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A Hong Kong-based firm provided secretarial services to two companies allegedly involved in a multi-million-dollar financial scandal in Malaysia, a court heard yesterday.

Proceedings of the Malaysian trial - which involves the alleged embezzlement of a total of M$76.4 million (HK$152.8 million) from steelmaker Perwaja Rolling Mill -  were moved to Hong Kong this week to hear testimony from local witnesses.

The defendant, magnate Eric Chia Eng Hock,  72, a former managing director of the steel company, is accused of transferring the sum from Perwaja to an American Express bank account under a company called Frilsham Enterprise in 1994.

Chia, who did not appear in court due to health reasons, has denied a charge of criminal breach of trust.

Jesse Leung Nai-chau, a director of Apex Corporate Services, told Eastern Court yesterday that a Japanese businessman - identified as Mr Maeda - had instructed him to open the bank account.

The sum of money was allegedly later dispersed to other bank accounts in Hong Kong and Switzerland.

One of these was a Banque Indosuez account held by Borneo Enterprises, a company under Mr Maeda's control.

A former employee of Mr Leung's, Cheng Tai-foon, told the court he was asked to become the sole nominee director of this company. He had signed a document that opened a Banque  Indosuez  account for Borneo, the court heard.

Mr Cheng, a director of securities firm Okachi Investment, told the court that Mr Leung often invited him to sign as a nominee director for companies.

Transcripts of the testimonies of these and other  banking witnesses  will be used when the trial resumes in Kuala Lumpur  on September 16. The prosecution is expected to hold similar hearings in Switzerland and Japan to gather more evidence.



City firm testifies in Malaysian scam case