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The Institute for Ethics and Economic
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ASST. FEDERAL MINISTERS, MR. KASITAH WAS CHARGED Ramalingam Rengasamy writes to Prof. Vinod on Feb. 13, 2004 that: “I have some good news. One of our Asst. Federal Ministers, Mr. Kasitah was charged in court recently for corrupt practices. However he is only a plankton, so to speak; the sharks and the whales are still enjoying their ill-gotten wealth. The Anti Corruption Agency in a formal letter to the former Prime Minister had stated that there were enough grounds to prosecute Mrs. Rafidah Aziz, Minister of International Trade on three counts of corruption in that she had illegally caused to be transferred to her son in law shares worth millions of dollars. Now that the General Elections are imminent, the Government is taking a strict view of corruption among public officials.” Malaysia minister
on fraud charge. Malaysia’s
land minister has been charged with corruption over multi-million dollar
share transactions. Kasitah Gaddam was bailed by a court in Ex - Head of Malaysian Steel Co. Arrested. It was reported that
anti-corruption officers arrested the former head of scandal plagued
Malaysian steel company Perwaja. Eric Chia, the former managing director of
Perwaja Steel, was picked up at his home in Malaysian PM's son linked to nuclear probe. According to reports, Abdullah Badawi, Malaysia's new prime minister, faced political embarrassment after police revealed that they were investigating a company controlled by his son for supplying centrifuge parts for suspected use in Libya's nuclear weapons programme. (Financial Times 06 Feb 2004 summary by Sherldine Tomlinson). Abdullah vows to fight terrorism, corruption. Malaysia’s new leader Abdullah Ahmad Badawi, pledged to maintain his country’s tough stance on terrorism and vowed to combat government corruption, expand economic prosperity. Malaysia has detained without trial scores of suspected members of Jemaah Islamiah, an Al-Qaeda-linked extremist network that is blamed for bomb attacks in South-east Asia that have killed hundreds of people, and shared intelligence about alleged Sept 11 plotters with US authorities. (The Straits Times, November 4, 2003, summary by Sherldine Tomlinson). Blueprint for civil service. According to reports, Cuepacs who is the umbrella union for civil servants is drawing up a blueprint to raise the standard of professionalism in the civil service. The Secretary General Datuk Abdul Rahman Manan said that the report would study the salary, leave and various other aspects that would benefit the civil service. Manan also said that the report would be submitted to Prime Minister Datuk Seri Abdullah Ahmad Badawi within a year’s time after studying all aspects which could raise the level of professionalism of civil servants in the country. (Daily Express, November 3, 2003, summary by Sherldine Tomlinson).
Kuching. RISE IN GRAFT CASES INVOLVING CIVIL SERVANTS WORRYING, SAYS DEPUTY PM. Fifty percent of people arrested for corrupt practices in Malaysia between 1998 and 2002 were government officers—and bribery among civil servants is increasing, said Malaysia’s Deputy Prime Minister. Recognizing that reducing the incidence of corruption is not simply a matter of enforcing laws, the Deputy PM is taking steps to simplify and expedite government services, so that members of the public are not tempted to offer bribes. In addition, aimed at encouraging confidence in the government, the Public Complaints Bureau’s annual report, which reveals complaints submitted and the government’s follow-up actions, is to be distributed to the public. (New Straits Times 12 Aug 2003, summary by Nancy Norland).
Call to address the imbalance. Transparency International Malaysia president Tunku Abdul Aziz Tunku Ibrahimhave said that the Government really must address the imbalance for the good of the country. Tunku Abdul Aziz, who served as Bank Negara adviser in the 1970s said that he was “extremely sad to see the state of affairs in the civil service and the armed forces”. International Movement for a Just World president and academician Dr Chandra Muzaffar said it was vital for the country to have a multi-ethnic civil service as these institutions represented the nation. (New Straits Times Apr 30 2003 summary by Sherldine Tomlinson). RAIS SAYS ENFORCEMENT WILL HELP CURB GRAFT. According to a Minister in the Prime Minister’s Department Datuk Seri Rais Yatim, Malaysia needs a strong collective thrust in enforcement to effectively stamp out corruption as the country already has sufficient laws, “We already have strict laws, including the Anti-Corruption Act, Penal Code and Anti-Money Laundering Act, but these will not be successful if there is insufficient enforcement”. Rais proposed that a simple anti-corruption syllabus be formally included in the education system to create the anti-corruption spirit and culture in society. (New Straits Times 28 Mar 2003 summary by Sherldine Tomlinson).
ANWAR'S APPLICATION FOR CORRUPTION CONVICTION REVIEW POSTPONED It's reported that the application to the Federal Court to review the conviction and sentence for corruption of jailed former deputy Prime Minister Anwar Ibrahim had been postponed until a later-fixed date after the Attorney-General's Chambers sent a letter seeking a five-member panel to hear the application. Last August Anwar had filed the application at the Federal Court seeking leave to have the court review its own decision which upheld the High Court verdict on April 14, 1999. (Malysiakini 17 Mar, 2003, summary by Hanh Vu).
REPORT LODGED OVER DONATION
REQUESTS. Seremban Umno chief Datuk Ishak Ismail has filed a report at the
Anti-Corruption Agency, citing irregularities at "Malam Mesra Bersama
Timbalan Perdana Menteri." The Lenggeng Assemblyman said two of his
friends, one a businessman, complained about solicitations from government
officials. He talked to one government officer from a ministry who also asked
him for a donation of RM50,000 for a function. This officer later abruptly
stopped the conversation after Ishak reminded him that, as a government
official, it was wrong for him to solicit funds and informed him of his
intention to report the matter to the ACA. His other friend received a letter
containing the Negri Sembilan State Government that also sought donation for
the same function, claiming that the coordinating committee would use the
funds to establish an education trust and a resource center for poor
students. Ishak said he wanted the matter investigated to determine where the
extra money raised from the function would go. (The Straits Times, September
25, 2002, Summary by Eliza Villarino). CORRUPTION RAMPANT AMONG YOUNG OFFICERS Statistics in the past five years showed that 340 personnel in both the public and private sectors between the ages of 20 and 30 in Malaysia were involved in bribery, equal to 20% of the total number of graft cases in the country. According to Mr. Ahmad Said Hamdan – deputy director of the country's Anti-Corruption Agency, the majority of them are made up of those from the enforcement side and the type of corruption involved offering and receiving cash as bribes. It was a worrying trend as the young generation would set the direction for the country, he said. (IRNA, Aug 14, 2002, summary by Hanh Vu).
COURT SETS VERDICT DATE. It was reported that Malaysia’s highest court will deliver its
verdict regarding the appeal against former deputy prime minister Anwar
Ibrahim conviction for corruption. “We are expecting an outright acquittal,”
his attorney Sankara Nair. Anwar consider seeking a pardon from Malaysia’s
king. Anwar was found guilty of corruption by a High Court judge in April
1999 and sentenced to six years starting then. He had already been in jail
for eight months. The corruption case hinges on whether Anwar abused his
power in 1997 to get police to obtain forced retractions from people who
accused him of sodomy and adultery (The Washington Post
(Associated Press), July 8, 2002 summary by Sherldine Tomlinson). Putrajaya, DEPUTY PRIME MINISTER: GOVERNMENT KEEPING TABS ON LAW ENFORCEMENT AGENCIES. The Government received 226 complaints of corruption against law enforcement agencies last year. Most complaints involve the police. There are also complaints against the Customs and Excise Department, the armed forces, the Immigration Department, the Forestry Department, the Fire and Rescue Department and the Prisons Department. According to Deputy Prime Minister Datuk Seri Abdullah Ahmad Badawi, the Anti-Corruption Agency has already arrested 130 officials and taken court action. (New Straits Times-Malaysia, 20 March, 2002, summary by Pavlidis George).
MALAYSIA TO BAN COMPANY OFFICIALS FROM DIRECTORSHIPS FOR FIVE YEARS IF GUILTY OF FRAUD An immediate action of the Registry of Companies, together with enforcement agencies including the Securities Commission, Bank Negara, the Anti-Corruption Agency, the Employees Provident Fund, and the police will gather names of company directors found guilty of offenses such as fraud and corruption and ban them from holding directorships for five years. (AFX-Asia, Jan. 7, 2002, summary by Marg Reynolds).
FAIRGROUND CASE
CAUSES CITY TO LOSE $200M. City Council Commission B for Economic Affairs
revealed that the city administration had suffered a total loss of US$200
million during it's almost 10 years of cooperation with private companies in
managing the annual Jakarta Fair. Councillor Ugiek Soegihardjo said
they will summon officials believed to be involved in causing the loses..
(The Jakarata Post, August 7, 2001, summary by Barbara Gray). CORRUPTION SUSPENSIONS IN MALAYSIA Six members of the United Malays National Organization have been suspended and accused of vote buying for providing banquets and overseas trips during internal elections. UMNO, the ruling party of Mahathir Mohamad, Prime Minister, has been the dominant party since national independence in 1957. (BBC News, May 7, 2001, summary by Marg Reynolds).
TRANSPARENCY INTERNATIONAL COMMENDS ‘GENUINE INTEREST’ IN FIGHTING CORRUPTION Dr. Peter Eigen, Chairman of Transparency International, stated ratifying the Convention on Combating Bribery of Foreign Public Officials developed by the Organization for Economic Cooperation and Development (EOCD) would bring Malaysia one step closer in the fight against local companies offering bribes abroad. Further, Malaysia is doing well compared to regional neighbors and has been placed 36th out of 90 countries on the Corruption Perception Index. The Star, Mar. 26, 2001, summary by Marg Reynolds).
Kuala Lumpur, THE MALAYSIAN
OPPOSITION READIES ANTI-CRONYISM CAMPAIGN. According to the opposition parties,
Prime Minister Mahathir Mohamad's administration has used public funds
to bail out favored businessmen. Opposition parties urged for an
investigation into the decision of the government to pay Malaysian Airlines
System's former chairman Tajudin Ramli eight ringgit a share, when the stock
was trading at under four ringgits a share. Mahathir's ruling United
Malays National Organization (UMNO) may have won
the 1999 general election, but it now faces additional uncertainty, since
Mahathir, 75, is expected to step aside by 2004. Mahathir has denied the
accusations for cronyism and corruption saying that "Anybody who is given
shares, whether he is known or not known by government leaders, prominent
or not, is immediately labeled a crony" "We become open to the accusation
that we have cronies, but then to whom do we give?" he added. (Source:
American Broadcasting Corporation, February 21, 2001, summary by Pavlidis
George). ACA gets Swiss aid in probe. The Anti-Corruption Agency (ACA) has secured promise of Swiss help to identify the company, which transferred RM76.4mil belonging to Perwaja Steel to a Swiss bank account. The ACA launched investigations into Perwaja in 1996 following a Government request after the firm lose to RM2.9bil. More than 50 people including then managing director, Tan Sri Eric Chia, have been interviewed about it. The main obstacle to further investigation is that Malaysia does not have a mutual legal assistance agreement and so relies on diplomatic channels. (The Star, February 11, 2001, summary by Hema Kotecha).
Anti-Corruption Agency (ACA) Seeks More Powers. Director-General of the ACA, Datuk Ahmad Zaki Husin said the ACA was seeking to amend the Prevention of Corruption Act 1997 to empower the agency to carry out raids and direct investigations into corruption-related crimes. Prostitution, gambling and drug trafficking rings bribe to cover up their crimes but these powers of investigation currently lie only with the police and the Immigration Department. They are already held by ACA’s counterparts in Singapore and Hong Kong. The ACA will ask the Government to allocate RM51m. to acquire modern equipment to enable them to carry out investigations and surveillance more effectively. The Government had agreed in principle to the proposal last August. Ahmad Zaki also warned civil servants offered silencing bribes that failure to report an incident was an offence under Section 17 of the Prevention of Corruption Act 1997, punishable with a fine of up to RM100,000 or 10 years' imprisonment. (The Star (Malaysia), January 26, 2001, summary by Hema Kotecha).
Kota Kinabalu, ACA PROBES SABAH METER CONTRACT. ACA is the Anti-Corruption Agency of Malaysia. ACA is investigating into a deal to install 100,000 new water meters in Sabah; the deal would cost Sabah RM50mil. Chuah Cheng Man, Sabah ACA director, said the ACA had identified several people for questioning over the case. The state was allegedly paying the contractor RM250 to install each meter, which was, though, supplied free by the Water Department. The state Finance Minister, Datuk Osu Sukam, said the deal was "reasonable" in view of the work involved. "Newspaper reports that it cost RM250 to fit each meter and sub-contracted at a cost of RM17 is misleading," he added. However, asked the name of the company given the contract, he replied: "I think that is not important now". According to Prof Hamdan Adnan, president of the Federation of Malaysian Consumer Associations, the cost of a water meter in the peninsula is around RM100. "It could increase by 30% to 40% more because of freight and transport costs but it's not as high as RM220. The ACA must get to the bottom of the matter," Prof Hamdan Adnan said. (Source: The Star, January 10, 2001, summary by Pavlidis George).
Prime Minister Mahathir Mohamed warned party members that corruption, vote-buying, and bribery could ruin Malaysia. However, Anwar Ibrahim, former deputy of Mahathir, was sacked as he campaigned for cleaner politics and ending corruption. Insiders say senior party posts are bought in the United Malays National Organisation’s (UMNO) internal elections. (The Nando Times, Nov. 18, 2000, summary by Marg Reynolds). 15 CORRUPT CUSTOMS OFFICERS
FIRED. Fifteen Customers officers were fired after being found guilty of
accepting bribes from travellers wanting to sneak in liquor and handphones.
Customs and Excise Department director-general Abdul Halil Abd Mutalib said
that the senior enforcement officers were also negligent while on their duty.
He encouraged the public who are aware of such activities to blow the whistle
on the officers since this will affect the revenue of the country in the long
run. (Straits Times, 11 November 2000, summary by Debbie Uy). Corporate Governance: Wall Street Journal, Nov. 8, 2000 (Front page sec. C) notes that this country is among the lowest ten in corporate governance by CLSA, Salomon Smith Barney. This means that shareholders do not get equitable treatment and disclosed information can be false and misleading. The laws governing duties of managers, accountants, etc. are inadequate or not enforced properly. KUALA LAMPUR
- Anti Corruption Agency (ACA)
director - general Datuk Ahmad Zaki Husin has said in a speech that bribes by business men place unfair
financial burdens on consumers by increasing prices and leading to
inflation. He also stressed there
were plans to empower the ACA to investigate corruption-related activities.
(thestar.com.my, October 12,2000 Summary by Fabian Camacho) MALAYSIA: GOVERNMENT LOOKING FOR NEW WAYS
TO FIGHT GRAFT The Government has learnt a lesson from a scandal involving
the Road Transport Department (JPJ) staff and may take other measures to wipe
out corruption in the civil service. "After the case is resolved, we
will decide what new measures need to be taken to address the problem. We
cannot allow this to go on,´´ Deputy Prime Minister Datuk Seri Abdullah Ahmad
Badawi said. He told a press conference at the end of a three-day visit to
Miri that "the full force of the law´´ must be meted out against the
offenders and masterminds behind the JPJ scam. "Those responsible must
be taken to court and given the appropriate punishment.´´ Abdullah, who is
Home Minister, said the Government´s motto for the civil service-- Clean,
Efficient and Trustworthy--must be complied with and any misconduct should be
resolved quickly and at source. Malaysian Youth Council vice-president
Norizan Sharif said in a press statement that it was displeased the
Anti-Corruption Agency (ACA) took action only against JPJ staff and driving
schools but not those who offered bribes. "In a bribe, there are always
two parties--the giver and the taker," he said. The council, Norizan
said, was concerned that if the ACA failed to act against drivers with
illegal licenses, it would send the wrong message to youths. "Youths
will think it is wrong to accept bribes but giving or offering bribes is
acceptable." the ACA has detained 43 people believed to be involved in
the scam. The Star, September 3, 2000 http://thestar.com.my A Washington, DC limo driver exposed
attempts by an embassy official to frame Malaysian former deputy Prime
Minister Mr. Anwar Ibrahim by offering a bribe to the limo driver. (NYT,
April 26, 1999, story by Philip Shenon). Anwar Ibrahim is appealing (NYT, Feb. 22,
2000, p. A6). KUALA LUMPUR,
Malaysian appeals court Saturday upheld the corruption conviction and
six-year sentence of Anwar Ibrahim (Business and Finance - Asia [Associated
Press], April 29, 2000). KUALA LUMPUR -In
19 Years, Malaysian PM Changed Economy, Weathered Foes-Malaysian Prime
Minister Mahathir Mohamad on Sunday celebrated 19 years of rule in Malaysia
with a trip to the country's largest state, even as the opposition took
swipes at him over his handling of a recent national security scare. Memories
of his 19-year career recall his greatest political challenge in 1998 when
thousands protested his abrupt dismissal of former deputy Prime Minister
Anwar Ibrahim. Anwar, was sentenced
to six years in prison for corruption and put on trial for sodomy. (DJ News,
July 16, 2000. Summary by L. Mcpherson). MALAYSIA; THREE TOP JUDGES NAMED AS GRAFT
SUSPECTS http://support.casals.com/aaaflash1/busca.asp?ID_AAAControl=2984 AFP, August 23, 2000 http://www.afp.com The Index of Economic Freedom
(by Driscoll-Holmes-Kirkpatrick) for 2001 places Malaysia in the “Mostly
Unfree” category with a rank of 76 (Ranks range from 1 for Hong Kong to 155
for North Korea, Wall Street Journal, Nov. 1, 2000). H. D. Vinod’s trimmed
correlation analysis indicates that countries free from economic regulation
are less corrupt. After allowing for some exceptions by 20% trimming, the
correlation is near 0.9. |
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Design:
Theo den Brinker |
Copyright:
Hrishikesh D. Vinod 2000 |
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