Press Statement by Tan Sri Robert Phang: Enough is Enough

Press Statement by Tan Sri Robert Phang: Enough is Enough by dinobeano

December 31, 2011

PRESS STATEMENT BY:
TAN SRI DATUK ROBERT PHANG MIOW SIN
Justice of Peace
Chairman – Social Care Foundation

ENOUGH IS ENOUGH!

In the past few weeks, the MACC has been very prolific. Many advertorials have been published in the mainstream newspapers of the MACC’s achievements in eradicating corruption. The conviction of former Selangor MB Dato Seri Khir Toyo to 1 year imprisonment seems to boost the MACC’s image.

The MACC blazed the trail again when on December 21, 2011, the MACC announced the arrest of five (5) civil servants for bribery in separate places in Kedah. On Tuesday December 27, 2011, the husband of the ex-CEO of the Iskandar Investment Board (IIB), Mohd Amin Suhaimi, was charged in Johor Bharu for corruption. It seems strange that the ex-CEO herself was not charged. Then on Wednesday December 29, a former IIB senior V-P, Rostam Razali, was fined RM20,000 after he pleaded guilty for abuse of power in disclosing confidential tender price information.

Meanwhile in KL, the Permanent Chairman of Malaysian Muslim Welfare Organisation (Perkim) Selangor branch who was also the former International Islamic University Malaysia (IIUM) Deputy Rector, Professor Emeritus Datuk Dr Ariffin Suhaimi, was charged with two other Perkim members, Dato’ Baharin Baba, 58, and Abas Adam, 60 for Criminal Breach of Trust (CBT) by the MACC. The offence was alleged to have happened in the early 2000s.

While all these seem to show that the MACC would have the stamina and resolve to dig at old records to uncover corruption, abuse of power and CBT, the public has not forgotten the persecution of Dato’ Ramli Yusuff, the former Director CCID, and his lawyer, Rosli Dahlan. The public considers this as a fix-up job by former IGP Tan Sri Musa Hassan and A-G Gani Patail achieved with the collusions of the MACC. Musa Hassan was exposed as an incredible witness which is a legal euphemism for calling him a liar. Because of that, the public considers the MACC as a tool of oppression that would do the bidding of A–G Gani Patail and their political masters.

Thus, some skeptics say that these recent events are merely to allow the MACC to end 2011 on a high note. It is as if the MACC is trying to erase all the bad publicity for causing the deaths of Teoh Beng Hock and customs officer Ahmad Sarbaini while in the MACC’s custody. The outcome of the Royal Commission of Inquiry and the Inquest have not satisfied the public’s thirst for the truth and justice. Rightly or wrongly, that is the public perception. And perception counts if the government of PM Dato Seri Najib Tun Razak is to lead BN to a successful GE 13.

In that regard, I am compelled to raise the two blatant cases involving YB Senator Dato’ Seri Shahrizat Abdul Jalil, Minister for Women and Family Development, in the NFC episode and YB Senator Datuk Dr. Awang Adek Hussein, Deputy Minister of Finance, for admitting he received cash into his private accounts but justified it as for political donations towards social program.

Like the rest of the Rakyat, I am astounded and appalled by the reasons given by both these two politicians who were rejected by the Rakyat in GE 12 and had to be smuggled into the Cabinet by back door appointments through Dewan Negara. Their mere presence as Ministers in the Government betrays everything that PM Najib has been saying about winnable candidates. These two were rejected by the Rakyat in GE12 and their involvement in these two scandals will certainly not endear them any closer to the electorates in GE 13.

In the case of Dato’ Seri Shahrizat, the evidence are already in the public domain of the misappropriation of the NFC funds granted for the national cattle project instead being used to purchase luxurious condominiums, super cars and fantastic salaries for Shahrizat’s husband and their children.

The initial statement by the MACC that they only investigate corruption cases and referred the matter to the Police is seen as a feeble attempt to pass the bucket. That was the same thing that happened in the Khir Toyo’s case until I pursued it that led to Khir Toyo being charged. Even so, the Rakyat questioned why Khir Toyo was charged under the Penal Code where the maximum penalty is only 2 years whereas punishments under the MACC Act would extend to 20 years. The Rakyat sees this as a cover up!

In the case of Datuk Dr. Awang Adek, his open admission of having received such monies to fund his own “social” programs actually constitute political gratification. That an offence of corruption has been established could not be clearer. But most worrisome to me is the inability of Awang Adek, as our Finance Minister, to realise that what he had done was wrong. For him to justify his conduct spells doom for the country if our national finance is to be managed by a man of such moral fabric.

I invite the MACC Chief Commissioner, Dato’ Seri Abu Kassim, to deliver to both Shahrizat and Awang Adek the lectures that he had delivered to me when I was on the MACC Advisory Panel about the meaning of gratification. Since I am now pursuing a law degree, for these Ministers’ benefit I reproduce s. 3 on Interpretation in the MACC Act:

"gratification" means-

(a) money, donation, gift, loan, fee, reward, valuable security, property or interest in property being property of any description whether movable or immovable, financial benefit, or any other similar advantage;

For Shahrizat to maintain that her family is justified to get the contracts goes against the provisions of the MACC Act:

23. Offence of using office or position for gratification

(1) Any officer of a public body who uses his office or position for any gratification, whether for himself, his relative or associate, commits an offence.

(2) For the purposes of subsection (1), an officer of a public body shall be presumed, until the contrary is proved, to use his office or position for any gratification, whether for himself, his relative or associate, when he makes any decision, or takes any action, in relation to any matter in which such officer, or any relative or associate of his, has an interest, whether directly or indirectly.

Let me ask Awang Adek, if he is not the Deputy Finance Minister whether these companies and associates would give him those monies to fund his political programs. The case of Dato’ Harun Idris is on point. That makes it clear that Awang Adek had accepted gratification as defined by s. 16 MACC Act:

16. Offence of accepting gratification

Any person who by himself, or by or in conjunction with any other person--

(a) corruptly solicits or receives or agrees to receive for himself or for any other person; or

(b) corruptly gives, promises or offers to any person whether for the benefit of that person or of another person, any gratification as an inducement to or a reward for, or otherwise on account of--

(A) any person doing or forbearing to do anything in respect of any matter or transaction, actual or proposed or likely to take place; or

(B) any officer of a public body doing or forbearing to do anything in respect of any matter or transaction, actual or proposed or likely to take place, in which the public body is concerned,

commits an offence.

As a Minister, Awang Adek is a public officer. Thus, his acceptance of such monies into his personal account constitutes bribery:

21. Bribery of officer of public body

Any person who offers to an officer of any public body, or being an officer of any public body solicits or accepts, any gratification as an inducement or a reward for--

(a) the officer voting or abstaining from voting at any meeting of the public body in favour of or against any measure, resolution or question submitted to the public body;

(b) the officer performing or abstaining from performing or aiding in procuring, expediting, delaying, hindering or preventing the performance of, any official act;

(c) the officer aiding in procuring or preventing the passing of any vote or the granting of any contract or advantage in favour of any person; or

(d) the officer showing or forbearing to show any favour or disfavour in his capacity as such officer, commits an offence, notwithstanding that the officer did not have the power, right or opportunity so to do, show or forbear, or accepted the gratification without intending so to do, show or forbear, or did not in fact so do, show or forbear, or that the inducement or reward was not in relation to the affairs of the public body.

Once Awang Adek admitted that he had accepted gratification, then there is a presumption that it is corrupt gratification:

50. Presumption in certain offences.

(1) Where in any proceedings against any person for an offence under section 16, 17, 18, 20, 21, 22 or 23 it is proved that any gratification has been received or agreed to be received, accepted or agreed to be accepted, obtained or attempted to be obtained, solicited, given or agreed to be given, promised, or offered, by or to the accused, the gratification shall be presumed to have been corruptly received or agreed to be received, accepted or agreed to be accepted, obtained or attempted to be obtained, solicited, given or agreed to be given, promised, or offered as an inducement or a reward for or on account of the matters set out in the particulars of the offence, unless the contrary is proved.

It is abundantly clear that the actions of Shahrizat and Anwang Adek are not defensible. The MACC does itself discredit if it continuously refuse to act with the same speed and efficiency when it involve members of the ruling party. The Rakyat is tired of excuses. In the interest of the BN Government, Shahrizat and Awang Adek should resign and offer themselves for investigation by MACC and other authorities. By resigning, only then can investigations against them be done without the undue influence which cannot be the case if they remain in the Cabinet.

As we celebrate New Year, the Rakyat expect a new resolve by the Government and the MACC. If the fight to eradicate corruption is seen as mere lip service, the Rakyat will rise and teach the government a lesson at the ballot box. Before that happens, I urge the government to wake up to today’s realities before the Rakyat say enough is enough!

Happy New Year 2012!

“HUMBLENESS IS GOOD VIRTUE, ARROGANCE SHALL FALL, THE MEEK WILL RULE THE WORLD”.

Tan Sri Robert Phang Miow Sin
Justice of the Peace

UMNO- dari Modal Insan ke Modal Lembu dan kemaraan Fascime UMNO

by sakmongkol AK47

PAU 2011: Dari modal insan ke modal lembu dan kemaraan fascime.bahagian 1

Apa sudah jadi kepada UMNO? Mana parti yang di ransang oleh fikiran besar dan idealism? Mana parti yang di ransang oleh perjuangan emansipasi daripada belenggu penjajahan fisikal dan minda? Sayang seribu sayang, parti tersebut sudah jadi arwah dan sudah di talqinkan.

Sebaliknya, ucapan yang berapi api dari pemimpin biasa sehinga pemimpin besar UMNO di dengar sebagai jeritan nyaring dan kasar pemimpin2 dari sebuah parti yang lebih mirip kepada kumpulan yang di pimpin oleh Benito Mussolini. Ini suara dari parti fasis!

Ini pandangan saya mengenai PAU 2011. Ramai sudah pulang ke kampong halaman. Peniaga pun buat cheap sale saat akhir. Mungkin ada yang masih tingal di Kuala Lumpur sebab pemimpin mereka sudah bayar bilik dan beri duit belanja. Ini kelaziman para perwakilan.

Apa sebetulnya yang mahu di cerna selama PAU 2011? Fikiran besar dan pengucapan yang bertanggung jawab? Pengucapan yang mengutamakan kesejahteraan negara keseluruhan nya?

Tidak ada benda2 ini. Yang ada yang di cernakan ialah perkara perkara yang menyeramkan orang Melayu. Para perwakilan UMNO yang di sifatkan sebagai askar barisan depan UMNO di tanam dengan rasa cemas dan ketakutan. Orang Melayu terancam, mereka tidak selamat, harta benda mereka akan di rampas, kuasa mereka akan hilang, lambang2 budaya Melayu seperti insitusi raja akan di basmikan dan seumpamanya.

Apa objektif cara ini? Pengawalan dan pengekangan keatas minda bangsa Melayu melalui cerita seram dan takut adalah cara sebuah parti yang fasis ( fascist) mengekalkan sokongan dan kuasa. Ia bukan amalan parti yang demokratik. Inilah yang sekarang terjadi keatas UMNO. The rise of UMNO fascism.

Perkara yang paling di fikirkan oleh pimpinan UMNO ialah sama ada para perwakilan yang bermukim selama 4-5 hari di KL akan membawa api semangat yang di nyalakan selama mereka berkampung disini. Bolehkah rasa cemas yang di cipta selama 4-5 hari tersebut dan cerita2 yang menyeramkan mengenai ancaman terhadap bangsa Melayu, agama mereka dan rasa benci yang di di tanam, dapat mengekalkan momentum askar2 barisan depan UMNO tersebut?

Pengekalan rangsangan emosi tersebut amat penting kepada pimpinan UMNO. Jika api rasa cemas, terancam dan marah jadi pudar, UMNO akan berada dalam bahaya. Jika perasaan itu terus membuak buak, maka UMNO ada peluang terus hidup.

Apakah yang akan di lakukan supaya perasaan tersebut di kekalkan? UMNO ada Ahmad Maslan untuk menentukan program menanam rasa benci dan sieged mentality Melayu berterusan. Maslan akan menjaja kesana sini bagaimana Islam terancam, orang Melayu berduyun duyun di kristiankan.

Kesemua alatan media pandang dengar dan penulisan akan di gembelingkan untuk menanam rasa benci , cemas dan ketakutan di kalangan orang Melayu. Dalam bulan2 yang akan datang, kita akan lihat pimpinan UMNO akan menjadi lebih bingung, bernada bermusushan dan rasis. Semua pemimpin UMNO akan mengatakan orang Melayu berada dalam bahaya dan terancam. Musuh orang Melayu, bangsa bangsa lain di ketuai oleh komrad Guang Eng and Kit Siang, di sokong oleh Mulla Hadi dan Ayatullah Nik dengan kerjasama dari gayboy Anwar Ibrahim semua sedang berkonspirasi mengambil alih kuasa orang Melayu, merampas segala hak, menghapuskan budaya Melayu dan memurtadkan orang Melayu. Semua wanita akan di paksa membeli coli RM 26 ribu, lembu2 di hantar mendiami One Menerung, atau the Troika di ibu kota.

Untuk mengelak ini semua, UMNO mesti mengekalkan kuasa mutlak bagi pihak orang Melayu!. Kita akan lancarkan projek2 raksasa untuk meningkatkan kemajuan ekonomi. Kita akan agihkan projek2 tersebut sesame sendiri supaya ianya kekal di kalangan baka UMNO yang tulin.

Apa ini semua? Ini cara kuasa fasis mengekalkan kuasa dan bukan cara negara yang bercakap besar mengenai mengujudkan demokrasi yang terbaik di dunia.

Tapi apa sebenarnya bermain di benak para perwakilan dan para penyokong UMNO yang datang berkelana dan bermukim di ibu kota seminggu yang lalu?

Ada mereka fikirkan dan kisahkan apa yang di bahas dalam dewan? Rasa nya mereka tak kisah pun. Beli belah saat akhir lagi penting. Malam akhir di ibu kota, mesti di manfaatkan semaksima mungkin. Tahun depan, kalau ada rezeki, boleh jadi perwakilan lagi. Kalau UMNO tidak jadi kerajaan, PAU mesti di adakan. Masa itu perwakilan akan korbankan mereka yang di anggap telah menyebabkan kekalahan UMNO.

Bagaimana kita melihat PAU 2011? Impresi pertama, ialah UMNO nampak dalam keadaan cemas. Apabila cemas, perbuatan dan pengucapan kita kurang sopan dan kemas. Almaklum sahajalah, emosi menguasai pemikiran perwakilan UMNO.

Seperti biasa, isiu berat tidak mahu di bahas oleh perwakilan. Isiu ekonomi apatah lagi- ianya pun ilmu yang dismal. Tak menyerlah bercakap mengenai perkara yang berfakta. Tak boleh nak mempukimak, membangsat, melaknat. Tidak boleh juga hendak memondan dan membapuk walaupun ada menteri yang di atas pentas itu menteri ow ow.

Lebih baik bercakap apa yang mahu di dengar oleh para perwakilan. Perwakilan mahu dengar negara kita baik, kita pasti menang, kita bersih lagi maksum, Malaysia akan mati tanpa UMNO dan sebagai nya. Perwakilan nak dengar kita memukimak Lim Kit Siang, mempukimak Nik Aziz dan seumpamanya.

Dan oh ya, tidak lupa juga orang mahu dengar harga coli Shahrizat dan membuat spekulasi besar mana tetek pembahas yang mengatakan colinya pasti lebih mahal, kerana tetek nya lebih besar dari tetek Shahrizat. Jadi perbahasan wanita UMNO 2011 ini ialah teknik dan cara mengukur saiz coli dan tetek.

Kita jangan hairan lah dengan cakap besar dan bong ( kata orang Pahang) para pembahas UMNO. Itu semua untuk konsumpsi dalam dewan. Dan apa hal pula tiba2 dengan baiah? Dengan bangga nya, pimpinan UMNO berkata ini bersejarah kerana kita buat baiah. Sebetulnya, apabila sudah sampai pada tahap kena berbaiah, itu adalah petanda tidak baik untuk UMNO. Sebab ianya bererti dalam UMNO sudah tidak ada lagi orang yang boleh di percayai. Tidak lah salah jika orang mengatakan sifat umum UMNO ialah, ianya parti orang tidak boleh percaya lagi.

Baiah apa yang digemburkan oleh UMNO? Baiah yang berkesan hanya baiah yang ada gambar Seri Paduka Agung itu. itulah baiah ahli UMNO.

Orang yang tidak faham saikoloji orang UMNO akan mentafsir nya, sebagai semua sudah kembali normal. Ini jauh dari kebenaran. Yang sebenar terjadi ialah, perwakilan UMNO bersidang kali ini dengan rasa cemas. Panik di tunjukkan oleh Ketua Penerangan dan Timbalan Presiden UMNO. Mereka bercakap macam orang sudah miring otak.

Tidak masuk akal DAP mahu mengkristiankan orang Melayu sedangkan DAP pun bukan kristian. Apakah orang Melayu ini aqidah mereka terlalu rapuh, sehingga jika ada bangsa lain menjalankan dakwah mereka, maka orang Melayu bersusun susun murtad? Jika demikian, amat lemah sekali aqidah orang Muslim di negara ini dan jika aqidah mereka rapuh, yang mesti di persalahkan ialah institusi yang menjaga Islam dan mereka yang menjadi kepala agama Islam. Mengapa hal ini tidak di bahas?

Islam sudah sempurna. Yang tidak sempurna dan mundur ialah kaum Muslim di Malaysia dan majoriti kaum Muslim di Malaysia ini ialah orang Melayu.

Siapakah yang bertanggung jawab kepada orang Melayu selama ini? jawab nya UMNO. Mereka mendakwa mereka lah pelindung dan penjaga orang Melayu. Mengaku mesti datang dengan tanggung jawab. Maka jika orang Melayu ketinggalan dalam pelbagai bidang kehidupan, kesalahan nya terletak kepada yang mengaku mereka penjaga harga diri dan kepentingan orang Melayu.

Sejak bila peringkat tertinggi UMNO pandai berbaiah? Main sumpah2 ini berlaku di peringkat UMNO bahagian. Boleh jadi wakil Ngganu kite, suke maing sumpoh sumpoh dok eh? Guana mu jjadi gini awang wei? Brayuk mok!

Dan apabila UMNO sudah sampai kepada mesti berbaiah sesama sendiri- itu tanda UMNO sudah tenat dan sudah tidak mempercayai satu sama lain. Keadaan ini macam orang bertanding pada peringkat jawatan dalam UMNO bahagian. Untuk mengelak dari pembelotan, yang bertanding menyuruh pengikut nya, bersumpah pegang Quran dan junjung surah Yassin.

Dan saya sudah menyaksikan dengan mata sendiri, kesan dari orang orang yang menjaja agama untuk kepentingan dunia. Ramai yang kecundang, dapat sakit dan ramai pula yang sudah meninggal dunia. Ucapan Timbalan Presden UMNO kali ini mengalahkan ucapan presiden PAS dengan selingan ayat2 Quran. Saya tanya ustaz yang menghadiri perasmian oleh Muhyidin, dia kata pembacaam Muhyidin tidaklah kemas. Adakah Muhyidin menjaja agama untuk mendapatkan dunia? Sebagaimana yang berlaku kepada tokoh UMNO yang menggunakan agama untuk membeli dunia, kesan yang serupa akan melanda UMNO.

Sudahkah kita memikirkan kesan negative akibat bersumpah dan berbaiah dan menjaja agama untuk mendapatkan dunia? Ini sebetulnya bukti, UMNO boleh di kalahkan. Pemimpin tidak percaya kepada penyokong. Penyokong sangsi kepada pemimpin. Orang UMNO tidak percaya mempercayai satu sama lain. Saat kehancuran sudah hampir.

Di luar dewan, sebaik sahaja sampai ke bahagian masing2- mereka akan bersekongkol dengan tauke cina untuk melanun wang rakyat. Dalam dewan bukan main handal menghentam semua orang. Kita semua dah tahu modus operandi mereka. Mereka bercakap terkeluar biji mata, bertegang urat leher memekik agenda Melayu- agenda sebenar yang mereka kejar ialah mengisi kantong mereka sendiri dengan wang rakyat.

Ahli UMNO dan orang Melayu bukan lah bodoh dan jahil lagi. Mereka tahu banyak perkara; Azeez Rahim yang turut merasa terhina sebab warna kulit nya sama hitam macam kulit Zambri Kadir akan tertawa ke bank dengan kontrak membekal ambulance ke kementerian kesihatan. Itu dia dapat secara runding terus. Reezal Merican akan terus menikmati imbuhan daripada menjadi pemudah cara mengujudkan NFC. Ya tuan tuan, ramai mamat UMNO yang terlibat dalam scam membela lembu ini. sebab itulah ramai yang bermatian mempertahankan isiu lembu ini.

Yang haramjadah, UMNO hari ini ramai mamak tongkang ini apa hal? Lama kelamaan, kalau orang Melayu tidak waspada, UMNO akan jadi United Mamak dan Naina Organization. Jangan marah ya orang UMNO- sebab kalau kita mempukimak orang lain, sehinga celupar memaki hamun tokoh agama, maka orang pun akan memaki kita.

About the Author:
Sakmongkol AK47 is the nom de plume of this blogger. His name is Dato' Mohd.Ariff Sabri bin Hj. Abdul Aziz. He was ADUN of Pulau Manis, Pekan.( 2004-2008) From 2000-2004, he was Ketua Penerangan UMNO Bahagian Pekan, under Dato Sri Najib. Studied Economics at University Malaya and University of Manchester(Owens). Sakmongkol was a legendary Muay Thai fighter. AK 47 is the Russian made firearm. He can be reached at the following e mail: ariff.sabri@gmail.com

Malaysia's Unending Patronage Scandals

For weeks, just in time for Malaysia’s United Malays National Organization(UMNO)’s annual general assembly which opened this week, the party has been embroiled in an embarrassing scandal involving a 2007 government decision to spend RM300 million (US$94.3 million) to establish a national feedlot corporation to slaughter a s many as 60,000 cattle annually under Islamic halal dietary requirements.

The scandal seems emblematic of a long series of such situations that imperil Prime Minister Najib Tun Razak’s vow in April 2010 that the government "can no longer tolerate practices that support the behavior of rent-seeking and patronage, which have long tarnished the altruistic aims of the New Economic Policy.”

The National Feedlot Corporation, as it is known, has never slaughtered 10 percent of the projected total and has since scaled back its target to 8,000 head but hasn’t been able to meet that target either. Worse, the company has been losing millions of dollars every year – while pouring funds into an RM10 million condominium in Kuala Lumpur, among other things, and spending RM800,000 for overseas travel and entertainment.

The scandal is doubly embarrassing because the agreement to establish the National Feedlot Corporation, made when Abdullah Ahmad Badawi was prime minister, went to the family of Shahrizat Abdul Jalil, the Minister of Women, Welfare and Community Development and head of the women’s wing of UMNO. Her husband, Mohamad Salleh Ismail, is the chairman. Her three children are respectively the chief executive officer and executive directors of the company. None had any experience in cattle production or beef supply prior to the establishment of the company.

The report of the NFC’s operations was contained in the 2010 report of Malaysia’s Auditor General, which was delayed for weeks before it was finally released. The scandal has generated tensions inside UMNO, with some reformers demanding that Shahrizat be forced ou t of her job as minister. However, the leadership has circled the wagons to protect her. In particular, Muhyiddin Yassin, the deputy prime minister, has said there was no case to be brought against her. Muhyiddin was the agriculture minister in 2006 when the project was approved. Others who have come to her defense are Abdullah Badawi and his son-in-law, Khairy Jamaluddin, the head of the UMNO Youth Wing.

The National Feedlot scandal is said to have the potential reformers worried because party operatives thought they had the Selangor electorate turned around and that they could take the state back from the opposition Pakatan Rakyat in national elections expected to be called early next year. However, Asia Sentinel has been told, the refusal to hold anybody to account in the feedlot scandal could well turn the tide back against them, especially as other patronage scandals continue to bubble up.

More patronage scandals

The depth and breadth of the scandals also calls into question moves earlier this year with Najib launching a series of programs to develop bumiputera, or ethnic Malay companies, including allocating an RM2 billion fund for development. In the 2012 budget, Najib also announced the government would allocate RM200 million to guide 1,100 high-performing bumi companies with the potential for listing on the Kuala Lumpur Stock Exchange. Critics are concerned that the patronage system will continue unabated. The current UMNO general assembly was hoped to provide a dramatic backdrop for Najib to win back disaffected Malay voters.

For decades, this patronage has involved highway construction and defense contracts and a variety of other government arrangements with UMNO cronies in a plan formulated by former Prime Minister Mahathir Mohamad. His ambition was to create a cadre of 100 super-rich bumis who in turn would help rural Malays into prosperity under a konsep payung, or umbrella concept routed through UMNO, much the way he envisioned driving the country into industrialization through massive projects. However, many of the companies eventually collapsed and are being supported by government institutions such as Khazanah Nasional, the country's sovereign investment fund, or the Employee Provident Fund.

Ranhill's 'undulating' road

Contained in the same 2010 auditor general’s report, for instance, is a passage on the decision to privatize a 77-km stretch of highway from Senai to Desaru on Peninsular Malaysia’s southeastern coast. The land acquisition turned out to have doubled, from RM385 million to RM740.6 million, with the road surface described as “undulating.” The project completion “was not in accordance with specifications, causing damage to the road surface and endangering road users.” The company failed to complete construction within the stipulated period of the contract. However, the construction agreement didn’t specify damages in the event it wasn’t completed. Required maintenance is described as “unsatisfactory.”

The company that won the RM1.7 billion contract is Ranhill Corp. Sdn Bhd., which has long been described as UMNO-linked. It is partly owned by Lambang Optimia Sdn. Bhd. Both are headed by (Tan Sri) Hamdan Mohamad, described as Malaysia’s “water baron,” who operates several utilities and power companies. He was one of several ethnic Malay businessmen who followed former Prime Minister Mahathir Mohamad’s vow to take Malaysian companies overseas. Another shareholder is YPJ Corp. Sdn Bhd., an arm of the Johor State Government, and yet another appears to be UMNO itself, which owns a minority share through an account at Public Bank Bhd., according to records. Ranhill has had a lackluster two to three years, capped by disaster earlier in 2011 when its Libyan operations were caught between the Muammar Qad dafi forces and those of the Libyan rebels aided by NATO air strikes.

Syed Mokhtar again

Also, earlier this year, Deftech, a wholly-owned subsidiary of DRB-Hicom, won a contract without an open tender to produce and deliver 237 eight-wheeled armored personnel carriers to the Ministry of Defense. DRB-Hicom is 55 percent owned by Etika Strategi Sdn. Bd., which is wholly owned by billionaire Syed Mokhtar Al Bukairy, one of Mahathir’s ta rgeted bumiputras and a man who is extremely tight with UMNO.

Opposition member Tony Pua complained on the floor of Parliament that the average price of RM29.4 million for each unit compared unfavorably with a Portuguese Army purchase of 363 similar vehicles for the equivalent of RM4.4 million each from the Swiss MOWAG CmBH Corp, Malaysia is paying a 6.6-fold increase over the Portguese purchase. Saudi Arabia, he said, bought 724 such vehicles for the equivalent of RM9.9 million from General Dynamics Land Systems-Canada, with Malaysia paying almost three times as much Government officials said the contracts don't compare with each other and that the government is getting more equipment, maintenance, etc. for its money.

“Further research has revealed that DRB-Hicom will be acquiring the AWC technology from a Turkish company – FNSS Defence Systems Inc which manufactures the Pars 8x8 AWV models,” Pua said. “With this deal, Malaysia will be its first foreign customer for this vehicle. What is perhaps of greater alarm is the fact that FNSS has announced that they have sold 257 units of Pars 8x8 AWVs to Malaysia for approximately US$600 million or RM1.83 billion or only RM7.1 million per unit,” Pua said in a prepared statement -- considerably different from what the Malaysians said they bought the vehicles for.

Offshore patrol vessels - RM6bil for just 6

Pua also complained about the cost of six offshore patrol vessels from Boustead Naval Shipyard Sdn Bhd at RM1 billion each in the aftermath of another total fiasco. The Auditor General, in a 2007 report tabled in Parliament, alleged that a contract to build naval vessels given to PSC-Naval Dockyard, a subsidiary of Penang Shipbuilding & Construction Sdn Bhd, which was owned by another UMNO crony, Amin Shah Omar Shah.

PSC-Naval Dockyard, which was taken over by Boustead, contracted to deliver six patrol boats for the Malaysian Navy in 2004 and complete the delivery in 2007. Those were supposed to be the first of 27 offshore vessels ultimately to cost RM24 billion plus the right to maintain and repair all of the country's naval craft. But only two of the barely operational patrol boats had been delivered by mid 2006. There were 298 recorded complaints about the two boats, which were also found to have 100 and 383 uncompleted items aboard them respectively.

The original RM5.35 billion contract ballooned to RM6.75 billion by January 2007. The auditor also reported that the ministry had paid out RM4.26 billion to PSC up to December 2006 although only Rm2.87 billion of work had been done, an overpayment of Rm1.39 billion, or 48 percent. In addition, Malaysia’s cabinet waived late penalties of Rm214 million. Between December 1999, according to the Auditor General, 14 “progress payments” amounting to Rm943 million despite the fact that the auditor general could find no payment vouchers or relevant documents dealing with the payments.

The auditor general attributed the failure to serious financial mismanagement and technical incompetence stemming from the fact that PSC had never built anything but trawlers or police boats before being given the contract. Once called “Malaysia’s Onassis” by Daim Zainuddin, Amin Shah was in trouble almost from the start, according to a report in Singapore’s Business Times in 2005.

Eventually Boustead PSC was born out of the Royal Malaysian Navy’s dockyard facilities which were to provide ship repairs and maintenance services. Under the corporatization program advocated by the Malaysian Government, the dockyard was set up as Limbungan TLDM, a wholly owned government company. It has modern facilities to meet the maintenance requirements of the Royal Malaysian Navy fleet, from hull repairs to major overhauls and from radar refitting to weapon systems refurbishment.

The six patrol boats have now cost five times what the Royal New Zealand Navy paid for its patrol vessels, bought at only RM210 each (NZ$90 million) from BAE Systems, the second largest global defense company.

Asia Sentinel