The Brisk Business of Corruption

by Jeswan Kaur (12-29-11)

One must beware of ministers who can do nothing without money and those who want to do everything with money– Indira Gandhi.

Corruption has become a way of life for politicians in this country. Under the disguise of defending the rakyat’s well-being, these unscrupulous politicians are in actual fact looking after the welfare of their own kith and kin.

This “C” (corruption) factor while a favourite among the politicians has become a menace and bane for the people, most whom have become exasperated at the after-effects of a corrupt system.

Earlier this month, the Transparency International Malaysia survey revealed that for the third consecutive year, Malaysia recorded a decline in its Corruption Perception Index score, its 4.3 score slightly lower than the 4.4 recorded in 2010 and much lower than the government benchmark of 4.9.

Is it fair to deduce that a lack of political will is the reason corruption in Malaysia is doing “brisk” business? If the recent cases of palm greasing involving politicians who also hold ministerial responsibilities are any indication, then yes, there is no commitment coming from the “powers that be” to weed out corruption from the system.

Nipping the malignant bud of corruption is not something the federal government is interested in. Instead, the government under the Barisan Nasional flagship is doing the reverse.

When Prime Minister Najib Tun Razak “unceremoniously” deported French human rights lawyer William Bourdon five months ago, Suara Rakyat Malaysia or Suaram was convinced that the premier and his government are “inextricably linked” with the Scorpene submarines corruption scandal.

Bourdon was representing Suaram in a high-profile case filed against submarines’ vendor DCN at the Parisian courts. (In 2002, Najib then the defence minister, sanctioned the purchase of the Scorpene submarines amid accusations of gross over-pricing and kickbacks).

“It is the biggest mistake yet by the Malaysian government for it is an affront to diplomacy, to international law and common decency. It was a totally arbitrary act by the Home Ministry and a gross abuse of executive power of the Najib administration,” Suaram director Cynthia Gabriel retorted via a statement on July 27, four days after Bourdon’s deportation.

‘Leadership by example’

Najib has since denied having had a hand in any financial impropriety in the submarines deal. Now, following in his wrong steps is the Women, Family and Community Development Minister Shahrizat Abdul Jalil who is vehemently denying any involvement in the misappropriation of funds allotted to the National Feedlot Centre which is headed by her husband Mohamad Salleh Ismail and the couple’s children.

Details furnished by the opposition party PKR allege that Shahrizat and her family have misused the RM250 million meant for NFC by purchasing a luxury condominium in Bangsar, Kuala Lumpur and another one in Singapore, a Mercedez Benz and an all-paid Umrah pilgrimage.

Pressure has been mounting on Shahrizat to quit serving the rakyat but no thanks to the nation’s top two leaders i.e. Najib and his deputy Muhyiddin Yassin who are playing “godfathers” to her, the 58-year-old Shahrizat seems unfazed and is capitalising on her 16 years experience as a politician to cover up her tracks.

Najib thought deporting Bourdon would be the end of his worry, but not as far as Suaram is concerned, with this human right group going all out to pin the premier down.

Shahrizat should learn her lesson and own up before she is rejected by the people, “unceremoniously” that is.

Corruption thriving in Malaysia

The NFC scandal has become Shahrizat’s worst political nightmare. On Dec 23, the Malaysian Anti-Corruption Commission (MACC) raided the NFC office at Mont Kiara. A day earlier, the MACC set up a special team to investigate allegations of corruption involving NFC.

While the NFC scandal remains the hottest topic at present, also having caught the people’s attention was news that aides of Najib and Muhyiddin and a deputy minister were allegedly “bought” by a businessman to obtain contracts from the government and its agencies, as exposed by a blogger, “The Whistleblower711”.

Deputy Finance Minister Awang Adek Hussin, who was implicated, claims that his “conscience is clear” and the money received was not corruption but instead for the benefit of the people of Bachok, where he is the Umno division chief.

Whatever their excuses, Shahrizat, Najib, Awang Adek and Sarawak Chief Minister Taib Mahmud best take cognisance of the fate that befell former Selangor menteri besar Dr Khir Toyo who on December 23 was jailed to one year after he was found guilty of obtaining for himself and his wife a valuable property at a consideration Khir knew was insufficient four years ago.

The court also ordered that Khir’s land and bungalow be forfeited. So much for Khir trying to ride on his MBship to amass for himself a fortune. Politicians must at all times remember that you are here to serve the rakyat – “people first and not money” must be your undertaking.

Jeswan Kaur is a freelance writer and a FMT columnist.

MACC Probe on NFC: Another Political Sandiwara in the Making?

by Wong Choon Mei, Malaysia Chronicle

Amid signs that Prime Minister Najib Razak's UMNO is fast unraveling, hit by massive graft and infighting amongst its top leadership, the Malaysian Anti-Corruption Commission has announced that a special team will be formed to investigate claims that UMNO Minister Shahrizat Jalil's family had squandered public funds allocated to the RM250 million NFC cattle livestock project on personal items and luxurious assets.

However, instead of appeasing public anger, all eyes are now on the drama at play in UMNO. While Shahrizat has hinted she was ready to quit, it is unlikely that she will allow herself to be railroaded or be made an easy scapegoat of by her own party mates.

All eyes are now on how Najib, himself the subject of a probe by the French government over allegations of having taken a 114 million euros or RM570 million kickback from French naval giant DCN for the purchase of 2 Scorpene submarines, will deal with the issue. Najib is also the UMNO President.

“Tell me, which UMNO leader does not have problem?” was Shahrizat's sharp retort when asked to comment whether she would heed the growing calls to resign, as reported in the Sin Chew newspaper a few days ago.

Lip service expected from the MACC

Indeed, public cynicism is inevitable given that the MACC had previously passed the buck to the police despite receiving reports from Opposition Leader Anwar Ibrahim's Parti Keadilan Rakyat.

The Najib administration lost further credibility when Deputy Inspector General of Police Khalid Bakar publicly declared there were no elements of criminal breach of trust during the recent UMNO General Assembly. Khalid, often called a stooge for the UMNO-led government, was accused of 'play-acting' in a bid to save the UMNO leaders embarrassment.

"We have acted accordingly by collecting evidence and statements since the issue was reported in the Auditor-General's Report. A large part of the issues brought up in the latest complaint (against NFC) had already been acted upon,” a defensive-sounding MACC investigations director Mustafar Ali said in a statement released on Thursday.

The MACC was also quick to stress it could not divulge details of investigations as stipulated under Section 29(4) of the Malaysian Anti-Corruption Commission Act 2009. “We call on the parties to give their full co-operation by not politicising the issues which could affect our investigation,” Mustafar added.

Given the tone of the statement, it was clear to political watchers that the MACC was not going to do much to uncover the dirt in NFC or National Feedlot Centre, a project aimed to raise local supply of beef to up to 40% of consumption and keep prices affordable.

The project was awarded to Shahrizat's husband, Salleh Ismail, and her children in 2006 by then then Agriculture minister Muhyiddin Yassin on the prodding of UMNO Youth Chief Khairy Jamaluddin, the son-in-law of former premier Abdullah Badawi. Najib also played a part in approving the project to Shahrizat's family.

Another shameless sandiwara

Cynicism is high that this was the latest 'sandiwara' or drama enacted by UMNO to tell Shahrizat to quit her Cabinet post and take responsiblity before general elections are held next year.

No one is expecting any major change in the attitude of the top UMNO leaders, who are renowned for their corruption-tainted records - as Shahrizat herself alluded to.

"Both Shahrizat and UMNO are shameless. The issue is why such a loan was given to her family when she was holding the position of a Cabinet minister. It is impossible they could have got the loan if she were not a minister. She and her family have deprived needy and hardworking Malaysians from the benefit of the fund (meant to supply everyday Malaysians with a cheap source of beef)," PKR vice president N Surendran told Malaysia Chronicle.

"It is also pointless to blame Shahrizat alone. UMNO bears the biggest blame. Benefiting cronies and families from public funds is a central part of UMNO's political culture."

Victim of the Mahathir legacy of corruption?

Furthermore, those who have called on her to quit before she is "chased out" include former premier Mahathir Mohamad, notorious for defining and expanding UMNO's feudal system of politics where the ruling elite have carte blanche over almost every aspect of economic and political life in Malaysia.

In the recently released Global Financial Integrity report, Malaysia was identified to be the 4th most corrupt nation in the world, racking up a total of US$338 billion (RM1.08 trillion) in illicit outflows over the first decade of the century.

GFI also said the Malaysian increase was “at a scale seen in few Asian countries.” In January, it had reported that RM930 billion flowed out of Malaysia from 2000 to 2008, growing to RM218 billion per year from an initial RM71 billion in that period.

“This report should be a wake-up call to world leaders that more must be done to address these harmful outflows,” GFI director Raymond Baker said in a press release.

Upon release of the GFI's report in January, it was telling that one of the first UMNO leaders to cast doubt on the renowned Washington-based body was Mukhriz Mahathir, the youngest son of the former PM. Now 86, Mahathir had ruled Malaysia for 22 years and is widely believed to be the one who has salted away the biggest fortune at taxpayers' expense.

Malaysia Chronicle

Cowgate: Is MACC blind to Corruption?

by Kim Quek@www.malaysiakini.com

COMMENT Many people may be wondering why the MACC washed its hands off investigation into the National Feedlot Corporation (NFC) scandal and passed the buck to the Police. And now, chairman of MACC Abu Kassim Mohamed gives us his answer.

Speaking to Sin Chew Daily reporters after an international conference on December 14, Abu Kassim (right) explained that the complaint MACC received pertained to abuse of a public loan, not abuse of authority; and hence, it is a case under the Criminal Procedure Act to be investigated by the Police, and not a corruption case that falls under the jurisdiction of MACC.

I presume Abu Kassim was referring to the complaint on the use of part of a RM250 million government soft loan to purchase luxurious condos and other personal properties by the family of Wanita Umno chief and Minister of Women, Welfare and Community Development, Shahrizat Abdul Jalil.

But hasn't Abu Kassim been acting rather amateurishly as the nation's top corruption buster, akin to the proverbial blind men touching the elephant?

Like an elephant, which is made up of many features, this NFC scandal is a multi-faceted monster that gobbles up large quantities of public funds.

Project riddled with corruption

A major government project was dubiously awarded to an incompetent and unqualified minister's family, for which a huge government soft loan was granted and disbursed under highly questionable circumstances.

This enabled the project recipient to squander on improper purposes, resulting in a project failure that not only thwarted an important food production scheme, but also imperiled the recovery of such public funds.

Needless to say, in such a scandalous project failure, more than one minister, and more than one ministry's officials, could be incriminated in offences that encompass corruption, collusion, breach of trust and criminal negligence - in the award of the project and subsequent disbursement of funds.

In this entire chain of criminal acts, the purchase of condos is only one link - not the most important one. The bigger question is: Why was the project awarded to Shahrizat's family? Who decided it?

The next question is: Who should be responsible for failing to control the proper disbursement of loans, and for failing to monitor the proper utilisation of the funds?

On the first question, the culprits at the forefront are present and past ministers of agriculture and agro-based industries (Noh Omar, Mustapa Mohamed and Muhyiddin Yassin ), and present and past ministers of finance (Najib Abdul Razak and Abdullah Ahmad Badawi), for having been involved in the award of project and subsequent disbursement of funds.

Profitable political handshake?

Apart from these apparent culprits at the protocol level, what about possible behind-the-scene political machinations linked to the project?

Readers will recall that Shahrizat was engaged in a heated contest for Wanita UMNO chief against her predecessor Rafidah Aziz in the last UMNO party election and succeeded in ousting the latter that many observers believed as fulfilling the wishes of the top party leadership.

Under the circumstances, it may not be entirely far-fetched to ask whether there was any link between this RM250 million project and Shahrizat's (left) successful mission to oust Rafidah.

This is an aspect that no conscientious investigator should overlook in the probe into the scandal.

On the second question of disbursement of loans that resulted in the splurging of funds for improper purposes, both the agriculture and finance ministries cannot possibly shirk their responsibility, as it is under their joint scrutiny and approval that every disbursement was made.

For that reason, the two ministers, as well as the officials concerned from the two ministries, have to be probed.

With such abundance of corrupt activities going on at the political leadership level as well as the administrative level, can you imagine our MACC telling us that there is nothing it can do regarding the scandal?

Can you imagine Abu Kassim telling Sin Chew reporters that the problem with the people is that they don't understand the law and cannot distinguish white from black, and that they simply tango with the opposition to condemn MACC?

Abu Kassim further said: "Our biggest problem is how to change people's mindset and how to convince them that MACC is independent.Under the present political atmosphere, corruption is politicised and MACC's alleged lack of independence is used to topple the government".

Treating people like fools

Hearing such comments, one can't help feeling that Abu Kassim has taken the people for ignorant fools.If MACC is independent, can Abu Kassim tell us why there has been no response whatsoever over the mountains of evidence and numerous reports lodged with it over the now world famous timber baron of Sarawak, Taib Mahmud, the chief minister?

A Sarawak NGO called Movement for Change Sarawak (MoCS) submitted a two-inch thick report in March, documenting Taib Mahmud's corruption - no response to date.

Sarawakian Willie Kajan submitted his second report by travelling all the way to Putrajaya in January - no response. Sarawakians James Wong and John Brian submitted their reports in June and August 2010 at Shah Alam and Putrajaya respectively - no response.

Many others, including political party leaders, have also lodged their reports with the MACC, to be met with the same fate.

As for the current NFC scandal, why is Abu Kassim acting like a blind man, oblivious to the swirling controversy that has exposed voluminous evidence of corruption and abuse of power through numerous press conferences and Internet postings over the last two months?

Why is it that Abu Kassim can't see the word "corruption" when it is staring at him from all directions? We understand why Abu Kassim (and the MACC under him) is acting the way he does, but at least spare the people the insult of treating them like fools.