Recalling Bank Negara’s massive forex losses in 1990s


The government is moving ahead to investigate whether there were any wrongdoings in the massive foreign exchange losses suffered by Bank Negara some 25 years ago. Many people today may not have a good recollection of what happened, while many others probably had no knowledge of it until it became news again recently as the sitting government took aim at this nasty episode under Tun Dr Mahathir Mohamad’s rule.

I was a reporter with Reuters then and had covered the losses that surfaced when the central bank released its annual reports for 1992 and 1993 in March 1993 and March 1994, respectively. I recall that those losses first puzzled me and others because bank officials did not come forward to talk about them at the press conference nor was the information contained in the press release. They were, however, disclosed in the last few pages of the 1992 report on the bank’s financial statement, which normally do not attract attention, as reporters would focus on the earlier parts that touched on the performance of the economy and banking sector.

But that year, we took a cursory look at those back pages and spotted something odd. Bank Negara’s financial statement showed its Other Reserves had plunged from RM10.1 billion in 1991 to RM743 million in 1992, or a loss of RM9.3 billion. There was also a Contingent Liability of RM2.7 billion.

When we asked about this, I recall that both then Bank Negara governor, the late Tan Sri Jaafar Hussein, and his deputy, Tan Sri Dr Lin See Yan, said it was nothing serious, as they were mere paper losses that could be recovered later. We were not convinced, but we were unable to challenge them, as we did not under stand the manner in which Bank Negara presented its accounts.

The next day, however, the market was abuzz with talk that the bank had lost billions in foreign exchange transactions and I remember writing stories on this for the next week or so. But nothing more came of it, although opposition MPs led by Lim Kit Siang continued to press the Ministry of Finance and Bank Negara for answers.

The matter really blew up a year later when Bank Negara tabled its 1993 report and disclosed another forex loss of RM5.7 billion. Here is what Jaafar said:

“In the Bank’s 1993 accounts, a net deficiency in foreign exchange transactions of RM5.7 billion is reported, an amount which will be written off against the Bank’s future profits. This loss reflected errors in judgment involving commitments made with the best intentions to protect the national interest prior to the publication of the Bank’s 1992 accounts towards the end of March 1993. As these forward transactions were unwound, losses unfolded in the course of 1993. In this regard, global developments over the past year had not been easy for the Bank; indeed, they made it increasingly difficult for the Bank to unwind these positions without some losses. For the most part, time was not on the Bank’s side. Nevertheless, this exercise is now complete — there is at this time no more contingent liabi lity on the Bank’s forward foreign exchange transactions on this account. An unfortunate chapter in the Bank’s history is now closed.”

Jaafar took responsibility for what happened and resigned, as did the bank official directly responsible for its foreign exchange operations, Tan Sri Nor Mohamed Yakcop.

How did Bank Negara lose the billions?

Jaafar said the losses were owing to commitments made to protect the nation’s interests. He was referring to the bank’s operations in the global forex market to manage the country’s foreign reserves and, obviously, something went wrong in a big way.

Forex traders and journalists who covered financial markets in the late 1980s knew that Bank Negara had a reputation for taking aggressive positions to influence the value of the ringgit against the major currencies. When the bank is not happy with the direction of the ringgit, up or down, it makes its intentions known by either selling or buying ringgit.

One question I had always asked forex dealers when writing market reports for Reuters was, “Is Negara in the market today?”

Bank Negara has always maintained that its market operations were to prevent volatility and undue speculation. Its critics, on the other hand, said it also did so for profits, which it enjoyed for years.


What went wrong in 1992?

That was the year George Soros and other hedge funds bet heavily against the British pound on the basis that it was overvalued. The Bank of England (BOE) fought back by buying billions of sterling while Soros and gang shorted the battered currency.

As it did not want to deplete too much of its reserves to defend the fixed rate of the pound within the European Exchange Rate Mechanism, BOE capitulated by withdrawing from the ERM on Sept 16, 1992, since called Black Wednesday.

It was widely believed then that Bank Negara had bet on the wrong side of the fight between BOE and the hedge funds. It never thought that central banks could lose against specu lators, but BOE lost and Soros was said to have pocketed at least US$1 billion.

Bank Negara has never confirmed nor denied that this was indeed what happened but the evidence, although circumstantial, points to this as the reason for the loss of RM9.3 billion in its 1992 accounts and the subse quent loss of another RM5.7 billion in 1993, bringing its total loss to RM15 billion.

Was the loss more than RM15~30 bil?

Former Bank Negara assistant governor Datuk Abdul Murad Khalid was reported as saying recently that the losses were actually US$10 billion. That would work out to RM25 billion at the then exchange rate of RM2.50 to a dollar. Murad also alleged that there were no proper investigations into the matter.

Following his allegations, the Cabinet has now set up a task force led by former chief secretary to the government, Tan Sri Sidek Hassan, to investigate whether there were wrongdoings that caused the losses, whether there was a cover-up on the size of the losses, and whether Parliament was misled.

So, who should the task force call up as part of its probe? I am guessing the following:

  1. Tun Mahathir, who was the prime minister then;
  2. Tun Daim Zainuddin, who was the minister of finance from 1984 to 1991 when Bank Negara was active in the forex market;
  3. Datuk Seri Anwar Ibrahim, who was the minister of finance when the losses surfaced in 1992 and 1993;
  4. Dr Lin, who was deputy governor of the central bank then;
  5. Tan Sri Ahmad Don, who succeeded Jaafar as governor;
  6. Murad, who made the allegations; and
  7. Nor Mohamed, who was head of forex operations.


Who is Nor Mohamed?

Nor Mohamed is the man who lost billions for Bank Negara and resigned along with Jaafar in 1993. He then kept a low profile with short spells at RHB Research Institute and Mun Loong Bhd.

In an ironic twist, the man who lost billions for the country was later credited with helping save the ringgit from currency speculators in 1998.

Frustrated by the year-long failure of governments and central banks to fight off speculators, who had devalued Asian currencies (the ringgit plunged to as low as 4.80 to the dollar), Tun Mahathir turned to Nor Mohamed for help. The doctor did not understand how the currency market worked and Nor Mohamed took him through it in great detail. The two men then confidentially devised the plan that shocked the world — the imposition of controls on Sept 1, 1998.

Widely criticised at the time (Ahmad Don and his deputy Datuk Fong Weng Phak resigned in protest), some now say the move helped bring an end to the crisis, as speculators feared other affected countries would do the same.

Nor Mohamed’s star shone again and he later became Minister of Finance 2 under Tun Mahathir and Tun Abdullah Ahmad Badawi. He is now deputy chairman of Khazanah Nasional.

But now, a ghost from his past has been dug up as fodder for the political contest between Prime Minister Datuk Seri Najib Razak and his biggest nemesis, Tun Mahathir. The objective is obvious. Tun Mahathir has attacked Najib incessantly over 1Malaysia Development Bhd. The current administration is fighting back by saying billions were also lost under Tun Mahathir’s watch. Tun Mahathir says there is a 1MDB cover-up and his foes are accusing him of doing the same.


Will the task force unearth anything that is not already known?

The task force needs three months to complete its work, so we will just have to wait for the full picture before we can come to any conclusion that can bring closure to something that happened 25 years ago.

Perhaps, one day, we will be lucky enough to also have the full picture of the affairs of 1MDB. Current Minister of Finance 2 Datuk Seri Johari Abdul Ghani did say this month that no action had been taken against anyone in Malaysia over 1MDB because we have only “half the story” so far.

In that case, should we not have a task force on 1MDB as well so Malaysians can have the full picture?

By: Ho Kay Tat

Ho Kay Tat is publisher and group CEO of The Edge Media Group

This article appears in Issue 772 (March 27) of The Edge Singapore which is on sale now.

RCI can shed more light on forex losses

 Figures could be even greater than what had been disclosed, says STF chairman

KUALA LUMPUR: A Royal Commission of Inquiry (RCI) can reveal more details on the foreign exchange (forex) losses suffered by Bank Negara (BNM) in the 1980s and 1990s, said Tan Sri Mohd Sidek Hassan.

The chairman of the Special Task Force (STF) to probe the forex losses said the figure was greater than what was disclosed.

However, the STF was unable to scrutinise further due to the limitations that it had, he said in an interview on Friday.

“As a task force, we have limitations. We were established on an administrative basis and not under any legislation.

“As such, the STF had no power to coerce anyone to come forward for any discussion or to give any information,” he said, adding that it only had access to documents that were available to the public, such as BNM’s annual reports and consultations between the central bank and the International Monetary Fund.

“We also cannot compel anyone to come forward. Even if you ask them to come and they don’t want to come, there is no issue about it.

“And even if they came and we questioned them, and they refused to answer, we cannot do anything about it.

“And it was not under oath. Even if they answered, we don’t know if that was the truth.

“So, that is why the RCI is better, although it is safe to say that the STF has reason to believe that the actual loss is different and much more than the figures given earlier,” said Sidek, a former Chief Secretary to the Government.

He added that the RCI could have access to documents relating to the forex losses, for instance from the Finance Ministry or BNM.

On Jan 26, former BNM assistant governor Datuk Abdul Murad Khalid revealed that the central bank suffered US$10bil (RM42.9bil) in forex losses in the early 1990s, much higher than the figure of RM9bil disclosed by BNM.

Subsequently, a seven-member STF headed by Sidek was formed in February.

Sidek, who is Petronas chairman, said the STF focused on the three points in the terms of reference, one of which was conducting preliminary investigations into losses by BNM related to its speculative fo­­reign currency transactions.

It also investigated whether there was any action to cover up the losses and whether the Cabinet and Parliament were misled and it had to submit to the Government recom­mendations for further action, including the establishment of an RCI.

On June 21, the STF submitted its findings, concluding that it found that a prima facie case to merit in-depth investigations by establishing an RCI.

Explaining the process of the investigation, Sidek said 12 people, including former BNM governor Tan Sri Zeti Akhtar Aziz, were interviewed by the STF, and all coopera­ted well.

Among the others who were summoned by the STF were PKR adviser Datuk Seri Anwar Ibrahim, DAP adviser Lim Kit Siang, and former Finance Minister II and BNM assistant governor at the time Tan Sri Nor Mohamed Yakcop.

Asked on the need to investigate something that happened about two decades ago, Sidek said though it took place a long time ago, it had been revealed that the losses were huge.

“I feel that the people need an explanation on the matter, and the Government had decided to conduct an investigation.

“Therefore, an RCI is the only way for a complete understanding. If this is not done now, the matter will prolong.

“Five or 10 years from now it will crop up again.

“With a full investigation through an RCI, there could be closure to this,” Sidek said. — Bernama

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MACC starts probe on Felda Global Ventures Holdings Bhd (FGV)



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PUTRAJAYA: The Malaysian Anti-Corruption Commission has begun its investigation into alleged im­­proprieties involving Felda Global Ventures Holdings Bhd (FGV), a day after its group president and CEO Datuk Zakaria Arshad was told to take an indefinite leave of absence.

The MACC took a statement from Zakaria, who was called to its headquarters here yesterday.

The commission’s next move will be to send investigators to FGV headquarters in Kuala Lumpur to “see what they can find” and determine if there is a case.

Zakaria, 57, arrived at the MACC headquarters at 2.20pm alone, with no lawyers or associates accompanying him.

He brought along a stack of files, which he claimed were documents on FGV.

Zakaria looked calm when he arrived and maintained the same demeanour when he left some four hours later.

“The MACC asked me to come today. I’m also here to hand over some documents to them,” he told reporters, adding that his session was not over.

“I will be called again to give my statement, and I will give my full co-operation.”

MACC deputy chief commis­sioner Datuk Azam Baki told The Star: “We will go through his statement and will decide what to do next.”

Azam also confirmed that anti-graft investigators would go to FGV headquarters at 10am today to get hold of more documents.

On Tuesday, Zakaria and three other FGV officers were asked to take a leave of absence, which chairman Tan Sri Mohd Isa Abdul Samad said was a decision made by the board.

The other three are FGV chief financial officer Ahmad Tifli Mohd Talha, FGV Trading CEO Ahmad Salman Omar and Delima Oil Products senior general manager Kamarzaman Abd Karim.

The board’s decision came a day after Zakaria was told to resign by Isa following a series of board meetings since May 31 concerning delayed payments owed to Delima Oil Products Sdn Bhd by Safitex Trading LLC, an Afghan company with an array of businesses and headquartered in Du­­bai.

Zakaria subsequently urged the MACC to investigate allegations of improprieties in FGV and asked the commission to probe the parties behind the contracts.

Sources: The Star  by mazwin nik anis, he mananthini sivanandam, syed azhar

 

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Stop corrupt practices, DPM tells police officers, reshuffles top cops to rectify problems


Video:

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http://www.thestar.com.my/news/nation/2017/05/22/stop-corrupt-practices-now-dpm-tells-police-officers-zahid-irresponsible-acts-by-police-officers-hav/http://www.thestar.com.my/news/nation/2017/05/22/stop-corrupt-practices-now-dpm-tells-police-officers-zahid-irresponsible-acts-by-police-officers-hav/

KUALA LUMPUR: It is time for police officers to put a stop to irresponsible and corrupt behaviour within their ranks, says Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.

He said there were reports that some senior officers had pressured lower-ranked officers, including OCPDs, to finance “celebrations” for them during gatherings.

In the end, the lower-ranking personnel were forced to be involved in corrupt acts.

Dr Ahmad Zahid, who is Home Minister, said such “bullying” should stop as there were complaints made on senior officers.

Dr Ahmad Zahid said there was a case of an OCPD who had to find outside sources of income to allow him to organise celebrations for the senior officers.

Such an excuse is unacceptable, he added.

“This is a stupid excuse, if this matter had actually happened, as it goes against the principle of integrity for all enforcement officers who are supposed to protect the public.

“The days of officers receiving illegal profits and income from non-halal sources are gone. We will never accept such behaviour anymore,” he said at a treasure hunt with the media organised by the Home Ministry yesterday.

He ordered Bukit Aman’s Integrity and Standard Compliance Department and the Special Branch to investigate such claims within the force.

“I don’t deny that there are a few bad apples who bring a bad name to the enforcement agencies. But this behaviour must stop immediately,” he said.

On a separate matter, Dr Ahmad Zahid said the petition signed by Tun Dr Mahathir Mohamad calling for the release of jailed PKR leader Datuk Seri Anwar Ibrahim is meant “to wash away his own sins”.

He said the people knew that it was Dr Mahathir who put Anwar in jail when the former prime minister was still in power.

He was also informed that there was another petition submitted by Datuk Seri Dr Wan Azizah Wan Ismail to the Pardons Board for a royal pardon for her husband.

“I believe that is the better way. And I do not wish to interfere with the powers provided by the Yang di-Pertuan Agong to the Pardons Board for them to make such a decision,” he said.

By Rahimy Rahim The Star

Zahid: We will reshuffle police force, trust me and top cops to rectify problems within police force 

 

DENGKIL: Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi (pic) is asking the public to trust him and the top brass of the police as the force undergoes extensive reshuffling to “correct things from within”.

Dr Ahmad Zahid, who is Home Minister, was responding to a string of arrests of police personnel by the Malaysian Anti-Corruption Com­mis­sion (MACC) recently.

“We appreciate the monitoring by other agencies, but excessive publicity on their operation has led to negative perception on the police.

“What I can say is that we are committed to making changes, and that a major reshuffle is taking place as we speak,” he told repor­ters after attending zohor prayers and lunch at the Bukit Dugang orang asli village here yesterday.

The police came under the spotlight after MACC picked up seven police personnel in Melaka, including two district police chiefs, for alleged graft.

They are believed to be part of a racket providing protection to illegal gambling dens and massage parlours.

Police have also nabbed their own men – 21 high-ranking narcotics officers – under Ops Kabaddi, a nationwide operation to weed out corrupt officers.

The narcotics officers, including a deputy superintendent and an inspector, were being investigated for alleged involvement with drug syndicates.

However, Dr Ahmad Zahid said police would not announce the de­­tails of the reshuffling in order to avoid any further misunderstanding.

“I ask the public to trust us to do what is best for the people and the country,” he said.

Deputy Inspector-General of Police Tan Sri Noor Rashid Ibrahim said the police would relook their transfer policy, which stipulates that transfers should take place every three years, adding that other factors do come into play before such orders are issued.

“We have to consider costs and personal issues involving our men,” he said.

Source: The Star by mazwin nik anis

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Reject corrupt practices, weed out the bad apples, don’t hesitate reporting bribery


PENANG Yang di-Pertua Negri Tun Abdul Rahman Abbas has urged public servants to defend the good name of the civil service by rejecting corruption and misuse of power.

“I fully support efforts in eradicating corruption among public servants by taking strict action against those found guilty, including termination of service,” he said in his speech when opening the fifth term of the 13th state assembly at the state legislative assembly building in George Town yesterday.

Abdul Rahman evoked the example of Prophet Sulaiman (Solomon), who spurned bribes, as an inspiration for civil servants in carrying out their duties.

On the economy, Abdul Rahman said Penang received RM4.3bil in investments, with 106 projects approved last year.

“From that amount, RM3.1bil was from foreign investment while RM1.2bil was from domestic investment,” he added.

In agriculture, he said livestock production value increased from RM827.96mil in 2015 to RM842.55mil last year, with the amount expected to continue growing and exceed RM850mil by 2018.

Abdul Rahman praised the state for its efforts to promote medical tourism by establishing the Penang Center of Medical Tourism (PMED) involving 10 private hospitals in the state.

He said the number of tourists seeking medical services in Penang increased by 14.77% from 302,000 in 2015 to 347,000 last year.

“Income also increased by 17.92% in the same period, from RM391mil in 2015 to RM458mil last year,” he added.

Earlier, Abdul Rahman inspected a guard-of-honour by 102 Federal Reserve Unit personnel.

The state assembly sitting is scheduled to start at 9.30am on Monday.

Pulau Betong assemblyman Datuk Farid Saad was earlier quoted as saying that it was unfair to reject the Opposition’s two motions, one asking Chief Minister Lim Guan Eng to step down pending his corruption trial while the other called for civil servants to take leave if they are charged with corruption.

“We will bring it up during our debate in the assembly and let the people decide if the state government practised what it preached,” he had said.

It was also reported that a motion would be tabled by Chief Minister Lim Guan Eng or a state exco member to censure Tasek Gelugor MP Datuk Shabudin Yahaya over his controversial remarks in Parliament on child marriages.

Source: The Star by Lo Tern Chern

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Police OCPDs detained: RM800k cash in storeroom; Gambling dens masquerading as cybercafes


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Inspector P. Kavikumar and L/Kpl Muhammad Harris Mohd Rafe were charged with
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RM800,000 shock – cash discovered in storeroom

A whopping RM800,000 in cash was recovered from apolice corporal at a police quarters as the Malaysian Anti-CorruptionCommission continued with its crackdown, which has led to gamblingsyndicates in Melaka shutting down operations and moving out. The blitz is still ongoing with two policemen and two prison warders being charged in Kelantan.

PUTRAJAYA: When RM800,000 in cold, hard cash was found in a police corporal’s Melaka house , it shocked even the most seasoned graft busters. The money is nearly 26 years of his highest-possible salary.

However, the corporal, who is attached to the Melaka police contingent headquarters’ secret societies, gambling and vice division (D7) denied that the money – found in the storeroom of his quarters – was his.

The 52-year-old is the 10th person arrested by the Malaysian Anti-Corruption Commission (MACC) in connection with the case of Melaka police personnel allegedly giving protection to illegal gambling dens and massage parlours.

Sources familiar with the case said the corporal claimed to be holding the money for his superior, an Assistant Superintendent who is now under remand.

“We knew that there was a possibility that we would be finding a substantial amount of money but not that much,” an MACC source told The Star.

The source said the corporal’s claim that he was just holding the money for his superior would be investigated.

“We have both of them in custody, so we will find out more – who the money belongs to, why this man is keeping a lot of cash in his house, and where the money came from,” the source said.

The corporal was picked up at his home at around 2.30pm on Wednesday as the anti-graft body continues its investigation into a protection racket for gambling dens and massage parlours said to be run by senior cops.

He was taken to a court here where magistrate Nik Isfahanie Tasnim Wan Ab Rahman issued a one-week remand order until May 24.

So far, six other police personnel – two district police chiefs with the rank of Assistant Commissioner and Deputy Superintendent, two Assistant Superintendents and two Inspectors – have been remanded to help in MACC’s probe.

Three other individuals, two middlemen and an illegal gambling den operator, are also in MACC custody.

In an unrelated case, an officer with the Subang Jaya district police was remanded for six days over allegations of receiving a RM5,000 bribe.

The 35-year-old inspector was arrested at 1.10pm at his office on Wednesday.

He is alleged to have demanded and accepted the money in return for not bringing a criminal intimidation case to court.

Source: The Star

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Gambling dens masquerading as cybercafes

The recent case in Puchong may be only the tip of the iceberg, with many illegal outlets operating within the Klang Valley.

IT’S no big secret. Illegal gambling dens are thriving in the Klang Valley.

From time to time, the local councils and district police have conducted raids, but the mushrooming of these vice dens has led many to accuse the authorities of turning a blind eye to such activities.

Hardcore gamblers know where to go to get their gambling fix, but the public in general are only starting to realise the severity of the situation because of a viral video and several high-profile arrests of cops over the last few days.

The viral video shows two men entering a so-called cybercafe in Bandara Kinrara, Puchong. They rob the outlet and then take turns to rape the cashier in a hidden corner of the outlet.

While police have acted swiftly – one suspect identified from the video is now in custody – it has now transpired that the cybercafe was actually an illegal gambling den.

In fact, this is now the modus operandi of these gambling outlets. You will see a lot of desktop computers when you enter the premises, but the jackpot machines are hidden at the back.

The robbery of the cybercafe itself would have been chalked off as another crime statistic in the police district of Serdang, but the sexual assault of the unfortunate cashier and the subsequent furore on social media have thrust the case into public consciousness.

The truth is, these illegal gambling outlets have long been protected and the Malaysian Anti-Corruption Commission’s (MACC) current crackdown on rogue cops serves only to highlight this fact.

The Star reported yesterday that two OCPDs from Melaka – one an assistant commissioner and the other a deputy superintendent – were arrested by anti-graft officers for links to organised crime syndicates.

These two high-profile arrests come hot on the heels of a swoop on four other senior officers in an operation codenamed Ops Gopi. All six of these cops are believed to be in cahoots with illegal gambling and vice operators in Melaka.

So far, anti-graft officers have seized RM186,000 in cash and have frozen the bank accounts of all suspects, totalling more than RM459,000. MACC deputy chief commissioner (operations) Datuk Azam Baki said his officers were in the midst of tracing the links.

“Give us some time to unearth the inner networking. There may be more arrests depending on the course of our investigations,” he said.

What is even more alarming is information that officers in Bukit Aman could also be implicated in this protection racket. Sources say these officers had knowledge of illegal gambling and vice activities and were actively involved in collecting money from them.

The MACC should be commended for their crackdown on rogue cops, but they should also be training their guns on the Klang Valley. As I mentioned earlier, illegal gambling dens are operating with impunity in Selangor. These outlets can be found in Rawang, Klang, Selayang, Shah Alam, Sepang and even Petaling Jaya.

A few days ago, eight policemen were taken into custody in separate raids in the Klang Valley by Bukit Aman’s Integrity and Standard Compliance Department. But this investigation seems to be focused on drug dealers and their links to crooked cops, the result of which has been a major shake-up in the federal police’s Narcotics Department.

Inspector-General of Police Tan Sri Khalid Abu Bakar has said that he will not condone or protect those involved in illegal activities. “Stern action will be meted out against any personnel, regardless of rank,” he warned.

Once again, kudos to the cops for trying to get rid of this cancer which has infected the force, but the recent rob-and-rape case at the illegal gambling outlet took place just 1km away from the district police headquarters in Serdang.

Three years ago, StarMetro highlighted the fact that there were up to 40 illegal gambling dens in the Sepang district within a 5km radius. After the exposé, the majority of these outlets were shut down, but recent checks show that a number of them have sprung up again. And almost all them operate behind closed doors.

The outlets could be next to a bank, restaurant, convenience store or even a workshop, but the public remains unaware, thanks to the presence of solid metal shutters and grilles.

However, regular gamblers know that they can get in through a secret door hidden in the stairwell. The door is made of heavily tinted glass with a “no helmet” sticker on it, which serves as a code to identify the outlet.

Another common feature is a switch for a bell on the side of the door. Security is tight as the door and the five-foot way in front of the gambling dens are usually under close surveillance through CCTV.

While fingers are being pointed at police for “overlooking” illegal activities in their midst, questions should also be asked about the roles of the local councils.

The local authorities are quick to take action over unpaid assessment and quit rent, but what about cracking down on illegal gambling outlets that do not have business licences?

The writer believes that these outlets could have obtained legitimate cybercafe operating licences. The onus is on the local authorities to ensure that these business licences are not being abused.

Source: by brian martin

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Money games over for JJPTR! Operator closes shop, founder Johson Lee arrested, demanded!



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JJPTR money game operator closes shop

 

Zero activity: JJPTR’s Bayan Baru office is all quiet following the arrest of the scheme’s founder.

Police set the record straight on founder’s fanciful claims – Nation

Whereabouts of JJPTR founder unknown

GEORGE TOWN: Offices of money game operator JJPTR have reportedly been closed since last Friday following raids by a task force investigating the scheme. There was no sign of employees or investors at its offices in Perak Road, Bandar Baru Air Itam and Bayan Baru yesterday.

Investors too seem resigned to the fact that they will not be seeing their money after JJPTR founder Johnson Lee and two of his key leaders were remanded in Klang. Facebook pages and social media sites promoting the scheme have also gone silent.

Investor Y.L. Ho, in her 50s, said she knew her fate was sealed when the task force raided eight JJPTR premises in Penang and recorded statements from 15 workers and four investors.

She has yet to recoup her RM4,700 capital, and had lost about RM1,600.

“I was told the founder has been remanded. I don’t think I will ever get back my money,” she said.

Another investor, known only as Goh, believes his investment is as good as gone.

“There is no point going to the office to make further enquiries,” he said.

On Friday, the task force team carted away documents and computers from the main office in Perak Road between noon and 5pm.

Besides JJPTR offices, the team also raided another operator Change Your Life’s (CYL) office at Icon City in Bukit Mertajam.

Businessman S.K. Yeoh, who has invested in a few money games like CYL and Richway Global Venture, said he has lost hope of getting his monthly payouts.

“Following the intervention of the authorities, I think my handsome returns will be up in smoke.

“Luckily I have recouped my capital. If not, it could have been worse,” he said.

A money game player, Ben Chow, 35, said many of his friends knew it was a gamble when they decided to invest in the many get-rich-quick schemes.

“Just look at the number of police reports lodged and you will get some hints. Many of my friends know how these schemes work. They will not go to the police.

“They are always on the lookout for new platforms, knowing they can find easy money if they are among the pioneers. If they lose, they would just curse their luck,” said Chow, who invested in BTC I-system and several other money games.

Meanwhile, Penang police chief Comm Datuk Wira Chuah Ghee Lye said they were waiting for instructions from Bukit Aman before taking the next course of action.

“We won’t jump the gun. We will wait and see the outcome of the investigations on JJPTR.

“There is no reason for us to call up investors to record statements, unless they come to us and make a complaint.

“The Inspector-General of Police has given us three months to investigate the matter.

“Bank Negara is playing an active role in the investigations,” he said after launching a blood donation campaign at Tanjung City Marina yesterday.

Comm Chuah said several businessmen had raised concerns over the prevalence of money game schemes when he first assumed the state police chief post in January.

Source: The Star by  tan sin chow, farik zolkepli, adrian chan, m.kumar, loshana k.shagar


JJPTR’s Johnson Lee arrested

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GEORGE TOWN: Police have picked up JJ Poor To Rich (JJPTR) founder Johnson Lee (pic) and two of his right-hand men in Petaling Jaya at around 4.30 on Tuesday morning.

Police are expected to release a statement on their arrest soon.

Previously, Bukit Aman Commercial Crime Investigation Department (CCID) director Comm Datuk Acryl Sani Abdullah Sani said JJPTR have collected investments of up to RM1.7bil up until now.

Comm Acryl said in a statement last week that following investigations on JJPTR, Bukit Aman’s Anti-Money Laundering squad, CCID, Bank Negara, the Companies Commission of Malaysia, Inland Revenue Department, National Revenue Recovery Enforcement Team and Cyber Security raided eight different locations in Penang.

He said that said the eight locations, several offices and residential units, were believed to be used as offices of the syndicate’s operations.

Comm Acryl Sani said following the raid, 15 workers and four investors have been held for documentation process and questioning.

He added that all of them are aged between 23 and 40.

It is learnt that of the 15 workers held 13 are women while three of the four investors are also women.

All of those held are locals.

“Also seized were seven computers and laptops, cash counting machines, hundreds of JJPTR company documents, televisions, CCTV cameras and RM3,300 cash,” he said in the statement.

Comm Acryl Sani said that action to freeze accounts belonging to JJPTR were also being carried out under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.

Source: The Star by  farik zolkeplitan sin chow

Johnson and two others remanded

KLANG: JJ Poor To Rich (JJPTR) founder Johnson Lee and two of his key lieutenants have been remanded for three days.

The three men were brought by police to the court complex where magistrate Nik Nur Amalina Mat Zaidan granted yesterday the remand order until Thursday.

The men were led away about 20 minutes later.

Lawyer G. Jaya Prem said his clients were being investigated for one case of fraud.

“It is one report, of Section 420 of the Penal Code, on a sum of RM56,400. The funny thing is: this money went to a company which is not even under the name of my clients,” he said.

Lee and his assistants were picked up by police in Petaling Jaya at about 4.30am yesterday.

Previously, Bukit Aman Commercial Crime Investigation Department (CCID) director Comm Datuk Acryl Sani Abdullah Sani said JJPTR had collected investments of up to RM1.7bil until now.

He said in a statement last week that following investigations on JJPTR, Bukit Aman’s Anti-Money Laundering squad, CCID, Bank Negara, the Companies Commission of Malaysia, Inland Revenue Department, National Revenue Recovery Enforcement Team and Cyber Security raided eight different locations in Penang.

Comm Acryl Sani said following the raid, 15 workers and four investors were held for documentation process and questioning.

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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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