From Malaysiakini 13th June 2000

Ng Boon Hooi

5.30pm, TUES: MCA chief and Transport Minister Ling Liong Sik and his eldest son Hee Leong and wife Carol Ong Lee Choo were today served notices by lawyers acting on behalf of fugitive businessman Soh Chee Wen, demanding they pay back about RM150 million within two weeks, failing which a legal suit would be filed against them.

The notice said that Soh sold six million Autoway Holdings shares which he owned, and the money raised went to Linksun Avenue, owned by Hee Leong and his wife.

"These monies received from the sale of our client's shares that was beneficially owned by him amounting to RM149,212,663.40 was used by Linksun Avenue to purchase 162,303,040 shares of Berjaya Industrial (now known as Rekapacific)," the notice said.

A copy of the notice, dated June 13 was faxed to malaysiakini this afternoon by Krish Maniam & Co which is acting on behalf on Soh, of Lot 3606, Jalan SS 12/1, 47500 Subang Jaya (Soh is believed to be still overseas on the run with a warrant of arrest issued about a year ago by the local police in conjunction with offences related to committing fraud in share trading).

According to the lawyers, their client informed them that Ling was involved in negotiations regarding his son's deal with Soh.

"...all the instructions, negotiations and/or agreements (both oral and written) were received from Ling Liong Sik who was acting as principal for his son, Hee Leong and daughter-in-law, Carol Ong," the notice said.

It added that Linksun Avenue was merely the vehicle utilised to acquire the shares in Berjaya Industrial.

Soh said that to date efforts to reclaim payments from Ling and family members have failed.

The notice also stated that if the payment was not received within 14 days, the lawyers "have strict instructions from our client to commence the necessary legal action for the recovery of the same without further reference to you, and you would be made liable for all costs and expenses incurred therein."

This latest development follows much speculation on the "real reason" that led Ling to announce on May 22 that he had decided to resign as transport minister.

Later, Ling told a press conference that rumours linking his decision with his son's business problems and Soh were "an evil lie" ("‘Evil' to tie resignation with fugitive tycoon, says MCA chief", May 24).

Separately, Krish Maniam & Co, acting on behalf of Soh, also issued two other notices to Hee Leong asking him to pay back about RM3.2 million within seven days or face another legal suit.

One notice stated that Soh had on Nov 1, 1996 "agreed to grant you (Hee Leong) a friendly loan to you for a sum of RM15 million to meet your financial obligations to purchase the shares in United Traders Securities by Rentak Wira.

"This assertion is supported by a letter dated Nov 1, 1996 duly acknowledged by yourself."

The notice said that Soh advanced RM1,875,000 to Hee Leong through his solicitors, S.K Tay & Co, with a cheque dated Nov 13, 1996.

The notice claimed that despite several requests by Soh, Hee Leong had failed, refused and neglected to pay the sum due and owing to Soh and sought repayment within a week.

The second notice was served on Hee Leong together with Brig. Gen (B) Anim Harun, Surendran Palachandran, the latter two at the address of a firm, Fort Victory, seeking the repayment of RM1.3 million within seven days or face legal action.

The notice, issued by the same legal firm on Soh's behalf, stated that on Oct 8, 1996, Soh had granted a loan of RM1.3 million to Fort Victory.

"All representations were made through Ling Hee Leong, Brig. Gen (B) Anim Harun and N. Surendran Palachandran wherein they agreed to allot to our client (Soh) such shares in Fort Victory in proportions to the intended acquisition of 23,850,000 shares of Amalgamated Containers," the notice added.

"The loan sum of RM1.3 million was paid by our client's solicitors, S.K Tay & Co, to Fort Victory on Oct 29, 1996," the notice said.