TNAG-2654-FCO40-3847-Extradition-cases-from-the-UK-and-France-to-Hong-Kong-Lorrai-1992 — Page 136

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made to Mr. Osman between July 1980 and November 1982. The

offences arise out of a series of loans made by B. F.M.L. to the

Carrian Group of Companies which were controlled by Mr. George

Than. By 1982 the Carrian Group had severe liquidity problems

which were linked to the collapse in property values in Hong

Kong. Although attempts were made to shore up the group by

providing additional finance the group collapsed. This

resulted in B.F.M. L. losing very substantial sums of money.

B.F.M.L.'s parent company, B. B.M.B., is and was a

government-owned financial institution subject to the control

and direction of the Malaysian Ministry of Finance on behalf of

the Government of Malaysia. When B.F.M.L. commenced conducting

business in Hong Kong in December 1977, in the words of Mr.

Osman, "the Malaysian Government effectively guaranteed its

liabilities by way of an undertaking given by B.B.M. B. to the

Hong Kong Commissioner for Banking". The financial transactions

which are the subject of the charges thus ultimately resulted in

substantial losses being suffered by the Malaysian Government

and, as Mr. Osman alleges, the Malaysian people. In October

1970 Mr. Tengku Razaleigh was the Chairman and Chief Executive

of B.B.M.B. He resigned on 6th March 1976 to become Minister of

Finance in the Malaysian Government, a post he was still holding

at the time of the alleged offences.

B.F.M.L.

Mr. Osman contends that he was a non-executive chairman of

Other directors of that company were Mr. Shamasuddin

and Mr. Saniman. Mr. Shamasuddin was an executive director and

Mr. Saniman was an alternate director. The company's Chief

Executive Officer was Mr. Ibrahim Jafaar. Mr. Osman says that

Mr. Jafaar was responsible for "the day to day management of the

affairs of B.F.M.L." whereas he "visited Hong Kong once every

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