Malaysian ex-minister's son sued in Singapore over debt for LionGold shares

Wira Dani Abdul Daim, a racing enthusiast, at the Sepang International Circuit in Selangor. The executive deputy chairman of LionGold Corp, one of three companies being probed in Singapore after their shares plunged in October 2013, was sued to repay
Wira Dani Abdul Daim, a racing enthusiast, at the Sepang International Circuit in Selangor. The executive deputy chairman of LionGold Corp, one of three companies being probed in Singapore after their shares plunged in October 2013, was sued to repay money borrowed to buy stock. -- PHOTO: THE STAR/ASIA NEWS NETWORK

SINGAPORE (Bloomberg) - The executive deputy chairman of LionGold Corp, one of three companies being probed in Singapore after their shares plunged in October 2013, was sued to repay money borrowed to buy stock.

Wira Dani Abdul Daim owed Maybank Kim Eng Securities Pte S$2.6 million for LionGold shares bought in a leveraged account, according to a lawsuit filed April in the Singapore High Court. The brokerage received court approval last month to serve the lawsuit on the son of former Malaysian Finance Minister Daim Zainuddin.

Shares of LionGold, Blumont Group Ltd. and Asiasons Capital Ltd. plummeted in October 2013, wiping US$6.9 billion off their market value over three days. The rout prompted the Singapore authorities to investigate suspected stock-trading irregularities and lawsuits by banks and brokers seeking to recover at least US$230 million. The three companies have said they are not aware of what caused the decline.

Maybank Kim Eng declined to comment in an e-mailed statement, citing client confidentiality. Wira Dani did not reply to three e-mails or return seven phone calls seeking comment.

Wira Dani said in a January e-mail to the brokerage unit of Malayan Banking, Malaysia's biggest lender, that he was "determined to resolve the situation amicably." It did not accept his proposal, according to court papers.

He had earlier agreed to pay the bank in installments, but only paid S$100,000 in August 2014.

"Cash has been tight with many investments made and unfortunately not the best of times to cash out and exit," he said in his e-mail.

LionGold was unchanged at 2.2 cents as of 9:59am on Thursday, giving it a market value of S$26.9 million. It was valued at S$1.59 billion at its peak in August 2013.

Singapore police said they are working with the central bank to "expeditiously" complete the probe.