Anwar and Quek in Hot Soup Over RM445mil Loan
(Malaysian Digest) – ‘I Took Loan Because Anwar Was Involved’ was the headline on the New Straits Times for its story on RM445 million syndicated loan deal court case involving businessman Low Thiam Hoe and Hong Leong Finance Bhd. Low had testified in the High Court yesterday that he became involved in the loan deal when two individuals told him that they were principals acting on behalf of Opposition leader Datuk Seri Anwar Ibrahim and Hong Leong executive chairman Tan Sri Quek Leng Chan.
Low, 55, is being sued by Hong Leong Finance in a breach of repayment suit involving the RM445 million. He said the two individuals were Anwar’s speechwriter Mohd Faiz Abdullah and former managing director of Arus Murni Corporation Bhd (AMCB), Hamzah Harun. Other parties involved were Arus Murni Sdn Bhd, Hood Osman, Nik Hussain Nik Mohamed and Mekuritek Sdn Bhd, said Low.
“From what I know, they are all cronies of Datuk Seri Anwar Ibrahim,” Low said when asked by his lawyer, how the companies and individuals were related.
The suit was filed in 1998 for RM28.6 million, however, Hong Leong Finance came out with a second suit naming Mekuritek Sdn Bhd and three others as defendants for another RM28.6 million. The two loans, along with three others, total to RM445 million.
New Straits Times reported that judicial commissioner Hadhariah Syed Ismail had rejected Low’s bid at an earlier hearing to amend his statement of defense to include the involvement of Anwar as the person behind the RM445 million deal to acquire AMCB, which in turn owned Kewangan Bersatu Bhd (KBB), a financial institution at that time. Low had also filed a counter-claim in 1999 for wrongful advice and is claiming general damages.
In yesterday’s hearing, Low said Hamzah and Faiz had told him that they were working together and that they represented Anwar.
“That is why I allowed them to use my name. The plan was to use my name for a short-term loan to take over of KBB,” he said.
(Hamzah, who testified on the same day, said after Anwar was sacked as deputy prime minister and finance minister, Hong Leong initiated proceedings to remove all directors of AMCB.)
Low denied that he had cooked up the story on Anwar and Quek’s involvement in the deal when cross-examined by the plaintiff’s counsel. However, he also said he had not spoken to Anwar and Quek on the matter and that he believed whatever Hamzah told him.
The businessman also admitted that he was aware that he was taking a loan to buy shares when he entered into the deal.
“Yes, but it was a bigger picture linked to Anwar and Quek,” Low replied during the cross-examination.
It still remains to be seen to whether this multimillion ringgit case will be a blow to Anwar as we move closer to the elections. The PKR de facto leader has refused to accept a subpoena on him to testify in the trial when the process server met him in Parliament on Wednesday. The court will hear on April 6 the plaintiff’s application to set aside the subpoena on Anwar and Quek. Meanwhile, we will see on the next hearing on April 12.
