TNAG-2954-FCO40-4231-Extradition-cases-from-the-UK-and-France-to-Hong-Kong-Lorrai-1993 — Page 37

IFFORD CHANCE H.K. TEL:852-810-4745

Apr 27 93

30:05 No.OTA F.DE

(e)

(f)

(g)

Para 1.3

(a)

(b)

Committee (page 572) indicating there were more than two directors in BMFL. Please also see IJ exh 5 and 15 at page 582 and 605. DRS was one of the directors' signatures authorized for BMFL's bank account with the Chartered Bank and the Bank of China. Book 2 IJ exh 47-48, page 705-712). As early as 1978, DRS chaired a meeting of BMFL and instructed the management to channel all loan matters to his International Banking Division (IJ exh 46, page 702-704). DHS (Muhamed Radzi Mahmood (MRM) exh 7, page 805-806), LEO (MRM exh 8, page 807) and BBMB (report by MRM) confirmed DRS' actual participation as director in BMFL's affairs. His responsibilities as a senior executive of BBMB extended to the supervision of the money market activities of its subsidiary, BMFL.

DRS came to Hong Kong 45 times during the period 11.2.79-3.5.83. Every time, he stayed 2-6 days in Hong Kong (MY exh 210-299, page 812-817). But it was noted that between 17.7.81 and 4.11.81, DRS did NOT come to Hong Kong. It was known that there were frequent telephone communications between George Tan and the BMFL directors in Kuala Lumpur.

The funding difficulties which BMFL experienced in 1982-1983 were the direct result of a loss of confidence in BMFL due to rumours about its exposure to the Carrian Group rather than the results of uncertainty over the future of Hong Kong as DRS suggests.

The audit report led to the establishment of the supervisory committee by BBMB to oversee the affairs of BMFL and in particular, all lending. DRS was a member of this committee.

See LEO and DHS' comments (MRM 7-8, page 805-807) and Lai Ming-kong's statement regarding DRS' endorsement for increased funding to BMFL. (page 722-745). The assertion in the first paragraph that the former Minister of Finance of Malaysia initiated the loans to the Carrian Group is pure speculation.

Although there is evidence that a small part of the enormous bribes paid by George Tan and the Carrian Group to Lorrain Osman were used to fund a donation to the Malaysian national party, the evidence shows that a very substantial proportion of the bribes was used for Lorrain Osman, Dato Hashim Shamsuddin and DRS' own personal purposes. Ibrahim Jaafar granted the loans on the Board's instruction. Noordin report made specific allegations of corruption against the directors of BMFL. Allegation of corruption against Tengku Razaleigh was made by LEO's counsel without substance.

(c)

The case against DRS is based on documentary evidence as well as IJ's testimony.

(d)

As was explained in CC Hong Kong's fax of 23 April 1993, the verdict of the inquest on Mr Wimbush's death was that he committed suicide.

(e)

There has never been any suggestion that DRS was authorised to commit the offences.