Sheng says he hasn't breached any laws

KUALA LUMPUR: Khazanah Nasional Bhd director Tan Sri Andrew Sheng Len Tao says he has not breached any laws in relation to certain share transactions made by his sister.


Two weeks ago, a news portal said that a police report had been lodged against Sheng, alleging that he had given authority to his sister Sheng Lien to transact shares in companies in which Khazanah, the government’s investment arm, owns stakes.

It was alleged in the police report that Sheng had failed to disclose that he had been transacting in these shares, thus possibly breaching the Companies Act 1965.

The police report was lodged by Tan Teng Heng, who is Sheng Lien’s husband. The two are in the midst of divorce proceedings in the Kuala Lumpur High Court.

Sheng, 66, is a prominent figure in the financial world in
Asia, having taken on top roles in central banking and


financial regulation in Malaysia and the region.

“I have been advised by my solicitors that I have not infringed any laws in relation to such share transactions.

I have at all times acted within the law and within Khazanah’s
own internal rules and regulations in relation to this matter.

“I am taking legal action in respect of the defamation against me and I reserve all my other rights,” Sheng said in a brief statement sent to Business Times late yesterday.

Khazanah, in a separate statement to the paper later, said Sheng, its non-executive board member, has “not at any time” breached any of its internal rules or regulations.

“Khazanah continues to extend its full support to Sheng on this matter,” it added.

Tan had alleged in the February 26 police report that Sheng Lien was given “blanket authorisation” to transact shares on Sheng’s
behalf using their brother James Sheng’s trading account.

It is understood that Sheng Lien is a remisier and that Tan used to work in the same firm as her.

The Securities Commission (SC), when asked about that report last week, told BT that it was reviewing the facts surrounding
the matter and would decide on appropriate action depending on the outcome of its review.

When contacted yesterday, an SC spokesperson said it had nothing further to add to its earlier statement.

A chartered accountant by training, Sheng has been a Khazanah director since July 2008. He was chairman of the Hong Kong Securities and Futures Commission between 1998 and 2005.

He is currently the chief adviser to the China Banking Regulatory Commission and a board member of the Qatar Financial Centre Regulatory Authority.

Last year, he was made president of the Fung Global Institute, a non-profit economic research outfit set up in Hong Kong.

He started his career at Bank Negara Malaysia where, between 1976-1989, he held various positions including chief economist and assistant governor in charge of bank and insurance regulation.