Maika Did Not Reject the Shares

The mystery deepened and bewildered the shareholders when another Maika director, Pasamanikam, contradicted the statements made by Anwar and Samy Vellu. According to Pasamanikam, Maika did not reject the Finance Ministry’s offer and did not propose that the nine million shares be allocated to any other company. He further revealed that Maika had indeed raised a RM50 million loan to facilitate the acquisition of the entire 10 million shares even before the Finance Ministry had withdrawn its offer. A tidal wave of questions engulfed the share holders:

1) Why did the Finance Ministry cancel the initial offer of the 10 million shares and subsequently allot only one million shares to Maika?

2) Who was responsible for the retraction of the original offer?

3) Who lied to the Finance Ministry?

4) Who informed them that Maika had recommended that the nine million shares be given to three companies?

5) Who supplied the names of these three companies?

6) Who coerced the Finance Ministry to change their mind?

7) Who aborted this offer? (There was no earthly reason for the Finance Ministry to change its mind on its own after having allocated 10 million shares).

According to Tan Sri G. K. Rama Iyer, the Managing Director of Maika Holdings Bhd -as revealed in his press release dated May 16th 1992:

Samy Vellu was informed at 6.10 am on October 5th 1990, that Maika had been offered 10 million STMB shares and of the probability of obtaining full loan financing and that Maika intended to take up the entire allocation of 10 million shares. Indeed, a letter dated October 5th 1990, from Arab-Malaysian Merchant Bankers Bhd. (AMMBB) - offering RM50 million to finance the purchase of the 10 million shares was received on October 6th 1990.