Wednesday January 30, 2008

Seid says Midcorp not involve in Masuda’s dealings

By Bernadette H. Carreon
Horizon news staff

Sen. Alan Seid yesterday said that Toshio Masuda, the Japanese investor who is being accused of accepting investments in a bank in Palau even after it has been closed, is no longer involved in the defunct bank since three years ago.

Seid told reporters that Sunra Bank has not been doing business for almost three years and that a new group has been formed and applied for a new banking license which was denied by the Financial Institution Commission.

Seid said Masuda is no longer involved in the new group.

An article from the Japanese newspaper Yomiuri Shimbun said that Masuda is now facing “up to a dozens of investors who are demanding the return of the funds they have invested.”

According to the report Masuda established Sunra International Bank and Trust Corp. in Palau with Masuda as Chairman.

The news added that about 1.6 billion yen has been invested by people in the bank and that he reportedly did not reveal the revocation of the banking license to the investors and when the return of the funds were demanded Masuda has kept delaying payments and said that he is suffering from shortage of funds.

Seid said he has contacted Masuda and told him about the article from the Japanese newspaper.

Seid said Midcorp is has no knowledge in the issues alleges against Masuda in the newspaper.

“Everyone at Midcorp is not involved or is it any part of any wrongdoing, whatsoever,” Seid said.

Seid added that Masuda is also no longer involved in a golf course development project in Palau.

He said a new group is now handling the project.