MAY 14 '92 19:28 CLIFFORD CHANCE HK 852 8104708
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P.8
THE LOAN OF US$292 MILLION
27. From the outset Saniman and his directors agreed contrary to both banking policy and authority to advance money market placements to George Tan and his group of companies. The bulk of the advances totalling US$292 million was paid out by BMFL with little if any written documentation.
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Subsequently loan documents (false contracts and securities) were created in an attempt to give expost facto the advance an appearance of regularity. Nevertheless in reality the loans remained totally unsecured (such security allegedly being held in trust by the borrower on behalf of the lender). It was disguised as a loan to two different companies when it had been paid in full to only one. Initially it was not reported to the parent bank in the monthly money market reports but subsequently, falsely, as a money market placement to a financial institution.
Saniman was intricately and personally involved in the creation of the documentation necessary to effect the deception.
THE LOAN OF US$138 MILLION
30.
Again the bulk of the money was advanced prior to the creation of or security documentation.
any loan
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Having already advanced the massive sum of US$292 million to the Carrian group as stated above, documentation was created to falsely reflect that the loan of US$138 million had been made to seven individual and unrelated companies unconnected to George Tan. Contrary to the fact they were to George Tan. In fact the companies were without substance and at the time four of them were un-incorporated.
The funds were advanced prior to any security being obtained. However, given the nature of the documents created in this manner (fictitious
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