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Mohkzani Mahathir Sells His Stakes In KLSE Companies

The Prime Minister's son, Mr Mokhzani Mahathir's fate is inextricably linked with the finance minister, Tun Daim Zainuddin. He sold his stake in KLSE-listed companies, so he claimed, to protect his father for his business failings, he wanted more time with his family, and thinks, without doubt, that all Malaysians are fools. He names but two companies -- Pantai Holdings and Tongkah, both in the healthcare business, and after Tongkah and a subsidiary got contracts worth RM350 million a year to provide hospital support services. So, was he pushed or did he jump?

More likely, a margin call forced him to sell the two companies. The 89 million shares in these two companies is worth RM160 million. On the day of his announcement, this represented 60 per cent of the KLSE's turnover. He sold it to an unnamed party in a private deal. That he could find one in a day is remarkable indeed. Could the buyer be the small-time Chinese soap manufacturer who has, in recent weeks, buying steadily into the two counters? Does this sale of Tongkah mean non-Malay control of hospital support services? Was these two counters targetted so that the hospital care services would then be a monopoly in the Daim business empire?

He says he could not contact his father, in Dubai, to tell him about it. Before he could sell his shares, he needed KLSE, Securities Commission, and Foreign Investment Committee approval. Only two men could give than approval so quickly, and his father did not know of his son's plans. So, it must be Tun Daim. Why must Tun Daim be so solicitous of him when he is waging a phony war against his father?

Why should he highlight just two of the dozen and more shares in which he has a stake? He is on the boards of 93 companies, many unlisted, in which he has sizeable shareholdings, but mentiones just two from which he has withdrawn. Why? Why did he sell Pantai and Tongkah, the latter getting two of the three contracts for the privatised hospital services worth RM350 million a year? The third went to Faber, in the Renong stable run by a crony of Tun Daim. So, would the sale of Mr Mokhzani's stake in the two companies result in a monopoly of hospital support services?

Is Mr Mokhzani a pawn in the battle-unto-the-death of Dato' Seri Mahathir Mohamed's Raw Political Power and Tun Daim's Money? The good doctor already smarts that Tun Daim did not ensure his son be UMNO division head of Merbok after the finance minister did not want it. Did Tun Daim ask the banks his empire controls to force Mr Mokhzani to sell, knowing he is highly geared? If he was, why did not Tun Daim rescue him through Danamodal and Danaharta, which did his cronies and partners?

Mr Mokhzani's problems begin after Tun Daim sent in his resignation and took two-months leave. How Tun Daim spends his leave is the subject of intense speculation: he is in the finance ministry assiduously to clear files, so we are told. Yet, he performs, on leave, functions as finance minister, opening conferences, buildings. So, is he on leave so he could present a full report in 14 years on UMNO's investments, one UMNO supreme councillors now demand? If so, why is he in the finance ministry? He should be at UMNO headquarters instead.

Mr Mokhzani spoiles his own case with his unconvincing and arrogant performance. He believes that when he cannot explain, anything he says will be believed. His business career is linked to his father, however you look at it. He was an undergraduate when his father became Prime Minister in 1981. His business empire grew by leaps and bounds within a decade he ventured into business. When his father was asked about it in cabinet at that time, he said testily that his children's future should not be constrained by his position.

So, one must discount his official reason for wanting out. If he was so concerned of his father's reputation he would have years ago. His mother, on the other hand, said in a newpaper interview his father did not help the children, and she was not happy about that! There is more to the Mokhzani affair than we are told. The more one looks into it, the more cans of worms surface. Not necessarily from his bailliwick, but in the public dispute between two friends, a replay of what happened in 1998.

M.G.G. Pillai
pillai@mgg.pc.my