Dispute rages as Malaysian Chinese party buys papers

Dispute rages as Malaysian Chinese party buys papers

KUALA LUMPUR (Agencies): A controversial takeover of two
newspapers by Malaysia's main Chinese political party was
completed on Thursday while opponents appealed to Prime Minister
Mahathir Mohamad to block the deal.

Some 245 Chinese associations petitioned Mahathir to stop the
Malaysian Chinese Association (MCA), a member of his ruling
coalition, from taking over two Chinese language dailies.

"For the sake of the nation, we think the Chinese media should
be free from political party control," Ngan Ching Wen, organizing
chairman of the protest committee, said in an open letter
delivered to Mahathir's office.

But Hume Industries, parent of Nanyang Press Holdings, which
publishes the newspapers, confirmed on Thursday that the sale has
been completed.

Huaren Management Sdn Bhd, the investment arm of MCA, bought
the 72.35 percent stake in the newspaper publisher for 230.12
million ringgit ($60.55 million) in cash.

Under the deal, Huaren also offered to buy up the remaining
27.65 percent stake at 5.50 ringgit per share. Nanyang shares
ended at 5.90 ringgit on Thursday.

The takeover, proposed by the MCA last week, has been slammed
by critics who say it smacked of government attempts to control
the media.

"We do not think the MCA, which already controls the Star, the
largest English daily, should own additional newspapers," Ngan
said.

Senior MCA members have also voiced opposition, saying the
decision of party president Ling Liong Sik to ram the deal
through could cost votes.

"If this is translated into votes against the party, then we
are going to have a challenging task ahead," MCA deputy president
Lim Ah Lek was quoted as saying by the Star newspaper on
Thursday.

The Chinese vote was crucial in delivering Mahathir's
coalition victory in the November 1999 election. "If the MCA does
not heed the popular call to abandon the deal, we are forced to
predict that the party will have to pay a very high price in the
next general election," Ngan said.

Chinese groups and opposition parties see the takeover of the
Chinese-language Nanyang Siang Pau and China Press as a further
blow to press freedom.

Ling Liong Sik, MCA president and transport minister, has said
the deal would be funded through bank borrowings.

Party deputy president Lim Ah Lek, who has long waged a power
struggle with Ling, voted against the deal and in a statement
explained why.

He said Huaren would use its 40 million new shares in Nanyang
Press, plus its entire holding in Star Publications, as security
for the loan.

"This means that MCA is utilizing almost all of the assets of
Huaren Holdings in the aforesaid investment," Lim said. "The
investment risk is thus obvious."

He said party assets, which belong to all members, should be
carefully handled to "avoid repeating mistakes that had caused us
severe pains in the past."

Lim said he was astonished that the huge deal was sealed even
before the party central committee met.

The MCA must also consider the views of the Chinese community
as a whole, "for without the support of the Chinese community the
MCA can never survive."

In comments late Wednesday, Lim had said he was concerned
about the community's feelings "because if this turns into votes
against the party it will be a challenging task."

The National Front relied heavily on votes from the Chinese
and Indian minorities in the last election when many Malays
turned against it.

The Chinese-language press has traditionally been more
independent than its English and Malay counterparts, which are
almost totally controlled by interests close to the National
Front.

Ling Thursday reiterated his party would not interfere in
editorial matters. "Only professional managers will be involved
in running both the papers," he said.