Ex-Johor exco man, son and consultant face 21 counts amounting to RM36m


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JOHOR BARU: Former state executive councillor Datuk Abd Latif Bandi, his eldest son and a property consultant have been charged with a total of 21 counts of money laundering amounting to RM35.78mil in connection with the massive Johor land scandal that broke out in March.
The former state Housing and Local Government Committee chairman was charged with 13 counts of money laundering amounting to RM17.59mil.

His son Ahmad Fauzan Hatim, 25, and Amir Shariffuddin Abd Raub, 44, were charged with four counts each involving RM735,000 and RM17.46mil respectively.

They are said to have committed the offences via cheque transactions at five major banks around Johor Baru between November 2013 and December 2016.

Abd Latif, 51, pleaded not guilty to seven counts under Section 4(1) (b) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities 2001 (AMLA) (Act 613).

If found guilty, he can be sentenced to 15 years in jail and fined five times the amount or RM5mil, whichever is higher.

He also claimed trial to six counts under Section 4(1)(a) of the same Act, which carries a jail term of up to five years and a maximum fine of RM5mil, if convicted.

Ahmad Fauzan and Amir Sharifuddin also pleaded not guilty to four counts each under the Section 4(1) (b) and Section 4(1)(a) of the same Act, respectively.

Sessions Court judge Mohd Fauzi Mohd Nasir set bail at RM500,000 for Abd Latif, RM200,000 for Ahmad Fauzan and RM400,000 for Amir Shariffuddin in one surety each, to run concurrently with previously charged offences.

He was referring to the 33 counts of graft that Abd Latif and Amir Shariffuddin had claimed trial to on April 19 for allegedly converting bumiputra lots to non-bumiputra lots involving a total of RM30.3mil in Kota Masai, Tebrau, Kulai, Kempas, Nusajaya and Johor Baru.

The judge also fixed July 5 for next mention.

Abd Latif and Ahmad Fauzan were represented by a five-man legal team led by Datuk Hasnal Rezua Merican while lawyer Azrul Zulkifli Stork stood for Amir Shariffuddin.

The case was prosecuted by Malaysian Anti-Corruption Commission (MACC) DPP Mohd Asnawi Abu Hanifah.

Earlier, the three accused arrived clad in orange lockup T-shirts and were escorted by MACC officers into the court at around 8.40am.

The Star by kathleen ann kili

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Penang Chief Minister may have too much on his plate, be fair when sharing power


 

CM may have too much on his plate

GEORGE TOWN: Penang Gerakan has questioned the efficiency of Chief Minister Lim Guan Eng as the chairman of numerous state-linked agencies and departments.

Its publicity bureau chief Ooi Zhi Yi said that besides being the chief minister, the Bagan MP and Air Putih assemblyman chairs 11 agencies and departments.

“He was recently also appointed chairman of the Penang Stadium Corporation And Open Spaces at the state assembly sitting,” he said.

Ooi asked what had happened to the DAP’s decentralisation of administration and power-sharing policy which it claimed to advocate?

“Is Lim able to handle various responsibilities in different agencies and departments simultaneously?

“Why can’t the state government identify any state executive councillor or assemblyman to hold some of the posts?” he further asked at a press conference at the Gerakan headquarters yesterday

The 11 state agencies and departments which Lim heads are the Penang Development Corporation (PDC), PBA Holdings Bhd (PBAHB) and its unit Perbadanan Bekalan Air Pulau Pinang (PBAPP), Penang Global Tourism (PGT), Penang Hill Corporation (PHC), Penang Convention and Exhibition Bureau (PCEB), George Town World Heritage Inc (GTWHI), the Penang State Museum, investPenang and two subsidiaries under PDC namely the BPO Premier Sdn Bhd and Premier Horizon Ventures Snd Bhd.

When contacted yesterday, Wong Hon Wai, who is Lim’s political secretary, said it is a customary process for a state leader to hold important positions in all the government statutory bodies.

“It is similar to how the Prime Minister and Mentri Besar chair important government bodies,” he explained. – Tbe Star

‘Be fair when sharing power’‘

GEORGE TOWN: The MCA wants the Penang government to create a check-and-balance to counter the Chief Minister’s influence in 19-state linked agencies, statutory bodies and government subsidiaries which he helms.

Penang MCA organising secretary Dr Tan Chuan Hong said the mechanism must include NGOs such as the Penang Forum, Consumers Association of Penang and Penang Heritage Trust.

He said the NGOs should have the right to oppose and express their views whenever needed.

He said Chief Minister Lim Guan Eng had in a written reply to Sungai Dua assemblyman Muhamad Yusoff Mohd Noor at the recent state legislative assembly sitting revealed that he was the chairman of 19 bodies.

“This is not only shocking but also contradicts the CAT principles of Competency, Accountability and Transparency which the DAP-led state claims to practise.

“Where is a person’s credibility if he holds all positions which are closely associated with his position as chief minister. And what about the power-sharing principle advocated by the state government?” Tan asked.

He said since Lim ‘monopolised’ most of the chairman positions, state exco members such as Chow Kon Yeow, Danny Law and Jagdeep Singh seemed to be given merely supplementary roles to play.

Among the bodies helmed by Lim are the Penang Development Corp (PDC), Penang Global Tourism, PICEB Sdn Bhd, PGC Strategies Sdn Bhd, Penang Water Supply Corp Bhd (PBAPP), PBA Holdings Bhd, Penang Hill Corp, Invest Penang and the state museum board.

He gets an annual RM10,000 allowance as PDC chairman, RM3,000 monthly allowance as PBAPP chairman and RM500 monthly allowance as PBA Holdings Bhd chairman.

Lim also gets allowances which range from RM250 to RM500 per meeting that he attends in some of the statutory bodies and subsidiaries that he helms. – The Star

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Arrest decline in productivity and competitiveness in Malaysia


COINCIDENTLY, two major reports were released on June 1 on the decline of our national productivity and competitiveness. The first was our own Productivity Report 2016/2017, which was launched by Minister of International Trade and Industry Datuk Seri Mustapa Mohamad (pic) and the second one was the World Competitiveness Yearbook WCY issued by the Institute for Management Development.

This coincidence in decline is understandable since both productivity and competitiveness are closely inter-related. Lower productivity leads to lower international competitiveness.

Productivity

Our labour productivity fell short of our 11th Plan target of 3.7% growth by 0.2% to 3.5% last year. This is a small decline and has been rightly explained with confidence by the Minister of Trade in positive terms when he said that Malaysia was “on track”.

I think he will agree that we must be concerned enough to ask what are the causes and whether this is just a mere slip or could it be the beginning of a trend.

We have to take this fall as a wake up call, in case this decline happens again next year and later on. We have to review many recurrent and uncomfortable issues like brain drain and unemployed graduates – who could number over 200,000 – also reflect the low productivity of many graduates who are newly employed. The lower productivity can be attributed to our low use of automation, high employment of unskilled foreign and cheap labour and the new challenges of the digital economy.

The Minister’s proposal for the Government and private sector to “join forces to embark on initiatives” to improve productivity in nine sectors “of lower productivity”, is most welcome. The private sector has to make profit unlike the Government. Hence it has a greater sense of urgency in wanting to improve not only labour productivity but productivity from all factors of production, including good governance and integrity and quality services to the public. Thus it will be very interesting for the public to be made fully aware of the productivity improvements that should materialise not only in the private sector, but for the Government as well. For instance government departments can learn from the private sector how to provide better or excellent services in the fields of health and education and counter services at police stations, Customs, Immigration, etc .

Productivity in both the private sector and the government machinery should improve to raise our total national productivity. Only then will our nation be able to compete much more efficiently and effectively in the global economy.

We can have the best Productivity Blueprint like that which was launched on May 8 but our productivity can continue to slip and even slide, if we do not ensure that the blueprint is fully implemented and its progress diligently monitored and improved along the way. One way to seriously pursue our goal to raise productivity would be to increase the small sum of only RM200mil for a new Automation Fund. Modern machinery and equipment are expensive but the returns in terms of higher productivity can be very significant. So let’s go for higher productivity with greater automation and not approach the challenge on an ad hoc and piecemeal basis. The Treasury would need to support the Productivity Blueprint much more productively!

Competitiveness

Malaysia registered its lowest ranking in five years in the WCY.

This reflects our decline in productivity as competitiveness is the other side of the coin. However, I am surprised that the relationship is so sensitive. Just a drop of 0.2% in productivity can cause a drop in our international competitiveness ranking from 19th place to the 24th!

What this could show is that while we are sluggish in our productivity, other countries are much more aggressive in improving both their productivity and competitiveness.

There is thus no point in taking pride that we scored better in our ranking compared to the industrial countries like Austria (25th) Japan (26th) and Korea (29th). They are highly developed countries which enjoy much higher standards of living and a better quality of life that we do. They have reached the top of Mount Fuji and other mountains, while we are still climbing up from a lower economic base.

The drop in our competitiveness is significant and we have to take this decline very seriously. Malaysia slipped in all four sectors, that is, economic performance, business efficiency, government efficiency and infrastructure. That is why it is essential to investigate in depth into all these major falls in performance and tell the public what is being done to improve our rankings and ratings.

It is appreciated that Malaysia Productivity Corp’s Director General Datuk Mohd Razali Hussain has established Nine Working Cluster Groups to examine these poor indicators and report on improvements that must be made expeditiously.


Conclusion

It is good that we have these reports on productivity and international competitiveness to benchmark our national performance against them. We have to take advantage of these annual indicators and ensure that we keep improving rather than falling in productivity and competitiveness .

Our efforts to improve will be watched closely by our domestic and particularly international investors and international competitors .

We can only hope that these declines are not just coincidental but are also not developing declining trends. This could spell pessimism and falling confidence in our socio-economic management.

Instead we should take these set backs as warning signals and rededicate ourselves to a greater commitment to higher competition, more meritocracy and building a better socio-economic and political environment in Malaysia.

TAN SRI RAMON NAVARATNAM

Chairman Asli’s Centre of Public Policy Studies


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Huge Civil Service Size, Attractive Emoluments and Benefits are costing Malaysia !


Prized job: While long-term security like the pension scheme free healthcare and easy loans have been among the perks of joining the public service, many job seekers now want to become civil servants because it pays well. — Bernama

The attractive emoluments and benefits in the public sector are costing the country, say experts.

THE civil service had never been *Sofea Mohd’s dream job but in the current competi­tive job market, the final year Economics student at a local public university is seriously weighing the option. Especially since she was offered a temporary position at a ministry where she had just completed an internship.

“My seniors advised me to take the offer – one said she had to wait years before she got a job, another said he had to work in a fastfood restaurant and sell pens and children’s books on the street, so I thought I should listen to them and just take it.

“They say my chances of being hired permanently will be higher then,” says the 22-year-old.

The main reason she decided to accept the offer, however, is the pay, she tells, “It’s not as low as people say. I will get a daily wage but I can earn at least RM2,000 a month. The pay for permanent staff is of course better.”

Her friend *Azman Jailani dreams of starting his own business but is also planning to join the public sector after graduation.

“That’s what my parents want me to do. They say there is more security in the civil service. I can start my business later if I want,” says the final year business studies student.

With the academic year coming to a close at most tertiary institution in the country, many graduating students are preparing for the next chapter in their life. And like these two, many are looking at the civil service for a job guarantee.

It was reported recently that the Public Service Commission received 1.56 million applications last year to fill 25,046 job vacancies in the public sector. In 2015, the PSC received 1.63 million applications for 24,606 vacancies.

While the attraction of a government job is well-noted – long-term security; a pension scheme; cheap, if not free, healthcare; easy loans – many job seekers are now drawn to the public sector because of its pay.

Shamsuddin: ‘Duplications impact the private sector. When there are too many agencies, that will bound to cause delays.’

The pay for the public sector, especially for entry-level jobs, is on par with the private sector, says Malaysian Employers Federation (MEF) director Datuk Shamsuddin Bardan.

“It has to be noted that public sector wages have risen, in some cases outstripping the wages in the private sector. And that is only the basic pay. When you add the different allowances and bonuses, the public sector’s salaries – perhaps except for those at senior management level – could be more attractive than that of the private sector.

“Then there are also many benefits for civil servants such as house loans and healthcare benefits for them and family that continue even after they retire.

“In the private sector, the health insurance coverage ends when you leave a company’s employment or retire,” he says.

But the attractive emolument and benefits in the public sector have come at a price for the country, say economists, one that Malaysia will not be able to afford in the future. In fact, some believe it is already hurting Malaysia’s economy – it has been reported that it will now cost the nation more than 40% of government revenue to maintain the public sector.

Experts have pointed to its sheer size as a reason for the burgeoning bill of the civil service.

In February, Second Finance Minister Datuk Seri Johari Abdul Ghani told a local Chinese daily in an interview that it is a growing challenge for the Government to run the public sector due to the rising costs.

“One of the issues that we have to address is the ever-increasing government operating costs and expenses.

“For example, we have about 1.6 million civil servants, which is one of the world’s largest proportion of civil service,” Johari was quoted as saying.

With a population of 31 million, this means Malaysia has a ratio of one civil servant to 19 people, said the news report, which cited corresponding ratios for other countries in comparison: Singapore (1 to 71 people), Indonesia (1:110), China (1:108) and Britain (1:118).

The reported size of the civil service caused a stir, with the Public Service Department director-general Datuk Seri Zainal Rahim Seman refuting criticisms that the civil service is oversized by reiterating Chief Secretary to the Government Tan Sri Dr Ali Hamsa’s statement that the size of the civil service is a matter of definition under the Federal Constitution, which includes the police, the armed forces, and healthcare and education personnel.

 

As Zainal Rahim told the press, the actual size of the civil service would only be 682,790 should Malaysia adopt the same calculation used by other countries. This would make the ratio of civil servant to population as 1 to 44, instead of 1:19, he said.

The Organisation for Economic Co-operation and Development, meanwhile, put  Malaysia’s employment in the public sector as only 10.8% of the total labour force in 2013.

But as Johari highlighted, the fact is, emoluments make up the biggest portion of the Government’s operating expenditure, and that cost has been and will keep expanding.

“In 2003, the pay of public servants totalled RM22bil but it increased to RM74bil by 2016. In 2003, the pension of civil servants was RM5.9bil and in 2016 the amount soared to RM19bil.”

This year, some RM77.4bil have been allocated in the 2017 Budget for public servants’ pay and some RM21bil for the pension and gratuity payments of retirees, which is about 45% of the allocated operating expenditure of the country.

The challenge to cover the spiking cost is intensified by the declining Government reve­nue, the vernacular newspaper reported Johari as saying.

“In particular, revenues from the palm oil and natural gas industries, which generated profits of about RM65bil in 2014, fell sharply to RM30bil in 2016,” he was quoted.

Concurring, economist Dr Yeah Kim Leng says the rising operating expenditure is also a concern due to its impact on the country’s development.

“Over the last decade or so, we are seeing the operating expenditure in the government budget expand to the extent that we are not able to expand the development expenditure,” says Dr Yeah, who is an economics professor at Sunway Business School.

Some RM214.8bil was allocated for operating expenditure in the 2017 Budget while only RM46bil was allocated for development.

“By right, the development expenditure should be half of the budget if we want a dynamic economy as we see in many countries, especially in the developed countries,” he adds.

“But in Malaysia, the development expenditure has shrunk to as low as 20% of the budget. This will have a multiplier effect on our economy.”

He argues we should be spending more on our development, both in increasing the quantum of development expenditure and at the same time focusing the development expenditure on the right sectors – not just hard infrastructure but also soft infrastructure like social and human capital development.

“This is important in improving the quality of our workforce and their skills, in terms of boosting the talent development that can push the frontiers of growth in the country, especially in science and technology and other emerging knowledge and industries.

“The Government needs to attract investments in these new sectors, so that is why development expenditure is one of the key contributions to spark growth in those sectors and accelerate the growth of the economy towards becoming high end, high value.”

He points out, various studies have shown that the country’s civil service is big, with a low productivity rate.

“Regardless of how we calculate the total, we definitely have more people in the public sector than necessary, and studies have shown that labour productivity is quite low for the public sector.”

Rightsizing the civil service is the way to go, he asserts, but it should be treated as part of the continuous effort of improving the efficiency of its delivery service.

“The key is to be able to provide the services required by the people optimally, which is at the smallest number and lowest cost possible without sacrificing the quality of service,” he says, stressing that the underlying note is that “we should be getting bigger banks for our bucks, that is the taxpayers’ money.”

Crucially, Dr Yeah adds, while rightsizing the civil service is important to sustain growth, it is important that we rightsize without disrupting economic growth in terms of the employment situation in the country.

“We have to ensure meaningful employment for all while sustaining a low unemployment rate so that we can maintain the domestic economic growth momentum.”

Any prudent government would seize the opportunity to rightsize and enhance the public sector efficiency, Dr Yeah says.

“It is important to rightsize gradually and incrementally at a pace that does not disrupt the economy.

“Because the risk is that if we are hit by a downturn and the government is forced to undertake the pending cuts then that would be more painful and damaging to the economy. There would be a loss of productive capital when we face that kind of situation,” he says.

Tan Sri Mohd Sheriff Mohd Kassim, immediate past president of the Malaysian Economic Association (MEA) also believes it is time for Malaysia to rightsize the civil service due to the huge sum of civil servants’ salaries and pensions in the government expenditure.

As he had told the “Economic Governance: Public Sector Governance” forum in February, it could be a problem for Malaysia if it runs into a financial crisis and rightsizing is “better sooner than later” if Malaysia wanted to avoid falling into a Greece-like crisis, where the European country had to cut salaries and state pensions for its civil service.

“It is worthwhile to do it now while we can still afford it.

“I think we should do it gradually. It is kinder to do it now with incentives than to suddenly cut their salaries and pensions at a time when they can least afford it,” he was reported as saying.

Mohd Sheriff, who is also the former Finance Ministry secretary-general and Economic Planning Unit director-general, points out that there are ways of rightsizing in a humane and caring manner including providing free courses on skills development that will make people employable in the right sector like ICT, English, basic accounting, corporate law and others.

He says with the right skills, many would even leave the service on their own accord to improve their lives.

Dr Yeah agrees.

“While their pay is comparable to the private sector, many of the second layer and support jobs in the civil service have low long-term prospect,” he says.

“If their skills are improved, they and their families could get better prospects for the future. And if they are forced to look at other opportunities in the private sector or in entrepreneurship, in the end they could be better off,” he says, pointing to some of the initiatives already taken to rightsize the civil service and improve its productivity and efficiency, especially under Pemandu.

Dr Lee Hwok Aun, senior fellow at the Institute of Southeast Asian Studies in Singapore, says the Government should explore different ways to raise more revenue, such as by introducing a capital gains tax.

As a former lecturer at a Malaysian public university, Dr Lee says he can appreciate the enormous difficulty of rightsizing the civil service.

“The projected increasing burden of civil service salaries and proven continuous increase of operational expenditures in overall federal government spending, at the expense of investment, are major causes for concern. And the size of the civil service matters, but the long-term issues are even more complex,” he says.

For the civil service to be effective, nimble and efficient, it will need to attract and retain talent in certain sectors – which means paying higher salaries, especially for key positions such as teachers, he says.

As he sees it, the main problem is over-bureaucratisation.

“There are various unnecessary administrative posts, which add cost and tend to perpetuate procedures and heavy paperwork. I can attest to this from my experience working in a public university. An overhaul of administrative strategy and operations is probably necessary in many departments, before making any staff reductions. If not, when staff retire or relocate, the same amount of tedious work becomes distributed among fewer people, causing service and morale to decline,” he says, adding there will also be resistance from civil servants who stand to lose their pension if they leave.

“We should be understanding and merciful about this situation. Forms of compensation, or the option to convert from public sector pension to an EPF lump sum, could be explored.”

MEF’s Shamsuddin concurs, pointing out that there are also a lot of duplications of service and work at the federal level and state level and so on.

“A good example is tourism where there is a tourism agency at the federal level while the state has its own tourism Exco and office.

Duplications impact the private sector as it is a problem to deal with different government agencies to get something done. When there are too many agencies, that will bound to cause delays,” says Shamsuddin.

Dr Yeah says it is imperative for the Government to enhance the efficiency of the delivery service and effectiveness of the public sector across the board, such as putting them to work in priority areas and where they will have the highest impact.

“Crucially, when we focus on improving productivity through redeployment, retraining and re-skilling, quite naturally, we will be rightsizing.”

It can even be a win-win situation for the public servants as a smaller number of employees that commensurate with a higher productivity will mean an increase in profit, so the civil servants can receive higher wages, he notes.

Still, Dr Yeah feels the public sector’s emolument bill should be capped.

“We need to ensure that the public sector wages do not exceed the workers’ productivity or rate of inflation, as that itself will lead to a productivity decline.

“We should cascade it so that the wages in private sector could rise in tandem with thepublic sector,” he says, adding that at the same time the size of the civil service needs to be reduced. “If we don’t rightsize and instead create more civil service jobs, it will be a downward spiral.”

The Government also needs to enhance Malaysia’s investment climate and attract more foreign investments, he adds, “The strategy of the country should be to push for private sector growth, especially in new and emerging areas which would boost demand for highly skilled labour.”

Ultimately, says Dr Yeah, the public service sector should not be the job reserve or employer of the last resort in the country.

To achieve this, we need to stop the disproportionate interest in the public sector which is not healthy for the economy, he says.

“We should be steering the workforce towards the private sector or they should become entrepreneurs so that they can raise their income opportunities and create jobs.”

The tightening of the job market can lead to higher investment, higher productivity and higher wages, Dr Yeah notes, “This is the virtuous cycle we need to kickstart to sustain an economic growth for the country at a higher level.”

*not real name

Next: Some of the initiatives already taken by the Government to rightsize the civil service and improve its productivity and efficiency.

Source: The Star/ANN by Hariati Azizan

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Mereka Rasuah Kita Bayar! 3J drive: Jangan Kautim, Jangan Hulur, Jangan Settle!



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Working together: Dzulkifli (third from left) and Wong (centre) sharing a light moment with The Star team after launching the 3J Campaign at Menara Star.

Star teams up with MACC for 3J drive

It is an arduous task but the battle against corruption involves all Malaysians.

For that reason, Star Media Group has partnered with the Malaysian Anti-Corruption Commission (MACC) for the nationwide “Jangan Hulur, Jangan Kawtim, Jangan Settle” (Don’t Give and Don’t Settle) 3J Campaign.

“The battle is neither quick nor easy. But with public support, this fight will end with us winning and our integrity intact,” said Star Media Group managing director and chief executive officer Datuk Seri Wong Chun Wai.

The Star, he said, would be focusing on the youth as they were the “most crucial group”.

Speaking at the launch of the campaign at Menara Star yesterday, Wong cited an MACC study conducted last year among students which found that 16% of students in institutions of higher learning were willing to offer bribes.

The number was worrying as it had gone up from the 10.7% rate in 2015, he said.

To educate the next generation on values like integrity, The Star will be going all out to highlight the message of the campaign.

Other than spreading the word via Twitter and Facebook, Wong said it would be combining its media platforms such as The Star newspaper, The Star Online and StarTV as well as its Bahasa Malaysia news portal mStar and radio Suria FM.

Suria FM, which is part of the Star Media Radio Group, will broadcast the campaign message to the public via its road show team – the Suria FM Wheelers.

The month-long 3J Campaign came under the umbrella of the nationwide Gerakan Revolusi Anti-Rasuah or Gerah campaign, which was launched at the MACC headquarters in Putrajaya yesterday.

MACC chief commissioner Datuk Dzulkifli Ahmad said the battle against corruption and abuse of power would fail without a concerted effort.

“This is why I believe the fight should be our journey, our cause and our war together,” he said.

Dzulkifli voiced his hope for Malaysians to come together under the 3J Campaign and play an active role in battling the “cancer of corruption”.

He said the words “hulur, kawtim and settle” are synonymous with corruption and the MACC used these terms so that the people were aware of the aim of the campaign.

“We hope this will pave the way for the people to say no to corruption and to create a society that has the courage to stand up and fight not only against corruption but the corruptors too,” he said.

Dzulkifli said he made a bold promise to Malaysians earlier this year when he vowed that the MACC would make one arrest every week, but this had been delivered so far, he added.

He also commended the media for its role as “an important watchdog over corruption” and its effort in exposing such cases.

MACC – two campaigns and a swoop 

 

Ready for war: MACC chief commissioner Datuk Dzulkifli Ahmad (centre) and his officers pledging at their headquarters in Putrajaya to wipe out corruption.

PETALING JAYA: Two anti-corruption awareness campaigns were launched nationwide and, to show how serious the fight against corruption is, a swoop on corrupt Immigration officers was carried out too.

An aide of a chief minister, who is a Datuk, was also arrested and is expected to be charged today.

Sources said two senior immigration officers based in Complex ICQ Padang Besar, Perlis, were detained at about 11am yesterday under Ops Lavish.

The suspects, aged 35 and 37, were summoned to the Kedah Malaysian Anti-Corruption Commis­sion (MACC) office on suspicion of accepting bribes in relation to the approval of expatriate passes to hire skilled and professional workers. Also arrested was a 48-year-old contractor.

The contractor is believed to have abetted in the dealings since 2015 and acted as a middleman to transfer a huge sum of money into several bank accounts.

The amount involved was said to be over a million ringgit.

MACC deputy chief commissioner (operations) Datuk Azam Baki confirmed the arrests.

The anti-graft officers also seized four luxury cars, a high-powered bike, a fixed deposit account with RM1mil, 13 luxury bags and 13 watches worth RM130,000.

All three suspects will be investigated under Section 17(a) of the MACC Act 2009, which carries a jail term of up to 20 years and five times the amount of bribes involved.

It is learnt the 37-year-old suspect, while taking charge of the expatriate services division in the Putrajaya Immigration Depart­ment, carried out the dubious dealings.

He was the division head from Feb 2015 to Dec 2015 and tasked with supervising, approving and cross checking all applicants information in the data system.

Star Media Group managing director and chief executive officer Datuk Seri Wong Chun Wai and Dzulkifli go on a ride in the MACC FM mobile after launching the 3J Campaign at Menara Star in Petaling Jaya. — AZMAN GHANI/The Star

Within the short period there, he was said to have approved 339 applications involving 18,626 applicants.

“Some applicant companies were said to be non-existent.

“Initial investigations showed the suspect took a minimum of RM1,500 per applicant from agents as an inducement to approve their applications,” said a source.

Checks also showed that the suspect’s wife had played a role in the dealings by using her registered companies to issue cheques and to transfer money.

The latest move signalled a clean up of the Immigration Department by the anti-graft body.

Thumbs up: MACC enforcement officers meeting members of the public at various public places to spread the 3J anti-corruption campaign message of ‘Jangan hulur, jangan kawtim, jangan settle’ (Don’t give and don’t settle.

In March, at least 10 immigration officers who took up to RM5,000 each to allow illegals to enter Sarawak were nabbed. Six of them were women.

Early this year, four Selangor immigration officers were rounded-up to assist in investigations into dubious applications for international passports, causing losses of over RM1mil.

In Malacca, the former special officer to Malacca Historical City Council’s mayor implicated in a corruption case was arrested at 7.30pm yesterday at the Malacca MACC office.

The 56-year-old suspect faces 11 charges under the Anti-Money Laundering, Anti-Terrorism Finan­cing and Proceeds of Unlawful Activities Act and another four under the Penal Code.

On Nov 28, the officer was arrested to help with a probe over alleged corruption and money laundering.

The MACC also seized more than RM100mil from the officer, comprising cash, assets and several vehicles.

Source: The Star/ANN

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Mind your words, please!


The colour orange: Oren refers to the orange colour of the T-shirts that those arrested by the MACC have to wear when they are brought to court.

 

THE Malaysian Anti-Corruption Commission (MACC) has been in the news almost daily with its arrests of politicians and businessmen, many carrying the Tan Sri and Datuk Seri titles.

This has become the subject of conversation among Malaysians.

To help foreigners, especially those doing business here in Malaysia, below is a compilation of terms that are often used to denote corrupt practices. To the clueless, these words could easily be misunderstood.

Worse, it could land unsuspecting expatriates in serious trouble with the law, especially with the MACC, if they use these seemingly innocent terms without realising their implications.

Here’s a list of everyday words and how they are used.

Jalan – this is a Bahasa Malaysia word for “road”. On the surface, it sounds simple and straightforward. Every road sign begins, mostly, with this word to denote, well, road. If only it was that simple. In reality, it could be the beginning of a corrupt offer.

If someone asks you: “You got jalan ah?” It doesn’t mean seeking assistance for a road direction. In the Malaysian context, it probably means “is there a way to resolve a complicated situation?” Some may argue the word need not necessarily be “illegal” as it could also mean finding a clever way out of a problem.

Kabel – the Malay word for “cable”. Cables are strong, thick wires, which are usually twisted or braided together. Well, in Malaysia, it also means someone in position – a very powerful person, often a politician in high office, or a senior government officer, who is able to help secure a big contract or deal. So, if someone asks whether “you have kabel?” you shouldn’t look puzzled or confused.

It simply means you need to have the support of an influential figure who is as strong as a cable. It’s no longer good enough to “pull strings” but you must be able to “pull cable” for your plans to get off.

Lubang – it literally means a hole. Most Malaysians grumble about lubang or the numerous pot holes along our badly maintained roads. The vulgar ones uses this word with a sexual connotation.

But in the more sleazy world of bribery, lubang means an opportunity, usually an illegal way, to make money. It has nothing to do with holes, as the word suggests.

Kau tim – this is a Cantonese word, which has actually become a Malaysian word, used by all races. It means finished, done or resolved. As simple as that.

But it is also a way of expressing agreement, or to settle a problem with bribery. For example, if you are stopped by a traffic cop for a traffic offence, you may say “boleh kau tim ah?” or the policeman may suggest “macam mana mau selesai, mau kau tim kah?

Lu tak mau kau tim, mesti susah punya. Nanti kena pi balai, pi court.” (If you do not wish to settle, it can be difficult. You may have to go to the police station or even the court.)

Ta pau – I always thought that this Chinese word means to pack food or a take-away, but it has come to mean a greedy corrupt person who wants to take away the entire loot all for himself without sharing with anyone, as in “he wants to ta pau everything, how can? So greedy one.”

So, no expatriate who has just arrived in town should go around telling everyone that he wants to “ta pau” everything he can lay his hands on. He can be sure of getting strange, hostile stares.

Selesai – it means to end or the end. It could be the end of a movie, the end of a meal or the end of a relationship. It’s a really simple word but in the Malaysian context of corruption, it means “how to resolve this?” or “it has been settled.”

Usually, the act of corruption will begin with a simple question – “So, macam mana mau selesai?” or “how do we settle this?”. For sure, it won’t be a challenge to a fight or a gentlemanly end to a problem with a handshake. Don’t be stupid. It’s an invitation to begin negotiation for, errr, a bribe.

The English version is also often used, as in “can settle ah?”

Lesen kopi – This has to be the Corruption 101 lesson for our young drivers. It is the first step into the world of corruption in Malaysia. Nobody wants to admit it but going by hearsay and unsubstantiated remarks, many Malaysians taking their driving test believe that they need to bribe the examiner in order to pass the very first time. Lesen kopi means bribing to get a driving licence.

So, they earn what is known as “lesen kopi” or licences obtained via corrupt ways, or duit kopi. Small gratification for “coffee” for the testers. Coffee, not tea. Strangely, there is no such term despite our fondness for teh tarik.

It may sound terribly confusing to tea drinking foreigners but please don’t think that this is the reason why so many Malaysians kill themselves or each other on our roads.

Ikan bilis – it refers to anchovies, those tiny fish, usually fried, found in our national food, the nasi lemak. But it also means small fry. So when low-ranking government officers are arrested for corruption, the MACC is often criticised for just going after the ikan bilis and not the bigwigs, known as sharks in the Malaysian context.

Makan duitMakan essentially means to eat. There’s no way, literally, that a person can eat a ringgit note. But it is synonymous with taking a bribe. It may be confusing to a foreigner as it may seem impossible to eat stacks of ringgit notes but this is Malaysia. We are versatile as well as adaptive. Many people will tell foreigners that they are able to, well, makan duit. Can one, who say cannot?

Oren – It’s not orange juice. It refers to the colour of the round-collared T-shirts that those arrested by the MACC have to wear.

This is the dreaded colour for all suspects, in handcuffs, being led to court in full view of the press.

You can be in red or yellow but orange is a no-no. The new term now is “jangan oren” or “don’t be in orange.”

On The Beat by Wong Chun Wai, The Star

Wong Chun Wai began his career as a journalist in Penang, and has served The Star for over 27 years in various capacities and roles. He is now the group’s managing director/chief executive officer and formerly the group chief editor.

On The Beat made its debut on Feb 23 1997 and Chun Wai has penned the column weekly without a break, except for the occasional press holiday when the paper was not published. In May 2011, a compilation of selected articles of On The Beat was published as a book and launched in conjunction with his 50th birthday. Chun Wai also comments on current issues in The Star.

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Biggest seizure: A case that caught the attention of the nation was the seizure of cash, jewellery and other expensive items from the homes of two former top Sabah Water Department officials in October last year.

ONE need not go far to see how effective the Government can be when dealing with highly problematic issues involving people who blatantly do not comply with the rules.

After the National Higher Education Fund Corp (PTPTN) issued a warning to loan defaulters that they would be blacklisted and may not be able to travel abroad, the repayment of their loans increased. There is almost a 300% jump in withdrawals from the Employees Provident Fund’s (EPF) account for education purposes – rising from RM578mil in 2015 to RM1.48bil last year.

According to officials from the EPF, the bulk of the money withdrawn has been channelled toward the repayment of loans owed to PTPTN.

Clearly, the prospects of being blacklisted – a record that will remain forever – and the possibility of being stopped at the airport before leaving overseas for a holiday are reasons enough for them to repay their loans.

The lackadaisical attitude of those who have taken student loans is just another sign of apathy. The former students who are now young working adults know very well that they have an obligation to repay the loans.

However, they do not bother to do so until measures are put in place to hit them hard where it matters.

On a larger scale, corruption is a big problem in Malaysia. It is a major problem that has reached a state where most companies set aside a certain amount to “grease” key people to get jobs.

Everybody knows the danger of getting caught but the practice continues. Towards this end, the Malaysian Anti-Corruption Commission (MACC) has, in recent months, been on overdrive to nab those suspected of corrupt activities.

But has the message that the MACC means business been drilled down?

In South Korea, former president Park Geun-hye was detained on April 1 ahead of her trial. Prosecutors said the allegations against her were grave and the other suspects in the case, including her confidante Choi Soon-sil and Samsung heir Lee Jae-yong, have already been arrested.

In that country, it’s clear that corruption will not be tolerated. Those being investigated will be put behind bars even before the trial starts.

In the last few months, a regular feature in newspapers is the string of high-profile personalities who have been arrested for allegations involving bribery or money laundering.

They include politicians, civil servants, heads of government-linked funds and businessmen. Those who solicit bribes and the parties that give the money or even facilitate bribery have been arrested and remanded.

Some of them have been charged before being let off on bail.

Pictures of the persons involved are all over the newspapers and social media. In some cases, names are mentioned.

The “shaming and naming” of the people hauled up and being investigated is damaging. It is the talk of the town – especially among the private-sector businessmen.

However, there are some reservations on whether the efforts by the MACC would pay off.

At the end of the day, what would matter is seeing how many get prosecuted successfully; how many are handed down custodial sentences.

And most importantly, the speed in which these cases are disposed of by the courts.

For now, most of these MACC cases are already being filed in court and some have been charged. But the trial proper is a process that is likely to take a long time.

And the danger is the momentum will slow down when there is no speedy end to the cases.

There is also the issue of managing perception when there are delays in the outcome.

For instance, two senior officials of the Federal Land development Authority (Felda) were charged with criminal breach of trust involving RM47.6mil for a sturgeon-breeding project in March this year. The offences were allegedly committed between January and July 2014. The hearing will probably start in a few months.

In the meantime, Felda continues to fight the battle to improve its perception on improving governance and returns on its investments.

The share price of Felda Global Ventures Holdings Bhd is a far cry from the valuations it fetched during its listing in 2012. The returns from the RM2bil that Felda has invested in Felda Investment Corp is nothing much to shout about.

One case that has caught the attention of the nation was the seizure of cash, jewellery and other expensive items from the homes of two former top Sabah Water Department officials in October last year.

According to reports, it took 30 MACC officers and 15 hours to count the cash of more than RM53mil that was seized.

The display of the stacks of bank notes seized from the homes is still an image that is popular on social media. The case, touted as the nation’s biggest corruption case involving RM61.4mil in cash and other assets, has been fixed for hearing in July and August this year. According to reports, some 200 witnesses will be called for the case.

When the case will be concluded is anyone’s guess. In the meantime, it leaves many wondering if the MACC would be successful in its efforts.

Corruption affects the country as a whole. It is estimated that there is a leakage of about 20% of the annual spending for projects and procurement. For instance, the Federal Government development expenditure for 2016 was about RM50bil and 20% is easily RM10bil.

Larger sums are budgeted for government agencies that are not part of the Federal Government balance sheet. This includes the likes of Mass Rapid Transit Corp Sdn Bhd that handles the rail infrastructure projects running into 10s of billions of ringgit. The government-linked companies are another set of entities with big budgets.

What the MACC needs now is a speedy end to such high-profile cases.

Whether the prosecution is successful or otherwise, a quick closure to such cases will help MACC instil public confidence in it. A strong finish to the investigations is much needed.

By M.Shanmugam The Star

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