(AFP) Prime Minister Dr Mahathir Mohamad today sidestepped a growing row over a political ally's takeover of two independent Chinese-language newspapers.

"This is a business deal, how can I interfere?" he told reporters on his return from the Group of 15 summit of developing nations in Jakarta.

Huaren Holdings, investment arm of the Malaysian Chinese Association (MCA), on Thursday completed the purchase of a 72 percent stake in Nanyang Press, which owns Nanyang Siang Pau and China Press.

The RM230 million deal has attracted strong criticism from a variety of Chinese groups, who fear an erosion of press freedom, and from within the MCA itself.

Asked to comment on a possible split within the MCA, the second-largest party in his Barisan Nasional coalition, Mahathir said: "I wouldn't know".

"I don't know what's happening, you can't expect me to comment on something that you (reporters) say," Bernama news agency quoted him as saying.

Losing votes

After a heated meeting Wednesday, the MCA central committee voted 32-8 to approve the deal, which will be financed by bank borrowings. The party already owns the largest selling English-language daily, The Star.

The MCA said Huaren would use its 40 million new shares in Nanyang Press, plus its entire holding in Star Publications, as security for the loan.

Ling Liong Sik, party president and Transport Minister, vowed not to interfere in editorial matters and repeated Mahathir's stance that the takeover was simply a business deal.

But his deputy Lim Ah Lek has strongly criticised the takeover, saying it put the party's assets at risk and ignored the wishes of the Chinese community.

Health Minister Chua Jui Meng, a party vice president, has said the takeover could lose the ruling coalition crucial Chinese votes at the next election.