Q&A: What is the MCA EGM fuss all about?

From its ‘15-32’ parliamentary and state seats it won in 2008, the second largest Barisan Nasional component party now holds on to ‘7-11’ seats.

MCA is now caught in a trap it set up itself. It previously passed a resolution not to take up any government posts if it fared badly, a move which now is seen— both inside and outside the party— to be impractical to follow through.

It is also embroiled in a leadership tussle between MCA president Datuk Seri Dr Chua Soi Lek and his deputy, Datuk Seri Liow Tiong Lai.

Even before the December party election begins, tension between Chua and Liow have simmered, boiled and now has exploded into an open warfare with accusations and name-callings flung at both men. The Extraordinary General Meeting (EGM) today will be an important decider for the two.

On May 6, Dr Chua announced he was not seeking re-election as party president due to the GE13 showing.

This, however, did not go down well with party elders— 15 of them including former president Tan Koon Swan, former deputy presidents, Tan Sri Lee Kim Sai and Tan Sri Lim Ah Lek— then called for Dr Chua had to resign immediately.

Aside from the GE13 performance, one issue at the fore was the “no government post” resolution, which not only affected MCA’s Cabinet positions but also GLCs, state and district level positions.

It was exacerbated by complaints that Chua himself stayed on as Penang Port Commission chairman, Datuk Teh Kim Poo’s Port Klang Authority chairman, and later appointments of Datuk Seri Dr Ng Yen Yen and Datuk Tee Siew Kiong.

On July 20, Liow announced that he is going for the presidency post.

When on Sept 5, Dr Chua proposed lifting the three-year suspension imposed by the Disciplinary Board on Tee, the infighting blew wide open. Liow responded by calling for an EGM together with 13 other CC members over the reversal of Tee’s suspension. However, Chua blocked it and later in the month, and on Oct 3, 20 CC members called for an EGM to censure Liow instead.

They accused Liow of contributing to the party's dismal performance in GE13 through his failure in heading the General Elections Preparation Committee.

The first motion is a move to censure Liow for dereliction of duties, disobedience and disloyalty to the party. According to the motion, the reasons to censure Liow include his refusal to accept and respect the party’s collective decisions, and him failing in his duty as chairman of the general election preparation committee.

The other three motions to revoke the party resolutions forbidding party members from taking cabinet, government-linked companies and state positions respectively.

The EGM will give an indication or barometer of who, between Chua and Liow, has more support to lead the party as its No.1.

The 2,400 odd delegate’s decision will be the clearest indication yet of the potential leaders who will in the next month win as the next president and also other subsequent positions.

The censure motion is largely seen as Chua’s attempt to chop off Liow's limb before he can climb his way to the top post.

Observers have said that the “no government post” motion, if passed, will mean Dr Chua becomes a 'powerful man' as he would then have hundreds of posts to ‘give out’.

Control over money and assets of the company is also said to be one of the main reasons for the tussle.

Chua, partly due to a resounding win at the divisional levels, is more confident than Liow. However, sources say that it could be a close race, with the advantage slightly towards Dr Chua.

The incumbent also has the advantage of having more resources. It’s been alleged that the unavailability of the list of central delegate’s contacts gives Liow a handicap position.

The other three resolutions is likely to be in favour of a reversal of MCA’s earlier stance on government positions, effectively re-opening MCA.

On Oct 11, in a strategic move, Dr Chua made an ‘interesting’ proposition to Liow: ‘You quit, I quit’. He said that he is willing to step down as MCA president but on the condition that Liow does the same.

This is viewed by some leaders as an an amicable “formula” which was seen during the Ling-Lim leadership crisis, where Dr Ling Liong Sik and his deputy Lim Ah Lek stepped down simultaneously in 2003 paving way for Ong Ka Ting and Chan Kong Choy to take over.

MCA has assets worth about two billion ringgit.

It includes the 43-storey Grade A office block Menara Multi-Purpose that generates a RM2 million monthly income and its prized headquarters, Wisma MCA.

According to a news report, it also owns a 42.4% stake in Malaysia's largest-circulation English daily, The Star. Since 2010, income from the properties and dividends from The Star has earned the party some RM320 million.

If the resolution to censure Liow is passed ,especially with a landslide vote, then Liow may need to seriously reconsider his candidacy for presidency. This is because the same central delegates will vote during the elections in Dec later.

Will this mean that Dr Chua will go for presidency? Some observers theorized that Dr Chua may employ a ‘proxy’. A frequently mentioned name is Gan Ping Sieu.

Yesterday, the Registrar of Societies made a suprising move to advise MCA against tabling a motion to censure Liow. ROS reportedly asked MCA to take disciplinary actions if Liow committed any mistake, but also said “if MCA insists on the motion, we can’t do anything”

Chua, however, has brushed it aside as mere ‘advice’. MCA insisted that everything was done according to the party’s constitution.

With this, observers do not expect this development to hold any bearing to the EGM, though there are murmurs of a possibility of Liow attempting to challenge this legally.

On Oct 16, Chua’s predecessor Datuk Seri Ong Tee Kiat announced that he would throw his hat into the ring for the presidency, but on the condition that there is no multi-cornered fight.

Ong, who refused to take sides on Chua and Liow, had insisted that party was still relevant.