Freed Osman owes HK$12m

CHAMPAGNE parties, a luxurious hotel suite and first-class air tickets out of Hong Kong were the symbols of freedom for disgraced Malaysian banker Lorrain Osman, but he left owing the territory's taxpayers GBP1 million (HK$11.7 million). Last night leading legislators demanded to know why the Government had allowed the 62-year-old fraudster to leave the territory before settling his bill. The battle to bring Mr Osman to court over the 1983 collapse of the Carrian group became the longest legal case in Hong Kong history, with the Government spending more than $100 million to bring the Malaysian banker to justice. Of that, Mr Osman personally owed the territory GBP1 million after his counsel agreed to pay the cost of his extradition to the territory. The Government ran up most of its $100 million bill over a seven-year period, fighting the banker's nine unsuccessful habeas corpus applications to avoid extradition to the territory. After arriving in Hong Kong in December to initially face 39 charges, he pleaded guilty to one count of conspiracy to defraud Bumiputra Malaysian Finance Ltd by authorising loans of US$292 million (HK$2.3 billion) between 1979 and 1983 to an unsecured shelf company, Plessey Investments, owned by George Tan. Mr Osman was then jailed for a year, but only served 53 days - which effectively cost the territory's taxpayers nearly $2 million for every 24 hours. A member of the banker's legal team, Mike Kingston, told the Sunday Morning Post last week Mr Osman's legal bills were paid by friends. ''Friends of his in Malaysia financed him,'' said Mr Kingston, but he refused to reveal their identities. Mr Kingston flew back to London with the banker after finalising a deal to sell Mr Osman's exclusive story to a London paper for GBP10,000 (HK$117,000) and a Hong Kong publication for GBP5,000 (HK$58,500). He said Mr Osman still claimed he was broke, and was ''negotiating'' with the Hong Kong Government on the payment of his extradition costs. ''He has no idea of how to pay. He is hoping his Malaysian friends will help him,'' Mr Kingston said. But outraged legislators have now questioned his flight to Britain with a GBP1 million debt hanging over him. ''How is he going to pay it?'' independent legislator Jimmy McGregor asked. ''How can he be allowed to leave if he owes $12 million? ''I find that rather disturbing. I am surprised and shocked to hear it. ''It seems inappropriate to have someone who owes that much money, and to have that much money spent on him, that we should still be owed $12 million and Mr Osman be allowed to move outside our control. ''Hong Kong is the loser in every aspect.'' Mr McGregor said it was a ''rather disturbing'' situation, and added Mr Osman had been treated leniently by the Hong Kong Government. ''I think Mr Osman's release and movement to the UK leave a lot of questions in my mind, questions which I hope will be answered in this long saga,'' he said. ''It seems to me that he has been extremely fortunate.'' Leading Liberal Party legislator Selina Chow Liang Shuk-yee called for a review of the Government's actions, but she added that if Mr Osman had no money, as he claimed, then it would be unlikely he would be able to pay the debt. ''The problem now is the man is broke,'' Mrs Chow said. ''Trying to get the money back from a bankrupt person is impossible. I don't think there is much the Hong Kong Government can do now he is penniless.'' Christine Loh Kung-wai said she felt the Legal Department should pursue the correct channels to recover the money. A spokeswoman for the Legal Department said the Government was expecting to get the money back. ''We expect him to pay,'' she said. ''When Osman pleaded guilty, his counsel undertook that Osman would pay the Crown's costs within six months. ''The costs payable will be those of the extradition, and include all the costs allowed by the taxing master. ''There is no point in speculating what the Crown might do if Osman does not pay,'' she said. The spokeswoman would not confirm the GBP1 million figure, but said it was ''more than $10 million''. In a similar case in 1977, corrupt former policeman Peter Godber flew out of Hong Kong owing the Government more than $4 million. Godber, who served 31 months in jail, claimed he was broke when released from jail, but he was believed to have made millions of dollars through corruption. The Government, trying to recover the money, seized the proceeds from the sale of the family's cottage in southern England. It is believed the Legal Department could take similar action against Osman and his north London property if the outstanding GBP1 million is not paid within the set time limit.