Why was RM8.6m initially used to settle a hotel debt?

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RM8.6 Million Was Used to Settle Hotel Debt Due to Share Purchase Deal Conditions

The sum of RM8.6 million, initially transferred from law firm Lewis & Co to Ri-Yaz Assets Sdn Bhd, was used to settle outstanding debt for a hotel purchase in Bali, Indonesia. This occurred because Ri-Yaz Assets, the recipient of the funds, had an RM8.3 million debt with Exim Bank related to the acquisition of the Bali hotel. The deposit was made by Datuk Nurulhidayah, Datuk Seri Ahmad Zahid Hamidi’s daughter, as part of a deal to acquire 60% of Ri-Yaz Assets' shares.
Funds Designated as Deposit for Aborted Share Purchase

The RM8.6 million was transferred from Lewis & Co to Ri-Yaz Assets on June 30, 2016, functioning as a deposit for a planned share purchase. This transaction was linked to an agreement where Datuk Nurulhidayah intended to buy 60% of Ri-Yaz Assets' shares from Tan Sri Rashid Abdul Manaf. Negotiations for this deal involved Datuk Seri Ahmad Zahid Hamidi, Nurulhidayah, Ri-Yaz Assets director Datuk Mohammad Shaheen Shah Mohd Sidek, and representatives from Exim Bank.
Settlement of Bali Hotel Acquisition Debt

At the time of the share purchase negotiations, Ri-Yaz Assets carried a significant outstanding debt of RM8,348,040.90 with Exim Bank. This debt stemmed from a US$24.8 million loan taken by the company to purchase a hotel located in Bali, Indonesia. Consequently, Ri-Yaz Assets utilized the majority of the RM8.6 million deposit to clear this existing financial obligation to Exim Bank.
Return of Surplus Funds and Deal Collapse

Following the settlement of the hotel debt, Ri-Yaz Assets returned RM254,879.10 to Lewis & Co. This surplus amount was attributed to fluctuations in the US dollar exchange rate against the Malaysian ringgit. Ultimately, the share purchase deal did not proceed, leading to requests for the return of the funds. Nurulhidayah reportedly informed Ri-Yaz Assets that the RM8.3 million sum belonged to a foundation, indicating a shift in the source or intended use of the funds.

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Why was RM8.6m initially used to settle a hotel debt?

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