Rumours of the arrest of tycoon Soh Chee Wen, now on the run overseas, have been dismissed as "untrue" by a source close to the fugitive businessman.

Soh's arrest, or possibly "voluntary surrender", following a warrant of arrest issued last year was purported to have a bearing on Soh's one-time business associate, Ling Hee Leong, the eldest son of MCA president Dr Ling Liong Sik who in a surprise announcement yesterday said he had decided to resign his transport minister's post.

(Hee Leong made headlines as the youngest billionaire at aged 27 years when he gained control of four KLSE listed companies "[#1]MCA chief owes his Waterloo to junior?[/#]", May 22.)

The source did not deny or confirm the likelihood that Soh, who gained prominence as a KLSE market player and a rising politician in MCA before the financial crisis struck in mid-1997, could return soon.

The arrest warrant for Soh relates to alleged Securities Commission offences, for which another tycoon, Tony Tiah, had already been arrested and later produced in court to face a number of charges of abetting Soh as principal offender relating to share trading.

Nanyang Siang Pau today reported that Soh was arrested in a country in Africa by Interpol on Sunday, but another report datelined Kuala Lumpur said the police denied such an arrest.

When malaysiakini contacted the commercial crime division of Police Headquarters at Bukit Aman this morning, the spokesman declined to comment if Soh was under its custody. Calls made to the Securities Commission were passed to and from the enforcement and corporate departments with no officials prepared to give any update on their efforts to trace Soh.

A reliable source told malaysiakini the speculation that Soh could return to Malaysia soon to surrender himself to the authorities might indeed be true.

The swift developments on the MCA political front involving its president indicated that Soh's return was "impending" and this would have implications on Hee Leong's fate, which would in turn make Ling's position in Prime Minister Mahathir Mohamad's Cabinet "untenable", added the source.