| Grand Theft Malaysia |
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| Written by Our Correspondent | |
| Friday, 27 November 2009 | |
 Many snouts in the public trough
The Port Klang Free Zone scandal may be big, but it is only the latest in a long line of Malaysian scandals going back to the early 1980s. Time Magazine quoted Daniel Lian, a Southeast Asia economist at Morgan Stanley in Singapore, saying that the country might have lost as much as U$100 billion since the early 1980s to corruption." The scandals listed below are only a small sample of the looting of the country's coffers: In July of 1983, what was then the biggest banking scandal in world history erupted in Hong Kong, when it was discovered that Bumiputra Malaysia Finance (BMF), a unit of Bank Bumiputra Malaysia Bhd, had lost as much as US$1 billion which had been siphoned off by prominent public figures into private bank accounts. The story involved murder, suicide and the involvement of officials at the very top of the Malaysian government. Ultimately it involved a bailout by the Malaysian government amounting to hundreds of millions of dollars. Mak Foon Tan, the murderer of Jalil Ibraim, a Bank Bumi assistant manager who was sent to Hong Kong to investigate the disappearance of the money, was given a death sentence, and Malaysian businessman George Tan who had participated in looting most of the funds, was jailed after his Carrian Group collapsed in what was then Hong Kong's biggest bankruptcy, and a handful of others were charged. No major politician was ever punished in Malaysia despite a white paper prepared by an independent commission that cited cabinet minutes of Prime Minister Mahathir Mohamad giving an okay to a request to throw more money into the scandal in an effort to contain it. That was just the first Bank Bumi scandal. The government-owned bank had to be rescued twice more with additional losses of nearly US$600 million in today's dollars. Ultimately government officials gave up and the bank was absorbed into CIMB Group, currently headed by Nazir Razak, the prime minister's brother. That scandal, which stretched over several years before its denouement in 1985, set the tone for 24 years of similar scandals related to top Malaysian officials and was the first to prove that in Malaysia, you can not only get away with murder, you can get away with looting the treasury as well. Perwaja Steel, for instance, lost US$800 million and its boss, Eric Chia, a crony of Mahathir's, was charged with looting the company. He stood trial, but was acquitted without having to put on a defense. In the mid 1980s, the Co-operative Central Bank, a bank set up to aid the Indian smallholder community, had to be rescued by Bank Negara, the country's central bank, after hundreds of millions of ringgit in loans granted to a flock of United Malays National Organisation and Malaysian Indian Congress politicians became non-performing. Some had never been serviced at all. Although the chief executive and general manager were charged with criminal breach of trust, none of the politicians were ever charged. Before that, the Malaysian government was believed to have lost US$500 million in an attempt at Mahathir's urging to corner the London tin market through a company called Maminco, driving the world price of tin from US$4.50 per tonne to US$7.50. It then sought to cover up the loss by establishing a US$2 company called Mukawasa from which allocations of new share issues to the government's Employees Provident Funds' were diverted. Mukawasa expected to sell the shares at a windfall profit to hide the tin speculation. Mahathir also was behind an attempt by the then governor of Bank Negara, the central bank, to aggressively speculate in the global foreign exchange market. Bank Negara ended up losing an estimated RM20 billion. The governor, Jaffar Hussein, and the head of forex trading, Nor Mohamed Yakcop were forced to resign. There have been many other political and financial scandals since. In 2005, Bank Islam Malaysia, the country's flagship Islamic bank, reported losses of RM457 million mainly due to provisioning totaling RM774 million as a result of bad loans and investments incurred by its Labuan branch. Cumulatively, Bank Islam ran up nonperforming loans of RM2.2 billion, partly from mismanagement and poor internal controls but also "years of regulatory indifference fueled by the misconceived notion of an untouchable Bank Islam because it was a favorite child of the Malaysian government, being the first and model Islamic bank in the country and region," according to a December 19, 2005 article in Arab News. "Bank Islam had a reputation in the market for being the spoilt child of the Malaysian Ministry of Finance; and the perception of the bank was more of a Muslim financial fraternity or government development financial institution," the report said. In 2007, in what was called Malaysia's Enron scandal, the publicly traded Transmile Group Bhd, whose chairman was former MCA President and Cabinet Minister Ling Liong Sik, was caught having overstated its revenue by RM530 million. A pretax profit from Rm207 million in 2006 was actually a loss of RM126 million, and a pretax profit of 120 million in 2005 was a loss of RM77 million, causing the government postal company Pos Malaysia & Services Holdings Bhd to warn that its earnings for the 2006 financial year might be affected by the reported overstatement, as the postal group owned 15.3 percent of Transmile. Over the years 2001 to 2006, the government had to spend billions to rescue seven privatized projects including Kuala Lumpur's two public transport systems, the perennially ailing Malaysia Airlines, the national sewage system and a variety of others that, in the words of one study, "had been privatized prematurely." The government also repeatedly bailed out highway construction concessionaires, all of them closely connected to Umno, to the tune of another RM38.5 billion. In 2008, it was revealed that Rafidah Aziz, who had served as trade and industry minister for 18 years, had been peddling approved permits for duty-free car sales and allegedly lining her pockets. Two companies which didn't even have showrooms – one of which belonged to the husband of Rafidah's niece – received scores of permits. Although Rafidah came in for heavy criticism from within Umno, she remained in office until she was defeated in party elections. In the 1960s, federal prosecutors in the United States who were attempting to jail the late labor boss Jimmy Hoffa for looting the Teamsters Pension Fund of millions of dollars with his cronies were puzzled by the fact that their revelations appeared to have little effect on the union's rank and file. It was because no matter how much money Hoffa and his cronies stole, there was always money left because the fund was so rich. That appears to be the case with Malaysia. Comments
(24)
Malphindo
written by Mamakthir , December 03, 2009
It seems that the general trend of the Malphindo is heading in the same direction because of the cronys have somewhat tapped into the innate fears of the people into getting elected into power.
Votes: +0
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The plundering has not stopped
written by old kanchil , December 02, 2009
New of the NPL in CIMB of 8.4billion ringgit has not reached main stream media yet. There is a news blackout on it. CIMB bought over the perpetually bankrupt BMF. It is being used by UMNO Putras and their cronies to give out huge loans which can never be repaid. Just like Bank Bumi and BMF in the past. It is not the intention of the borrowers to repay their loans. Malays, given the chance, do not repay their loans. Look at the massive default from scholarships given to Malays. To them, all the money belongs to the Malays and they can do what they like with it. Just put your ears to the ground and you will know what I mean. All the money borrowed from CIMB is not to do business. It is to buy property overseas, shares overseas and just plain investment in overseas funds. How nice of the NEP. This is the Piracy Act that allows the Malays to be pirate kings in Malaysia.How can they Malays be poor? By the time they admit that they have 30&#xof; the wealth of the country, they will actually control 90%. They are like the "arab and the camel". They are deceitful to the core. That's why they can't get business partners from the West for their Proton company. No one from Europe trusts the Malays. Only the Chinese for some reason still give face to them. This is their last hope - and they still want to marginalise the Chinese. The DPM agrees that the peace treaty allows Chin Peng to return home to Malaysia. BUT he says Malaysia will still not allow him to do so. This is the classical deceit of the Malays. Never trust them even with a contract singed and sealed. Who wants to invest in Johore's Iskandar Project?They will change the rules when they realise other races are doing better than the Malays. If I were Singaore I would not even think of investing there. The risk is not worth it.
Votes: +20
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Corrupt and incompetent to the core
written by old croc , December 01, 2009
I am no UMNO sycophant or agent-provocateur. In all sincerity it's time for the non Malays to come to the rescue of Malaysia. All the UMNO Putras and their cronies in BN have hoarded 100 billion ringgit. If they took out 50% and invested it in businesses it wouldn't be so bad. But the Malays just hoard and hoard. It is common to find huge stacks of money in their bungalows. I know because I have lived with them. It is a status symbol to have a hoard of money and jewellery - from the rulers down to the middle class Malay professionals. Now the dirt has come out about the brainwashing programme of the BN government - the BTN. It's only function is to create Islamic and Malay extremism so that the BN can still govern and carry on hoarding money. About the Bumi Finance Scandal - the minister of finance at that time was Tengku Razaleigh. Lorraine Osman took the rap by not mentioning the name of the minister who gave him his orders. For that Lorraine Osman was given a large sum of money and now he lives in the lap of luxury in London. Even then his dirty ways could not disappear. He was implicated in the resignation of the Irish PM. Just like in BMF! Who was that minister behind Lorraine? Was it the PM or the Minister of Finance? Whoever it is, it is classical UMNO culture. From then on, every minister used a Caterpillar tractor to "dig" for easy wealth - in the past they only used a changkul(spade). It is common knowledge that ministers only talk of how much can be made and from which project. No wonder the country now has no money for development and has to borrow heavily from China. The Malays must realise that the only hope of getting on in life is to depend on the Chinese both locally and internationally. No one from the West will give them face. Only the Chinese can do that. And the Malays still want to marginalise the Chinese. They are so like frogs under a coconut shell. They just don't know which side of the bread is the butter. Only the Chinese will tolerate their nonsense.
Votes: +14
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Unsolved Mystery in BMF Scandal
written by RFJ , November 30, 2009
Somebody please dig it up! there must be somebody responsible for the murder and the dirty deals in making easy cash using people's money!
Votes: +7
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Time Bomb in Malaysia-Change! or be Changed by honest Malaysians!
written by Hobama , November 29, 2009
Its not about Malays or non-Malays taking over this disfunctional government.Its about true, honest patriotic Malaysians standing up to run this country democratically.I think the Malay community are not unintelligent to realize that when Mahathir came to power-he had one thing in mind-making as much money corruptly as is possible to saty in power, while doing so keep men who atre that way inclined to be his lackys and successfully did it for 22 years. So while the Rich Malays ,Royalty and selected Bumiputras ( including Ananda Krishnan, Kuoks,LTY and many many more) increased their wealth -also were nominees for Mahathir-the country declined. In all sectors corruption reared its ugly head-Town Planning, Agriculture,Mining , Licences,Judiciary, Police,Legislative body, UMNO
Votes: +11
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watch out old croc
written by soul survivor , November 29, 2009
guys watch out the 'old croc' posting.don't be trapped by that kind of comment.i can smell another pseudo umno agent-provocateur working behind the lines.we must get out from racicst-based thinking if we ever wish to free this country from umno/bn'c dirty-clutch!!again he is trying to instigate netizens into never-ending positions of simply disgusting against the umno/bn regime but getting no where.divide-and-rule has been umno/bn game all the while to stay in power!chaos means opportunity for them.....it's not about malays or non-malays but rather about TRUTH,JUSTICE,FAITH against CORRUPT,RACISM,GREED!!
Votes: +7
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Malays have failed to govern
written by old croc , November 28, 2009
The Malays have failed to govern Malaysia. They have had 50 years to make it but they have undermined Malaysia's future and their personal values by their innate corrupt culture, racist and religious extremism, incoherent logic and sheer laziness. As someone born and breed in Malaysia, I have seen the downhill slide brought about by UMNO and their cronies in MCA and MIC. Most non Malays are proud of malaysia(like me) but their efforts are undermined by the corruption,sheer incompetence and racist approach to government. The worst came with DR Mahathir. He put an approval stamp on anything that benefitted him and his cronies. He has single handedly gave birth to the culture of deceit and hypocrisy. As the saying goes -"one dollar for the government, 2 dollars for him".Everything undesireable appeared to bloom under his rule. Any positive outcome was accidental. The primary outcome of any project was to swell his pockets and that of his cronies. And he is still at it - using his son to put his foot in the till of the Malaysian Treasury.
Votes: +29
As the Malays fail to govern, it is time for the non Malays to take over the country. The Malays will realise that they can still enjoy themselves while the non Malays slog with their might and brains. All they need to do is just stay out government. Be the nature's gentlemen that they were born to be. Throughout SEA, the Malay man has always been the one to "lepak" or loiter aimlessly smoking a cigarett while the women folk foil in the fields and town. This is their culture. This is what they can be. Just stay out of government. report abuse
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Teras Dara Konsortium - add this to the long list.
written by seriati , November 28, 2009
When Development Authority for Pahang Tenggara (DARA) was dissolved 10 years ago, the commercial arm of DARA was privatised to Teras Dara through an MBO front. The man behind this was actually non other than Dato Jamaluddin Jarjis, our current ambassador to the US. What was then a very sweet deal was turned into an ATM. Shareholdinds and assets have been sold. Even a palm oil plantation of 10000 acres was deprived of its mill, the later sold to a diferent company.
Votes: +10
I hope somebody more well versed with such matter would investigate. PKR Pahang? report abuse
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Yup, it has been a feeding frenzy since Mahathir began building his empire
written by Antares , November 28, 2009
"Many snouts in the public trough" - now that's an excellent subheading, very graphic indeed, and this article is a cogent and timely reminder that Malaysia is 1BadJoke after another, especially now that we're saddled with a cunning, sneaky, henpecked crime minister nobody decent actually respects, trusts, or admires.
Votes: +12
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mbt
written by mbt shoes , November 28, 2009
Mbt enjoy good quality,Mbt Sport and Mbt walking shoes save you up to 81%
Votes: +2
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Chinese also conned Malaysians-Let be honest
written by Inspector Wong , November 27, 2009
many of the Chinese made money from the Malay politricians-In fact I think most ideas came from the Chinese -So if there is anyone to blame we have to include the MCA-that is another CONMAN organization-remember they did not want to support the MERDEKA university that caused so many chinese to remein uneduacated! The Chinese must take the blame.
Votes: +7
The Chinese conman is the master of conning.The stupid Malay will take 20% and the Chinese 80%-How to reach 30% in NEP-everytime you come near 30%, the Chinese move further! report abuse
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Malaysia at 2020-will be Zimbabwe!!
written by Inspector Wong , November 27, 2009
Wow, this is a good resume for 2020! Its an art that has been mastered by our politicians-pretend that you are doing good for the citizenary, give the contract to your friends, share 20 for you and 20 for me.Malaysia boleh! CheeBai UMNO. Malau lah!
Votes: +10
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Malaysians should stop paying Taxes! Mahathir, Badawi and Mahathir -CONMEN!
written by Orang Jakun Malaysia , November 27, 2009
I agree that Malaysians should stop paying taxes immediately. The malaysian government is illegal-UMNO was made illegal by the late J Harun.That decision still stands.It is illegal to start a new society and transfer all the assets before inquiry is made how the assets were obtained in the 1st place.
Votes: +18
Najib, his brothers and his nephew Hishamuddin and all the UMNO crooines in the cabinet including the DPM, MCA and MIC are an illegal government.I hope that MI-6,CIA and all law enforcements agencies will leak to the public all the ill gotten gains of Malaysian politicians in international banks. I hope that when our politicians travel that they will be arrested by Magistrates in Europe or the USA on the grounds of crimes against humanity-torture is a crime against humanity-The politicians who should be arrested are Mahathir, Badawi,Najib, Albar, Hishamuddin and Rais Yatim.It will be good that malaysian learn what the politicaisn in malaysia have been doing over the years with thgeir ill gotten gains! I am ashamed to eb a Malaysian because my own people have no respect fro honesty-I am ashamed that the unscrupolous are teh Government, the Attorney general,Judges, Police and all other institutions that run this country-It is a SHAME that Malaysian have to suffer with a BAD government. DONT PAY TAXES-if they try and sue you-leave malaysia and seek Asylum in Europe and /or USA-this is a primitive country where UMNO still sits on the trees and s**ts on its citizens!! report abuse
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written by soul survivor , November 27, 2009
agreed that the BMF scandal set the tone and pkfz shall not be the last one as long as umno/bn are stiil in power.and the netizens hammering and lamenting and pushing shall not be the ending only and until we got them kick-out for good!!!the bmf days taught umno/bn that...hei crimes do pay and they even got a bonus out of them...scott-free and get elected year in year out!give the rakyat 5 sen and they wallup 1million...not a bad business!BTW ....the brutal killing of sdr Jalil Ibrahim also seemed to set the tone....so bombing altantuya looks like peanut!!!CHANGE WE MUST!
Votes: +4
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Mahathiar still milking our national funds
written by Langkawi Boys , November 27, 2009
In Langkawi, Mahathir still spends millions of Rakyat's fund annually
Votes: +18
which can be use to help out the poor Penans (in East Malaysia) and the hardcore poor Rakyats! The Perdana Musuem is just to keep his personal belongings which can be housed in his personal Mansion. There is the National Musuem if any of them are significant to our national history. Where is the PERDANA MUSEUM to keep items of our founding BAPA MALAYSIA, Tunku Abdul Rahman or Tun Razak or Hussein Onn? Its time we STOP this wastage and divert the funds to help the hardcore poor in our economically declining nation. report abuse
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Mahathiar still milking our national funds
written by Langkawi Boys , November 27, 2009
In Langkawi, Mahathir still spends millions of Rakyat's fund annually
Votes: +6
which can be use to help out the poor Penans (in East Malaysia) and the hardcore poor Rakyats! The Perdana Musuem is just to keep his personal belongings which can be housed in his personal Mansion. There is the National Musuem if any of them are significant to our national history. Where is the PERDANA MUSEUM to keep items of our founding BAPA MALAYSIA, Tunku Abdul Rahman or Tun Razak or Hussein Onn? Its time we STOP this wastage and divert the funds to help the hardcore poor in our economically declining nation. report abuse
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written by alias , November 27, 2009
For all that we have to thank our dear Mahathir, Bapak Rasuah Malaysia.
Votes: +31
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Stop paying to the goverment cofer
written by Shanmugam , November 27, 2009
The best to do right now is for all the Chinese and the Indian to stop paying tax to the Goverment in whatever form if possible, the money will put to bad use any way.
Votes: +25
if you have any outstanding to GLC, stop paying if you are not using their service anymore, police summons, and the list goes on and on. do your part where its hurt the most report abuse
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Is that all you can reveal
written by Joe , November 27, 2009
I doubt the above is all there is about the financial scandals during the mahatir era. Corruption was the order of the day. Remember aboiutr the RM7.00 instant noodle. The corruption at the procurement level must have added up to another RM 100 billion during the premiership of the man whom the then Australian PM labelled as recalcitrant.
Votes: +38
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mr, Lowly rated comment [Show]
...
written by sickput , November 27, 2009
Old story.
Votes: +22
All these things happenend when Mahathir was in power. Even the sultans and agungs had to beg for his mercy. What more the powerless Public. Funny things is, Mahathir was popular amongst the non-malays. report abuse
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Breakingnews: RM8.4Billion CIMB Bank's NPL
written by Habib RAK , November 27, 2009
CIMB reported that it is saddled with RM8.4Billion in NPL. Though this is a collossal amount, it is buried in mainstream media. Not given any highlight. Apparently the net worth of this RM8.4Billion is only a mere puny RM928Million. The central bank Bank Negara is suppose to be the watchdog but alas. Sigh.
Votes: +26
Hope Asia Sentinel will carry the detailed news. report abuse
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Poor malaysians!
written by Buntang , November 27, 2009
The majority of the people are bumis who control the political landscape and as long as their interests are taken cared of ( ie. special this and special that, scholarships gone unpaid etc) , they don't care what those in power are doing. Well, we are all in for the take so why bring down the government( ie. those in power) that continues to feed you. So, don't ever dream of justice happening just yet.
Votes: +38
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