By Parliamentary Opposition Leader, DAP Secretary-General and MP for Tanjong, Lim Kit Siang, in Petaling Java on Wednesday, July 21, 1993:
Who is responsible for the decision on the lifting of suspension of Union Paper Holdings Bhd shares Securities Commission or KLSE
Securities Commission Chairman Datuk Dr. Munir Majid, said yesterday that no decision had been made -yet on when the suspension on the Union Paper Holdings Bhd (UPHB) shares would be lifted.
He said that the regulatory body would make an announcement at the appropriate time.
This raises the question as to who is responsible for the; decision on the lifting of suspension of Union Paper Holdings Bhd. shares – the Securities Commission or the Kuala Lumpur Stock Exchange
It was the KLSE Committee which decided on declaring Union Paper shares as “designated securities” on June 28, and suspended its trading on June 29 after resolving that the Union Paper shares had been “cornered”.
The decisions of KLSE Committee that Union Paper shares had been “cornered” and to suspend its trading had been challenged as acting against the interest of the small investors, as it was the big-time “short-sellers” who were “cornered” as shown by the nation-wide complaints of small investors, remisiers and stockbrokers on July 9 that they could not sell their Union Paper shares -when KLSE instituted the “buying-in” of 3.315 million Union Paper shares.
The fixing of the “buying-in” price at RM15.20 and the manner the “buying-in” of the 3.315 million Union Paper shares were conducted have also led to widespread allegations of irresponsibility and negligence on the part of the KLSE.
Now, who is going to be responsible for the decision to lift the suspension of the Union Paper shares – the KLSE or the Securities Commission.
It is important, that the investors and the entire stock market must be clear as to which regulatory agency is responsible for every decision taken in every step of the Union Paper shares scandal, so that a clear line of responsibility could be established – whether for purposes of legal liability or Parliamentary accountability.