Taib's law suit: Regent Star seeks deregistration

By Malaysiakini

Malaysiakini

2007-07-27 | In another twist to multi-million ringgit timber kickbacks scandal, Hong Kong-based Regent Star, which is allegedly linked to Sarawak Chief Minister Abdul Taib Mahmud and his family, has sought deregistration last week.

The Hong Kong Registrar of Companies stated in a notice last Friday that the company has applied for deregistration.

"Unless an objection is received within three months after the date of the publication of gazette notice, the Registrar may deregister the company and dissolve it," said the July 20 statement.

Regent Star is at the centre of a kickbacks scandal involving nine top Japanese shippers which allegedly paid RM32 million to the company over a period of seven years "as lubricant to facilitate their timber trade".

This was uncovered by Japanese tax authorities early this year who deemed the payments made by the shipping companies as 'illegitimate expenses'.

According to tax authorities, Regent Star - believed to be a paper company - did little 'substantive work' to justify the payments.

They found that the shipping companies had tried to disguise the payments as 'business expenses' and were thus not taxed.

The companies are suspected of having made payments to the Hong Kong agent for 26 years, and thus the total income concealed could be several times the figure cited by sources.

Sarawak's lumber export is controlled by the state government through Dewan Niaga Sarawak - a state-affiliated organ in charge of timber export control which is headed by the Sarawak chief minister's younger brother.

Taib, who denied knowledge of Regent Star, has last month filed a law suit against two state opposition leaders and online news daily malaysiakini for defamation.

Plaintiffs to fight registration bid

One of the plaintiffs, See Chee How - who is PKR Stampin division chief and the opposition party's legal advisor - told a press conference in Kuching today that he had taken steps to stop the deregistration bid.

"We have written to the Registrar of Companies to express our concerns over the propriety and desirability of its application for deregistration," said See, who is a practising lawyer.

"At the same time, we have also written to the Inland Revenue Department of Hong Kong to notify them of the fact that Regent Star was implicated as an agent in alleged timber kickbacks paid by certain named Japanese shipping companies to government officials in Sarawak."

He urged the Hong Kong government to take action on the matter.

"We certainly hope that the Hong Kong authorities will get to the bottom of the matter and clear all Malaysians, particularly Sarawakians, of any or such tax irregularities," said See, who was sued by Taib along with party colleague, ex-PKR state chief Wan Zainal Abidin Wan Senusi.

"In the midst of such international controversy, the company's application to be deregistered is certainly inappropriate and untimely."

Suprised and puzzled

See said that he was "surprised and puzzled" to discover that Regent Star had applied to dissolve itself when it is involved in a shipping contract between the Japanese and Sarawakian sides.

Regent Star is the broker designated by Dewan Niaga Sarawak for "intermediation work" with the Japanese shipping companies.

See wanted to know whether Regent Star's application for deregistration will impact on timber exports from Sarawak to Japan and asked the state government to clarify the matter.

According to the corporate information obtained online, Regent Star Company Limited was incorporated on Nov 22, 1983.