IFFORD CHANCE H.K.
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e,
Apr 27 23
19:55 No.033
FUCR
4
As an example, one will note that Mr Rais Bin Saniman went some twenty-five times to Hong
Kong over five years, that is, an average of five times per year, which is not compatible with the
participation to a financial fraud which could have been implemented for the benefit of a group
of companies, the Carrian Group of Companies, controlled by a Mr Georges Tan,
The Carrian Group of Companies of Mr Tan would have obtained from BMFL important loans
in irregular conditions; these were loans granted for very high amounts, without any security,
which the recipients were notoriously unable to repay.
Such loans and advances were partly divided through deposits of BBMB and its branches abroad,
which deposited funds [en gros] with BMFL in order to supply the latter with the cash necessary
to fund its portfolio of loans.
This source of funding, which, until 1982, was only a proportion of the finance used by BMFL,
had become since 1982-1983 absolutely essential, by reason of the decrease of the local sources
of funds in Hong Kong due to Chinese pressure and threats on the status of Hong Kong (which
finally resulted in the Sino-British Settlement of 1985). These threats prompted the owners of
funds to be very cautious and to place them abroad rather than in Hong Kong.
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Further to a stock exchange crack, the Carrian Group found itself insolvent and unable to repay
even interest on the loans which had been granted by BMFL. This prompted an audit report and
the inquiry of the committee established as described above; BMFL was itself in the situation
where it was unable to repay the funds deposited with it or the loans made to it and which had
been used to fund the loans made to the group of Mr Tan.