I have made a police report with the PJ police on 23 March 2003, asking the police to investigate why Chang Ming Thien Fund was still not launched 23 years after the late Chang Ming Thien has donated RM10 million to the MCA to set up an education foundation to offer scholarship to needy students in this country. I also wanted the police to find out why the interest accrued as reported by Ling Liong Sik was so little after more than 20 years.
The case was transfered to Commercial Crime Department in Bukit Perdana KL and the investigation has started not too long after my report. I was told that Ling Liong Sik was summoned to Bukit Perdana for a good explanation. And nothing has come out of my report until I received a call from Bukit Perdana last week.
I have just got back from Bukit Perdana a while ago. I was given to understand that the CCD has completed its investigation and I would soon be given an official report on the outcome of its investigations.
Just a little background for bloggers who were unfamiliar with the case…
Chang Ming Thien Fund Foundation was only registered on 18 April 1990, that’s 10 years after the late Chang has donated the RM10 million to MCA through Multi-Purpose Holdings Berhad ( as part of the deal when MPHB bought over the UMBC bank from General Holdings).
This, to me, is a gross negligence on the part of MCA. Due to the delay of the establishment of the CMTF Foundation, the money was never passed to the Foundation but left in the coffer of MPHB, a company owned by MCA. In fact, MCA only set up the CMTF Foundation after numerous pressure from the DAP and other concerned citizens. But a good 10 years has gone! And what has happened to the interest accrued from the principal sum of RM10 million?
On 16 Dec 1991, the late family of Chang decided to bring MPHB and MCA to courts for not utilising the fund contributed in 1980 through General Holdings. Can anyone blame the late Chang’s family for doing that?
As a result of the lawsuit, CMTF Foundation put on hold of all its operation. The money was still with MPHB throughout the lawsuit. The case was finally over when the appeal by General Holdings was rejected by the Federal Courts on 18 Nov 2002. The money ( RM 9,820,253.10) was then transfered from MPHB to CMTF Foundation on 20 Dec 2002. Again, what has happened to the interest? And why should MPHB deducted some RM179,747 as solicitor’s fee from the RM10 million contribution?
But sad to point out that Board of Directors under the leadership of MCA top guns still do not bother to activate the fund. Such irresponsible act has prompted me to lodge the police report.
I was also unhappy that the interest accrued as reported by Ling Liong Sik was far short of expectation. What has gone wrong in the MCA under Ling Liong Sik? (In my police report, I attached a 20-years interest rate card issued by the Bank Negara to illustrate my point. Even if the lowest interest rate was used as the basis of calculation, the amount should be much higher than what was reported by Ling in the press! )
About one year after my police report, MCA then only decided to launch the CMTF Foundation. That’s about 25 years late (the RM10 million was donated in 1980)! If the MCA leadership did not screw up “big time”, thousands of needy students could have benefited from the Chang Ming Thien Fund.
The police findings so far has not answered my initial question- why the interest accumulated for the past 20 over years falls short of the expected amount (according to the bank intetrest rates declared by Bank Negara)? If the money was not touched or “frozen”, it should be kept in a bank account to bring in interest. No one would keep the RM10 million in hard cash and lock it in a safe. No?
I will study with my lawyer whether we have a case to initiate a civil case against both the BOD of CMTF Foundation and the leadership of MCA for their negligence and mishandling of the fund. Stay tuned.