Eight questions for Lin Liong Sik on the KSM-Multi Purpose Holdings Bhd Investment Fund (KSM-MPHBIF)

by Parliamentary Opposition Leader, DAP Secretary-General and MP for Tanjung, Lim Kit Siang, after the official opening of the DAP Conference of national and state leaders at Federal Hotel, Kuala Lumpur on Sunday, 18th March 1990:

Eight questions for Lin Liong Sik on the KSM-Multi Purpose Holdings Bhd Investment Fund (KSM-MPHBIF)

I have received numerous complaints by long-standing MCA members who are registered holders of the KSM-Multi Purpose Holding Bhd. Investment Fund (KSM-MUHBIF) upset by recent news reports of the proposed dissolution of the Fund and the MPHB share for every unit of Investment Fund solution.

I ask the MCA President, Datuk Dr.Ling Liong Sik to answer the following questions:

1. Is it true that there are three locally incorporated public listed companies which are interested in buying the strategic block of 19.7 per cent stake in the Multi-Purpose Holdings Bhd. (MPHB) – which will be owned by the 50,398 registered unitholders of the Investment Fund after the share-for-share exchange- at over $2 per share, but which was opposed by Kamunting and vetoed by MCA President, Datuk Dr.Ling Liong Sik.

2. Is it true that these three interested parties are IGB, MUI and Hume.

3. Is it true that the offers of these interested parties have not been accepted not because of so-called ‘legal complexities’, but because of the objection of Kamunting and the MCA President.

4. Is it true that under the present arrangement, where the Investment Fund unitholders are left to redeem their investment by selling off the MPHB shares in the open market, the price of MPHB is likely to be depressed with the dumping of 147.98 million MPHB shares, causing it to fall to $1.20 or even around $1 a share if the stock market had taken a nose-dive.

5. Is it true that if anyone of these three companies which had succeeded in buying up the strategic block of 19.7 per cent of MPHB, it would be in a very favourable position to take over and acquire Kamunting itself?

6. Is it true that Kamunting has promised to reserve the position of Kamunting Chairman at a salary of $35,000 a month to a top MCA leader?

7. Are all the MCA national leaders prepared to give a solemn public pledge that none of them will ever take up the position of Chairman of Kamunting, or any other paid capacity in Kamunting?

8. Isn’t it true that there are no insuperable difficulties for the receivers to apply for court order to empower them to receive the highest offer for the block of 19.7% of MPHB on behalf of the Investment unitholders, and to distribute the proceeds of the sale of the whole block of shares at a premium price to the unitholders.