Gerakan today questioned whether Hong Leong group was coerced to sell its stake in Nanyang Press Holdings to MCA in the controversial takeover of the newspaper company last month.

"If Gerakan had indeed offered to buy Nanyang Press at RM6.50 per share, does it mean that Hong Leong was forced to sell at only RM5.50 a share to MCA?" asked party chief administrator Khoo Swee Koon.

Last Sunday, MCA vice-president Dr Fong Chan Onn revealed to a Chinese daily that Gerakan president Dr Lim Keng Yaik had proposed but failed to purchase a stake in Nanyang Press from Hume Industries and Hume Plastics, two subsidiaries of Hong Leong, owned by tycoon Quek Leng Chan.

Fong reportedly said that Gerakan has been vocal against the Nanyang takeover by MCA only after it lost in the bid for the media company which publishes dailies Nanyang Siang Pau and China Press .

Following this, Gerakan claimed that the party has been made the "scapegoat" in the controversial takeover in order to divert attention away from MCA.

Despite strong objections from various Chinese organisations and business figures, MCA acquired 72.35 percent of shares in Nanyang Press last month, amounting to RM230 million cash at RM5.50 a share.

In his press statement today, Khoo who is also the executive-secretary of Gerakan Strategy Planning, Publicity and Community Liaison Bureau, questioned the motive of MCA to purchase Nanyang Press in "a secretive and hurried" manner.

"Was it done in the best interests of the entire party or was it for some other personal reasons?"

'Good-willed advice'

However, he said the comments Gerakan has made on the MCA-Nanyang deal were purely "good-willed advice" to its partner in the ruling Barisan Nasional coalition, adding that it is at the discretion of MCA to decide what to do with the newly acquired dailies.

"When Umno or business groups close to the party bought over different dailies before, at least the community did not react strongly against it as it does with MCA today," he said.

"Had the community responded that way, Gerakan would have given the similar advice to Umno," he added.

He also said should Gerakan have purchased Nanyang Press and faced such great resistance against the deal, the party would definitely respect the wishes of the Chinese community and reconsider the move instead of "bulldozing its way through" like MCA.

In light of this, Gerakan urged MCA to re-examine its takeover of Nanyang Press as the increasing Chinese protests against the deal may be "a high price to pay" for Gerakan and other component parties in BN in the next general elections in 2004, he added.

Following the Nanyang takeover by MCA, several Chinese lobby groups have called for a boycott against the two newly MCA-controlled dailies. The boycott campaign is believed to have substantially affected the sales of both dailies.

Last week, Gerakan chief Lim had expressed his doubt about MCA's words that there will be no interference in the editorial of Nanyang and China Press . He was quoted as saying that the party leaders have been given slanted coverage in another MCA-owned English paper The Star .

MCA president Ling Liong Sik later explained that Gerakan leaders did not receive wide coverage in The Star as they "were of little news value."

Early this week, Ling had announced that the party is willing to sell a strategic stake in Nanyang Press to other business groups who are in interested.