The unanswered question surrounding Realmild

Both Tun Dr Mahathir Mohamad and Anwar Ibrahim need to answer the question surrounding Realmild. At the centre of this controversy is PAS’s candidate for the parliamentary seat of Tasek Gelugor, Penang, Abdul Rahman Maidin. Is Rahman Maidin, a known Tun Daim Zainuddin crony, really a PAS candidate or an Umno mole that will ‘jump ship’ once he wins?

THE CORRIDORS OF POWER

Raja Petra Kamarudin

(The Malaysian Insider, 30 October 2010) - Realmild Sdn Bhd was a brainchild of Datuk Seri Anwar Ibrahim when he was in government as a means for Umno to protect its business interests, a lawyer told the High Court here today.

The former deputy prime minister had also hand-picked four media people — Datuk Khalid Ahmad, Datuk Kadir Jasin, Datuk Ahmad Nazri Abdullah and Mohd Noor Mutalib — to be its first shareholders and act as nominees for the ruling party, said Alex De Silva.

“In 1992, Realmild was formed in Malaysia. Datuk Seri Anwar Ibrahim created it as a new Bumiputera vehicle to take care of Umno’s interests.”

“This is the genesis of Realmild,” De Silva said in making the case for his client Datuk Seri Abdul Rahman Maidin.

Khalid, a former TV3 boss, is suing Abdul Rahman to pay up the remaining RM10 million of RM15 million the former claims was the agreed sale price for the block of shares.

But Abdul Rahman disputes the amount — he told the court the agreed price was RM10 million and he had paid half before finding out from Tun Dr Mahathir Mohamad, who was then Umno president, that he did not have to pay.

Now Abdul Rahman wants his money back.

De Silva argued today that Khalid, as the seller, was not in a position to demand payment for the sale of a block of Realmild Sdn Bhd’s shares wholly held in trust for Umno.

“My submission is that none of them were actually running MRCB. They were just put there by the powers-that-be...to take care of MRCB, NST and etc.”

“It’s completely illogical for Umno or anyone to own only 70 per cent [of the shares] and for 30 per cent to be shared out among the others,” he added, noting previous testimony from another successive Realmild director, Tan Sri Syed Anwar Jamalullail, showed that Umno owned all the shares.

Syed Anwar is the younger brother to the Raja of Perlis Tuanku Syed Sirajuddin Ibni Al-Marhum Tuanku Syed Putra Jamalullail who also held the position of Yang di-Pertuan Agong at the time of the contentious takeover at the turn of the millennium.

Anwar, who happened to be in court today for his Sodomy II trial, was evasive when asked to comment on his role in the Realmild-Umno deal.

“Seventy per cent was held by Dr Mahathir. It has nothing to do with me,” said the 63-year-old politician, now PKR’s advisor.

Khalid’s RM10 million suit against Abdul Rahman, over the sale of a five per cent stake in the company in 1999 took place during a shake-up and buy-out related to Anwar’s sacking from government.

“Yes, I was supportive of it back then but 30 per cent of the shares was owned by Khalid, Kadir, and Nazri, Mohd Noor,” Anwar said.

“It was only when I exposed them in court, Dr Mahathir called for Realmild surrender 70 percent,” he added.

Asked if he saw the controversial 100-storey Menara Warisan announced by Prime Minister Najib Razak reflected in Umno’s continuing bid to protect the party’s interests, the Opposition Leader remarked: “All mega deals protect the interests of the Umno elite.”

“Realmild is a classic example, proven, it was led by Dr Mahathir. I’m convinced there are cronies involved,” he said.

Back in court, De Silva stressed that Realmild was a “sendirian berhad” (private limited company) with four ex-NST journalists and accountant who became stakeholders of MRCB, a public-listed company, supposedly bought from Renong Berhad for RM800 million.

“It’s clear as daylight none of the shareholders had the means or capacity to do so,” De Silva said.

“Yes, they testified they raised the money on their own. [But] nobody wakes up one morning and says, ‘Yes! I’m going to take over NST and TV3. Can you do this on your own? Impossible!”

“My Lady, from the start of the scene, government hands or Umno hands were involved...to keep the media under control of Umno.”

“It was not for personal benefit but for the benefit of the party. That’s why Realmild took control from Renong. That’s the genesis of Realmild,” Abdul Rahman’s lawyer repeated for emphasis.

De Silva also pointed out that none of the four had exercised their rights as owners after the buy-over from Renong and instead continued their daily duties as newsmen, which was typical of nominees.

Trial judge Datuk Mary Lim asked if they were nominees, whether it meant they can’t transfer the title deeds to the shares; and whether it would not then require the defendant to show he had a title to pass on.

“Not necessary. What we are looking at is the concept of real ownership,” De Silva replied, before adding, “Who were the real owners?”

He moved to back his argument by pointing to the large number of lucrative projects given to Realmild’s construction subsidiary, MRCB, including building a power plant.

“MRCB was bestowed and granted huge government contracts and loans, subsequently...in 1997, the government awarded MRCB the KL Sentral project...two years later, they got a support loan of RM336 million,” De Silva cited.

“All these point effectively to the fact they were formed by the government because MRCB was effectively owned by Umno,” he argued further.

“Yes, the shares were held in their names, but when instructed to transfer, they transferred.”

“And they all transferred all, together,” he said slowly, lending emphasis to his submission.

But lawyer Ahmad Fadzil Mohd Perdaus, in pushing the case to be ruled in the plaintiff Khalid’s favour, submitted that Abdul Rahman had failed to show documentary evidence that proved an Umno “trust” existed, adding the defendant’s entire argument was pulled from oral testimony by parties not brought to court, including the former prime minister.

Ahmad even suggested that Abdul Rahman should have taken legal action against Dr Mahathir to recover his money instead of claiming it from Khalid.

“Why the defendant chose not to take action when he found out about the trust?”

“His line, his basis is what was told to him by the PM [then, Dr Mahathir] that he would not get his money back and that the shares belonged to Umno,” Ahmad said, referring to Abdul Rahman’s testimony in court.

“It’s not for the defendant to say the plaintiff held it in trust, held it as a nominee...that he was not accountable to pay...”

“The transfer was valid. He was the registered owner, legally, and [it was] common for nominees to transfer shares to [their] principals; it’s not for defendant to say no.”

“If such a case, defendant still liable to pay for the purchase price as agreed upon for the transfer of shares at the material time,” Ahmad concluded.

The nexus between Umno and certain conglomerates has been revealed in the court hearing that started in August this year involving the past shareholders of Realmild, the shadowy company that took over media giant The New Straits Times Press (Malaysia) Bhd in 1993, and Malaysian Resources Corporation Berhad (MRCB).