He wanted Ling to justify the taking over of the two Chinese dailies by answering a lengthy series of questions.

Chua, who is also health minister, added that "all these questions require urgent and satisfactory answers before I can be convinced that what is being done can be supported".

'Fait accompli'

Chua said he had been following the controversy closely, talked to community leaders, and had found the objections to the takeover "disturbing".

He said that no political party should consciously ignore or reject the views and opinions of the majority it represents.

"I love the MCA. I love the Barisan Nasional. And I truly appreciate the Chinese community which in the last two general elections strongly supported us," said Chua.

"Do we now ignore their views? Do we wish to risk erosion of their support?" he added, urging the four trustees to make rational and responsible decisions.

Chua lamented that there has been no meeting of the trustees and shareholders of Huaren to discuss the proposed acquisition and that the party's central committee is only to be called tomorrow and be presented with a " fait accompli ".

The committee will be meeting at the MCA headquarters tomorrow afternoon to 'discuss' the deal.

Last week, an emergency presidential council meeting headed by Ling voted to back the deal. However, there were three abstentions in the 15-member council, including party deputy president Lim. According to Ling, the council is "empowered to make decisions".

"Is this proper? Should not a meeting of the trustees and shareholders be called first to consider the feasibility report of the proposed takeover before presentation is made to the central committee, presidential council and general assembly?" queried Chua.

Chua's questions

Chua questioned Huaren's cash reserves and whether it can pay the full purchase price of Nanyang Press, which amounted to RM230 million.

"What are the cash reserves of Huaren? I do not know. Can Huaren afford to pay the full purchase price? I do not know. Do we need to take out loans? What will be the burden and impact on the party and its members? What are we actually taking over. All this, I do not know," he said.

Chua added he was told that an agreement has been entered with Hume Industries by "certain persons" purporting to represent Huaren and that they have paid 10 percent of the purchase price and have since taken over control of the Nanyang Press.

He expressed concern regarding key management and editorial staff who had been asked to leave Nanyang within 24 hours yesterday and today, and the refusal of 41 writers to write for the Nanyang Siang Pau under the new set-up.

"Aren't human resources the most important asset? Are we going to pay hundreds and millions of ringgit for what may well become a shell company or a shadow of what it was before?" queried Chua.

"Why the urgency to seize control of Nanyang Press? What is the rationale? If we wanted another Chinese paper, would we not have started another Tong Bao ?" added Chua.

He was referring to the Tong Bao daily, initially called Thung Pau before its takeover by the party in the early 1980s, which eventually collapsed in 1994 following a sharp decline in readership.

"What will happen to Huaren if the current Chinese readership abandons the Nanyang Press' publications as it did Tong Bao ?" he asked.

"Have we forgotten the bitter lessons of the 1980s? The loss of the Multi-Purpose Holdings, the economic empire and jewel of the Malaysian Chinese community?

More protests

Meanwhile, national news agency Bernama reported that two MCA members of parliament and seven state assembly representatives called on the party to reconsider its decision to buy the two Chinese dailies.

They are Serdang MP Yap Pian Hon, Bentong MP Liow Tiong Lai and state assembly members Hoh Khai Mun, Fong Koong Fuee, Chan Choon Fah, Chan Kam, Dr Ho Wai Cheong, Lee Chee Leong and Loh Yoon Foo.

"In view that the party's action in this matter will cause tension between the party and the Chinese community, we hope that the party will react positively to this objection," they urged in a joint statement.

They joined seven Perak party leaders, including two state assembly representatives, who yesterday slammed the party's decision to takeover Nanyang.

Yesterday, Prime Minister Dr Mahathir Mohamad appeared to have given his 'blessings' to the deal by saying he would not interfere with the purchase of the newspapers by MCA.

The controversy of the Nanyang takeover has unleashed a series of protests from journalists, non-governmental organisations and opposition parties over the past week. Several protests are being planned tomorrow outside the MCA headquarters in a last-ditch attempt to stop the deal from falling through.