Mahathir admits political motive in Chinese paper takeover 

Malaysian Prime Minister Mahathir Mohamad said Friday he supported an allied party's controversial takeover of two Chinese newspapers, describing them as "instruments" of the opposition.

Mahathir said he had given the go-ahead to the Malaysian Chinese Association (MCA) to buy Nanyang Siang Pau and China Press because "we are not comfortable with the previous owners".

"Nanyang and the China Press have been instruments of the opposition parties ... they have been very active campaigning against us," he told a press conference.

"They have always highlighted anything against the government. They have supported the extremist views such as Suqiu and the Chinese school teachers. Is it wrong if newspapers were to be more supportive of the government?"

It was the first time the premier has admitted any political aspect to the takeover, which he previously depicted as a purely business deal.

Last August, the veteran premier angered many Chinese with a strong attack on the Chinese pressure group Suqiu, which had urged that affirmative action programmes be extended to all those in need and not just Malays.

Mahathir said at the time its approach was akin to that of communist terrorists. 

The premier acknowledged he had not anticipated the Chinese anger against the papers' takeover, noting that the Malay community had not objected to Malay papers being owned by political parties.

"But I don't see why I should tell the MCA why it must not buy," he said. "If anyone wants to buy, they can buy."

The MCA is the second largest party in Mahathir's National Front coalition. Leading politicians have expressed fears that the rumpus will lose the coalition crucial Chinese votes in the next election.

Huaren Holdings, the MCA investment arm, bought a 72 percent stake in Nanyang Press Holdings which publishes Nanyang Siang Pau and China Press despite a storm of protest over a perceived threat to press freedom.

The two papers have a combined circulation of almost 400,000.

Some 2,000 MCA delegates will hold a special meeting Sunday to approve or reject the deal.

Politicians and commentators say the meeting will also be a showdown between the two different factions in the party, one headed by party president Ling Liong Sik and the other by his deputy Lim Ah Lek.

The Sun newspaper Friday quoted an aide to Ling as saying he is expected to emerge victorious. But the paper said the prolonged party leadership struggle is likely to continue.

The MCA already owns the largest English-language daily, the Star. But the Chinese-language press has traditionally been more independent than its English-language and Malay counterparts.

Ling has offered to sell part of his party's stake in Nanyang.

On Monday, a consortium of Chinese businessmen offered to buy back the whole stake at 5.60 ringgit (1.5 dollars) a share or 234.3 million ringgit -- more than what the party paid at 5.50 ringgit each.

Reports Friday quoted an MCA leader as saying another, unidentified, consortium, had emerged as a second bidder at 6.10 ringgit a share. 

A coalition opposing the takeover said Friday the MCA must not keep even a minority stake in Nanyang.

"Our stand is clear. MCA has to be 100 percent out," its spokesperson Wong Chin Huat told a press conference.

The coalition launched a protest campaign, handing out thousands of yellow ribbons to citizens as a sign of "support for press freedom".