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30 JUM 1993

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سمية

The Minister was

grateful for this note

Mr Ricketts

Mr Hum

FROM:

J Woodrow

Hong Kong Department

SEAD

Mr Parker, Legal

DATE:

30 June 1993

G.J. Davey' 30/6

Cc:

CMA 3%

PS/Mr Googlad

Myster

LORRAIN OSMAN

1.

Adviser

HKD 384/3

C1 JUL 1993

You will recall the Lorrain Osman case in Hong Kong concerning charges of conspiracy to defraud and accepting corrupt payments on a massive scale involving Bumiputra Malaysia Finance Limited (BMFL).

2.

We have now been informed by Hong Kong (HK telno 1047) that Mr Osman's lawyers approached the Director of Public Prosecutions some weeks ago offering to plead guilty to one charge of theft involving US$ 2.5 million. After difficult and protracted negotiations Mr Osman agreed to plead guilty to a charge of conspiracy to defraud involving US$ 292 million. The facts of the charge were not agreed but they were not challenged and after some last minute reservations Osman entered a plea of guilty in the afternoon of 25 June.

3.

Sentence was pronounced the next day. The judge imposed a prison sentence of 12 months after taking into account all mitigating factors and Osman's very lengthy remand in custody pending extradition. Hong Kong have told us that they consider the sentence to be very lenient indeed.

4.

Kuala Lumpur consider (KL telno 344) that the Malaysian Government will be relieved by this outcome and that any vestigial danger of the Lorrain Osman case re-emerging as a problem in our bilateral relationship with Malaysia has disappeared.

5.

The Minister will recall that Hong Kong Government are seeking the extradition of a further conspirator - Saniman - from France. The Attorney General has undertaken to speak to the French Ministry of Justice on 22 July to see whether he can break up the log jam now preventing extradition. Osman conviction (and light sentence) may help.

Hoodrow

J Woodrow

osman.guilty MINUTES johnw

Zureth

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