A powerful Chinese lobby group today expressed its regret over the outcome of the MCA extraordinary general meeting (EGM) on Sunday which approved the political party's takeover of Nanyang Press Holdings.

The group also reiterated its stand that MCA must relinquish its control of the media group following vocal opposition from the Chinese community.

"We would like to point out that the strong objections expressed by the Chinese community and the dissenting voices within the MCA clearly overwhelm the EGM's approval of the takeover," said the Chinese Organisation Against the Takeover of Nanyang Press by Political Parties (Coat), an umbrella group of 500 organisations.

The party EGM saw a little more than half of the 2,216 delegates voting in favour of the party's takeover of Nanyang Press, which publishes two Chinese dailies - the Nanyang Siang Pau and the China Press .

The secret ballot saw 1,176 delegates, or 53 percent, voting in favour of the controversial RM230 million deal while 1,019 voted against the deal.

The EGM was held to decide on a resolution seeking the delegates' endorsement of the takeover which was done last month through the MCA's investment arm, Huaren Holdings.

"We are glad that 1,019 MCA delegates heeded our concerns and voted against the resolution. We hope they will continue to defend the independence of the media and ensure press freedom is safeguarded," said the organisation, which is headed by Ngan Ching Wen, president of the Selangor Chinese Assembly Hall.

Ngan is also a member of a group headed by reputed businessman Lim Guan Teik, who with seven other influential Chinese businessmen, is bidding for MCA' s 72.35 percent stake in Nanyang Press for RM234 million.

Free press issue

In response to Prime Minister Mahathir Mohamad's criticism that those opposing the Nanyang takeover were raising Chinese sentiments, Coat said that its campaign was not an ethnic or communal issue.

"It is an issue carrying far-reaching implications on the freedom of expression for all in the country. It will have an impact on everyone," the statement said.

Yesterday, Mahathir accused those opposing the takeover of promoting 'Chinese special rights' including the demand that Chinese newspapers should not be owned by political parties.

According to Coat, the Chinese community was not the only community in the country that has protested against the takeover of media organisations by political parties.

"In the 1960s, Malay journalists, led by the then Utusan Melayu editor Said Zahari, went on a three-month strike to protest against the takeover of the newspaper by Umno," it said.

The Nanyang 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 Chinese dailies, which have a total circulation of about 390,000, would be compromised.

A boycott campaign was subsequently launched and has reportedly affected the sales of the papers.

A faction of MCA leaders, including senior leaders like Lim Ah Lek and Chua Jui Ming, have opposed the takeover deal, claiming it breached the party's constitution.