Nanyang Group Newspaper Takeover Debacle. Blame Game Starts Again.

Ling Must Apologise For Nanyang Debacle, Says Ah Lek
By Alan Ting (Bernama)

Describing MCA's takeover of two Chinese newspapers under the Nanyang group in 2001 as a debacle, the party's former deputy president wants former president Tun Dr Ling Liong Sik to apologise to the Chinese community for it, saying Dr Ling was "solely responsible" for the controversial deal.

Tan Sri Lim Ah Lek told a press conference Thursday that Dr Ling was responsible for bulldozing the acquisition of Nanyang Siang Pau and China Press, owned by Nanyang Press Holdings Bhd, and which the party's investment arm Huaren Holdings Bhd finally disposed of on Tuesday.

Lim estimated that Huaren, which was bleeding from the investment, lost at least RM100 million on the deal in the five years. Huaren reduced its stake in Nanyang to 21 per cent from a controlling 42 per cent, selling at RM4.20 per share from RM5.50 when it acquired the stake.

The shares were sold to Ezywood Options Sdn Bhd, which is controlled by Sarawak timber and media tycoon Tan Sri Tiong Hew King. Tiong also owns Sin Chew Media Corp Bhd, publishers of Sin Chew Jit Poh, Malaysia's largest Chinese newspaper, and Guang Ming Daily.

The takeover of the two newspapers led to a crisis in the country's second biggest political party, splitting it into two camps, one headed by Dr Ling and the other by Lim. Both resigned from the leadership in 2003 under a "peace deal" brokered by then prime minister Tun Dr Mahathir Mohamad.

"He was the sole person responsible for it. Without Dr Ling, as the president of the party, there would be no acquisition of Nanyang. It's a fact, he cannot deny that," Lim said. Lim said Dr Ling had continued to push for the deal despite the fact that it received strong protests from Chinese associations while a large number of party members were against it.

Lim referred to press reports that MCA had to pay RM50 million just to service the interest on the loan it took to acquire Nanyang. "Based on depreciation per share, we can see the losses, at least or close to RM100 million," he added. And he issued this challenge to his ex-party boss: "If he is gentleman enough, he must come forward to apologise to the Chinese community, to all the party members. He must do it at least, it is still not too late to do so".

"Stop blaming other people, especially present leaders. They (the present leaders) were misled into accepting his motive for the deal. He must apologise," Lim repeated.

Lim also said that the Chinese community in the country still had not forgiven the MCA for acting against their wishes, even prompting a boycott of Nanyang Siang Pau.

But he praised the present MCA leadership for taking the bold decision to dispose of the controlling stake in order to cut losses that the party had to incur.

"This is my personal view. When you inherit a sick vehicle and to avoid it being disastrous, I congratulate the leadership for disposing it. Without the Chinese community's support, the newspaper would be dying," he said.