Prime Minister Dr Mahathir Mohamad's proposal to a consortium wanting to take over Nanyang Press that MCA should retain a minority share in the company would constitute a "strategic threat" to press freedom, said DAP chairperson Lim Kit Siang today.

Lim added that if MCA retains the minority stake, it would pose a threat to the legitimate rights and interests of the Chinese community as the party could still impose its political agenda on the two newspapers published by Nanyang Press.

"MCA's minority stake or even a single golden share in Nanyang Press is completely unacceptable to safeguard the legitimate rights and interest of Chinese community," he said.

A golden share would give MCA, despite having a minority stake, the right to exercise a veto over major decisions made by the company.

In an interview with malaysiakini yesterday, Chinese consortium leader Lim Guan Teik, who with seven other influential businessmen, is bidding for MCA's stake in Nanyang Press, said the premier had asked the consortium to let MCA's investment arm, Huaren Holdings to retain a minority share in Nanyang.

The businessman met with Mahathir on Tuesday to discuss the consortium's proposal to purchase Nanyang Press from MCA at RM5.60 per share for the 72.35 percent stake which the political party had acquired last month.

Political agenda

Lim said if MCA was given a golden share in Nanyang Press by the consortium, the party will be vested with "final executive and editorial decisions" in running the company.

"The whole deal must be opposed until MCA relinquishes the golden share and every other share and give up all effective control over the two newspapers," said Lim.

He also said that contrary to claims by MCA leaders that the Nanyang Press takeover was above board, the deal was from the beginning a part of a larger political agenda.

"After initially claiming that the deal was purely business, MCA president Dr Ling Liong Sik has finally admitted that it was a strategic political investment because the media has a very important role in the party," said Lim.

Lim claimed that MCA's takeover was not based on a "willing buyer, willing seller" deal but a "political power play by Ling with his agenda to eliminate his rivals inside the party, to wipe out the opposition and give support to Mahathir".

Strong objections

The purchase by MCA sparked off strong objections from the Chinese community as well as rank-and-file party members who fear that the independence of the two major newspapers would be compromised. A boycott campaign was subsequently launched and has affected the sales of the papers.

A faction of MCA leaders are opposing the Nanyang takeover deal as they claim it breached the party's constitution

The party is holding an extraordinary general meeting on June 24 to decide with finality, the fate of the Nanyang deal.

Meanwhile, DAP secretary-general Kerk Kim Hock said MCA should heed the advice of Mahathir in finding a way to end the controversy.

Mahathir told reporters on Tuesday that he did not want any controversy over the Nanyang deal and wanted MCA to "get rid of the unnecessary controversy".

Kerk said that the obvious solution would be for Ling to accept the offer made by Guan Teik's consortium.