This article first appeared in The Edge Malaysia Weekly on March 9, 2020 - March 15, 2020

UMNO owes Datuk Seri Tengku Adnan Tengku Mansor an estimated RM17 million as the party treasurer has been advancing money to the party for the past 32 years.

Joining Umno in 1969, he had an undertaking to financially help it meet its liabilities and obligations when required, according to his witness statement.  Adnan, better known as Ku Nan, indicated that, for nearly two decades, that financial support was not called on but, in 1988, when he was Umno Youth treasurer, the party called on his undertaking.

“[So far,] Pemuda Umno Malaysia owes me about RM17 million,” according to his witness statement.

While 32 years is a long time to wait for a debt to be repaid, Ku Nan’s relaxed attitude can perhaps be explained by his considerable wealth of nearly RM1 billion, as was revealed in the High Court last week when the politician was cross-examined by deputy public prosecutor Julia Ibrahim.

Represented by lawyers Datuk Tan Hock Chuan and Datuk S S Ruban, Ku Nan has been charged under Section 165 of the Penal Code with receiving a RM2 million bribe as a public officer — namely as federal territories minister — and faces up to two years’ imprisonment or a fine or both upon conviction.

The accused allegedly received the bribe from Tan Sri Chai Kin Kong, a close associate and chairman of property developer Aset Kayamas Sdn Bhd, in relation to the purchase and subsequent proposed development of two parcels of land in Bandar Tun Razak.

Ku Nan contends that the RM2 million he received was a political donation for Umno, specifically to fund the expenses of two by-elections in Sungai Besar and Kuala Kangsar that were held on June 18, 2016.

He said he asked Chai for the donation, but since Chai could not produce the amount in time, he took it upon himself to advance his own money from his family company, Tadmansori Holdings Sdn Bhd, and subsequently asked for a reimbursement.

The prosecution contended that there was no proof to show a transaction of RM2 million from Tadmansori to Umno as no receipts were produced.  Ku Nan said political donations were not recorded in practice to prevent details from being shared (see accompanying story).

Already upset at having to reveal his wealth in open court, he disagreed with the suggestion that he took the money for his own use, testifying that RM2 million was not a valuable figure to him.

“To me, it’s like my pocket money, you know,” he retorted.

Testily, he disagreed that he had used the RM2 million for his own purposes and insisted that it was just for elections.  “You see, I didn’t ask the [Umno] president or anyone else [for money]. I was able to stand on my own,” he said.

Prior to joining the Cabinet in 2001, Ku Nan pointed out that he was a successful tycoon, involved in various businesses, including real estate, logging, manufacturing, trading, agriculture, hotel, livestock and food. Tadmansori’s paid-up capital had even grown to RM100 million from RM100,000 when it was founded in 1984.

He also disagreed with the prosecution’s suggestion that he had not complied with Putrajaya’s Code of Ethics for members of the administration on receiving any money or gift in their capacity in government and to inform the prime minister if they were unsure.

Ku Nan said he had tendered four asset declarations as evidence in court to demonstrate his financial standing and to underline the fact that he did not need to rely on the RM2 million. His assets as declared to the various prime ministers were RM938.64 million in 2001, RM711.33 million in 2006, RM691.77 million in 2013 and RM782.75 million in 2016.

They included his interests in various public-listed and non-public-listed companies in Malaysia, such as a franchise under Sime Darby Hyundai Sdn Bhd. His wealth, he claimed, was derived from stakes he held in public-listed companies such as Mutiara Telecommunications Bhd, now known as Digi.Com Bhd.

“I had many other public shares, but I sold those off because I wanted to clear my debt and just focus on my work.

“I also had a stake in Mutiara Telecommunications worth RM480 million, which I sold. If I had kept that stake, it would be worth RM5 billion today,” he said in response to a question by his lawyer Tan during re-examination.

Annual reports show he owned 30.52 million shares or a 4.07% stake in Digi.Com as at Aug 8, 2000, but by March 2003, it had been whittled down to 0.6%. The company was listed in 1997, and it is unclear whether he held any shares in the telco prior to 2000.

Prior to resigning her position as chief of the Malaysian Anti-Corruption Commission on Friday, Latheefa Koya had ordered her officers to investigate Ku Nan’s wealth.

Three defence witnesses are expected to take the stand when the hearing continues from March 25 to 27 before High Court judge Mohamed Zaini Mazlan.

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