The Wee Choo Keong case: Allegations against Anwar Ibrahim, 3 previous CJs, involves sitting judge
PRESENTED AS REPORTED
By Khaidir Abd Majid.
18 November 1993
Business Times20
FINANCE Minister Datuk Seri Anwar Ibrahim yesterday denied any personal interest in any company. However, he said in the course of his duty as Finance Minister, he has always subscribed to the practice of being close to all companies. He was replying to a question raised by an opposition Member of Parliament during the winding-up debate on the Supply Bill 1994. Wee Choo Keong (DAP-Bukit Bintang) had asked about the relationship between Anwar and Idris Hydraulics managing director Ishak Ismail, and on why the Finance Minister was with MBf Holdings Group chief executive Tan Sri Loy Hean Heong on an overseas trip. Anwar said Ishak is a member of the Umno Permatang Pauh division which he heads, but the minister denied having anything to do with Ishak's business dealings. As for the suggestion relating to Loy, he said as Finance Minister he comes into contact with many companies, both at home and abroad. He also said the Securities Commission is studying the Idris Hydraulics' rights issue and appropriate action will be taken if the funds were misused. On Bank Negara's inquiry on alleged irregularities in MBf Finance and MBf Holdings, Anwar said the central bank will investigate any allegation. (snipped)
MalaysiaLord President under fire for meeting MBf chief
4 May 1994
Straits Times
KUALA LUMPUR - The Bar Council yesterday expressed disappointment over Lord President Tun Hamid Omar's meeting with MBf chief executive Tan Sri Loy Hean Heong at a time when the company was involved in a Supreme Court appeal. Council president Zainur Zakaria said: "The Malaysian Bar is dismayed to learn that the Lord President recently met Loy in his chambers. "It is an elementary principle in our legal system that a judge should not meet with a litigant." Democratic Action Party secretary-general Lim Kit Siang raised the March 24 meeting between Tun Hamid and Tan Sri Loy during debate on the Royal Address in Parliament. On Monday, the Supreme Court is scheduled to hear in Penang an appeal by DAP Member of Parliament for Bukit Bintang Wee Choo Keong, who was jailed for two years by the High Court for contempt of court for ignoring an injunction obtained by MBf Holdings and MBf Finance Bhd on Jan 19 last year and for evading service of the order. Law Minister Datuk Syed Hamid Albar, in his reply to Mr Lim, said the four Supreme Court judges due to hear the appeal were named on March 23, a day before Tan Sri Loy's visit. Tun Hamid, who admitted meeting Tan Sri Loy, said they did not discuss the appeal involving MBf and Wee. The MBf chief executive had wanted to "say hello" and congratulate him on the extension of his term as Lord President. Mr Zainur said: "The fact that Wee's appeal in the contempt proceedings involving MBf is before the Supreme Court means that the judges of the Supreme Court should not be meeting Loy or any other person from MBf or for that matter Wee. "It is particularly regretted that this breach of principle should be committed by the head of the judiciary himself." - Bernama.
Two judges won't hear MP's appeal
10 May 1994
Straits Times
1994
PENANG - Two Supreme Court judges yesterday stepped down from hearing an appeal by opposition Member of Parliament Wee Choo Keong in a case which has generated controversy in the Malaysian legal system. Wee, sentenced to two years' jail last December for contempt of court, had argued against Justice Tan Sri Eusoffe Chin and Justice Datuk Mohamed Dzaiddin, two of three panel judges, hearing his appeal. Presiding judge Datuk Peh Swee Chin, who adjourned the court for a 45-minute conference with his colleagues, said later that while Tan Sri Eusoffe and Datuk Mohamed believed they would do justice to Wee, they agreed that justice must not only be done but seen to be done. He then adjourned hearing of the appeal pending the empanelment of a new composition of judges. In Malaysia's legal system, the Supreme Court is the final court of appeal. If the court upholds the conviction and sentence, Wee's legal and political careers would come to an end. He had objected to the two judges hearing his appeal as they had ruled against him in a related case last April when they sat together with Lord President Tun Abdul Hamid Omar. Wee, 40, a lawyer, is from a wealthy Kelantan family. His late father was leader of the state Malaysian Chinese Association, a senior component of the ruling National Front government. Known for his affinity for designer clothes and Rolex watches, he created a stir when he lodged a police report in February last year against Malaysian tycoon Tan Sri Loy Hean Hong who controls the MBf group of public-listed companies. Following this, MBf filed a civil suit against Wee and obtained an injunctio n restraining him from making allegations of impropriety against the company or its subsidiaries. Wee filed to strike out the claim and set aside the injunction on Feb 20. On the same day, MBf instituted contempt proceedings against him for violating the injunction. On March 2, the High Court ruled that his application to strike out MBf's suit and the injunction against him could not be heard until he had purged himself of the contempt charges. He appealed to the Supreme Court. On April 28 last year, Tun Hamid, Datuk Mohamed and Tan Sri Eusoffe rejected his appeal and upheld the High Court decision that there was a prima facie case for contempt against him. He was later convicted on two charges of contempt and jailed two years. Yesterday, Wee argued that by upholding the High Court decision on April 28, Tan Sri Eusoffe and Datuk Mohamed "may have formed an adverse opinion" of him. MBf's counsel, Mr G. Sri Ram, objected, saying that the April 28 decision wa s merely to sort out procedural matters and did not discuss the merits of the case. He accused Wee of laying a red herring before the court, saying "it is an attempt to enter through the French windows because he finds the side, front and back windows locked". Wee said: "Your Lordship, this is a serious matter for me. I am going to jai l for two years. You must agree with me that justice must not only be done but also seen to be done." Datuk Peh adjourned the court for five minutes to discuss the objections wit h his colleagues but only came out of chambers 45 minutes later. Wee has fought his case both in the courts and Parliament where he revealed last month that Tun Hamid had met Tan Sri Loy in chambers on March 24. This brought about recriminations from the Bar Council which criticised Tun Hamid's actions in meeting a litigant whose appeal was before the Supreme Court. Tun Hamid defended his actions. Local newspapers quoted him as saying that Tan Sri Loy had called to congratulate him on his extension as Lord President for another year.
Lord President under probe over car sale to tycoon
Kalimullah Hassan
12 May 1994
Straits Times
KUALA LUMPUR - The Anti-Corruption Agency (ACA) is investigating Lord President Tun Abdul Hamid Omar following allegations of impropriety in the sale of his car to Malaysian tycoon Tan Sri Loy Hean Hong. Law Minister Datuk Syed Hamid Albar told Parliament yesterday that the ACA had received a report from opposition MP Wee Choo Keong against Tun Hamid. Mr Wee alleged in his report that Tun Hamid had sold a Mercedes Benz 280SE together with the registration number WBD 1 to Tan Sri Loy at a "high profit". Tan Sri Loy's public-listed MBf Holdings had instituted contempt proceedings against Mr Wee last year. Mr Wee was sentenced later to two years' jail each on two counts of contempt. Tun Hamid presided over a panel of three judges who in April last year uphel d the High Court decision that Mr Wee had a prima facie case to answer on the contempt charges. Bringing his fight to Parliament, Mr Wee alleged that Tun Hamid had met Tan Sri Loy in chambers and had also sold his car to the tycoon. Tun Hamid confirmed meeting Tan Sri Loy but said he did not discuss Mr Wee's case. He said Tan Sri Loy had come to congratulate him on the extension of his term as Lord President after he reached retirement age in March. Neither Tun Hamid nor Tan Sri Loy had commented on Mr Wee's allegations on the sale of the car. Yesterday, another opposition MP, Mr Sukri Mohamad from the Spirit of '46, asked the government to investigate Mr Wee's allegations to ensure that the judiciary, in particular Tun Hamid, was not smeared. Speaking during the debate on the Courts of Judicature (Amendment) Bill whic h introduces a code of ethics for judges, Mr Sukri said: "Mr Wee has made some some serious allegations and in the interests of the judiciary, I demand that the government and the ACA investigate the allegations to clear the persons named," he said. Datuk Syed Hamid, replying to points raised, criticised Mr Wee for political interference in the judiciary. "We must ensure that judges are free to carry out their duties without political interference as is being done by Wee," he said. However, Datuk Syed Hamid confirmed that the ACA had received Mr Wee's repor t on the sale of the car. "They are taking the necessary action," he said. He added that the Malaysian judiciary had generally acted without fear or favour. "Our judiciary has by and large been very fair and we should be very proud o f it," he said, adding that there had been vast improvements in the justice system where court cases were now disposed off faster than before. Mr Wee, a lawyer, faces disbarment and an end to his political career if the sentence imposed on him is upheld by the Supreme Court. He has been accused by ruling National Front MPs and leaders of not respecting the decision of the courts by making allegations against the judges in Parliament. Mr Wee's appeal in the Supreme Court is pending. It was adjourned on Monday when two judges who sat with Tun Hamid in hearing another appeal related to the MBf group of companies last year stepped down after Mr Wee said they could have formed an "adverse opinion" of him. A fresh panel of three judges will now hear his appeal.
Anti-Corruption Agency clears Lord President of misconduct
3 July 1994
Straits Times
KUALA LUMPUR - Lord President Tun Hamid Omar has been cleared by the Anti-Corruption Agency (ACA) of allegations that he profited from the sale of his government-issued Mercedes-Benz and that his family held controlling shares in a private company, Innovest Sdn Bhd.
Attorney-General Datuk Mohtar Abdullah said yesterday that the ACA found no truth in the charges brought by a Democratic Action Party MP, Mr Wee Choo Keong.
"Now the police will investigate Wee on charges of falsity and criminal defamation," he told a news conference here.
Since there was no evidence of misconduct and that Mr Wee's motive in making
the report was questionable - he was facing a contempt proceeding before the Supreme Court - the chambers had directed the police to investigate him, Datuk Mohtar added.
The Attorney-General said that the law was to protect citizens and that nobody should take advantage or abuse its process.
"I am satisfied with the results of the investigation which revealed that there were no criminal elements as alleged by Mr Wee. The ACA has done a good job."
On charges that Tun Hamid made a quick profit when he sold his official car,
Datuk Mohtar said the ACA found that the Mercedes Benz, with registration number WBD 1, was sold to New Kwong Soon Motor Trading on Feb 25 last year at M$130,000 (S$77,000).
It was the company which sold the car to MBf Securities Sdn Bhd on March 15 last year at M$135,000, showing that it was an ordinary transaction in which the Lord President had no connection or knowledge at all.
The ACA found that Tun Hamid's son-in-law, Mr Hisham Hashim, bought 37 million shares in Innovest through a 100-per-cent loan from MBf Finance Berhad and that the transaction did not involve the Lord President at all.
"It was an ordinary business deal between Hisham and Innovest," Datuk Mohtar
said.
In an interview with the Malaysian Business magazine recently, Tun Hamid dismissed rumours that he was quitting his job following the controversy.
He said he would serve out his term which expires in September. - Bernama.
Bank Negara takes control of MBf Finance.
By Eddie Toh and Meera Tharmaratnam.
5 January 1999
Business Times Singapore
THE Malaysian central bank has taken over the management of troubled MBf Finance - a move that may spell the end of the Loy family's grip on the largest finance company in Malaysia.
Bank Negara yesterday took the unprecedented step by putting seasoned banker Low Ngiap Jin as the new chief executive officer of MBf Finance, dislodging Loy Teik Ngan from the top post.
"As part of its on-going efforts to strengthen the banking system, Bank Negara has today assumed control of MBf Finance," it said in a statement. The central bank said MBf Finance - a subsidiary of listed MBf Capital - is solvent. However, it requires recapitalisation to improve its financial health and to restore its risk weighted capital ratio to 8 per cent (the minimum statutory requirement).
Bank Negara said it is a pre-emptive action to restore MBf Finance to a "healthy position as well as strengthen its board and management so as to ensure MBf Finance's viability as a going concern".
At the same time, Bank Negara also assumed control of Kewangan Bersatu, a smaller finance company.
Analysts said the management takeover of MBf Finance and the impending capital injection by the authorities may help prevent the collapse of the company and a systemic failure of the banking system. Officials of Bank Negara and MBf Finance did not respond to queries yesterday.
The Bank Negara statement did not say how long Mr Low will remain at the helm, or whether the management will revert to Mr Loy and his team when the finance company is nursed back to health.
The statement was silent on the issue of equity structure. A banking source said the government is expected to end up with a sizeable stake in the finance company in exchange for the fresh capital.
"The government can issue so many instruments to recapitalise the finance company," he said. However, Danamodal - the agency set up to recapitalise the banking sector - is not expected to take a direct stake after having backed out of the plan to buy a 30 per cent stake in RHB-Sime Bank.
Analysts said the latest moves are part of Malaysia's plan to press ahead with the consolidation of the fragmented finance sector to about eight companies from 39. Malaysia had earlier identified six major finance companies to be umbrella groups to absorb smaller firms.
The six anchor companies are Mayban Finance, Public Finance, Hong Leong Finance, Arab-Malaysian Finance, EON Finance/Credit Corp (Malaysia) and United Merchant Finance.
MBf Finance was excluded from the list although it is the largest.
Particularly troubling is its non-performing loans - estimated to be at an industry high of over 30 per cent, or about 4.7 billion Malaysian ringgit (S$2 billion).
It is not clear how much of the finance company's shareholders' funds of over RM1.1 billion had been erased to cushion its losses.
With the rapid deterioration of its assets, Bank Negara was believed to be keen to assume control of the finance company as early as the start of last year following a series of runs in 1997.
Although MBf Finance fulfilled all the quantitative criteria, Bank Negara has persistently denied it the Tier-1 status that allows a greater range of business activities. Another reason is the perception that it was a one-man operation run by the late Loy Hean Heong. The central bank is said to be concerned about family-run banking or finance businesses.
Despite the pressure, analysts said MBf Finance, which has total assets of RM20 billion, managed to stave off Bank Negara. Last March, parent MBf Capital announced a strategic alliance with Bank of Commerce, a subsidiary of listed Commerce Asset Holding Bhd. MBf Capital was also involved in talks with GE Capital of the US and a Taiwanese financial group.
None of the deals materialised. Meanwhile, the government was getting impatient with the slow pace of revitalising the large company. In November, Danaharta - the agency set up to absorb NPLs - agreed to buy RM3.89 billion worth of sour loans from MBf Finance at a discount.
Assuming a 40 per cent discount, the agency would buy the secured loans at about RM2.33 billion. MBf Finance is estimated to have set aside RM500 million, leaving RM1 billion that it must write off its books - a hit that could well wipe out its shareholders funds, if it chooses to fully charge its losses in one go.
At about the same time, MBf Capital was mulling over a proposal by the authorities whether its finance arm should be taken over by Danamodal. "The bottom line is that MBf Finance is going to end up nationalised or institutionalised. But we're not recommending any stock investing yet till we see fresh equity in its books," said a research head.
Star Online
Friday April 13, 2007
Ex-Bukit Bintang MP wins appeal
PUTRAJAYA: Former Bukit Bintang MP Wee Choo Keong has won his appeal against a High Court decision involving an ex-parte injunction by two MBf companies 14 years ago. The panel of three Court of Appeal judges unanimously set aside the injunction against Wee and MBf Holdings Bhd group chief accountant Houng Hai Kong with cost. Justice Heliliah Mohd Yusof, who delivered the decision, said the ex-parte injunction by MBf Holdings Bhd and MBf Finance Bhd should not have been granted. "The injunction was too wide in its terms and almost oppressive," she said. MBf was also ordered to pay damages, which would be assessed by the High Court. The other judges on the panel were Justices Tengku Baharuddin Shah Tengku Mahmud and Abdull Hamid Embong. On Feb 9, 1993, the two MBf companies were granted a High Court injunction restraining Wee, Houng and former MBf Finance group EDP manager Loi Hean Sso from printing, circulating or publishing any allegation of impropriety about the companies. In their (the MBf's) main suit, they claimed that the defendants unlawfully conspired with each other with the predominant purpose of injuring the companies by unlawful means. The companies later obtained leave from the High Court to apply for a committal order against the three for contempt of court in disobeying the Feb 9 order. Houng, Loi and Wee, in turn, sought to have the court hear their application to set aside the injunction first. However, the High Court ruled on March 23, 1993, that it would first hear the application by the companies to commit the three. On May 9, 1993, the then Supreme Court dismissed an appeal by the three, upholding the High Court's decision to first hear MBf's application for contempt of court proceedings against them. In December 1993, Wee and Houng were convicted for disobeying a court injunction and evading service of the order. On appeal, Wee's sentence was reduced to a RM7,000 fine and Houng had his appeal allowed.
18 November 1993
Business Times20
FINANCE Minister Datuk Seri Anwar Ibrahim yesterday denied any personal interest in any company. However, he said in the course of his duty as Finance Minister, he has always subscribed to the practice of being close to all companies. He was replying to a question raised by an opposition Member of Parliament during the winding-up debate on the Supply Bill 1994. Wee Choo Keong (DAP-Bukit Bintang) had asked about the relationship between Anwar and Idris Hydraulics managing director Ishak Ismail, and on why the Finance Minister was with MBf Holdings Group chief executive Tan Sri Loy Hean Heong on an overseas trip. Anwar said Ishak is a member of the Umno Permatang Pauh division which he heads, but the minister denied having anything to do with Ishak's business dealings. As for the suggestion relating to Loy, he said as Finance Minister he comes into contact with many companies, both at home and abroad. He also said the Securities Commission is studying the Idris Hydraulics' rights issue and appropriate action will be taken if the funds were misused. On Bank Negara's inquiry on alleged irregularities in MBf Finance and MBf Holdings, Anwar said the central bank will investigate any allegation. (snipped)
MalaysiaLord President under fire for meeting MBf chief
4 May 1994
Straits Times
KUALA LUMPUR - The Bar Council yesterday expressed disappointment over Lord President Tun Hamid Omar's meeting with MBf chief executive Tan Sri Loy Hean Heong at a time when the company was involved in a Supreme Court appeal. Council president Zainur Zakaria said: "The Malaysian Bar is dismayed to learn that the Lord President recently met Loy in his chambers. "It is an elementary principle in our legal system that a judge should not meet with a litigant." Democratic Action Party secretary-general Lim Kit Siang raised the March 24 meeting between Tun Hamid and Tan Sri Loy during debate on the Royal Address in Parliament. On Monday, the Supreme Court is scheduled to hear in Penang an appeal by DAP Member of Parliament for Bukit Bintang Wee Choo Keong, who was jailed for two years by the High Court for contempt of court for ignoring an injunction obtained by MBf Holdings and MBf Finance Bhd on Jan 19 last year and for evading service of the order. Law Minister Datuk Syed Hamid Albar, in his reply to Mr Lim, said the four Supreme Court judges due to hear the appeal were named on March 23, a day before Tan Sri Loy's visit. Tun Hamid, who admitted meeting Tan Sri Loy, said they did not discuss the appeal involving MBf and Wee. The MBf chief executive had wanted to "say hello" and congratulate him on the extension of his term as Lord President. Mr Zainur said: "The fact that Wee's appeal in the contempt proceedings involving MBf is before the Supreme Court means that the judges of the Supreme Court should not be meeting Loy or any other person from MBf or for that matter Wee. "It is particularly regretted that this breach of principle should be committed by the head of the judiciary himself." - Bernama.
Two judges won't hear MP's appeal
10 May 1994
Straits Times
1994
PENANG - Two Supreme Court judges yesterday stepped down from hearing an appeal by opposition Member of Parliament Wee Choo Keong in a case which has generated controversy in the Malaysian legal system. Wee, sentenced to two years' jail last December for contempt of court, had argued against Justice Tan Sri Eusoffe Chin and Justice Datuk Mohamed Dzaiddin, two of three panel judges, hearing his appeal. Presiding judge Datuk Peh Swee Chin, who adjourned the court for a 45-minute conference with his colleagues, said later that while Tan Sri Eusoffe and Datuk Mohamed believed they would do justice to Wee, they agreed that justice must not only be done but seen to be done. He then adjourned hearing of the appeal pending the empanelment of a new composition of judges. In Malaysia's legal system, the Supreme Court is the final court of appeal. If the court upholds the conviction and sentence, Wee's legal and political careers would come to an end. He had objected to the two judges hearing his appeal as they had ruled against him in a related case last April when they sat together with Lord President Tun Abdul Hamid Omar. Wee, 40, a lawyer, is from a wealthy Kelantan family. His late father was leader of the state Malaysian Chinese Association, a senior component of the ruling National Front government. Known for his affinity for designer clothes and Rolex watches, he created a stir when he lodged a police report in February last year against Malaysian tycoon Tan Sri Loy Hean Hong who controls the MBf group of public-listed companies. Following this, MBf filed a civil suit against Wee and obtained an injunctio n restraining him from making allegations of impropriety against the company or its subsidiaries. Wee filed to strike out the claim and set aside the injunction on Feb 20. On the same day, MBf instituted contempt proceedings against him for violating the injunction. On March 2, the High Court ruled that his application to strike out MBf's suit and the injunction against him could not be heard until he had purged himself of the contempt charges. He appealed to the Supreme Court. On April 28 last year, Tun Hamid, Datuk Mohamed and Tan Sri Eusoffe rejected his appeal and upheld the High Court decision that there was a prima facie case for contempt against him. He was later convicted on two charges of contempt and jailed two years. Yesterday, Wee argued that by upholding the High Court decision on April 28, Tan Sri Eusoffe and Datuk Mohamed "may have formed an adverse opinion" of him. MBf's counsel, Mr G. Sri Ram, objected, saying that the April 28 decision wa s merely to sort out procedural matters and did not discuss the merits of the case. He accused Wee of laying a red herring before the court, saying "it is an attempt to enter through the French windows because he finds the side, front and back windows locked". Wee said: "Your Lordship, this is a serious matter for me. I am going to jai l for two years. You must agree with me that justice must not only be done but also seen to be done." Datuk Peh adjourned the court for five minutes to discuss the objections wit h his colleagues but only came out of chambers 45 minutes later. Wee has fought his case both in the courts and Parliament where he revealed last month that Tun Hamid had met Tan Sri Loy in chambers on March 24. This brought about recriminations from the Bar Council which criticised Tun Hamid's actions in meeting a litigant whose appeal was before the Supreme Court. Tun Hamid defended his actions. Local newspapers quoted him as saying that Tan Sri Loy had called to congratulate him on his extension as Lord President for another year.
Lord President under probe over car sale to tycoon
Kalimullah Hassan
12 May 1994
Straits Times
KUALA LUMPUR - The Anti-Corruption Agency (ACA) is investigating Lord President Tun Abdul Hamid Omar following allegations of impropriety in the sale of his car to Malaysian tycoon Tan Sri Loy Hean Hong. Law Minister Datuk Syed Hamid Albar told Parliament yesterday that the ACA had received a report from opposition MP Wee Choo Keong against Tun Hamid. Mr Wee alleged in his report that Tun Hamid had sold a Mercedes Benz 280SE together with the registration number WBD 1 to Tan Sri Loy at a "high profit". Tan Sri Loy's public-listed MBf Holdings had instituted contempt proceedings against Mr Wee last year. Mr Wee was sentenced later to two years' jail each on two counts of contempt. Tun Hamid presided over a panel of three judges who in April last year uphel d the High Court decision that Mr Wee had a prima facie case to answer on the contempt charges. Bringing his fight to Parliament, Mr Wee alleged that Tun Hamid had met Tan Sri Loy in chambers and had also sold his car to the tycoon. Tun Hamid confirmed meeting Tan Sri Loy but said he did not discuss Mr Wee's case. He said Tan Sri Loy had come to congratulate him on the extension of his term as Lord President after he reached retirement age in March. Neither Tun Hamid nor Tan Sri Loy had commented on Mr Wee's allegations on the sale of the car. Yesterday, another opposition MP, Mr Sukri Mohamad from the Spirit of '46, asked the government to investigate Mr Wee's allegations to ensure that the judiciary, in particular Tun Hamid, was not smeared. Speaking during the debate on the Courts of Judicature (Amendment) Bill whic h introduces a code of ethics for judges, Mr Sukri said: "Mr Wee has made some some serious allegations and in the interests of the judiciary, I demand that the government and the ACA investigate the allegations to clear the persons named," he said. Datuk Syed Hamid, replying to points raised, criticised Mr Wee for political interference in the judiciary. "We must ensure that judges are free to carry out their duties without political interference as is being done by Wee," he said. However, Datuk Syed Hamid confirmed that the ACA had received Mr Wee's repor t on the sale of the car. "They are taking the necessary action," he said. He added that the Malaysian judiciary had generally acted without fear or favour. "Our judiciary has by and large been very fair and we should be very proud o f it," he said, adding that there had been vast improvements in the justice system where court cases were now disposed off faster than before. Mr Wee, a lawyer, faces disbarment and an end to his political career if the sentence imposed on him is upheld by the Supreme Court. He has been accused by ruling National Front MPs and leaders of not respecting the decision of the courts by making allegations against the judges in Parliament. Mr Wee's appeal in the Supreme Court is pending. It was adjourned on Monday when two judges who sat with Tun Hamid in hearing another appeal related to the MBf group of companies last year stepped down after Mr Wee said they could have formed an "adverse opinion" of him. A fresh panel of three judges will now hear his appeal.
Anti-Corruption Agency clears Lord President of misconduct
3 July 1994
Straits Times
KUALA LUMPUR - Lord President Tun Hamid Omar has been cleared by the Anti-Corruption Agency (ACA) of allegations that he profited from the sale of his government-issued Mercedes-Benz and that his family held controlling shares in a private company, Innovest Sdn Bhd.
Attorney-General Datuk Mohtar Abdullah said yesterday that the ACA found no truth in the charges brought by a Democratic Action Party MP, Mr Wee Choo Keong.
"Now the police will investigate Wee on charges of falsity and criminal defamation," he told a news conference here.
Since there was no evidence of misconduct and that Mr Wee's motive in making
the report was questionable - he was facing a contempt proceeding before the Supreme Court - the chambers had directed the police to investigate him, Datuk Mohtar added.
The Attorney-General said that the law was to protect citizens and that nobody should take advantage or abuse its process.
"I am satisfied with the results of the investigation which revealed that there were no criminal elements as alleged by Mr Wee. The ACA has done a good job."
On charges that Tun Hamid made a quick profit when he sold his official car,
Datuk Mohtar said the ACA found that the Mercedes Benz, with registration number WBD 1, was sold to New Kwong Soon Motor Trading on Feb 25 last year at M$130,000 (S$77,000).
It was the company which sold the car to MBf Securities Sdn Bhd on March 15 last year at M$135,000, showing that it was an ordinary transaction in which the Lord President had no connection or knowledge at all.
The ACA found that Tun Hamid's son-in-law, Mr Hisham Hashim, bought 37 million shares in Innovest through a 100-per-cent loan from MBf Finance Berhad and that the transaction did not involve the Lord President at all.
"It was an ordinary business deal between Hisham and Innovest," Datuk Mohtar
said.
In an interview with the Malaysian Business magazine recently, Tun Hamid dismissed rumours that he was quitting his job following the controversy.
He said he would serve out his term which expires in September. - Bernama.
Bank Negara takes control of MBf Finance.
By Eddie Toh and Meera Tharmaratnam.
5 January 1999
Business Times Singapore
THE Malaysian central bank has taken over the management of troubled MBf Finance - a move that may spell the end of the Loy family's grip on the largest finance company in Malaysia.
Bank Negara yesterday took the unprecedented step by putting seasoned banker Low Ngiap Jin as the new chief executive officer of MBf Finance, dislodging Loy Teik Ngan from the top post.
"As part of its on-going efforts to strengthen the banking system, Bank Negara has today assumed control of MBf Finance," it said in a statement. The central bank said MBf Finance - a subsidiary of listed MBf Capital - is solvent. However, it requires recapitalisation to improve its financial health and to restore its risk weighted capital ratio to 8 per cent (the minimum statutory requirement).
Bank Negara said it is a pre-emptive action to restore MBf Finance to a "healthy position as well as strengthen its board and management so as to ensure MBf Finance's viability as a going concern".
At the same time, Bank Negara also assumed control of Kewangan Bersatu, a smaller finance company.
Analysts said the management takeover of MBf Finance and the impending capital injection by the authorities may help prevent the collapse of the company and a systemic failure of the banking system. Officials of Bank Negara and MBf Finance did not respond to queries yesterday.
The Bank Negara statement did not say how long Mr Low will remain at the helm, or whether the management will revert to Mr Loy and his team when the finance company is nursed back to health.
The statement was silent on the issue of equity structure. A banking source said the government is expected to end up with a sizeable stake in the finance company in exchange for the fresh capital.
"The government can issue so many instruments to recapitalise the finance company," he said. However, Danamodal - the agency set up to recapitalise the banking sector - is not expected to take a direct stake after having backed out of the plan to buy a 30 per cent stake in RHB-Sime Bank.
Analysts said the latest moves are part of Malaysia's plan to press ahead with the consolidation of the fragmented finance sector to about eight companies from 39. Malaysia had earlier identified six major finance companies to be umbrella groups to absorb smaller firms.
The six anchor companies are Mayban Finance, Public Finance, Hong Leong Finance, Arab-Malaysian Finance, EON Finance/Credit Corp (Malaysia) and United Merchant Finance.
MBf Finance was excluded from the list although it is the largest.
Particularly troubling is its non-performing loans - estimated to be at an industry high of over 30 per cent, or about 4.7 billion Malaysian ringgit (S$2 billion).
It is not clear how much of the finance company's shareholders' funds of over RM1.1 billion had been erased to cushion its losses.
With the rapid deterioration of its assets, Bank Negara was believed to be keen to assume control of the finance company as early as the start of last year following a series of runs in 1997.
Although MBf Finance fulfilled all the quantitative criteria, Bank Negara has persistently denied it the Tier-1 status that allows a greater range of business activities. Another reason is the perception that it was a one-man operation run by the late Loy Hean Heong. The central bank is said to be concerned about family-run banking or finance businesses.
Despite the pressure, analysts said MBf Finance, which has total assets of RM20 billion, managed to stave off Bank Negara. Last March, parent MBf Capital announced a strategic alliance with Bank of Commerce, a subsidiary of listed Commerce Asset Holding Bhd. MBf Capital was also involved in talks with GE Capital of the US and a Taiwanese financial group.
None of the deals materialised. Meanwhile, the government was getting impatient with the slow pace of revitalising the large company. In November, Danaharta - the agency set up to absorb NPLs - agreed to buy RM3.89 billion worth of sour loans from MBf Finance at a discount.
Assuming a 40 per cent discount, the agency would buy the secured loans at about RM2.33 billion. MBf Finance is estimated to have set aside RM500 million, leaving RM1 billion that it must write off its books - a hit that could well wipe out its shareholders funds, if it chooses to fully charge its losses in one go.
At about the same time, MBf Capital was mulling over a proposal by the authorities whether its finance arm should be taken over by Danamodal. "The bottom line is that MBf Finance is going to end up nationalised or institutionalised. But we're not recommending any stock investing yet till we see fresh equity in its books," said a research head.
Star Online
Friday April 13, 2007
Ex-Bukit Bintang MP wins appeal
PUTRAJAYA: Former Bukit Bintang MP Wee Choo Keong has won his appeal against a High Court decision involving an ex-parte injunction by two MBf companies 14 years ago. The panel of three Court of Appeal judges unanimously set aside the injunction against Wee and MBf Holdings Bhd group chief accountant Houng Hai Kong with cost. Justice Heliliah Mohd Yusof, who delivered the decision, said the ex-parte injunction by MBf Holdings Bhd and MBf Finance Bhd should not have been granted. "The injunction was too wide in its terms and almost oppressive," she said. MBf was also ordered to pay damages, which would be assessed by the High Court. The other judges on the panel were Justices Tengku Baharuddin Shah Tengku Mahmud and Abdull Hamid Embong. On Feb 9, 1993, the two MBf companies were granted a High Court injunction restraining Wee, Houng and former MBf Finance group EDP manager Loi Hean Sso from printing, circulating or publishing any allegation of impropriety about the companies. In their (the MBf's) main suit, they claimed that the defendants unlawfully conspired with each other with the predominant purpose of injuring the companies by unlawful means. The companies later obtained leave from the High Court to apply for a committal order against the three for contempt of court in disobeying the Feb 9 order. Houng, Loi and Wee, in turn, sought to have the court hear their application to set aside the injunction first. However, the High Court ruled on March 23, 1993, that it would first hear the application by the companies to commit the three. On May 9, 1993, the then Supreme Court dismissed an appeal by the three, upholding the High Court's decision to first hear MBf's application for contempt of court proceedings against them. In December 1993, Wee and Houng were convicted for disobeying a court injunction and evading service of the order. On appeal, Wee's sentence was reduced to a RM7,000 fine and Houng had his appeal allowed.
Nasaruddin Jalil was a Director of MBf. He is a long ABIM comrade and was visibly doing the cofeehouse horsetrading political groundwork for Anwar when he railwoaded late Ghaffar.
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