Monday, August 22, 2011

Anwar: 'I have no faith whatsoever that justice will prevail'


The following is the full statement by Opposition Leader Anwar Ibrahim at the High Court this morning, as he enters defence in the sodomy trial. Anwar opted to speak from the dock, which among others, means he could not be cross-examined by the prosecution:

My name is Anwar bin Ibrahim. I am the leader of the Opposition in Parliament. In the 1990s, I was the Finance Minister and Deputy Prime Minister until September 1998 when then Prime Minister Dato’ Seri Dr Mahathir bin Mohamad sacked me after I had refused to resign. He had told me to resign or face dire consequences including criminal prosecution for alleged sexual and corruption offences. I refused and all hell broke loose. My unceremonious and grossly unjust dismissal simultaneously orchestrated with a trial by media under Mahathir’s complete control triggered mass and widespread demonstrations throughout the country and launched the movement for change and reform known in our history as the Reformasi era.

After a series of show trials during which every rule in the book on evidence and criminal procedure was violated with impunity at the hands of the prosecution and the courts, I was convicted and sentenced to a total of 15 years.

The charge against me

First and foremost, I categorically deny the charge against me. I want to state in no uncertain terms that I have never had any sexual relations with the complainant Mohamed Saiful. His allegation is a blatant and vicious lie and will be proved to be so.

This is a vile and despicable attempt at character assassination. In this regard, let me reiterate that they can do all they want to assassinate my character and sully my reputation and threaten me with another 20 years of imprisonment but mark my words, they won’t be able to cow me into submission. On the contrary, it only serves to fortify my conviction that the truth will eventually prevail. Come what come may, I shall never surrender. With apologies to Jean Racine in Phaedra:

“You know how well your tyranny favours my temperament and strengthens me to guard the honour of my reputation.”

Yes indeed, I will guard it with my life if I have to. And if I may bring the message closer to home, let me quote the words of Nelson Mandela in his speech made from the dock in the famous Rivonia show trial of 1963 under the Apartheid regime:

“I have fought against white domination, and I have fought against black domination. I have cherished the ideal of a democratic and free society in which all persons live together in harmony and with equal opportunities. It is an ideal which I hope to live for and to achieve. But if needs be, it is an ideal for which I am prepared to die.”

Back in 1998, blindfolded and handcuffed, I was beaten senseless by the Inspector General of Police and left to die in the lock up at the Federal Police headquarters. However, it was by the grace of God that a few of the rank and file of the police took pity on me and nursed me to recover from the near lethal blows. There was then a cover up by Gani Patail (now the Attorney-General) and Musa Hassan (the IGP at the time that I was charged in this new episode) with the full knowledge and connivance of Dato’ Yusuf, the current chief prosecutor in this trial. All these personalities were linked in one way or the other with the 1998 show trial and more insidiously with the suppression of evidence in respect of the black eye scandal and attempts to pervert the course of justice. These are the same personalities who are now actively involved in the current prosecution against me. Res ipsa loquitur, as they say, but in this regard I’m not talking about negligence but rather proof of criminality in this heinous plot betraying indeed “the deep damnation” of the conspiracy.

The circumstances are compelling that I elect to make a statement from the dock. And in this statement I shall attempt my utmost to place the truth ahead of the web of lies and deceit that has been spun thus far. To quote Shakespeare:
“And let us once again assail your ears,
That are so fortified against our story…”

Which has set me from the outset of the trial to have been deprived of a level playing field and subjected to inequality of arms vis-a-vis the prosecution.

The prosecution’s failure to discharge its duties professionally

1) Even though these matters are done as a matter of routine in criminal proceedings, the Prosecution has consistently refused to disclose material critical to my defence, including:
(a) prosecution witness list;
(b) primary hospital examination notes written by the medical examiners of the complainant at HBKL;
(c) witness statements (including that of complainant); and (d) forensic samples and exhibits for independent examination and verification. All this has caused considerable prejudice to my defence and occasioned grave injustice. The only conclusion that one can reasonably draw from the prosecution’s persistence in this act of perversity is that unseen hands are at work and it is certainly not the hand of God.

2) Your failure to respond during the course of the trial to several attempts by persons hostile to me to discredit me by commenting on aspects of the trial. These included whether I should provide samples of his DNA; blaming the defence for the delay of the proceedings; and reporting on matters that were the subject of a suppression order. These public comments were made either in defiance of your orders that they not be made. They were made by UMNO officials and politicians, including Dato’ Seri Najib orchestrated through the controlled electronic and print media, such as Utusan Malaysia, Berita Harian, the New Straits Times and TV3. The constant comments by the Prime Minister and UMNO officials in the media and adverse comments on the progress of the trial were clearly calculated to influence you and illustrates the political motive behind the charge.

3) The latest act of blatant disregard occurred just last Tuesday and Wednesday over TV3 which broadcasted a pre-recorded interview with the complainant saying things which are clearly in contempt of the proceedings in respect of the trial. In particular, the audacious portrayal of himself as the victim who is a pious and God fearing Muslim who has sworn on the Quran that he is a witness of truth.

The latest act of blatant disregard occurred just last Tuesday and Wednesday over TV3 which broadcasted a pre-recorded interview with the complainant saying things which are clearly in contempt of the proceedings in respect of the trial. In particular, the audacious portrayal of himself as the victim who is a pious and God fearing Muslim who has sworn on the Quran that he is a witness of truth.

4) But the truth is that even as the trial was in progress, the complainant who was engaged to someone else was shamelessly having an affair with a member of the prosecution team. Quite apart from the consequences of such an affair on the conduct of the prosecution, the complainant’s facade of moral rectitude is shattered by this scandalous affair with the lady prosecutor who herself was also engaged with another man.

5) In spite of all this, the complainant, assisted by the full force of the UMNO propaganda machine, via their media, has gone to town to vilify me. The point is that all comments were calculated to discredit me, adversely influence the course of the proceedings and to intimidate the witnesses at the trial. In spite of all these blatant transgressions, you have persistently refused to respond to any of these acts of contemptuous behaviour.

The solemn duty of a judge is not to sit mute when the law provides for a court of its own motion to issue show-cause notices against those who interfere in the administration of justice. I am reminded of the maxim Judex Habere Debet Duos Sales, Salem Sapicutiae, Ne Sit Insipidus, Et Salem Conscientiea, Ne Sit Diabolous, the English translation of which is, ‘A judge should have two salts, the salt of wisdom, lest he be insipid; and the salt of conscience, lest he be devilish’.

The office of a judge is one of the most honourable in the country; he is the voice of the legislator and the organ for dispensing justice; he holds the balance between the executive and the subject.

Even more significantly, in the discharge of his duties, the judge should be mindful of Allah’s command:

“…and let not hatred of others swerve you into error and depart from justice. Be just, that is nearer to piety. Fear Allah, For Allah is well acquainted with all that you do” (Surah al-Ma'idah: 8)

In the middle of the Second World War in 1942, Lord Atkin, in Liversidge v Anderson, had occasion to say in the House of Lords,
‘It has long been one of the pillars of freedom…that the judges are no respecters of persons and stand between the subject and any attempted encroachment on his liberty by the executive, alert to see that any coercive action is justified by law’

In my case, Y.A., presiding in an adversarial trial, had the residual power and the jurisdiction to have invoked Y.A.’s powers relating to contempt of court. Y.A. chose not to do so for reasons best known to Y.A.. What has happened is not in the best traditions of the Judiciary. In the ongoing Banting murder trial, the learned trial judge in that case, Y.A. Datuk Akhtar Tahir, took it upon himself to summon a local television producer over a clip it aired during its prime news slot relating to the defence in the murder trial of Datuk Sosilawati Lawiya and three others. A newspaper clipping of that report is annexed herewith. Y.A. Datuk Akhtar Tahir has courageously demonstrated judicial activism in the name of human rights and the essential requirement of a fair trial.

To compound the position to incredulity, the open scandal relating to DPP Farah Azlina Latiff having an affair with PW1 did not concern Y.A. This invidious relationship should have alerted Y.A. in that I was been denied a fair trial for the simple reason that Farah Azlina Latiff would have had access to the investigation papers being a member of the prosecution’s team and, therefore, PW1 would, through this relationship, would have had knowledge of the statements given by witnesses, including my alibi witnesses in the course of the investigation.

In fact, the owner of the unit 11-5-2, Haji Hasanuddin bin Abd Hamid, had been harassed by the police for a total of thirty hours in the recording of his statements which were all video recorded. This was obvious when he was interviewed by the defence lawyers in my presence. The police investigation has scuttled my defence. To make a mockery of the situation, the prosecution offered at the close of their case an alibi witness named, Fitria binti Dipan, who by their own admission cannot be traced.

Y.A. did not even chastise Farah Azlina Latiff for the illicit affair with SP1. All that was done was that Farah Azlina Latiff was taken off the prosecution team at the behest of the prosecution which was an open confirmation of the existence of that illicit affair. Farah Azlina Latiff did not deny the allegations against her. Neither was PW1 recalled by the prosecution to deny the existence of this unsavoury affair.

The Attorney-General had publicly stated the reasons would be given later to account for the sordid affair. That has yet to eventuate.

Yet, in the face of this, Y.A., at the close of the prosecution case, made a finding that PW1 was a truthful witness from this passage in the judgment as follows,
‘Nothing came out from the lengthy cross-examination of PW1 or from the evidence of other prosecution’s witnesses that could suggest what PW1 had told in his evidence was something which was not probable. I find PW1’s evidence remains intact. He had truthfully and without embellishment or exaggeration in his evidence narrated in minute detail how he was sodomised by the accused on the date and at the place stated in the charge. I find him to be truthful witness and his evidence is reliable and if accepted would establish all the facts required to prove the charge against the accused.’

My lawyers had clearly made the submission that Y.A. had made a prejudgment when Y.A. ought to have only made findings as to who was telling the truth at the conclusion of the defence, in which event, I would have given evidence under oath. My lawyers did not, at any time, advert to the passage above in isolation. They zeroed in on the obvious, namely, whether a witness was truthful or not had to be decided at the close of the defence case. The provisions of section 182A(1) of the Criminal Procedure Code provided the judge with that guidance but to no avail. That section bears repeating. It states:

‘At the conclusion of the trial, the court shall consider all the evidence adduced before it and shall decide whether the prosecution has proved its case beyond reasonable doubt.’

Pursuant to what I have stated above, I have been denied the benefit of putting up my defence under oath. That amounts to deprivation of a fair trial and the existence of a level playing field.

The Court of Appeal going out of line

My appeal to the Court of Appeal over the recusal of Y.A. on account of prejudgment, following which would have resulted in biasness was heard on 6th July, 2011. A copy of the order is annexed herewith. No written judgment was handed down by the Court of Appeal on 6th July. The appeal was dismissed summarily on the preliminary objection taken by the prosecution that the order appealed against was not a final order. Those were the reasons given in open court. Nothing more, nothing less. The Court of Appeal took no more than five minutes to dispose of the appeal.

Unbeknownst to me or my lawyers, there was at the same time a 40-page judgment under the hand of Y.A. Datuk Haji Abdul Malik Bin Haji Ishak also dated 6th July, 2011. A copy of that judgment is annexed herewith.

Why did the Court of Appeal not read out the 91 paragraphed grounds of judgment dated 6th July on 6th July itself? Obviously, this judgment was at hand on 6th July but had surreptitiously been concealed from my knowledge and the knowledge of the public. The letter dated 11th August, 2011 supplying a copy of this judgment to my lawyers is annexed herewith. As is usual, Y.A. must have had the benefit of reading this judgment which will further exacerbate your bias against me. The judgment is an open and flagrant attack on me to which I will advert in due course. Suffice to say at this juncture that here is a judgment of the Court of Appeal written after 6th July, 2011 which contains harsh criticism against me without my being given the opportunity to reply.

But that begs the question: the appeal had been dismissed in limine on the ground that the order appealed against was not a final order. That should have been the end of the matter because it followed that the court had no jurisdiction to entertain the appeal. [Y.A. Datuk Haji Abdul Malik Bin Haji Ishak sat mute during the course of submissions on the preliminary objection]. The matter did not go beyond into the merits. That is what the Court of Appeal announced on 6th July without going an inch further. The preliminary objection is adverted to, not as the main part of the judgment. The major part of the judgment goes beyond. It is a frolic of his own used for the purpose of hitting out at me.

If that was so, why did Datuk Haji Abdul Malik Bin Haji Ishak embark upon a relentless attack on me in the rest of the judgment? In fact, he had no jurisdiction to do so. This is a blatant abuse of judicial power, perhaps in a surreptitious attempt to curry favours of the political masters? Otherwise, how else can one explain as to why he embarked upon such a scurrilous attack on me by stating in the following paragraphs as numbered:

‘[5] This case will fall in history. It will be chronicled as the only known case in our country or for that matter within the Commonwealth enclave where the appellant as an accused person persistently and consistently filed one application after another in an attempt to recuse the learned trial judge from hearing and continuing to hear the sodomy trial which is ongoing.

[6] It seems that the appellant here is trying his level best to scuttle his sodomy trial for reasons best known to him, much to the chagrin of the prosecution and the exasperation of the members of the public at large.

[15] It was certainly an uncalled for criticism [against the learned judge] bent to deceive and confuse the uninitiated. It is easy to criticise but it is always difficult to justify it.

[18] It is also difficult for us to accept that the Notice of Motion was filed out of a genuine belief that the learned trial judge had been biased against the appellant.

[49] The charge graphically described what the appellant did to Mohd Saiful Bukhari Bin Azlan [PW1.] [It is elementary that it is the evidence, not the charge, which proves an offence].

[50] The trial was unduly prolonged. It received wide media coverage.

[56] After such a fine display of judicial impropriety, Y.A. Datuk Haji Abdul Malik Bin Haji Ishak now has audacity to patronize us about a sound judicial system by stating, in what sounds like a broken symbol, as follows:

‘The perquisites of a sound judicial system are independence and impartiality. For an effective and a strong judicial system, the impartiality of its judges are of paramount importance. But it cannot be denied that the public’s confidence in the judicial system is shaped and moulded more by appearances.

Y.A. Datuk Haji Abdul Malik Bin Haji Ishak rather ungraciously, and without jurisdiction, took a swipe at the judgment of his brother judges of the Court of Appeal including Richard Malanjum, now Chief Judge (Sabah and Sarawak), with the obvious purpose of humiliating them when stating:

‘[72] Rowstead did not consider the “real danger of bias” test in determining whether the learned JC should have recused himself notwithstanding the Federal Court had earlier on applied the said test in:

(a) Majlis Perbandaran Pulau Pinang v Syarikat Bekerjasama-sama Serbaguna Sungai Gelugor dengan Tanggungan [1999] 3 MLJ 1, FC; and

(b) Mohamed Ezam bin Mohd Nor & Ors v Ketua Polis Negara [2002] 1 MLJ 321, FC

[73] Consequently, Rowstead’s suggestion that the request for recusal to be heard

by another judge is quite radical. We categorically say that the recusal request, like the present matter, was rightly heard at the first instance by the learned trial judge and followed by this court.

[74] Rowstead did not consider nor ventilate on section 3 of the CJA read with section 50(1)(a) of the CJA and the Explanatory Statement thereto.

[75] The recusal application housed in the Notice of Motion concerned a long protracted trial that saw the legal manoeuvrings activated by the appellant at every nook and corner in an attempt to scuttle the criminal trial of the appellant for an offence of sodomising PW1. It is the mother of all trials in Malaysia.’

[I had every right to exhaust all legal remedies open to me. No attempt has been made by anyone, or any quarter, to prevent me from doing so by seeking an order to declare me a vexatious litigant].

As alluded to earlier in this statement, Y.A. would have had the advantage of reading this judgment after it was distributed by letter dated 11th August, 2011. This, in effect, amounts to placing, by Y.A. Datuk Haji Abdul Malik Bin Haji Ishak, alleged bad character evidence on my behalf.

In view of this, how can I get a fair trial or even the semblance of one before the trial judge now who has been further put in a position to compound biasness against me?

How can I possibly give evidence under oath when the DPP has, in his possession, the same judgment which could be used against me in cross-examination? Y.A. cannot be disabused of what has been fed to Y.A. by Y.A. Datuk Haji Abdul Malik Bin Haji Ishak when delivering a judgment dated 6th July, 2011 which obviously, having regard to the length thereof, must have been prepared well before 6th July, 2011.

This is scandalous.

Yang Arif has created a position under which I cannot give evidence under oath. I say, with all the force at my command, that I would have been prepared and willing to give evidence under oath but for the handicaps foisted on me, in the manner Y.A. has conducted the trial and in the manner in which the Court of Appeal judgment dated 6th July, 2011 would have come to the notice of Y.A. with regard to what I have stated herein before.

Then again, why wasn’t the judgment which, even if written after midnight on 5th July, 2011 read out in open court so that I could counter and demolish all the allegations made against me by Y.A. Datuk Haji Abdul Malik Bin Haji Ishak?

It is elementary no one should be condemned, unheard. This is axiomatic. As far back as 12th August, 1999 the Federal Court, the highest court in the land, in Insas Bhd and Anor v Ayer Molek Rubber Company Bhd and others had occasion, after adverting to the authorities on the position to rule,

‘The offensive remarks made by the Court of Appeal against the High Court, the applicants and their counsel ought to be expunged from the judgment of the Court of Appeal, as it had a tendency to bring the whole administration of law and order into disrepute. Judicial pronouncements should be judicial in nature and should not depart from sobriety, moderation, and reserve. It also should not display emotion and intemperance, as displayed in the judgment of the Court of Appeal.’

Adverting to an Indian Supreme Court case of State of Uttar Pradesh v Mohd Naim, the Federal Court had occasion to adopt what was said there as follows;

‘If there is one principle of cardinal importance in the administration of justice, it is this: the proper freedom and independence of judges and magistrates must be maintained and they must be allowed to perform their functions freely and fearlessly and without undue interference by anybody, even by this court. At the same time it is equally necessary that in expressing their opinions, judges and magistrates must be guided by considerations of justice, fair play and restraint. It is not infrequent that sweeping generalizations defeat the very purpose for which they are made. It has been judicially recognized that in the matter of making disparaging remarks against persons or authorities whose conduct comes into consideration before courts of law in cases to be decided by them, it is relevant to consider: (a) whether the party whose conduct is in question is before the court or has an opportunity of explaining or defending himself; (b) whether there is evidence on record bearing on that conduct justifying the remarks; and (c) whether it is necessary for the decision of the case, as an integral part thereof, to animadvert on conduct. It has also been recognized that judicial pronouncements must be judicial in nature, and should not normally depart from sobriety, moderation and reserve.’

In Insas, the Federal Court adopted what was said in AM Mathur v Pramod Kumar Gupta & Ors when dismissing an apparently unsustainable review petition which had certain derogatory remarks against Mr AM Mathur, a senior advocate and also the ex-Advocate General of the State. The Court had occasion to hold,
‘Judicial restraint and discipline are as necessary to the orderly administration of justice as they are to the effectiveness of the army. The duty of restraint, this humility of function should be a constant theme of our judges. This quality in decision-making is as much necessary for judges to command respect as to protect the independence of the judiciary. Judicial restraint in this regard might be better called judicial respect, that is, respect by the judiciary. Respect to those who come before the court as well as to other co-ordinate branches of the State, the executive and the legislature. There must be mutual respect. When these qualities fail or when litigants and public believe that the judge has failed in these qualities, it will be neither good for the judge nor for the judicial process. The Judge’s Bench is a seat of power. Not only do judges have power to make binding decisions, their decisions legitimate the use of power by other officials. The judges have the absolute and unchallengeable control of the court domain. But they cannot misuse their authority by intemperate comments, undignified banter of scathing criticism of counsel, parties or witnesses. We concede that the court had the inherent power to act freely upon its own conviction on any matter coming before it for adjudication, but it is a general principle of the highest importance to the proper administration of justice that derogatory remarks ought not to be made against persons or authorities whose conduct comes into consideration unless it is absolutely necessary for the decision of the case to animadvert on their conduct.’

Chief Justice of India, Bhagwati, in State of Madya Pradesh & Ors v Nandlal & Ors, in expressing his strong disapproval of the strictures made by the judge, stated:

‘We may observe in conclusion that judges should not use strong and carping language while criticizing the conduct of parties or their witnesses. They must act with sobriety, moderation and restraint. They must have the humility to recognize that they are not infallible and any harsh and disparaging strictures passed by them against any party may be mistaken and unjustified and if so, they may do considerable harm and mischief and result in injustice. Here, in the present case, the observations made and strictures passed by BM Lal J were totally unjustified and unwarranted and they ought not to have been made.’

How could I under these circumstances give evidence under oath?

Y.A., when making the order for the witnesses offered to the defence for interview in court, gave a lifeline to the witnesses in stating in open court that they could refuse to be interviewed. Y.A. did not in doing so evenly handle the scales of justice. Y.A. created and perpetuated an imbalance unbecoming anyone holding the mantle of justice. In fact, the Prime Minister, Dato’ Seri Najib Tun Razak, and his wife, Datin Seri Rosmah binti Mansor, former Inspector General of Police, Tan Sri Musa Hassan, and SAC Dato’ Rodhwan bin Ismail who featured prominently in the evidence of PW1 came to the interview room echoing similar protests namely, “We are not prepared to be interviewed” with the Prime Minister saying Y.A. suggested this could be done. These were material witnesses compelling the defence now to resort to causing subpoenas to be issued for their presence.

Y.A. has created a position under which I cannot give evidence under oath. I say, with all the force at my command, that I would have been prepared and willing to give evidence under oath but for the handicaps foisted on me, in the manner Y.A. has conducted the trial and in the manner in which the Court of Appeal judgment dated 6th July, 2011 would have come to the notice of Y.A. with regard to what I have stated herein before.

My trial is an adversarial one and Y.A. ought not to have descended into the arena by suggesting witnesses offered to the defence could deny to be interviewed. It did not come within the province of Y.A. to do so.

My alibi witnesses made known to the prosecution were in fact included in the prosecution list of witnesses which was not supplied to my lawyers. They were defence alibi witnesses. I am informed this is the first time this has been done.

In fact, the owner of the unit 11-5-2, Haji Hasanuddin bin Abd Hamid, had been harassed by the police for a total of thirty hours in the recording of his statements which were all video recorded. This was obvious when he was interviewed by the defence lawyers in my presence. The police investigation has scuttled my defence.

To make a mockery of the situation, the prosecution offered at the close of their case an alibi witness named, Fitria binti Dipan, who by their own admission cannot be traced.

The complainant's allegations are pure fabrication

As I have said at the outset, I categorically deny the allegations made against me by the complainant.

The complainant stated in evidence on 26th June, 2008 he arrived at Kondominium Desa Damansara at 2.45 p.m. to discuss work matters and hand-over documents given to him by one Ibrahim Yaakob [my Chief of Staff] to myself. He says he stopped his van at the security post and mentioned the code name ‘Mokhtar’ to the guards at the condominium before being allowed in. He parked his vehicle and took the lift to Unit 11-5-1 where I was allegedly seated at a dining table in the living room. He says he sat down at the same table and started the discussion. He told the court of the crude manner in which I had allegedly asked for sex.

The following appears in his evidence thereafter (as attached)

When questioned, he answered that he was angry and scared and that he was not prepared to do it but purportedly because I had appeared angry, he eventually obliged. It has to be observed at this stage the complainant could have, on his own admission in examination-in-chief, left the room as there is no evidence of any attempt by me to latch the door from inside.

He had further alleged that he was ordered into the bedroom and that he did enter out of fear. Even at this stage, the complainant had the opportunity to leave the living room. He did not do so. The rest of the evidence in this regard clearly showed that the complainant had every opportunity on every occasion to flee but he did not do so. His reason was that he was petrified by fear. But such a reason flies against the facts. Here is a man in his early twenties, a six-footer, physically fit and robust and with powerful connections in the top police brass as well as the political elite with access to the very inner sanctum of power. Additionally, he has also been a key UMNO student operative, having undergone the rigorous training conducted by the Biro Tata Negara of the Prime Minister’s Department.

And here I was a 60-year-old man with a history of back injury who had undergone a major back surgery holding no position of power. If indeed I could have exercised any kind of undue influence or mental pressure on him, this could have been easily neutralized by a quick phone call to his connections. As regards the fear of physical harm, it would take a great stretch of the imagination to suggest that I could pose any physical harm to him.

Under cross-examination, the following significant evidence was elicited from the complainant. He admitted that he had brought along lubricant and had himself voluntarily and without hesitation applied it. He claimed that carnal intercourse took place and that it was painful and coarse. However, this was clearly not borne out in the medical evidence in the prosecution case suggesting fissures or tears. After the alleged act, he testified that he had a drink and engaged in a friendly conversation with me. Startlingly, no attempt was made by the complainant to seek immediate medical attention. Instead, he attended a PKR function the following day. In the evening, he joined a meeting of the Anwar Ibrahim Club at my house without showing any sign of either emotional or physical discomfort let alone trauma. On the contrary, he was going about matters in a calm and confident manner. His conduct therefore is totally inconsistent with having been violated. In any event, he neither made a police report nor sought medical attention, notwithstanding that two days prior to the alleged act, he had met with Najib and Rosmah as well having talked on the phone with Musa Hassan and met with Rodhwan at a hotel.

It is obvious, from the evidence above, that the complainant was lying through his teeth although Y.A., despite the compelling evidence to the contrary, found him a truthful witness at the close of the prosecution case. This defies logic, let alone the law.

Then again, the expert evidence with regard to DNA led in the course of prosecution case through PW4, Dr. Seah Lay Hong and PW5, Nor Aidora bt Saedon was highly questionable in that crucial information pertaining to the DNA analysis of both the said witnesses which they were obliged to furnish to the court was suspiciously withheld despite them confirming the existence of such information. The real possibility that the samples analyzed were contaminated and even planted were completely disregarded despite such possibilities coming clearly within guidelines set by the international forensic community which were completely ignored, if not, blatantly disregarded by PW4 and PW5 to fit the prosecution’s case. It is obvious had the said possibilities been explored, the conclusions reached would have been very different in that the complainant’s own semen was found in his own anus, there was ample evidence of contributors other than Male Y around the complainant’s perianal, lower and higher rectal region and there was clear evidence of the samples having been tampered with before they were sent for analysis. In such circumstances, the integrity of the said samples was surely compromised. Furthermore, the impartiality of PW4 was highly questionable having regard to the way in which she completely dismissed the very high possibility that the samples sent to her would have degraded to a certain degree by the time they reached her which such degradation was completely absent from all samples in this case. This clearly points to the obvious reality that the samples sent for analysis could not have been what were extracted from the complainant’s person.

Trial within a trial

The Gestapo-like manner in which I was arrested and the subsequent detention and interrogation by the police all betrayed the hands of the political masters at work. What was the need to send in balaclava clad commandos to effect the arrest if not to attempt to flex political muscle and to display pure vindictiveness? These startling facts were completely ignored by Y.A.

Y.A. had made an earlier ruling to exclude the recovery of certain items including water bottle, Good Morning towel, tooth paste from the lock-up at IPK, Kuala Lumpur where I had been detained overnight from 16.7.08 to 17.7.08. However, you reversed this ruling subsequently which is something most shocking and unprecedented.

Although in the Trial Within a Trial, I had adverted to the role of Taufik and Supt. Jude Pereira, the prosecution elected only to call Taufik in rebuttal in the Trial Within a Trial. Taufik attempted to produce a photostat copy of the warrant of arrest which was only marked as an ID and, therefore, could not be considered as evidence in the Trial Within a Trial. A photostat copy of a document is not admissible as evidence in a court of law. It was in the Trial Within a Trial that primary evidence of the document ought to have been given if the original record had been lost or destroyed.

I say it because as I’ve stated earlier, the court’s integrity has been completely compromised and bears all the classic symptoms of a show trial where the script has been effectively written and the outcome a foregone conclusion. I say it because as a presiding judge you have demonstrated beyond the shadow of a doubt your complete lack of impartiality.

The prosecution could not, by producing the original warrant of arrest in the main trial, cure the infirmity. It is in evidence that 3 copies of the warrant of arrest were in the possession of Supt. Jude Pereira. The evidence of the warrant of arrest was available during the Trial Within a Trial.

Even Supt. Jude Periera, whose role was adverted to by me during the Trial Within a Trial, chose not to take the stand despite having had the opportunity to have produced the original copy of the warrant of arrest in the Trial Within a Trial.

It was during the Trial Within a Trial that Supt.Jude Periera should have testified. It was clearly unlawful for the court to accept Supt. Jude Periera’s evidence in the general trial for the purpose of rebutting my evidence in the Trial Within a Trial that the DNA profiling from the Good Morning towel, toothbrush and mineral water bottle had been obtained by unfair methods and unfair means and my arrest, therefore, had been procured unlawfully.

In fact, Supt. Jude Periera’s evidence in the general trial confirms that there had been non-compliance with Rule 20 of the Lock-up Rules, 1953 in that I, after my arrest on 16.7.08, had not been placed in the lock-up from 6pm to 6am the following day. The provisions of Rule 20 are mandatory.

If this was the position in our case, which it was, then, clearly, my being taken to the HKL in breach of Rule 20 reflected unfair means and unfair methods being employed by the police to obtain the DNA profiling from the items set out hereinbefore. The position is further compounded by the evidence of Supt. Jude Periera in the general trial that he did not direct police personnel in charge of the lock-up not to touch the said items despite the police personnel in the general trial before the Trial Within a Trial, clearly, saying that Supt. Jude Periera had done so.

So the position comes to this, Supt. Jude Periera, in his evidence on oath in the main trial, supports the defence case that unfair methods and unfair means had been used by the police to obtain DNA profiling from the items set out hereinbefore.

From the ruling made by the court to exclude the items, it is clear it was based on unfair means and unfair methods employed by the police meaning it was by trick and deception that the police attempted to introduce the DNA evidence.

In any event, from the evidence of DSP Taufik given in the Trial Within a Trial and the general trial, the grounds of arrest could not have been given by him to me in Segambut as this is, clearly, contradicted by the evidence of S.N. Nair and myself.

The question of challenging evidence given in the main trial by DSP Taufik and Supt. Jude Periera does not arise. It was the assertions made under oath by me that my arrest was unlawful and unfair methods and unfair means had been used to obtain his DNA profiling in the Trial Within a Trial stood unchallenged by the prosecution by leading lawful evidence in rebuttal of those assertions. In fact, Y.A. should have drawn an adverse inference against the prosecution for not having done so.

Forensic evidence

The prosecution case rests on the evidence of the DNA and so called “findings of seminal fluid” or “sperm” as they claim. As a matter of fact, this is the only forensic evidence upon which the foundation of the prosecution’s so-called proof rests. Yet, this foundation is erected on shaky grounds though this has not prevented them working in hand in glove with the powers that be to mount an insidious and relentless campaign to vilify me.

The fact is that there is not an iota of evidence, DNA or otherwise, that has ever been found in the premises of the alleged act, not in the wash room, bed room, carpets or anywhere else where such evidence ought to have been found.

Supt. Pereira, despite being instructed to keep the HKL samples (marked B1 to B10) in a freezer, deliberately defied the instruction of Dr Siew Sheue Fong (HKL Forensic Doctor) and also admitted that he was in serious breach of the IGSO, (he even stated he took full and personal responsibility for breaking of the IGSO), when he deliberately kept the HKL samples in his office cabinet for about 43 hrs before delivering them to the Chemist. One must not forget that the alleged act was supposed to have occurred two days prior to the said samples having been extracted. Coupled with this 43-hour delay in delivery to the Chemist, it would mean that the samples were already at least 90 hours old by the time they were examined by the Chemist. Undoubtedly, the samples would have totally degraded. Yet evidence by the prosecution claimed that no degradation of any consequence had occurred.

In any event, even the 43-hour delay alone would have seriously compromised the integrity of the samples in terms of its deterioration due to bacterial action. Also, by not storing the samples in the police exhibit store (which will accord access only to him), his deliberate omission of such strict rules of the IGSO has by his very act, presented an opportunity and possibility of tampering of the samples as access to others was made easier. This was disregarded.

There are also no cogent or compelling reasons both in law and practice for Supt Jude Pereira to cut open P27 (the big tamperproof bag containing all the HKL samples which was sealed and handed over to him), ostensibly to remark them (B1 to B10). It is clear that this act was just a convenient excuse to get access to the individual samples which by themselves were clearly not tamperproof as they were deliberately “sealed” with ordinary and easily removable tapes and easily removable HKL paper seals.

Dr Siew Sheue Fong , as evident in court, was most reluctant to refer to his medical notes during cross examination despite being unable to remember details. During the break he was caught surreptitiously taking a sneak peek of his notes. This dishonest act of a professional doctor who ought to have conducted himself in a fair and independent manner was blatantly ignored. Many a time Dr. Siew and Dr Mohd Razali Ibrahim deliberately chose not to answer pertinent questions put to them by my counsel. Instead Dr Siew and Dr Razali’s evidence was accepted without reservation.

Dr Seah Lay Hong (the Chemist) gave evidence that when she received the 12 HKL samples there were 2 samples that were marked as taken on very different dates, she testified she did nothing to seek clarification from Dr Siew . She further testified that she “gave the benefit of doubt” to Dr Siew. My lawyers submitted strenuously that such acts and/or omissions amount to a serious breach of the cardinal rules of international lab protocols and those of the Jabatan Kimia Malaysia. Despite such blatant exposures and abject failures of non observance of strict rules, Dr Seah’s evidence was well received and in totality when it ought to have been jettisoned in totality for reasons of incompetence and gross negligence.

The defence evidence will show that the prosecution claim to have proof of the presence of “seminal fluid” or “sperm” is completely unfounded. In fact, this purported proof is nothing but pure fabrication, a fact which is not that unusual considering the past history of the prosecution in this regard. If they had had any such forensic evidence, they would have guarded it for dear life rather than let it being handled in such a sloppy manner.


Your Lordship has failed to ensure a fair trial as demonstrated, inter alia, by the following instances:

1. Your refusal during the course of the trial to order disclosure of material critical to my defence, most of which you thought was sufficiently relevant and which fairness required that you should order it to be disclosed before the trial. Your failure to fairly and properly exercise his judicial discretion to order disclosure was not only contrary to Malaysian laws but violated the international standards expected of a modern state which purports to practice the rule of law.

2. Your refusal to act accordingly either to take cognizance or to hold to account those responsible for the flagrant acts of leaking and publishing in the media of prosecution submissions before the matter was heard in court; your utter indifference to my protestations about these transgressions has wittingly or unwittingly facilitated the conspiracy to vilify me in the court of public opinion even as the trial is in progress.

3. Your failure to order that witnesses critical to my defence attend the trial to testify, in circumstances where their involvement was patently material to the issues at trial and recorded under oath in the complainant’s testimony and admitted by statements made by these witnesses to the media. These witnesses relate to the circumstances in which the complainant came to make his early complaints against me. Nothing could be more material to the credit of the complainant.

4. Your finding the complainant to be “a truthful witness” at the close of the prosecution case clearly amounted to prejudgment demonstrating in the process a clear bias against me. Consequently, you have deprived me of my constitutionally guaranteed right to a fair hearing the effect of which is to entitle me to an unconditional release with the charges leveled against me falling to the ground. Notwithstanding this, you have not only failed to order my release but have adamantly refused to recuse yourself from further presiding at the trial.

5. Your arriving at the conclusion that the complainant was a witness of truth without first hearing the evidence of the defence would render the continuation of this trial an exercise in futility. What use would there be for me to adduce evidence to show that the complainant is in fact a liar if you have already found “him to be a truthful witness” and that his evidence is reliable and conclusive and by virtue of that irrefutable? It is untenable and the law does not allow you to do what you have done.

6. Your finding that the complainant has corroborated himself by complaining to the medical doctors of sexual assault was a glaring error of law apart from it being in gross disregard of a finding of fact, that is, that the clinical finding had indicated no evidence of penetration. Additionally, your failure to question why the prosecution has for no apparent reason refused to call in the first medical officer who had examined the complainant to testify. Did it not cross your mind that this failure was prompted by the need to suppress evidence that might be unfavourable to the prosecution?

7. Your accepting without hesitation the forensic evidence as corroborative of the complainant’s account in circumstances where there were obvious concerns about how those samples were obtained, labelled, stored and analyzed.


This entire process is nothing but a conspiracy by Prime Minister Dato’ Seri Najib Razak to send me into political oblivion by attempting once again to put me behind bars. I therefore declare that I have no faith whatsoever that justice will prevail in these proceedings notwithstanding the valiant efforts made by my defence team. As I have said at the outset, this is not a criminal trial. It is a charade staged by the powers that be to put me out of action in order that they remain in power.

In 1998, Tun Dr. Mahathir Mohamad did just that and by his Machiavellian use of all the organs of power of the State, succeeded in getting me convicted for fifteen years for offences that I had never committed. Such was the tyranny and injustice done to me then. And such is the tyranny and injustice being perpetuated today.

Najib Razak is doing the same thing as his mentor did, which is to employ all means within his power through the media, the police, the Attorney General and the judiciary in order to subvert the course of justice and to take me out of the political equation.

This relentless conviction to send me back to prison became all the more imperative because of the major victories gained by the opposition Pakatan Rakyat in the March 2008 elections. Their worst fears were confirmed when it became clear that once my legal disqualification was over I would be contesting for a parliamentary seat and if I won, would be elected leader of the opposition.

It was therefore no coincidence that this new conspiracy surfaced three months after the March 2008 victories and the formal charge against me was made just one month prior to my contesting the Permatang Pauh parliamentary seat. The sequence of events that unfolded prior to the formal charge appeared to be lifted from the plot of 1998 minus, in this latest episode, the black eye affair and the purported victims being led into court as partners in crime. In this second episode, the conspirators have tweaked the plot to make the complainant take on the role of a helpless victim, having realized that the 1998 method of employing Stalin-like confessions and the portrayal of the alleged victims as remorseful and repentant sexual deviants were just too much for the public to believe.

Hence, during the entire examination of the complainant, the prosecution left no stone unturned in their attempt at painting the picture of a helpless, naive and innocent young man who is a witness of truth and whose testimony should be believed regardless of any evidence to the contrary. The fact is that in the entire scheme of things, the complainant, who was just a university drop out working part time helping out my chief of staff, is essentially a pawn being employed by the shady plotters to achieve their devious ends in the conspiracy. And yet it was the decision of the court after the close of the prosecution case that he indeed is a truthful witness.

The preparation entailed in this conspiracy was most elaborate and went all the way to the Prime Minister himself and his wife Rosmah Mansor both of whom by the complainant’s own admission had met him in their residence where he purportedly complained of being sexually assaulted. The initial statement by Najib that he had met with the complainant merely to discuss about a scholarship was a blatant lie only to be retracted later after various exposes were made via the social media and the internet blogs. It was obvious that neither Najib nor Rosmah would not want to be seen to be part of the conspiracy being themselves embroiled in a series of other scandals the details of which have been raised in Parliament which to date have never been categorically refuted. But the stakes in this conspiracy are so high that nothing can be left to pure chance for indeed the prospect of the UMNO led Barisan Nasional losing power to Pakatan Rakyat is becoming more real by the day.

The main thrust of the conspiracy was to fabricate this sodomy charge in order to inflict maximum damage to my character in the run-up campaign to the by-elections. Towards this end, an intense and virulent media blitz was launched concurrently with the staging of rallies and ceramahs where the focus of the debate was not on any social, economic or even political issues but purely on my person and my morality. The plotters for reasons known only to themselves became privy to information which would be used subsequently by the prosecution and went to town in an orgy of character assassination calculated no doubt to ensure a humiliating defeat for me in the polls. But Allah is Great and instead of losing, I won the Permatang Pauh seat with a thumping majority of 15,000 votes.

But the zeal to consign me to political oblivion continues unabated. Najib seems to think that by destroying my political future, it would also destroy the prospects of Pakatan Rakyat ever coming to power.

Hence, nothing is spared to ensure that I will be convicted in order that the UMNO-led Barisan government continues to rule.

Having regard to all the above, I now wish to state that this trial is for all intents and purposes a show trial. I say this not to mock your Lordship nor with animosity towards anyone personally but I sit before you in the dock only to speak what I know and what I believe with conviction to be the truth. And this conviction is borne by having been in public service for more than forty years a quarter of which was spent within the walls of incarceration in Kamunting and in Sungai Buloh. The fact remains that I was condemned to imprisonment not because of any crime that I had committed but for my political beliefs and convictions and more significantly because back in 1998 I had posed a clear and present threat to the more than two decades of autocratic rule of Mahathir.

I say it because as I’ve stated earlier, the court’s integrity has been completely compromised and bears all the classic symptoms of a show trial where the script has been effectively written and the outcome a foregone conclusion. I say it because as a presiding judge you have demonstrated beyond the shadow of a doubt your complete lack of impartiality. I say it because you have consistently refused to recuse yourself even in the face of mounting evidence of your bias against me. I say it too because you have persistently turned a blind eye to the gross violations of protocol and procedure committed by the prosecution while at the same remaining impervious to my protestations about these blatant irregularities that would have without more alerted any impartial judge as to the malice and bad faith of the prosecution.

In the matter of the duty of a judge, the Holy Qur’an commands: “And when you judge between mankind, then you judge justly” (Surah An-Nisaa: 58)

Anwar Ibrahim

Thursday, August 11, 2011

GLCs, Danaharta told to drop all claims against Tajuddin Ramli

Written by Malaysia Chronicle

Putrajaya has directed all government-linked companies, including Malaysia Airlines and the national debt restructuring company Danaharta, to cease all civil suits against Tan Sri Tajuddin Ramli, the former chairman of the national carrier and protege of Tun Daim Zainuddin.

In a letter sent this month to the GLCs and Danaharta by Minister in the Prime Minister’s Department Datuk Seri Nazri Aziz, the GLCs and Danaharta were informed that the Finance Ministry had agreed to settle all outstanding civil suits against Tajuddin, a poster boy of Tun Dr Mahathir Mohamad’s plan to groom Bumiputera entrepreneurs.

“This is to inform you that the government of Malaysia and the Finance Ministry has agreed to settle all civil claims against Tan Sri Dato Tajuddin Ramli and others to be withdrawn immediately in view of the fact that the government and the Finance Ministry have agreed that the said cases will be settled out of court.

“For your information the government has given me the mandate to act for the government in this matter,” Nazri said in the letter sighted.

At least one government agency is expected to withdraw its claims against Tajudin in court today.

Nazri’s letter also directs the lawyers acting for the GLCs and Danaharta to hand over their cases to the firm of Hasfarizam Wan and Aisha Mubarak, a known Umno lawyer.

But the minister made no mention of the terms of settlement with Tajuddin.

Tajuddin was a protege of Daim, the close friend of Dr Mahathir and ex-finance minister who was the architect of the now discredited policy of nurturing a class of Malay corporate captains on government largesse.

Individuals such as Tajuddin, Tan Sri Halim Saad and others flew high in the 1990s but their true mettle was tested during the Asian financial crisis. Nearly all of them fared poorly.

The Najib government’s move to settle all outstanding claims against Tajuddin appears to be an atempt to wipe the slate clean in a financial saga that goes back decades to the height of Dr Mahathir’s administration.

First police report in 2002

MAS had first lodged a police report against Tajuddin in 2002 for allegedly causing the flag carrier to suffer losses in excess of RM8 billion. Tajuddin was the executive chairman of the airline from 1994 to 2001.

According to a report to the Malaysian Anti-Corruption Commission (MACC), a major contributor to the record losses under Tajuddin was the relocation of MAS’s cargo operation in Amsterdam and Frankfurt to a single hub in Hahn, Germany, where the airline was forced to enter into a disadvantageous aircraft lease contract with a company, which was later linked to Tajuddin’s family.

The new cargo hub operation had caused MAS to suffer losses of between RM10 million and RM16 million a month before the project was terminated after the government regained control of MAS in 2001.

The termination resulted in a RM300 million arbitration claim against MAS by the company.

MAS has had a turbulent past decade after the government bought back the airline from the former corporate high-flyer at RM8 per share or about double the market price at the time.

The airline was at the time saddled with a debt reported to be RM9.5 billion.

It then had its books cleaned up in 2002 under the wide asset unbundling (WAU) exercise that was engineered by the BinaFikir consultancy, then led by Tan Sri Azman Mokhtar.

In 2009, Danaharta and two of its subsidiaries won a RM589.143 million suit against Tajuddin. The case arose after the tycoon executed a facility agreement on July 13, 1994 to borrow RM1.792 billion from a group of syndicated lenders to finance the purchase by him of a 32 per cent stake in MAS.

However, from 1994 to 1998, he failed to service the original loan, causing it to become a non-performing loan (NPL).

In 1998, Danaharta acquired the NPL from the lenders but Tajuddin also failed to settle his debts to Danaharta until it was in default of RM1.41 billion as at Oct 8, 2001.

As part of a settlement agreement, Tajuddin was to pay RM942 million in four instalments over three years and that he was permitted to redeem his charged shares at a minimum price per share.

Tajuddin, however, defaulted in the payment of the quarterly interest payable under the settlement agreement and on April 27, 2002, the plaintiffs terminated the settlement agreement and demanded RM1.61 billion from him.

On April 29, 2002, Danaharta, together with its subsidiaries Danaharta Urus Sdn Bhd and Danaharta Managers Sdn Bhd, sold part of the charged shares consisting entirely of Technology Resources Industries (TRI) shares at RM2.75 per share, resulting in total proceeds of RM717.39 million.

As at December 31, 2005, the amount outstanding was RM589.14 million and on May 11, 2006, Danaharta and the subsidiaries commenced action to recover the money.

Tajuddin alleged, in his affidavit, that he was directed by Dr Mahathir and Daim in 1994 to buy a controlling stake in Malaysia Airlines to bail out the government.

Forced “national service”

Tajuddin claimed that his purchase was a forced “national service”, disguised as an arm’s length commercial deal, because the government wanted to appease the investment community and the public.

Dr Mahathir denied in his autobiography published this March that he and Daim had forced Tajuddin to bail out MAS in 1994 for RM1.8 billion.

Instead, Tajuddin was “elated over his purchase” of the national carrier, the former prime minister said in the book titled “A Doctor in the House: The Memoirs of Tun Dr Mahathir Mohamad”.

Recently Tajuddin accused me and Tun Daim of forcing him to buy shares and a controlling interest in MAS. I have checked newspaper reports of the time. Far from feeling coerced, it is obvious that Tajuddin was elated over his purchase.

“He wanted to swap his Malaysian Helicopter shares (a company with two aircraft) for MAS shares (a company with well over 60 aircraft). The government rejected his plan and asked that he pay in cash instead, which forced him to borrow RM1.8 billion.

“He was therefore not coerced by the government to buy the shares, but was forced by his own modest collateral to borrow heavily,” Dr Mahathir wrote.

Tajuddin had claimed that Dr Mahathir and Daim had forced him to buy a 32 per cent stake in MAS from Bank Negara at RM8 per share instead of the market price of RM3.50 to bail out the central bank which was hit by multi-billion ringgit foreign exchange losses.

Tajuddin had said that he did not want to buy the MAS stake as he was worried about financial losses but agreed to do it because it was a directive and also because the government had assured him that he would be protected from financial losses and liabilities.

“I do remember wondering how Tajuddin would be able to buy the airline and when I asked Tun Daim, he explained that Tajuddin’s telecommunications company Celcom (Malaysia) Berhad was doing well,” Dr Mahathir wrote.

- Malaysian Insider

Wednesday, August 10, 2011

Sting is in the air?


We will let the boss of Khazanah say anything he wants at the moment and have his 5 minutes of fame. At least we are spared his new found religiosity. Everyone would be forgiven to think; this is the last word on the issue because the boss of Khazanah says the whatever you called it of the deal between Mas-Air Asia, it is defensible. Among other things he says, this is not a bail out of MAS.

We will take him on these issues.

The first questions we want to ask, why is this deal worked out in the first place? Why AA? It’s operating at how many times its PE? 40 times? Looking at its numbers and the fundamentals, the high PE could mean its stocks are overpriced. That may mean some boys are cooking up the number to set up the market and make killings. Maybe.

If the reason as Dr Mahathir says, MAS can learn from Air Asia on ways to cut costs, you mean those damn exercise carried out by Idris “al Dunlap” Jala wasn’t enough? Why don’t we learn from Singapore Airlines or Qatar Airlines? oh… we want to learn from our home grown talent will be the likely answer.

I know this is a BAD deal because Dr Mahathir said so. Dr Mahathir always say something when he actually mean the reverse.

Yeah baby, what can we learn from AA?

How about the home grown talent’s records then? Well, let’s see. As of the 1st Quarter of 2011, Air Asia (AA) debts amounted to 7.7 billion with cash balances amounting to 1.7billion. This part doesn’t require teaching for MAS. Its executives are renowned masters.

Let’s see further. Hmm, in August 2010. AA announced a deferment of their proposed aircraft purchases but sometime in June 2011 they reversed their decision and proceeded to place an order for an additional 200 new aircrafts at the Paris Air Show. No big deal, we can order as many as we want. Possibly the commissions earned from the purchases dwarf the one earned from the Scorpene submarines which are not submersible.

As of 31 March 2011, as we can see from its 1st Quarter report, AA’s capital commitments stood at RM 19 billion. With the above announcement, an additional RM 54 billion will be added as Capital Commitments. The proposed Capital Commitments of roughly 74 billion will be spread over a 15 year period ending 2026.
In other words, AA has to increase its earnings to an average of 5 billion per annum to meet its future dues. From 2006 to 2010. AA’s revenue grew by 10 fold from 110 million to roughly 1.1billion, an average growth of RM 200 million per annum. How will it reach 5 billion? We will see in the coming months when they rationalize all the routes and what not.

Its cash reserves rose 6 fold from approximately 300 million to 1.7 billion but its debts skyrocketed from 1.05 billion in 2006 to 7.7 billion in 2010, an increase of 700%.

Surely this looks like a debt burden that is spiraling out of control.

But spend baby spend.

This deal is signed, sealed and delivered at an onerous and ominous time. The world economy including Asia’s will be into another maelstrom and air travel will invariably be hit. So what can be done?

One, AA can cancel orders but contract penalties will be onerous. Air Asia wouldnt want to pay penalties would it? The hutang with MAB too, it dragged on what seemed to be forever. That option is no go and why does anyone want to forfeit commissions my man. Also, Tony is probably thinking along what Keynes said- when you are a big borrower, the banks are scared of you. So as a big borrower Tony feels that size does matter after all- it will shield him from foreclosure as banks will be leery of bearing heavy losses! Give it to me bebeh!

But also, a sizeable chunk of those loans are being held by Malaysian banks and in the worst case scenario, the government and the taxpayer will have to pick the tab to avert a financial meltdown cascading down the AA slope. So maybe what a blogger said about enriching AA on taxpayer’s money is true after all.

Let me speak to some financial whiz kids to see the deal from a different perspective. No, I am not going to dignify one commentator with an answer stating that I am a racist for writing this article. If it were that Meranun chap inking this deal, I will wallop him the same. Who cares what race Tony is?you mean i cant criticize dear Tony because he is of a different race and if I do, it amounts to racism? FU!

Take a look at MAS, the whipping boy presently but which is instrumental to further the game being played by bossman Azman Mokhtar and gang. MAS has a paid up of RM 3.384 billion and has a fixed asset value of RM 8.4 billion. Its net asset is at RM 6.962 billion, where cash constitute RM 2.086 billion.

Compare that to the position of Air Asia which we pointed out above, it has borrowings up to RM 7.7 billion and its cash position is RM 1.7 billion. In an earlier article we pointed out that Air Asia has a record of being a bad debtor; it once owed Malaysia Airports over RM 65 million and whenever actions wanted to be taken against them, they run to their chief counsel, then PM Pak Lah. Now of course it has Tun Mahathir on its side and the abrasive and aggressive Rafidah Aziz who can be counted to also be its enforcer.

Malaysia Airlines’ wealth is actually its network and position in the Tier-5 airline market. Malaysia Airlines’ annual operating turnover is RM 12.98 billion versus Air Asia’s RM 3.948 billion. MAS’s operating revenue from airline operation is at RM RM 11.649 billion against Air Asia’s RM 2.839 billion.

This whatever you call it- merger, cooperation, or whatisitsname, is a mystery shrouded takeover with the elements of manipulation and failure of disclosures. What is happening to the position of minority shareholders?

Khazanah is giving away 20.5% of its holding in a company with a bigger network, acclaimed higher standard of service, much bigger operating revenue, stronger assets, lesser debts, more cash and better paymaster track record to another company with lesser track record, but one that excels in hyped up marketing and showing it can make a lot net money in shorter time.

Also, I find it strange to see one merchant bank acting as common adviser to this deal. Then I remembered the present capo dei capi of Khazanah is cheese compared to chalk of another earlier Khazanah boss.

Next …….the hidden hands behind the deal.

Read more here:

Tuesday, August 09, 2011

A Sting job in the air?

I have another installment of my session with the Oracle to write. But that has to wait because I have been itching to write something on the surprise share swap of MAS shares with that of Air Asia. Surprise to whom may we ask? To the unquestioning public and easily duped masses, comes the answer.

You see Malaysians are easily duped into believing that something of this magnitude suddenly crops out. As if, yesterday those people in Khazanah and the current CEO of MAS who is so forgettable in accomplishments, woke up and realize hey man…..MAS is in a mess.

The mess my friends were created a long time ago, the origins of which can be traced when that ex Shell man took over MAS. He quickly undertook a scorched earth policy, selling off assets and whatever else was salable to clean MAS books. They have a refined term for it- asset unbundling which in reality is just asset stripping.

If you allow us a little permission to shout out loudly, we will say FU!.

Yes, the subject did crop up when I was with the Oracle. I asked him what does he make of Fernandes’s posturing to move Air Asia’s whatever office to Jakarta. In Jakarta the situation is even more chaotic, so that if ever Fernandes thought of the idea of moving there, he must be examined in the head. There is absolutely no commercial justification of moving to Indonesia.

Now with these maneuvers Fernandes has proven one thing. Any peddler of pirated CDs can also run an airline. You got chance, ma…….

When I asked the Oracle about this, he said, watch the next moves. There must be something behind the threats to move out to Jakarta. Has Air Asia settled its debts to MAB? Maybe in return to being coaxed and persuaded not to move out to Jakarta, the PM authorizes the writing off of AA’s debts to MAB or forced MAB to take a haircut maybe even a crew cut ?

Two, the threat was the harbinger of what is now taking place- in order not to move out to Jakarta, the Khazanah Mafiosi, headed by the capo dei capi, Amokh, recommended that Fernandes's Tune Air Sdn Bhd be given a sweetener in the form of ownership and possibly the running of our national asset MAS.

Now let’s ask a stupid question? Can a CEO of your rival company be given a chance to take up position in your company and asked to manage your company at the same time? Isn’t there a conflict of interest here?Or is Fernandes being prepared to take over MAS itself?

The move or its threat to move to Indonesia can be regarded as treasonable or at the mildest, putting the country at ransom. These robber barons aided by the comprador capitalists masquerading as consultants and economic experts, residing temporarily in Khazanah are pushing this country to its limits. The majority shareholders of Air Asia are who? Khazanah and EPF? These are government entities.

So how can our government, kick itself in the groin by allowing Fernandes to even make that statement in the first place? Or was it part of an elaborate set up of mind conditioning? That statement was later attributed to the silliness of the journalists quoting Fernandes or something. That also tells us the mental capacity of the journalists we send to cover stories about corporate moves. If they don’t understand, don’t waste your money sending them.

What happened to MAS actually? I asked the Oracle. The oracle asked me whether I know where Munir Majid, connoisseur of Dom Perignon, appreciator of paintings by the masters spends his time? Most of the time he is in London running MAS from there perhaps.

The Oracle was quite direct when he pointed put, perhaps the sales people in MAS are corrupt people. Those stationed overseas who are supposed to sell seats, especially the 1st class seats which would subsidize those traveling on Y Class are not doing do their jobs. They have been at these places for donkey years and where their children practically grow to adulthood there. The Oracle was quite caustic- you don’t sell the 1st class seats, you don’t make money. You make money only if planes are in the air.

We could have been forgiven to believe that after Jala cleaned house, MAS would be in fighting shape to make profits. That only goes to show, the management team which succeeded Jala is useless after all. Or, we can also be forgiven to believe that actually what Jala did was all sleight of hand con job.

If after Jala has cleaned house the succeeding management can’t get the house in order, the first order of the day, is to give them the marching orders.

Let’s look at what MAS has done? While it is now clear, MAS was making losses, can we find out whether during that time, the MAS big shots together with the endorsers at Khazanah ordered new planes? If yes, then maybe we should send the MACC people to investigate whether the book orders were graced with potential massive kickbacks.

The Oracle says, there’s nothing to making orders for the newest and most expensive planes. It’s a well-known secret in the industry; that massive kickbacks follow such orders. And by extension, there is nothing extraordinarily spectacular when the bosses at Air Asia ordered the latest and most expansive planes.

We shall be writing more about this in the coming days.

Read more here:

A morning session with The Oracle of Syed Putera-Part 2

Sunday, 7 August 2011

I am repeatedly asked about the identity of the Oracle. I shall have to decline the request to reveal his identity. The identity of the oracle is not important. It should remain anonymous as long as it can be. Then I will be able to share information which is spoken candidly and in full candor.
I had a good laugh when someone suggested that the Oracle is Sanusi Junid. That someone commented I was lucky to be an intimate acquaintance of the illustrious Sanusi. That is not possible. Sanusi as many of us know has just survived a quite serious heart attack. The Oracle recounted the day Daim receiving a text message a few weeks ago informing that Sanusi was critically ill.
Happily he is doing well now. We wish him a speedy recovery. He is an estimable combatant and a worthy opponent. The Oracle told me, he and Daim rushed over to the hospital to see how Sanusi is faring. I am happy to be told by the Oracle- Sanusi is Sanusi, weakened but indomitable in his unrelenting criticisms on how Najib is handling this country.
Here is the problem says the Oracle. The low estimation of Najib as PM and UMNO president is no longer just confined to the man in the street whose opinions may be justifiably dismissed as idle talk of the chattering class. The same opinions are being said and repeated, by UMNO luminaries, people of some significance indicating a very serious perception problem. Opinions of people of influence can snowball into a movement. And Sanusi is also a committee member of the PENAWAR NGO whose members are made up of previous UMNO MPs. It’s led by a former political secretary of Tun Mahathir and a Mahathir loyalist, Aziz Shamsudin.
But the Oracle isn’t ready to concede any consequence to the group led by Aziz Shamsudin. Precisely because it’s led by Aziz Shamsudin.
I thought Aziz is a Mahathir major domo? Mahathir’s dogsbody?
No, you are not quite correct, said the Oracle. Aziz has proven himself to be a man of all seasons. He was with Tengku Razaleigh then switched allegiance to Mahathir. After Mahathir to Pak Lah. And now?
Penawar hasn’t got the impact potential. Not at the moment anyway. Unless the Old Man throws his weight into the ring.
I haven’t updated myself on this Penawar grouping having just come back from overseas following Tun Daim. I will know more when we meet up with Dr Mahathir.
The Oracle wasn’t even aware that the PAS Ttiwangsa MP, Dr Lo’ Lo’ has passed away.
Many of us have fond memories of Sanusi for 1001 reasons. He can be comical at one time, deadpan serious at another. Sanusi used to regal many of us with his caustic remarks aimed at disarming Najib or discrediting Najib as it were. He related his many conversations with Tun Razak and how Tun Razak was sighing about how Najib can’t cut his teeth into politics. Sanusi would let out a half smile when he tells us of the moment when he cheekily asked- why Tun? Too much skirt chasing, came the answer.
Look, say the Oracle- there is a growing divide between the UMNO president and UMNO and the Malays. What is he doing now? He’s seen as busy finding ways to find money for Chinese National Type schools and that alienates the Malay voters farther. He’s seen as appeasing non Malays more and more. It seems to me his way of solving problems is by paying his way through.
Yet the UMNO warlords from which UMNO and its president depend for political power are not amused. They are NOT receiving projects for their areas. The UMNO leaders in Kedah are complaining for example. They are asked to set the agenda to retake Kedah , yet they are not given resources to go into battle.
Speaking about Kedah, I interjected- what’s your take on the 3 M grouping of Mahathir, Muhyidin and MUkhriz?
I wouldn’t give much credence to the 3M thing. For what purpose? For Muhyidin to ascend to the PM post? He can do that by other means at his disposal. He is enjoying better credibility with his Malay first, Malaysia second attitude with the Malay hoi poloi.
To prop up Mukhriz so that Mahathir will lend his weight to Muhyidin? That, possibly. But how long can Mukhriz survived in politics by hanging on the coattails of the father? It’s like you said about Najib being cornered to come out with his last resort defense when attacked on his policies. All he could muster was- He is Tun Razak’s son. How long can you sell that?
We all have to admit Dr Mahathir somehow refashioned Malaysia after his dynamic personality. But that is soon going to be history as the new generations of voters are more comfortable at accepting the general level of development which we are now enjoying, for granted. Who was behind our country’s drive to modernization isn’t as significance as we of the older generation holds it.
So no, Mukhriz isn’t going to last long banking on the popularity of his father which is beginning to diminish now.
So why should Muhydin be a party to declining forces? - The estimation on Mahathir is fading, while the son hasn’t sunk his presence onto the local stage. Muhyidin isn’t as stupid as he looks. So the 3M thing is perhaps just another red herring to disguise some sort of power struggle within UMNO. It could be even be something the Najib camp is manufacturing to justify isolating Muhyidin.
Personally, I think, said the Oracle- Najib is politically finished. He is isolating himself with a band of highly self-opinionated advisers. He has this habit of abandoning friends and dismissing advice and frank criticisms. He prefers the advice and company of greenhorn advisers. They may be clever people, but haven’t got the political wisdom and savvy.
Who does Najib have for advisers as Mahathir had? Mahathir had Daim, Anwar( then) Sanusi, Megat Junid who were his operatives. They did the ground and underground work so that Mahathir can do what he does best. Which is, projecting himself as an unrelenting crusader to about almost anything on earth. Why was he able to do that- because he had a team of sewer workers. Najib hasn’t got people who will want to do the dirty work for him.
He’s got who? JJ? If it comes to the USA, maybe JJ can do something about it. What about the opinions of others? You look at the issue that is going to explode in France soon. Najib handled that badly. That French lawyer who was deported? He will soon be a cause celebre in Paris. And world attention will be drawn to Malaysia and in particular to Najib. If it were during Mahathir’s time, the issue would have been neutralized by his operatives who would have probably spent time in France diffusing the situation. Najib is inept at these things. Somehow, he has lost the plot.
He came upon the scene sending positive vibrations that things are going to be exciting and different. Over the months, that positive note quickly turned out of tune as he made repeated misjudgments. He promised a smaller cabinet and broke that promise by coming out with an even bigger cabinet. Now his cabinet is more known for being filed up with unelected politicians. You have Idris Jala who seemed to have added even the PM as an admiring fan, Tsu Koon, Raja Nong Chik, Shahrizat, and many others. You want to know what the MCA ministers are doing. They are busy making money. All of them. The mocking phrase of Yen Yen Jalan Jalan Curi Makan is not without substance you know. The market knows it. How many states? Thousand apologies, another article.

Read more here:

Saturday, August 06, 2011

A morning session with The Oracle of Syed Putera — Sakmongkol AK47

August 06, 2011

AUGUST 6 — Once again, I have the pleasure to share with readers, the current thoughts of the Oracle of Syed Putra.

To refresh the minds of readers, the Oracle is the alter ego of Tun Daim Zainudin. You can almost say what the Oracle says is what Tun Daim thinks. It seems now, whatever Tun Daim says is carefully analyzed. And Tun Daim is a dangerous seer. In 2008, he predicted the loss of BN in 5 states. The UMNO generals were up in arms. They vilified him, describing him with all sorts of disrespectful terms. Daim is a pensioner. Daim is out of touch. Daim is irrelevant. When the results came, what Daim predicted was generally true. So how does Daim see the future?

According to the Oracle, it’s a grim future for Umno and BN. the country has no leadership. Announcements were made continuously without understanding what were said. The PM reads the budget in parliament but when it comes to Q&A, Nor Yaakob does the answering. Some people prepare the text and PM who has no time to understand the context, will just read it.

The Oracle related the many occasions when Tun Daim answered he doesn’t understand what the New Economic Model or the various economic initiatives are all about. He only understands basic business models- 2+ 2= 4.

Now if a wily business man like Daim doesn’t understand Najibnomics, what chance do common folks have? Civil servants complained to Daim about having to implement policies which they have no part in giving inputs.

Our economic models are prepared by consultants under the commissar-ship of people like Omar Ong or Idris Jala. The PM’s rating says the Oracle has been sliding precipitously since the Bersih Rally. He handled that one badly. The NGO was already declared an illegal one, yet he allowed them to have an audience with the Agong.

The man who was instrumental in brokering Ambiga’s audience with the Agong was Pak Lah, the former PM. When asked the PM said Pak Lah wanted to help out, but that kind of help hastens his plummeting rating.

The Malays have a saying for this — sokong membawa rebah. All is not well with our country. The majority of the Chinese are not going to vote BN. Moving from one Chinese based party (MCA) to another( DAP) presents no mental hurdle for the Chinese. They are businesslike in their decisions. One, the Chinese are aware that Chinese interests are better looked after by a more aggressive political party.

Two, stepping out from Umno’s shadow offers some satisfaction for the Chinese because doing so, remits a form of punishment to their cocky big brother. The Chinese have long wanted to teach MCA a lesson. MCA will not be able to stop this rising disenchantment. Most important of all, the general economic independence of the Chinese gives them the luxury of choice. They can choose and Umno and BN don’t appear on their radar screen. MCA will probably be left with 5 parliamentary seats. MIC will be completely annihilated. It will be reduced to another PPP and IPF and operates on the same level as Nalakaruppan’s party. The more pragmatic Indian parties will chose to work with whoever comes into power for the sake of the Indian community. The Indian parties do not have friends. They have only permanent interests.

But let’s see what the Oracle says are Daim’s prognosis about my party, Umno. It seems Umno people continue to enthrall themselves into believing that all is still well. They have no inkling that the next GE will be the most formidable fort them.

Some commentators in my blog say, the Pakatan people can never influence the Kampong people. What keeps the kampong people loyal at the moment are the reasonably good prices of rubber and palm oil. They couldn’t care less about the quality of BN and Umno’s leadership. They are worried about the roofs over their heads, food on the table, schooling for the children, jobs for them.

The bumper years of good rubber and palm oil prices are slowly and painfully being cancelled out by the rising cost of living. The price of essential goods keeps in rising while incomes remain stable. Once that tenuous balance is dislodged, then the full wrath of the people will be seen.

So don’t go on banking on the steadfastness of kampong people. Their own political perceptions are continuously being leavened and moderated by those of their more socially and politically conscious children. Sons and daughters come back to kampongs to debrief parents.

The younger generation’s views are shaped by the new media of the internet, twitters and Facebooks. They tell a different story from those which parents are accustomed to. The new stories the children bring demolish the once captive minds of the older generation- minds that were once shaped unchallenged by the old tired and boring media.

The Oracle has been away for quite some time. He has been with Daim on an extended overseas trip. So when I asked the Oracle yesterday (Thursday) where has he been — all he said was somewhere out of Malaysia. I asked why? Nothing to do here in Malaysia. But were you keeping abreast of what’s happening in Malaysia? Of course I do. What’s your thinking on the current political and economic situation? So here are some of the things he said. Najib’s personal rating has plummeted since the Bersih March. It has plummeted alarmingly. Suddenly people realise that Najib is all poster boy, long on popularity, unfortunately short in ability. His handling of the Bersih march was done in a very whimsical way. You can say, the quality of the person handling the Bersih case is like the leadership of a pengerusi JKKK.

A year ago when Najib took over Pak lah, the general perception was that Najib is much better than Pak Lah. He has the looks and better articulation. A few months ago, the Oracle told me, Najib is slightly better than Pak Lah. Now, the perception is Najib is even more terrible than Pak Lah. The PM must be having some communications problem with the Agong.

I was told that Daim recommended the PM speak to Agong before the Bersih event. How the recommendation got transmitted, I am not privy nor did I asked the Oracle.

He (Najib) should have advised the Agong at that time to declare that the King is ready to meet up with Bersih reps and received the memo. While at that, the King could have advised Ambiga and others, as responsible and law abiding citizens that maybe no rally was necessary as now the memo has been received. Or if the march were to be allowed even after an audience with the King, make Amibiga and others responsible for the conduct of marchers.

The police could simply be ordered to step out of the way, save for those looking out after traffic management. Then if anything disorderly did take place, the organisers of the rally will be held accountable.

But the problem is, Najib has too many advisers. They don’t have the political savvy. Their responses are the kind you take directly out from the textbooks read mostly by 3rd world despots. Rally marchers? Use teargas and batons. Get physical with them! Jail them! But the problem here is we no longer lived in a bordered world. It’s now border-less.

If FBC dishes out sycophantic and pandering rendition of events, other media practitioners are more critical and more believable. Najib may say with a poker face about minimal force being applied and while talking to Defterious, scenes depicting actual physical altercations and teargassing are being shown worldwide.

That would make Najib looked like a liar. To be continued……………….how many states will fall. —

* Sakmongkol AK47 is the nom de plume of Datuk Mohd Ariff Sabri Abdul Aziz. He was Pulau Manis assemblyman (2004-2008).