Can Umno Change or Cows Fly?

By Kee Thuan Chye

UMNO is beyond redemption. At its general assembly in December, the message it sent out was suspicion of others and hatred for them, and a desperate desire to win the next general election.

Its President, Najib Razak, once again proved what many of us have long suspected – that he is a dissembler. He exposed the ultimate lie behind his 1Malaysia slogan by saying things that would divide the races rather than bring them together. He set the trend for delegates at the assembly to harp on the threats to UMNO from other races. It was disgraceful coming from the prime minister of the country. It was supremely irresponsible.

Worse, two days after the assembly ended, he appealed to the right-wing NGO Pertubuhan Kebajikan dan Dakwah Islamiah Malaysia (Pekida) for support. This has to be the final nail in the 1Malaysia coffin.

To cap it all, UMNO showed its partiality to cronyism by defending Wanita leader Shahrizat Abdul Jalil over the scandal surrounding her family’s business, the National Feedlot Corporation. One or two colleagues called for her to step down, but the overwhelming majority stood by her and castigated the Opposition for exposing the scandal.

This begs the question: Can UMNO change? As the major party in the Barisan Nasional (BN) government, can it truly stand up for other races as well, and work for their well-being? Can it stay clear of corrupt practices? Can it stop dishing out favours and projects to party leaders and their cronies? Can it save Malaysia from financial meltdown or will it rather bleed our coffers dry?

The online news website The Malaysian Insider sums it up eloquently: “UMNO looks set to win the polls in the next general election but yet looks woefully ill-equipped to lead a multi-racial country. … One expects delegates to articulate a vision to continue its previous success but that did not happen. Instead, delegates harped on age-old themes of having their culture and faith eroded by political foes taking over the country. That they are the only guarantee of faith and culture. What about the economy? What about the reforms? What about Malaysia? … Everything is centred around UMNO... But they didn’t articulate the vision for continued success. … Instead, everyone is at fault except those in UMNO.”

And yet Najib could tell Pekida: “If we miscalculate and choose the wrong side, our country could very much end up like Greece.” Surely, he must mean that the wrong side would be BN. The way it has been going – awarding projects to cronies who have no track record; continuing to allow overpriced purchases by government departments, despite what the Auditor-General uncovers year after year; giving out money like there’s no tomorrow in order to win votes, such as the substantial pay rise for civil servants – BN is more likely to lead us down that way.

The civil service is bloated, with 1.4 million employees, but Najib criticised Pakatan Rakyat (PR) for suggesting it should be trimmed. According to his top public service official, 1.4 million is “the right size”. How this is so puzzles me. Japan has a population of 127 million and its civil servants number just over a million. We have a population of 28 million and our civil service is as large as Japan’s. It seems to me that trimming down the civil service is more likely to save us from going Greek.

And so I think we should not take any more risks with UMNO. Especially now that we have an alternative. PR has shown itself capable of running the four states under it and earned positive ratings from the Auditor-General and a few others. It’s time to see whether they can bring reform to the country.

Najib of course insists that PR will lead us to our doom, but what are his words worth anyhow?At the UMNO general assembly last December, he presented a grossly untruthful picture of the DAP to strike fear into the hearts of the Malays. He accused the party of being anti-Malay, anti-Islam and anti-royalty.

But after PAS won Terengganu in the 1999 general election, who stopped the state that is 90 per cent populated by Malays from getting its oil royalties and substituted it with the lesser Wang Ehsan? Was it the DAP?

Who created a constitutional crisis in 1983 and curtailed the powers of the Malay royalty? Was it the DAP? In 2008, who protested against the Terengganu sultan for not accepting Idris Jusoh as the menteri besar, and insulted His Highness with the word “natang” (animal)? Was it the DAP?

Who gave away citizenships overnight to immigrants, legal and illegal, in Sabah to ensure they kept UMNO there in power? Was it the DAP? So where is the truth in Najib’s warning that if BN did not continue to be the government, the Malays would be under threat? Who has proven to be the real threat?

But still, he called on Pekida “to defend the current government” – to guarantee the special position of the Malays, the dignity of Islam, the preservation of the Malay royalty. He thumped his chest and yelled, “We are warriors!” and “We will not surrender even an inch!” He led the crowd in cries of “Hidup Melayu!”

Someone was moved to comment on Facebook, “Listening to what Najib said, it feels like we’re at war.” A knowing friend warns me: “Do you know what Pekida is about? They are like gangsters. They have secret codes, like particular handshakes or the way they hold their cigarettes. They have 2 million members. These are the people we should worry about.”

Indeed, when the film KL Gangster came out last year [2011], Pekida objected to its portrayal of secret codes and use of words like “abang long” and “ayahanda” that apparently cut too close to reality.

This prompted blogger Ibnu Hasyim to ask, “Apakah benar kononnya filem itu membuka ‘kod rahsia pertubuhan’ Pekida? … Terkejut kita, apakah pertubuhan dakwah itu pun mempunyai ciri-ciri pertubuhan bawah tanah atau gangster? Pekida adalah Gangster Melayu? Perlukah pertubuhan itu disiasat polis? Mana ada dakwah dan kebajikan pakai ‘kod rahsia’ pertubuhan?” (Is it true that the film apparently exposed ‘secret organisational codes’ of Pekida? … We are shocked, does this missionary organisation have the characteristics of an underworld or gangster organisation? Pekida are Malay Gangsters? Should the police investigate this organisation? Why would missionary and welfare organisations use ‘secret codes’?)

Najib’s appeal to Pekida and his words at the UMNO General Assembly spell desperation. That’s clear to see because UMNO has no case left to make for its continued rule. News of its corruption is bursting out. Soon after the general assembly ended, the Singapore Straits Times reported that ex-menteri besar Abdul Hamid Pawanteh was involved in the Alstom bribery case. He has, however, denied it.

Earlier, questions had been raised about Defence Minister Ahmad Zahid Hamidi allegedly flying to Saudi Arabia for his haj in a private jet, and about “ridiculously overpriced” rural development projects in Sabah allegedly linked to senior BN politicians. The worms are crawling out of the can.

UMNO cannot defend itself. So it lashes out at enemies. It fabricates untruths about its enemies. Sadly – and sickeningly – UMNO resorts to rousing tribal emotions and harping on the issues of race and religion. After 54 years in power, it still plays those explosive cards.

As the blogger Sakmongkol AK47 puts it: “UMNO gets on by making Malays believe that they are being besieged, attacked, assaulted and victimized. That’s how UMNO can survive. How does it do that? By fabricating lies and manufacturing stories. The Chinese are going to eat you up. The Chinese are going to Christianize you. They are going to wipe out the Sultans, ban the use of Bahasa Malaysia, and abolish Jawi and so forth. You feed on people’s irrational fear. You want to maintain stupid and mute people. Can you sustain whole people like that, turning people into xenophobes? I say this is a recipe for destroying Malays, not cultivating them to become self-confident people.”

UMNO has been doing that for decades. It has not evolved. So how can it change? How can such a party still be allowed to rule multiracial, multi-religious, multi-cultural Malaysia? If we continue to vote for UMNO (and Barisan Nasional) it at the next general election, what would that make us? Dumb and dumber?

Ambassador Malott on recent Political Developments in Malaysia

Chronicle: 1. Firstly, the hottest Question in town still remains, why did Najib pull back from a conviction (of Anwar Ibrahim) ? Most Malaysians believe in a conspiracy but not an independent judiciary as BN has claimed. The story around town is that the Judge had already written a conviction judgment and had to make do with a verbal acquittal that lasted all of 60 seconds. Do you see internal UMNO power play in this, was Najib fearful for his own legacy and how he will be remembered if he were to adopt a 'hardline' approach on this issue?

Malott: I don’t have a clue why the Judge ruled the way he did. It really was surprising. There are so many well-documented reports of political interference and misuse of the judicial system. For example, not just Anwar but also the case of Ramli Yusoff and the failure to seriously investigate and prosecute the deaths that occurred at MACC. Earlier in the trial, this Judge reversed his own decision on whether the DNA taken from the comb and towel that Anwar used in jail was admissible, and it seems clear there was pressure on him to do so. Otherwise, why would he reverse himself? But now he ruled in Anwar’s favor. It was a shock. As I said in my op-ed, the government might have decided that Anwar was a bigger threat to them in jail because he would be a rallying point for the opposition. We can all speculate, but only the judge knows why he did what he did.

Chronicle: 2. Perhaps the answer to (1) will have a bearing on this second Question. Do you think that the Najib administration will push for an appeal? If it does, what will it do to Najib's and the Malaysian government's reputation, the country's image to investors? Will the repercussions be deep and long-lasting given global corporate captains such as Richard Branson have already expressed exasperation and obvious disgust over the Anwar prosecution?

Malott: I think there will be a lot of pressure on Najib to appeal, coming from the hardliners in UMNO, who are afraid of what will happen if the opposition comes to power. Gani Patail and the prosecutors also have lost face, so they might be inclined to want to appeal. Some people might think that they can find a more compliant Judge the next time. But the reaction not just from inside Malaysia but also from overseas will be strong if the (Malaysian) government appeals and puts Anwar and his family through this again.

Chronicle: 3. Given your familiarity with the Malaysian political scene and its players, after decades of monitoring the situation, what do you personally think Najib will do? Will he push for an appeal and why?

Malott: Personally, I think that Najib does not want to appeal. But Najib has always been a very weak leader. He talks a good game, but as the saying goes, he doesn’t walk the talk. He is under a lot of pressure. So he might just remain silent and let it happen, saying that the decision is up to the prosecution. There have been other times like this, like when he said “it is up to the Police” whether a demonstration can go forward. Are you in charge of your own government or not?

Chronicle: 4. If so, will it mean it's back to square One for Malaysia and Pakatan Rakyat? Also, what about Malaysian voters? Will it make them more inclined to boot out the BN? Or will it make them doubt Anwar again?

Malott: Somebody joked, never make predictions about the future. I don’t know what will happen. But I do think that 2012 will be the most important and also the most interesting time in Malaysia’s political history. That’s good for Malaysia Chronicle. You will have lots to write about !!

Chronicle: 5. From an outsider's view, what do you see happening inside UMNO? It is famous for intrigue and infighting. Have trends or scenarios evolved that even outsiders can see clearly the divisions forming, with distinct groups or factions emerging? If yes, who do you reckon are the main players in UMNO and what is their respective purpose?

Malott: I think it is clear that BN as a whole is no longer a strong political force. It is all about UMNO now. MCA and MIC have been emasculated and lost credibility with the Chinese and Indian communities. So the focus will turn to UMNO. In some ways, the struggle inside UMNO will be more important than the struggle between UMNO and PR. The hardliners, the right wing inside UMNO will become more vocal and anti-Najib. Mahathir, Muhyiddin, Hisham, Ibrahim Ali will all cause Najib even more trouble. Depending on how the political winds blow, some of the more moderates inside UMNO might decide to cross over, or be lukewarm in their support of UMNO, sit the election out and see what happens.

Look at Sakmongol (Dato Ariff Sabri). He kept trying to get UMNO back on track, and now he has joined DAP. It will be interesting to watch what Ku Li says and does and whether he finally concludes that there is no hope for reform inside UMNO.

Chronicle: 6. GE-13 date is also another factor that may be affected by the acquittal. Some say the aquittal pushes GE-13 forward but others including DAP's Lim Kit Siang thinks it is no longer March but June 2012. There are others who even think it may be after the UMNO internal polls later this year - perhaps in early 2013? What do you think and why?

Malott: I think that elections are more likely sooner rather than later. The longer UMNO waits, the more problems will come out, the longer the opposition will have to organize and campaign.

Chronicle: 7. In your article 'Testing Malaysia's Promises', you mentioned electoral reforms and the dirtiest GE-13 ever with the possibility of a return to the strong-arm tactics of Dr Mahathir. Since the July 9 Bersih rally and the formation of a Parliamentary Select Committee on reforms, as someone who has been watching the Malaysian situation, do you think enough is being done to ensure clean elections and swiftly enough too?

Malott: I don’t think anything has been done yet. All talk, no action. The point is, these reforms need to be put in place before the general elections are held, or the results will not be credible.

Chronicle: 8. So far, the proposed use of indelible ink has been approved, but are there many other hurdles? Would you be satisfied with current achievements of the PSC and the electoral reforms it has agreed to implement? And why?

Malott: I think the most important reform of all is to make sure that RTM and Bernama, which are owned by all the people of Malaysia, are fair and balanced in their reporting. Right now they act like they belong to UMNO and not the Government. The restrictions on distribution of the opposition’s newspapers also should be removed. The ruling parties and the opposition should be treated the same. That is the only fair way.

Chronicle: 9. Anwar has long been a friend of yours. This acquittal has been a tremendous boost for him - personally, for his family and for his legitimacy as a leader of the country. If the Najib administration pursues an appeal, do you think public sentiment will desert Anwar?

Or do you think Anwar has already navigated a tricky corner and is now able to fully push the Pakatan Rakyat towards victory in GE-13.

What are some of the benefits Anwar and Pakatan will reap from the acquittal and what will an appeal do to these?

Malott: It is true that my wife and I have become good friends with Anwar and Azizah, and I came to know all of his children so well during the time that they lived here in Washington DC. They are a wonderful family. But when I analyze Malaysian politics, I still wear my old diplomat’s hat and try to be observant and not let my personal feelings get in the way.

If the Government pursues an appeal against Anwar, it will strengthen the opposition in terms of public sentiment. It will tie up Anwar’s time in court, however, and make it harder for him to deal with issues inside the opposition and campaign, simply because he would have to deal with legal issues and sit in court all day.

I said that I do not like to make predictions, but I do believe that if electoral reforms are put in place, and the elections are fair, then the opposition most likely will come to power. They almost did it in 2008, with one hand tied behind their back. I say this as an analyst of Malaysian politics, and not because of any personal feelings.

Malaysia Chronicle

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.

Review of Politics in 2011: Now Who is running the country?

by Moaz Nair@www.malaysia-chronicle.com

Marching into 2012 Najib Abdul Razak is still not perceived as a strong leader by the masses. It is the perspicacity of the masses that his many personal, social and economic debacles will keep haunting him until the next general election – widely believed to be held before June 2012.

Race relations in the country is not getting any better and evidently religion is widely seen as a convenient gizmo used by UMNO to divide the people. Above and beyond, shady characters among some UMNO and Barisan Nasional (BN) politicians , abuse of taxpayers’ money, and the ineffective economic strategies of the government have failed to convince the masses.

Almost four years of BN at the helm after the March 2008 general election has not seen much clout in UMNO or Najib to shove the country to the right track. Their popularity seem to slide.

Many social and economic woes relating to race relations, religion and the economy have since alienated the masses. Corruption is perceived as too rife among those having power and authority but more often than not these are swept under the carpet for political reasons.

They only receive the crumbs

The recent RM100 and RM500 one-off payments to students and the poor respectively have been perceived by the masses as trying to ‘bribe’ for votes in facing the next general election. Even the purported 1Malaysia RM5,000 loan to the poor to invest under a national unit trust scheme is not going to electrify the people into voting for BN.

To an aid recipient in Kedah, he is not full of praise for the government: “This matters least, as the money given to the people is not from UMNO’s own pocket but it’s taxpayers’ hard-earned money. We have to edify the people on this political strategy of UMNO. For now, just accept the money as it’s the people’s money, not UMNO’s or BN’s. When it comes to voting, this is totally going to be a different issue.”

The people sense that the amount of money given to the poor by the government is just pittance that could not even make ends meet in time of high inflation in the country now. “This ‘bribe of sort’ is for short-term delight,” says a farmer in Kedah. “The government has not come up with any concrete long-term plan to reduce inflation and bring down the cost of living to help the poor.” He adds, “Increasing the pay of those already earning big salaries is not going to help reduce the price of food. Only the rich are seen to be given huge incentives and rewards to become richer. The poor are becoming poorer, as they only receive the crumbs.”

What is more interesting to the inquisitive minds of the masses is the quality of leadership the country has to offer. The buzz among voters is, ‘”Who is actually running the country now?” This is the question asked by many within and outside UMNO and BN. Everyone knows that officially Najib is the PM. But Najib has been perceived as a leader who could not steer the country free from Mahathir’s influence. “As long as Anwar is around, Mahathir will not give up harassing Najib’s administration. He fears that UMNO and BN will lose big in the coming general election with Pakatan’s increasing popularity,” says a young voter in Kerian.

Mahathir's role in Najib's Administration

The people are beginning to see Mahathir’s role in Najib’s administration is not receding but mounting. Apparently, Abdullah Ahmad Badawi was squeezed out from his post as Prime Minister in 2009 by the maverick politician, Mahathir. Could the same happen to Najib if he decides not to ‘listen' to Mahathir? Mahathir is still influential in UMNO politics not because he is too good a politician but there are factions within UMNO who would want to see Najib tumble. “But if Najib and UMNO tumble, BN has to close shop,” says a political observer. “Pakatan will form the next government.” Mahathir is thus perceived by some political observers as the right man who can decide Najib’s fate and possibly give more hope to the many other UMNO aspirants to climb up the political ladder.

The buzz is that before Najib decided on his Cabinet line-up, he was somewhat ‘warned' by Mahathir that Khairy Jamaluddin – the elected UMNO Youth leader – should be excluded from the Cabinet. True as envisaged, when the Cabinet line-up was announced, Khairy was excluded. Perhaps this must be the first time in the history of UMNO where its Youth leader has not been given any Cabinet post. “With that move by Najib, Khairy’s political fate is sealed,” says an UMNO lawmaker. To some political observers, even Khairy’s performance as a Youth leader is dismal: “He does not have the right charisma as a leader. The next general election would most probably see him not contesting at all.” The political murmur is that Khairy will lose his post as Youth chief in the next UMNO elections much to the delight of Mahathir.

Not only that, the hum was that Mahathir signalled to Najib that all Abdullah’s men should also have been thrust aside from the post Abdullah Cabinet line-up. Shahrir Abdul Samad – being a fine politician – and realising the consequence, made a pre-emptive move. He decided to tender his resignation as a minister even before the new Cabinet line-up was announced. He nattily backed out before the axe fell on him. He could have sensed that the new Cabinet was going to be a Mahathir-charted Cabinet.

But when Najib had the courtesy to include some of Abdullah’s men in, the whispers were Mahathir murmured that the Cabinet was still filled with some ‘tainted' characters. Najib had no choice, as he saw some of these UMNO hardliners as his loyal supporters. Najib needs them to ‘brawl’ for him against the Opposition for his controversial roles in many of the grim accusations on him by the latter. He is wary that he is not a political pugilist. Neither is he the pugnacious type. He is perceived by the people more as a ‘play-safe’ politician or prime minister unlike the belligerent Mahathir.

Flip flop policy

Abdullah in 2006 cancelled the famed half-crooked or curved bridge project into the Tebrau Straits to replace half of the Causeway that connects Johor Baru and Singapore. The project was mooted by Mahathir during his tenure as prime minister. When the iniquitous half-bridge was again cropped up by Mahathir during Najib’s time, the latter was rather quiet on the issue. Possibly, he must have known that the project was just unviable. Mahathir was again unhappy about this, as he is still adamant that the project must proceed. Najib has since been silent on this whole issue. The bridge project has stalled. The government lost RM740million of taxpayers’ money for this cock-up.

Abdullah scrapped the double-tracking railway project from Johor to Padang Besar which would have cost RM14billion during his time as PM. Najib showed no enthusiasm on this project either. Instead the railway project is now being designated only from Ipoh to Padang Besar and the delay has cost the government RM12billion just for this short distance. Mahathir is riled, as he feels that had the project taken off very much earlier, just with an additional amount of RM2billion the double-tracking would have connected Johor Baru and Padang Besar.

The use of English to teach Science and Mathematics (PPSMI) – Mahathir’s brainchild is being dropped by Najib’s government. Mahathir has been reported to have disagreed with the idea of dropping this plan that he implemented in 2003. Being averse to controversial issues, Najib smartly tossed ‘the hot potato’ to Muhyiddin Yassin to do the unpopular decision to scrap the policy. Muhyiddin has now ended up becoming a very unpopular education minister. This issue has dented his political career, but Najib is posing a chic silent on the matter. The dust has yet to settle and parents are not happy with this flip flop policy in education. BN is expected to lose more votes because of this issue and Mahathir is aware of this.

Muhyiddin is obdurate that the policy has to be totally scrapped. RM5billion ringgit of taxpayers’ money was wasted on the PPSMI which lasted for only nine years before it came to naught. Had this been in another democratic country the whole cabinet members would have resigned and many leaders would have been sent to the political dungeon.

The campaigns leading towards a few by-elections during Najib’s premiership washed a lot of his dirty linen in public. ‘’Enough mud-slinging at me and smearing my name,” Najib was reported to have said during one of the crusades against the Opposition. Unfortunately, Najib is not perceived by the people as a leader free from personal baggage and this is not a good omen for UMNO and BN. To the political observers, Mahathir is more eager to save UMNO than to indulge on personal problems of UMNO leaders.

In by-elections where Najib was quite reluctant to tramp Mahathir was seen more ready to tread. But, if Mahathir was to be seen going to the field jousting against the Opposition without Najib to be seen, what would the people perceive of the latter then? Despite Mahathir’s help, UMNO lost a few by-elections and this badly bruised Najib's image.

At that point of time, Najib was cagey when BN lost a few by-elections to the Opposition and Najib ended up becoming the punching bag for the Opposition as well many of his foes within UMNO. “Najib, who grew up in a political aristocratic family would naturally play out-of-harm's-way politics. The most he would do is to have his people fight for him. But he has failed to realise that others cannot keep on doing the ‘stunt’ for him. Being the PM, the millstone will still hang around his neck,” says a political observer.

Mahathir to salvage his image

Mahathir’s presence was quite noticeable during the Bukit Gantang and Bukit Selambau, by-elections in 2009. Najib – the incoming PM at the time – was practically kept away from the scenes. Mahathir went to the ground trying to salvage UMNO and BN but was stung taut by the ‘mountain bees' at both the constituencies and both the seats finally went to Pakatan – PAS and PKR.

Mahathir as a ‘retired general’ after leading the country for 22 years with relative success cannot live in peace seeing UMNO crumbling under Najib despite BN winning a few by-elections thereafter. Najib seems to be losing more support currently by depending on Mahathir to salvage his image. Mahathir perhaps seems to be unhappy to see Najib more into building his image rather than focusing more on economic development for the country.

Mahathir must also be wary that if the ride is tough for Najib, he will let his other Cabinet ministers do the traverse for him. Najib has been silent on many issues – specifically the PPSMI and the RM250million loan given to a company whose owner is the spouse of a Cabinet Minister. The cattle project was set up in 2008 when Abdullah was the prime minister. Khairy was at first adamantly defending the company but later on when more evidence cropped up on the alleged ‘abuse’ of the government-loaned money to the company he too went on a silent mode.

A puppet of this class

Knowing Mahathir, he does have some syatria (warrior) blood of the Keralites in him and he will go on fighting even after his war flag has fallen to the ground.

In the traditional wayang kulit (puppet show), the Tok Dalang (performer) pulls the puppet strings skilfully from behind to captivate the views and minds of the people watching the show on the white screen. Najib may prefer not to be a puppet of this class. But being perceived as a weak leader from within his team and also by his political nemeses he cannot afford to ignore Mahathir – the Tok Dalang. One flawed move Najib makes, he will be in trouble and would meet the same fate as what happened to Abdullah.

Najib, like all heads of government, aspires to be an independent prime minister but the thorn that is pricking his conscience from an ‘obvious hand' is too much for him to bear. Unfortunately, he seems at times not being able to withstand it, but out of no choice the battle against his conscience has to go on for his political survival.

“To Najib, the advice is to let his own conscience decide what he wants to do as a prime minister. He should stand by his principles. He does not have to be shoved to the edge by anybody. It may be bitter though, but this is the pill he has to swallow in order to be respected or else it will affect his image as prime minister. But then he is seen as not too forceful a leader.” says a senior UMNO member.

Next person to lead UMNO

Words are going round asking, “Who is the Prime Minister now? Najib or Mahathir?” Most people already have a vague answer to this question, for now. Najib to the masses has been implicated time and again for being a puny jouster and fingers are pointing at Mahathir who is pulling the string. But Najib is Mahathir’s choice after Abdullah. Indeed, Mahathir should have first tutored Najib to be a ‘fighter’ before the latter could be put on the altar. Mahathir was in a haste to push Abdullah out of the scene and thus the appointment of Najib as PM.

Mahathir will keep Najib on his toes until the next general election. Najib realises that if he decides not to listen to the ‘self-appointed advisor’ to him, he will be in trouble. This is the least that he wants to face before the next general election. But if he keeps on listening to Mahathir, his political nemeses will brand him as a PM without his own stand.

If UMNO and BN fail in the next general election – which is more likely, Mahathir will call for Najib’s resignation as prime minister like what he did to Abdullah at one time. Hope Mahathir lives long to see the fate of Najib after the next general election. Mahathir can, after that, decide who should be the next person to lead UMNO.

Malaysia Chronicle

Former Menteri Besar of Selangor guilty of graft: 12 months in the slammer "for a heinous crime"

by Hafiz Yatim@www.malaysiakini.com

After a trial lasting over a year, the Shah Alam High Court today found former Selangor Menteri Besar Dr Mohd Khir Toyo guilty of graft. He has been sentenced to 12 months' jail beginning today, and the property in question has been ordered to be forfeited to the government.

In delivering sentence, Justice Mohtaruddin Baki said a deterrent sentence was needed because in cases involving public and private interests, public interests must take precedence.

"This is truly a heinous crime as the accused may have used his position (as Menteri Besar) to obtain the property.Hence, a deterrent sentence requiring a custodial sentence is warranted in view of the offence," said Mohtaruddin.

He added that as the Chief Executive, Khir should have set an example. After a short pause, Mohtaruddin sentence Khir to 12 months' jail. However, the court granted stay of execution of the sentence pending appeal to the higher courts. The prosecution did not object.

The court also decided not to raise the bail amount and it will remain at RM750,000 set earlier. Earlier Mohtaruddin said the prosecution had managed to prove the case against the 46-year-old Sungai Panjang assemblyperson beyond reasonable doubt.

While the prosecution applied for the multi-million-ringgit property in question to be forfeited, the defence appealed to the judge for Khir to be bound over on good behaviour.

Khir was charged under section 165 of the Penal Code, a lesser graft charge compared to charges under the Prevention of Corruption Act and the new Malaysian Anti-Corruption Commission Act.

It had been speculated whether Khir would receive more than one year's jail term or a fine in excess of RM2,000 - that would have cost him eligibility as an assemblyperson and banned him from contesting in the coming elections.

'First time offender'

Pleading in mitigation counsel M Athimulan told the court that Khir was a first offender and married with six children. "The charge and conviction is unique as the valuer had evaluated the property at RM3.5 million as it is an uncompleted property," he said.

He also submitted that section 165 is a compoundable offence and the court has wide jurisdiction to allow the imposition of a fine.

"If this case had been tried at a magistrate's court the maximum could be RM10,000.We argue under the concept of Equality under Article 8 of the Federal Constitution to impose the fine of RM10,000 and not more than this although this has been brought before the High Court," he said.

Athimulan pleaded for Khir to be bound over, pointing out that the court has the power under section 173a of the Criminal Procedure Code to release the accused. Kamarul Hisham asked Justice Mohtaruddin to tamper justice with mercy as Khir had been the state's chief executive and by convicting him the court had already punished him.

'Come down hard on abuse'

DPP Mohd Masri Daud on his part, argued that although the accused was charged under Section 165 the court should send a strong message that as a public servant one should not seek favours.

"It is clear that the accused was interested in the property in 2004 and asked Shamsudin to buy it and later bought it for himself.As the Menteri Besar and Chairperson of the Selangor Development Corporation, he should have set an example and not use his contacts and acquiantances to benefit himself," he said.

Mohd Masri then delivered a shocker when he applied to the court under Section 36 of the Prevention of Corruption Act 1997 for the mansion to be forfeited.

"In any offence of graft of such a nature, the court has the discretion to grant forfeiture of the property," he said.

Athimulan said the defence was taken aback by the prosecution's application as it had given no indication of doing so. He then asked that the court to fix another date to determine the prosecution application on the forfeiture of the property.

The court subsequently took a break before delivering sentence.Also present in court was his wife Zaharah Kechik and about 40 of his supporters, some seated and others standing in the packed courtroom.

Khir was represented by a team of lawyers led by Jahaberdeen Yunoos, M Athimulan and Kamarul Hisham Kamaruddin.DPP Abdul Wahab Mohamed represented the prosecution.

Khir arrived in court as early as 9.15am, with scores of his supporters in tow.

Second Selangor MB charged with corruption

Khir was charged on Dec 4 last year, with corruption for obtaining for himself and his wife Zahrah Kechik, two lots of land and a house at No 8 & 10, Jalan Suasa 7/1L, from Ditamas Sdn Bhd director Shamsuddin Hayroni, at RM3.5 million - a lower price than the RM6.5 million Ditamas paid for it in 2004.

The former Selangor MB allegedly entered into the transaction with the knowledge that Shamsuddin had dealings with him in his official capacity as the state’s chief executive at that time.

The Sungai Panjang assemblyperson allegedly committed the offence at the Selangor Menteri Besar’s official residence at Jalan Permata 7/1, Section 7, Shah Alam on May 29, 2007.

He is the second Selangor Menteri Besar to be charged with graft after the late Harun Idris, who spend three years in prison in 1977.

Khir in one of his blog postings this year alleged that three federal ministers had wanted him jailed for graft following the charge.Without naming the ministers, Khir claimed one of them was said to have told the other two that to get back Selangor, he (Khir) must be charged.

“Are they powerful enough to control a judge? I don’t believe they can direct a judge nor will a judge listen to this group,” wrote Khir in the blog, resulting in spiralling speculation on the identity of the three.

Twenty-five prosecution witnesses and five defence witnesses, including Khir, testified at the trial.

Malay Rights v Special Position

by Stanley Koh

In this last week of 2011, we will be re-publishing selected stories carried in FMT throughout this year. We find that these stories still remain relevant in the present context.

FLASHBACK 2011

EDITOR’S NOTE: This story was posted on January 9, 2011, reminding the nation’s leaders the warnings that the late Tun Muhammad Ghazali Shafie gave 10 years ago. We think it is still worth reminding our leaders of his warnings.

“There are no Malay rights since our Constitution holds dear that all persons are equal before the law and entitled to equal protection of the law without discrimination on the basis of race and religion.”

That was what the late Tun Ghazali Shafie said in a speech at the National Unity Convention in May 2001. He continued: “What perhaps has come to be regarded as special rights is the special position of the Malays and natives of Sabah and Sarawak under Article 153 (of the Federal Constitution). The change from ‘position’ to ‘rights’ is frightening. Who did that, I wonder?

“In a plural society like ours, if the leadership was not bold and sincere enough to take corrective measures so that there would be a level playing field, then the situation would indeed be bleak and our society would be a playground for those who wish us ill.”

Born in Kuala Lipis, Ghazali was 88 at the time of his death in January 2010. He had a distinguished career in politics and government.Many bigots, opportunists and self-serving leaders of today will probably dismiss those remarks on the New Economic Policy as just one man’s opinion. If they are ignorant of history, they may even question his authority.

If Ghazali were alive and facing these critics, he would probably reply in these words, which were part of the speech at the 2001 convention:

"It was Tun Abdul Razak who asked me to devise the NEP after being inspired by Rukunegara. The NEP was the fruit of consultations among the various races in the Consultative Committee and later Parliament, who agreed to the corrective measures by invoking affirmative action.”

Distortions and Misinterpretations

In explaining affirmative action, he paraphrased Tun Dr. Ismail, who likened it to the handicap system in golf, “so that,” he said, “everyone could play together on a level playing field.”

He added: “Almost ad nauseam, it was explained that the NEP was not to make the Malay community rich but to change vocations through affirmative action. To acquire riches is the privilege of any individual and it would be contrary to the Rukunegara if the only aim was to make the Malays rich.”

When he spoke those words, the greed for riches through the NEP had long taken root. Distortions and misinterpretations of the policy had already divided the nation, and our so-called leaders tossed around the word “unity” only when elections were near, and they still do so today.

But unity, if we take it seriously, is indeed the key to resolving the profound problems that the nation faces.

Is “1Malaysia” a call for such unity? Many Malaysians do not think so. They believe instead that it is a red herring meant to deflect attention from the continuation of discriminatory policies.

The thinking public does not buy all the hype about 1Malaysia that BN is pushing through the media organisations it controls. It remains an empty and meaningless slogan.

And, as if oblivious of what the public is saying, 1Malaysia has become a favourite catchword among BN politicians. They tag the slogan to everything, like a chef sprinkling salt in every dish. Do they really think that Malaysians are stupid enough to believe that mere rhetoric can charm them out of their dissatisfactions?

Shifting goal posts

Tun Ghazali was right when he said that our national problem had become complicated because of the kind of education Malaysians were receiving. And nothing has changed since he made that remark 10 years ago.

“We become argumentative over some words without analysis or a look at the semantics,” he said. And Ghazali was right too when he said: “We don’t seem to care about the fundamental right to food and clothing.”

Critics accuse the UMNO-led regime of spending millions of ringgit on decorative rhetoric and ceremonial reforms without making any real effort towards substantive institutional changes that would bring about compliance with democratic principles and respect for human rights and needs.

Ghazali stressed that there could be no lasting unity unless the playing field was level. He added: “Let us not shift the goal posts when the field is beginning to level. This exercise at maintaining peace and stability must be kept in constant repair.”

Ghazali, once an UMNO Supreme Council member himself, probably had some faith that the party would eventually come to its senses and start to set things right again. If he were alive today, would he still have such confidence?

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

Federal Government Debt: Evidence of Fiscal Irresponsibility

by Dr Subramaniam Pillay

That the Budget that was tabled in the Dewan Rakyat on October 7, 2011 was an election budget is very clear. There have been numerous detailed comments on the Budget by politicians and analysts (since then). In this article, we are just going to focus on one of the long term issues from the Budget. It concerns the increasing debt burden of the Federal Government.

How big is the government debt?

The Federal Government’s outstanding debt has been increasing since 1970. From the detailed data available from Bank Negara’s website, in 1991, it reached a temporary peak of RM99 billion and then decreased to RM90 billion by 1997. From then, it has been virtually doubling every five years. By the end of 2011, we can expect the figure to reach RM450 billion.

In other words, since the Asian crisis of 1998, we have been growing by borrowing heavily. In the 10 years since 1999, our debt has quadrupled. If we continue on this path, by 2020, our national debt will reach RM1.6 trillion. If our population is 40 million then, each Malaysian will have a debt burden of more than RM40,000 and this does not include our own personal borrowing. Assuming an interest rate of five per cent, paying the interest alone will cost the taxpayers RM80 billion per year!

The government has been reassuring us by saying that our debt is manageable. It argues that the debt at the end of 2012 will be only 54 per cent of our GDP, which is relatively low compared to the current crisis nations like Greece and Italy.While it may not reach the levels of Greece by 2012, at our current rate of borrowing it won’t take long before we become another Greece. Just to put this in perspective, our giant neighbour, Indonesia has a debt of only 23 per cent of GDP! Singapore has no debts.

The Federal Government debt alone does not tell the full story. Many government-owned enterprises also have borrowings. If these figures are included, then the total debt would be much higher. It is difficult to get the complete data on these borrowings.

Why has the debt been growing so rapidly?

Since the 1998 Asian Financial Crisis, government expenditure has consistently exceeded its revenue by a considerable margin. For example, in 2011 the spending is estimated to be RM229 billion while the revenue will be only RM183 billion. So the shortfall of RM46 billion has to be met by borrowing.

Of course it is not expected that the government balances its books every year. Prudent economic management requires the government to balance its budget over an entire business cycle. So we can have deficits during bad years and budget surpluses during good years. Since 1998, we have had at least two business cycles; yet every year without fail we have had budget deficits!

This is evidence of fiscal irresponsibility. Here is a government which does not know the meaning of saving for a rainy day. A good example is the situation in the current year.

Actual revenue for 2011 is going to be higher than the budgeted figure by RM17.6 billion. This is mainly due to the increased income from the rise in oil prices in 2011. The Federal Government relies heavily on different forms of revenues (corporate tax, petroleum profit tax, royalties, Petronas dividends, etc) that originate from the production and export of oil and gas in Malaysia. The proportion can be 30-40 per cent of the total government revenue. Thus a rise in the world price of oil translates directly into higher income for the government. So essentially, we had a windfall income.

What would a prudent government do with this windfall? It would reduce the planned borrowing. But that’s not our BN government’s way of financial management. Uncannily, the increase in the actual spending is going to be the same amount of RM17.6 billion!

When asked about this at one of the post-budget forums, a Treasury official explained that it was mainly due to higher spending on salaries and increased subsidy for petrol and diesel. We can understand the increased subsidy but why the higher salary? Did we just increase the size of the bureaucracy? This is a clear case of a government that has no control on its spending.

Why is the federal government spending more than it earns?

There are a few reasons for this consistent imbalance. A major factor is the large leakage in government spending due to corruption and wasteful spending that has been highlighted by the Auditor General year after year in his annual reports. It has been estimated that we can easily save RM25-30 billion without changing any of the deliverables if we can get rid of corruption and cronyism. Transparent practices like open tendering can cut down the cost of much of the procurement and project spending.

In addition, spending can be reduced on military procurements. If a fraction of the money that is saved here can be used to improve the quality of our diplomats in Wisma Putra, we can avert any potential threat to national security. We can also cut down on the excessive use of foreign and local consultants by the government for work that ought to be done by the civil service. Reduction of subsidies to the operators of privatised projects such as the independent power producers and toll road operators will also narrow the deficit.

Another reason for the deficit is the under collection of revenues including income tax and customs duties. Better compliance to and enforcement of existing laws and provisions can increase government revenue.

It is common knowledge that many business operators evade paying their full share of income tax by under declaring their true income. Similarly, evasion of customs duties is rampant due to corruption in the Customs department.

What will happen if the debt keeps increasing at the same rate in future?

As the debt gets larger, interest payments will take an increasing share of total government spending.

If the government continues with the trend of the past 13 years, by 2020 we may be spending about 18-25 per cent of the operating budget on interest payments. In fact, as the borrowing increases, the government will be forced to pay higher interest rates to borrow more because its credit rating will be downgraded. (For example, in Europe, currently the German government can borrow at around 2 per cent per annum while the Italian government has to pay about 7 per cent for its loans.) So the interest cost will rise exponentially.

This will leave much less money for other social and economic spending. It will also widen income inequality as the government will have to cut spending on many public goods like education, health care and public transport. At the same time, the interest it pays goes mainly to foreigners and the better off segment of the population.

What is even more worrying is that given our large revenue from petroleum-related sources, we should not really be running deficits. It is only a matter of time before we run out of oil and gas and thus become net importers of these two commodities. When that happens, our budget situation may become very critical.

A prudent Malaysian government would have saved a sizeable portion of the petroleum revenue from the past few decades as a fund for rainy days. Many other countries have done this. Norway is a prime example. Abu Dhabi is another country that has a huge sovereign wealth fund set up from its petroleum windfall. Botswana in southern Africa saved its windfall earnings from the discovery of diamonds and invested it abroad for its long-term well being.

Unfortunately, we are governed by a spendthrift government that is beset with problems of corruption and incompetency. Unless the situation changes, we are leaving a huge burden to our children and grandchildren. They are not going to forgive us if we do not try to change the situation. — aliran.com

* Dr Subramaniam Pillay, an Aliran exco member, is an adjunct associate professor with the School of Business at the University of Nottingham Malaysia.