The Shah Alam sessions court today allowed businessman Soh Chee Wen to inspect two categories of documents that had been withheld by the Securities Commission (SC), ahead of the hearing of a case into alleged shares fraud.

On Nov 18, Soh's lawyer Francis Ng Aik Guan had applied to be allowed to inspect 11 categories of documents under Section 51 of the Criminal Procedure Code. The lawyer said the documents would contain relevant information to help him prepare the defence case.

Judge Suraya Othman, however, decided that only two categories should be made available to him because these are specified in the charges.

Soh is facing trial on two charges of allegedly defrauding the now defunct brokerage firm Omega Securities Sdn Bhd of RM521 million. The charges were framed under Section 87A(a) of the Securities Industry Act 1983.

The section states that it is unlawful for any person with direct or indirect connection with the purchase or sale of any securities to use any device, scheme or artifice to commit fraud.

The two categories of documents refer to the contract notes which would show the sale and purchase of shares and the account opening applications attached to the charges.

In denying Soh's access to the other categories of documents, Suraya said these are vague, ambiguous and not specified or referred to the charges.

She added, however, that a maximum of two more documents currently not made available could be produced if the court thinks these are relevant when the trial begins.

Terminology questioned

At an earlier hearing, Ng had also argued that the prosecution should provide more information about the two charges against the bankrupt tycoon and clarify the definition of words used, such as "crossing" and "contango transaction".

In response, the judge today ruled that, if the "crossing transaction" involves another set of accounts in a different stock brokerage firm, further particulars about the account and particulars pertaining to the identity of any such firm must be provided by the prosecution.

She also ruled that a clear definition of the word "contango transaction" must be provided since there is no official legal definition of the word in the Securities Industry Act and Kuala Lumpur Stock Exchange rules.

Deputy Public Prosecutor Abdul Karim Abdul Jalil said the prosecution would have to wait for further instructions from its superiors on any decision to appeal the judgement.

The trial will resume on Friday with the hearing of an application required by Soh to postpone the case until he and his counsel have had the opportunity to inspect and make copies of the documents concerned.

Soh satisfied

Outside the court room, Soh expressed satisfaction with the rulings.

"The outcome is very balanced because this at least allows us to know, for example, what the contango transaction means. At the same time, it allow us to inspect the documents...well, it's a good day," he said.

"I don't know whether the prosecution will appeal or raise some other objections (on Friday). I don't know, but we are ready."

Soh, who is currently free on a RM2 million bail, faces a minimum fine of RM1 million or a maximum of 10 years' imprisonment if convicted.

The businessman was a former business partner of Ling Hee Leong, the son of Transport Minister and MCA president Dr Ling Liong Sik, in Promet Bhd and Rekapacific.

Their close relationship deteriorated when their business venture fell apart as a result of the 1997 financial crisis.

Soh fled the country in 1999 when he was being investigated over his role in allegedly defrauding Omega Securities. This led to the SC to obtain a warrant of arrest against him and later to seek Interpol's help through the Home Ministry.

But all this ended when Soh returned to the country last May to face the charges against him.