updated version

An emergency MCA presidential council meeting this afternoon gave the go-ahead to the party's investment arm, Huaren Holdings Sdn Bhd, to proceed with the takeover of Nanyang Press Holdings Bhd, the publisher of two major Chinese-language newspapers.

Party president Dr Ling Liong Sik told reporters after the meeting - which was also attended by a representative of Huaren Holdings - that a majority of the council members backed the decision while three abstained from voting.

He said the three out of the 15 members who abstained included deputy party leader Lim Ah Lek, who yesterday told malaysiakini that he did not support the takeover.

The other two are vice-president Chan Kong Choy (who is Deputy Finance Minister) and central committee member Fu Ah Kiow (who is the member of Parliament for Mentakab).

Ling remarked that "they need more time" and stressed that the presidential council meeting was empowered to make decisions.

Lim, looking disappointed, left immediately after the press conference. Vice-president Dr Fong Chan Onn (who is also Human Resources Minister) and Transport Ministry parliamentary- secretary Donald Lim accompanied Ling at the press conference.

Star Publications, which is controlled by MCA's Huaren Holdings, is seeking to buy Nanyang Press, the publisher of Chinese dailies Nanyang Siang Pau and China Press .

Asked how much percentage of acquisition would the publications company and Huaren have over Nanyang, Ling said, "Those details are for the experts to work out. I have no idea".

"These things are under the Kuala Lumpur Stock Exchange and Securities Commission rules and will be announced transparently. There is nothing to hide."

Non-interference

Asked about public perception that the takeover would seem as if MCA was not open to criticism from the Chinese community as the papers have a track record of being critical of the party, Ling replied, "The public has a fair idea of the party's non-interference in this thing (the newspaper business).

"For example, although The Star is owned by MCA, it is run by a professionally good board and has very good reporters," said Ling.

"The paper has turned out to be a credible, truthful, responsible paper that is nation-building. This is the kind of attitude we have. A paper that cares for the underprivileged and the poor is a nation builder. And that is the track record of the MCA and The Star ," he added.

Ling also said that although Nanyang may not be doing so well financially due to the economic downturn, the decision to proceed with the takeover was recommended by expert professionals.

Asked whether another Chinese daily, Sin Chew Jit Poh was involved in the deal, Ling said in jest, "Who is spreading these rumours? Are these rumours good or bad?"

Recently, speculation was rife that Sin Chew Jit Poh was invited by Star Publications to participate in the takeover deal.