By Parliamentary Opposition Leader, DAP Secretary-General, MP for Tanjung and Assemblyman for Kampong Kolam, Lim Kit Siang, in Petaling Jaya on Monday, Oct 6, 1986:
DAP calls on the Cabinet to freeze Pernas ‘purchase of the 51% UMBC stake of Daim Zainuddin’s family companies and to use the $350 million – $400 million involved for rescuing the 540,000 depositors hit by the $1.6 billion Co-operative Scandal.
Business Times reported on Sunday that Pernas is expected to sign for a 11.5 billion yen ($200 million) loan from a consortium of Japanese banks on or around October 20 to help pay for the 51% UMBC stake belonging to Daim Zainuddin’s family companies.
The total cost of the 51% UMBC Stake to the Pernas is estimated to be in the region of $350 million to $400 million.
There is no justification for a government enterprise like Pernas to commit the government to an expenditure of $350 million to $400 million to acquire 51% UMBC stake from private individual companies, even though they are linked to the Finance Minister, Daim Zainuddin. The DAP calls on the Cabinet to freeze the Pernas deal to acquire 51 per cent UMBC stake from Daim Zainuddin family companies, and to use the $350 million – $400 million to bail out the 540,000 depositors who are hard bit by the $1.6 billion Co-operative Finance scandal.
I hope the MCA and Gerakan Ministers would have the courage to raise this issue on Wednesday’s Cabinet meeting, and make it clear that they are in no position to agree to Pernas’ acquisition of 51 per cent stake in UMBC belonging to the Daim Zainuddin family companies.
Deputy Prime Minister, Ghaffar Baba, and other Barisan leaders, including MCA Ministers, he said that the Cabinet work on the principle of consensus, and if there is a single Minister who oppose any proposed law or transaction, the Cabinet cannot approve it.
Here is therefore a golden opportunity for the three MCA Ministers, Datuk Dr. Ling Liong Sik, Datuk Lee Kim Sai, Datuk Chin Siang and Gerakan Minister, Datuk Dr. Lim Keng Yaik, to block the improper use of $350 million to $400 million for acquiring 51% UMBC stake by Pernas, and to channel the funds for the salvage of the co-operative crisis.
I had publicly invited the MCA and Gerakan Ministers to attend the national mass meeting of the 540,000 co-operative depositors at the Thean Hou Temple Hall in Kuala Lumpur last night to explain what they have done to help solve the problems of the 540,000 depositors, but none of them dared to turn up to face the people.
I hope the MCA and Gerakan Ministers will not disappoint the 540,000 depositors once again on Wednesday’s Cabinet meeting. They should block the Pernas deal, get the money released for the co-operatives rescue operation, and get the freeze imposed by Bank Negara on the 24 co-operatives to be partially lifted beginning on Wednesday itself – which will mark the two full months since the Bank Negara freeze on the 23 co-operatives on August 8, 1986.