'MAY 14 '92 19:25 CLIFFORD CHANCE HK 852 8104708
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Saniman additionally held the position of Alternate Director of BMFL in Hong Kong and exercised the same power and authority over BMFL's affairs and its employees as the other directors Osman and Shamsudin.
Saniman regularly travelled to Hong Kong to attend to the affairs of BMFL and regularly sit on board meetings. Dr. Saniman was the only of the three directors that maintained a private residence in Hong Kong.
Because of his simultaneous presence on the board of BMFL and within the International Banking Division, Saniman was in a unique position to enable BMFL to divert large sums of money to BMFL to fulfil its lending requirements and at the same time approve loans by BMFL utilising such funds. Saniman was thus able to arrange money market funding from within the BBMB network to provide BMFL with the necessary monies required for its lending operations in Hong Kong. As a director of BMFL Sariman in turn was in a position to authorise the lending of those funds by BMFL to a third
party.
Moreover, Saniman was in a unique position to increase the amounts of funds available to BMFL by recommending periodic increases in relation to the permissible limits of money market borrowings by BMFL from BBMB and its branches. Requests for increases by branches and subsidiary were solely the responsibility of Saniman's International Banking Division. Saniman recommended to the Management Committee the approval of any such
increases.
All correspondence, telexes and financial reports coming from BMFL to BBMB as well as communications addressed from BBMB to BMFL were channelled through Saniman. Saniman thus received all reports, money requests and requests for authorizations of advances addressed from BMFL to BBMB.