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SINGAPORE – A cousin of the head of the Mustafa Center, Mustaq Ahmad, told the High Court on Wednesday (October 21) that his father came home crying “like a baby” one day in 2004 after making a will declaring who had a 15.12% stake in the company.
Mr. Fayyaz Ahmad said that his father, Mr. Samsuddin Mokhtar Ahmad, felt hurt and deceived by Mr. Mustaq, whom he treated like a son.
Mustaq’s attorney, lead attorney Alvin Yeo, accused Fayyaz of making up the story because the contents of his father’s will would damage his case.
Mr. Fayyaz and his brother Ansar claim one-third of the entire Mustafa business empire, as well as the assets Mr. Mustaq owns in Singapore, India, and several other countries.
The case is being heard in conjunction with a lawsuit brought against Mr. Mustaq and his family by his five stepbrothers and his mother.
Mr. Yeo argued that Mr. Samsuddin could simply have revoked the will, but did not do so because he believed he was only entitled to a 15.12 percent interest.
Mr. Samsuddin was a cousin of Momina, Mr. Mustaq’s mother. In the 1950s, he began working with Mustaq’s father, Haji Mohamed Mustafa.
The two men registered a partner in 1973 and Mr. Mustaq was added as a partner a few months later.
In 1989, Mr. Samsuddin and Mr. Mustaq registered a company, Mohamed Mustafa & Samsuddin Co, as shareholders and directors.
Mr. Mustafa and Mr. Mustaq’s wife, Ishret, were later added as shareholders and directors.
Between 1989 and 2001, Mustaq’s stake went from 51% to 61.25%, while Samsuddin’s share went from 30% to 15.12% through a series of share allocations and capital increases.
Mr. Fayyaz and his brother have accused Mr. Mustaq and the other defendants of diluting their father’s interests through “illicit” share allocations.
They also allege that Mr. Mustaq and the defendants misappropriated company funds and paid themselves excessive directors’ fees, while the company paid no dividends between 2001 and 2014.
Mr. Mustaq maintains that he was the sole owner of the business and the “patriarch” who supported Mr. Mustafa, Mr. Samsuddin and their families.
On Wednesday, Mr. Fayyaz said that after questioning Mr. Mustaq about his father’s will, Mr. Mustaq assured him that his father would get a third.
Mr. Fayyaz said that he told Mr. Samsuddin, who took the floor from Mr. Mustaq.
Mr. Yeo noted that after Samsuddin’s death in April 2011, Mr. Fayyaz had signed affidavits confirming that the 15.12% stake in the company was his only asset in Singapore.
Fayyaz said Mustaq had assured him that “everyone will get an equal share,” but did not keep his word after the documents were signed.
Mr. Yeo said: “I suggest that it was you who did not keep your word … You became greedy and would like to claim more than the property of Samsuddin is entitled to.”
Mr. Fayyaz disagreed.
The trial continues.
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