How was former Sabah chief minister Osu Sukam able to go on a spree in a London casino, gambling RM158.7 million, losing RM31.6 million and chalking up a debt of RM7.1 million in just seven months?

The answer lies in the cheque-cashing facilities extended to him in 2002 by the Ritz Hotel Casino, which has since been pressing him to pay up.

It provided the facilities after Osu was introduced by a person of "undoubted standing", a substantial player and member of the casino.

(Transactions for casino patrons are done in cash but exemptions are enjoyed by casino members and certain high rollers introduced by members.)

Osu then spent at least 50 days gambling in the famous casino - described as the 'ultimate playground for the beautiful, rich and famous' - on five visits from mid-February to September 2002.

The details were recorded in the casino's 'members daily transaction summary' kept on him. It was part of the affidavit filed in an English High Court by casino manager Robert William Whitehall in a bid to recover the debt.

A copy of the court document was made available to malaysiakini.

Massive losses

According to the affidavit, Osu applied to be member of the casino in July 2000 - while still chief minister - but had already been granted the cheque-cashing facilities of up to 500,000 pounds sterling (RM3.36 million) on Feb 11 after an introduction by another high roller.

Osu reportedly went to the casino on an "almost daily basis" throughout February and gambled in large sums - the largest wager being 700,000 pounds sterling (RM4.7 million) in a single day - but registered a loss of 200,000 pounds sterling (RM1.34 million).

He returned in late April, again gambling almost daily for a week, during which he blew more than two million pounds sterling (RM13.4 million) in two days.

The politician visited the club on nine occasions between May 11-21. Three months later, he once again appeared at the casino, this time on Malaysia's National Day on Aug 31.

From Sept 1-15, he gambled practically every day. On Sept 9, Osu lost 1,757,000 pounds sterling (RM11.8 million) out of a stake of two million pounds sterling.

Bounced cheque

The document also revealed that Osu failed on six counts to honour his pledges to settle the debt since September 2002. This eventually led to the casino starting legal proceedings in London.

His financial difficulties were first revealed on Sept 17 when the casino was informed that Osu's cheque amounting to 1.5 million pounds sterling (RM10 million) had bounced due to "insufficient funds".

After the casino checked twice with Osu, he finally admitted on Oct 29 that he was "not in a position to pay the debt in full" but said that he would transfer 300,000 pounds sterling (RM2 million) into the casino's account monthly until the debt was settled.

He did not send any more money after the first payment of 250,000 pounds sterling (RM1.7 million) made through his daughter's bank account and later another payment of 200,000 pounds sterling (RM1.34 million).

The statement of claim was served on him in May 2003 when the casino manager invited Osu to the casino.

"I invited him for dinner to ensure we maintained contact and stayed on friendly terms with him. Mr Sukam duly came for the dinner, but we did not discuss the debt," Whitehall said in the affidavit.

The document further noted that Osu had gambled in other London casinos, such as Crockfords, Colony and Rendezvous. This was disclosed after Whitehall received a trade reference enquiry from Crockfords to ascertain Osu's financial position.

"Mr Sukam is apparently playing in other UK casinos, he is frequently flying to and from London and is resident in Malaysia. He has a UK bank account into which I believe he transfers funds prior to coming to London and from which he draws funds for gambling," Whitehall said.

The manager added that Osu and his family is usually in London every Christmas.

Monthly salary poser

Last Tuesday, Ritz Hotel Casino failed in its bid to register the judgment obtained from an English High Court in the Kota Kinabalu High Court, so that the court order could be enforced. The Sabah court rejected the application, saying this was against public policy.

The New Straits Times reported today that another gambling debt owed by Osu to a Melbourne casino - an undisclosed amount - has since been settled.

In the face of public disapproval, Osu resigned yesterday as Umno Papar division chief after a meeting with Sabah chief minister Musa Aman.

Parliamentary Opposition Leader Lim Kit Siang in a statement today reiterated his call to the Anti-Corruption Agency to launch a full investigation into how Osu had accumulated his money.

"How could Osu amass such astronomical wealth when his monthly salary as Sabah chief minister was RM24,000 - or RM576,000 for two years?" he asked.

The Dewan Rakyat Speaker had yesterday rejected Lim's motion to discuss Osu's debt on the grounds that it is a "private matter".