updated version

MCA vice-president Chua Jui Meng today said that he would not sign any agreement in his capacity as a trustee of the party's investment arm Huaren Holdings to purchase a controlling stake of 72 percent in Nanyang Press.

"I have not signed. I am one of the four trustees of Huaren Holdings and I am one of the four shareholders," said Chua.

He stated that the purchasing agreement would be illegal if it does not have the approval of all four trustees.

However, he said that despite the requirement for the four signatures, the question does not arise now "as in yesterday's meeting, we were told that it was not necessary for the trustees to meet and approve the purchase".

Chua, who appeared to be holding back his emotions, said the party president has been mandated by the central committee with full power to proceed with the purchase.

"I think (for) any other company that wants to take over another company of this magnitude and size, law and common sense would require the trustees' approval.

"But I am told - I am lawyer - that this is not necessary at all. It is only proper that a meeting of trustees and shareholders (there are only four of us) be convened first, to discuss this very serious matter," replied Chua, when asked if the procedure was against the law.

Chua who is also the health minister was speaking to reporters after officiating an anti-smoking campaign organised by the Health Ministry at the Putra World Trade Centre in Kuala Lumpur.

The other trustees of Huaren are party deputy president Lim Ah Lek, who also voted against the deal, party president Dr Ling Liong Sik and secretary-general Dr Ting Chew Peh, both of whom backed the takeover.

Huaren has no cash

Yesterday, the party's 40-member central committee approved the takeover of Nanyang Press, which publishes two major Chinese dailies Nanyang Siang Pau and China Press . However eight, including Chua, voted against the takeover.

Chua also revealed that Huaren had no money to proceed with the purchase and had to obtain a "100 percent bank loan" for the purpose.

He added that the company will be using all of its 68 million shares in The Star and 40 million shares in Nanyang (if the deal is sealed) as collateral for the loans and this will eventually burden MCA and its members.

It was announced on Monday that Huaren will buy Nanyang Press for RM230 million in cash from tycoon Quek Leng Chan. Quek's Hume Industries announced this afternoon that the deal was signed between the two parties.

The deal had evoked a volley of protest from the public, journalists and other groups concerned about press freedom, including opposition parties, and in a demonstration by two opposing groups on the issue outside the Wisma MCA yesterday, tempers flared and scuffles erupted.

Gap widens

While Chua dismissed the opinions of the opposition parties as irrelevant, he however stressed that the Chinese community's view on the matter was critical.

"In fact, we do not accept any of their (opposition parties') views but what is important are the feelings and concerns of the Chinese community," he said, adding that as trustee and shareholder of Huaren, he represented the 900,000 MCA members.

He added these views were articulated to the MCA leadership because it will eventually affect MCA and the future of the Barisan Nasional.

"We must make sure whatever we do now does not affect the party. We are friends of the community. Time and time again we are urged to be humble in our approach, to listen and work with the community and to represent their interests," said Chua.

"I am saddened by the fact that the gap between the party and the community has widened," he lamented.

Chua said the Chinese community wanted the major newspapers to be independent and cited defunct dailies Shin Min and Tong Bao as examples. The former was bought by Umno and the latter by MCA but both the dailies were rejected by the community and were forced to fold up.

He also recalled how MCA nearly lost the Wisma MCA building, Multi-Purpose Holdings and the support of the community in the 1980s because the party had too much debt.

"And now with no money, we want to take a 100 percent loan to make a RM230 million purchase. Who will bear the burden?" he queried.

Intelligent voters

Despite the Chinese community having diverse opinions, they would eventually analyse the situation and vote intelligently, he said.

He revealed that in 1980 and 1995, the Chinese voted against him and the MCA, and it was the Malay electorate that helped secure them victory.

"But I respect (the Chinese) because they voted according to their analysis (of issues)," said Chua, adding that in 1995 and 2000, the Chinese backed MCA and BN because they felt the party had policies worthy of respect.

"We did not have a newspaper then. The voters analyse issues. They are intelligent," he said, adding that MCA should not be afraid of dissenting views.

He said it was decades of elections, education and political awareness that have sharpened the perspective of the Chinese who will later voice their opinions through the ballot box.

Asked how he was going to explain the acquisition to the grassroots, Chua sighed, "I don't know. The grassroots are beginning to know."

On his relationship with the party president, Chua described it as "good" and added, "it is a matter of principle. I am not concerned about personalities but issues".

Chua also clarified that he had not considered taking any legal action on the matter when questioned by reporters.

"I am not taking any action because this is the wisdom that will eventually prevail. This is the political reality, my friends," he told reporters.