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Monday 11 November 2019

Shocked! Najib's actions showed personal interest beyond that of public office — judge

https://youtu.be/3DeFWJ6nRJE

KUALA LUMPUR (Nov 11): Justice Mohd Nazlan Mohd Ghazali took an hour to deliver his decision today that the prosecution has successfully established a prima facie case against former premier Datuk Seri Najib Razak on all seven charges in the SRC International Sdn Bhd trial.

What was significant was that the judge devoted half an hour to just one charge, namely abuse of power.

Najib also faces three criminal breach of trust charges and three money-laundering charges in relation to the alleged embezzlement of RM42 million from SRC in 2014 and 2015.

On the power abuse charge, Justice Nazlan said evidence adduced by the prosecution showed that the series of actions taken by Najib in respect of SRC showed personal interest beyond that of public office.

Najib, who is also the member of parliament for Pekan and former Barisan Nasional chairman, had agreed to the recommendation made by the Economic Planning Unit to approve a RM20 million launching grant for SRC when the company initially applied for a RM3 billion grant, the judge noted.

"Before SRC was placed under 1Malaysia Development Bhd (1MDB), SRC's Articles of Association under Section 67 stipulates that the accused as PM has the power to appoint and remove the members of the board of directors of the company," the judge said.

More importantly, Justice Nazlan said Najib responded to a letter dated June 3, 2011 from SRC's former chief executive officer (CEO) and managing director, Nik Faisal Ariff Kamil, who sought a RM3.95 billion loan.

"Najib made a notation on the letter addressed to the Retirement Fund Inc (KWAP) CEO Datuk Azian Mohd Noh stating in fact that he was agreeing to it, and wanted Azian to look into it.

"It should be highlighted that KWAP is a statutory institution which in effect reports to the finance minister and KWAP board members and whose investment panel members are appointed by the finance minister, under Section 6 and 7 of the KWAP Act," the judge said.

Najib the ultimate boss

Justice Nazlan said Najib had informed then Treasury secretary-general and KWAP chairman Tan Sri Dr Wan Abdul Aziz Wan Abdullah to expedite the approval of the SRC loan, and that this happened after Wan Abdul Aziz and Azian had briefed Najib that KWAP was initially considering extending a loan of only RM1 billion.

"Crucially, Wan Abdul Aziz testified under cross-examination that he did not consider the said communication with the accused as an instruction from Najib. In addition Azian, the former KWAP CEO, testified there was no legal compulsion. She could not deny that there was a certain amount of influence in the notation directed to her in the June 3, 2011 letter.

"This was due to the fact that Azian felt Najib was the PM and the minister in charge of KWAP and her "ultimate boss"," the judge said, adding that before KWAP approved the loan, SRC had written to the finance ministry seeking a government guarantee in anticipation of the RM2 billion loan.

The judge also noted the deputy secretary-general of Treasury, Datuk Mat Noor Nawi, had testified that the transfer of the share of ownership of SRC from 1Malaysia Development Bhd (1MDB) to Ministry of Finance Incorporated was executed by Najib, who was also the finance minister.

Justice Nazlan said the series of conduct and involvement of Najib with regard to SRC, if viewed in totality, cannot be construed as purely being a lawful exercise of his official duty as either the prime minister, finance minister or advisor emeritus of SRC.

"This is because such conduct and involvement was beyond the ordinary and outside the usual conduct or involvement expected of a prime minister and finance minister, similarly circumstanced.

"Such conduct and involvement exhibited by the accused instead serves only to demonstrate the existence of private and personal interest on the part of the accused in SRC, which interest, in my judgement, is in the nature that is envisaged under the law to fall within the ambit of Section 23 of the MACC Act," the judge ruled.

Justice Nazlan further reasoned that the argument that Najib had not given any instructions or directions but merely made requests and had no role to play in securing the KWAP loan cannot withstand the court's scrutiny.

He said if these were couched as mere requests it is manifest that they were made by Najib because they were meant to be obeyed.

"Everyone else in the picture was in a position subordinate to the accused. These included the secretary-general of the Treasury and the (then) Second Finance Minister (Datuk Seri Ahmad Husni Hanadzlah)," he said.

Justice Nazlan said the prosecution has also showed that Najib participated in the decision-making process at the meetings of the Cabinet, which the ex-premier chaired and where the two government guarantees for the loans extended by KWAP to SRC were approved.

This, he said, is clearly is a decision or action taken by Najib in relation to the government guarantee, which was to guarantee KWAP the repayment of the loan by SRC, in which Najib had an interest of a nature that is caught under Section 23 of the Malaysian Anti-Corruption Commission Act 2009.

"In fact the accused himself, as the PM who chaired the meetings, had tabled the Cabinet paper on the second government guarantee at the meeting which approved the same on Feb 8, 2012.

"There was no disclosure, let alone any attempt to excuse himself from the deliberation on the Cabinet papers at the either of the said meetings," he said, adding that Najib also subsequently chaired a cabinet meeting where a short-term loan was approved when SRC nearly defaulted KWAP payment.

"Given the accused's control over SRC, he could cause the transfers of RM42 million which were through intermediary companies credited into his personal accounts and eventuality utilised and spent to his own advantage. This is gratification to the accused pure and simple," he said, in ruling that Najib has to enter his defence on the abuse of power charge.

Najib is charged under Section 23 of the MACC Act for allegedly using his position as the prime minister and finance minister to commit bribery involving RM42 million when he participated in or was involved in the decision to provide government guarantees for loans from the Retirement Fund Inc to SRC amounting to RM4 billion.

He is alleged to have committed the offence at the Prime Minister's Office in Putrajaya between Aug 17, 2011 and Feb 8, 2012. If convicted, he faces a jail term of up to 20 years, and a fine of not less than five times the amount or value received or RM10,000, whichever is higher.

The Edge is reporting the proceedings of the SRC trial live.

Users of The Edge Markets app may tap here to access the live report.

Saturday 27 July 2019

Anti-corruption crusade in full force in Corporate Malaysia

Enough time: Ruslan says there should be adequate time for corporates to implement the guidelines by June 1, 2020.

Will the much-anticipated enforcement of Section 17A of the MACC in less than a year result in a corruption-free business scene?

THE Pakatan Harapan government envisions a corruption-free Malaysia in five years’ time, but the journey towards the ambitious objective will be a bumpy one – especially for Corporate Malaysia.

According to PricewaterhouseCoopers’ Global Economic Crime Survey 2018, about 35% of the Malaysian companies surveyed have suffered as a result of bribery and corruption in their daily operations. This marks a sharp increase from just 19% in 2014.

Speaking with StarBizWeek, Transparency International Malaysia (TIM) president Muhammad Mohan cautions that “corruption is rampant and has worsened in the Malaysian business sector over the last few years”.

Despite the worrying trend in Corporate Malaysia, preventive anti-corruption measures among local companies remain limited.

As at end-May 2019, only 59% of listed companies in the country had an internal anti-corruption policy, according to the Securities Commission (SC).

The good news is, the Pakatan administration has been ramping up its anti-corruption initiatives over the last one year.

About a month after the 14th general election (GE14), the government established the Governance, Integrity and AntiCorruption Centre (GIACC) to monitor and coordinate all activities related to combating graft, integrity and governance.

In January 2019, the National AntiCorruption Plan 2019-2023, which was developed by GIACC, was launched by Prime Minister Tun Dr Mahathir Mohamad. The five-year plan has outlined six priority areas and 115 initiatives to achieve zero-tolerance to corruption and bolster good governance.

On July 18, the SC presented its anti-corruption action plan to the Cabinet Special Committee on Anti-Corruption chaired by Dr Mahathir, with recommendations to prevent corruption, misconduct and fraud.

Section 17A comes into force

In addition to these efforts, beginning June 1, 2020, Corporate Malaysia will take its next step towards a corruption-free business environment via the enforcement of Section 17A of the MACC Act.

The new provision, which was inserted into the anti-bribery act before the GE14, establishes the principle of corporate liability among businesses. Under Section 17A, companies and their directors could be deemed personally liable if an associated person such as an employee or subcontractor is caught involved in corruption for the benefit of the commercial organisations.

Section 17A covers companies, partnerships and limited liability partnerships operating in Malaysia.

The companies and directors could defend themselves against prosecution if they have implemented “adequate procedures” such as internal guidelines or staff training within the commercial organisations.

However, senior lawyer and former Malaysian Bar president Datuk Lim Chee Wee says the existence of adequate procedures does not preclude a commercial organisation or the directors from being charged or prosecuted.

“That is to say, a company may still be charged or prosecuted for corruption offence under section 17A (1), but the fact that the company has in place adequate anti-corruption procedures may absolve it from any finding of criminal liability by the court,” he says.

“However, Section 17A does not put an undue amount of responsibilities on the management. While the definition of associated person under section 17A (6) appears to be general and extensive, there is a safeguard in section 17A (7) which provides for the need for a holistic assessment of the relationship between the company and the associated person to be conducted before any liability of the associated person can be imputed on the company,” he says.

With the anti-bribery provision, companies can no longer hide behind third parties such as consultants or subsidiaries. In the past, holding companies and the board of directors could absolve themselves of any blame if there were corrupt practices at the subsidiary levels.

“Now, the directors and companies are accountable for everything. Even consultants who act for companies come under the MACC Act and the employee hiring processes must be accounted for,” says a CEO of a listed firm.

He adds that the focus should be more on the wide implications of Section 17A, rather than the cost of compliance.

“It is not whether the corporate liability provision is difficult or adds to costs of Malaysian companies.

It is a question of whether the companies and directors are aware of the wide implications with the act coming into force next year.

“The MACC act together with the beneficial ownership laws gives MACC the bite to act on corporations, directors and owners. If they want to get you, they can,” he says.

If found guilty of an act of corruption under the soon-to-be-enforced Section 17A, the penalties imposed on a commercial organisation would be severe.

A company could be fined not less than 10 times the value of the gratification or RM1mil, whichever is higher, or be subject to imprisonment not exceeding 20 years, or to both.

In short, it will not be “business as usual” for Corporate Malaysia come 2020.

Delay in compliance

While there are only 10 more months before Section 17A is enforced, many businesses in the country have yet to introduce adequate procedures to prevent corruption in their organisations, in line with the “Guidelines on Adequate Procedures”.

On Dec 10, 2018, Dr Mahathir launched the “Guidelines on Adequate Procedures”, which serve as reference points for any anti-corruption policies and controls an organisation may choose to implement towards the goal of having adequate procedures as required under Section 17A.

SC says that even among the listed companies that have an anti-corruption policy, “the majority of these policies contain gaps when compared to the Guidelines on Adequate Procedures”.

TI-M’s Muhammad Mohan hinted that not all government-linked companies (GLCs) will be ready by June 2020 for Section 17A.

“GLCs especially the larger ones are making preparations to handle the corruption risks involved. The problem is many GLCs and non-GLCs have wasted so much time by not implementing or preparing their organisations for this.

“Many businesses are expecting U-turns or extensions to be given,” he says.

Federation of Malaysian Manufacturers president Datuk Soh Thian Lai says the organisation supports the introduction of Section 17A and has undertaken several sessions to educate its members on the implementation of “adequate procedures” as well as the ISO 37001 Anti Bribery Management System.

As the deadline for the enforcement of Section 17A nears, Soh points out that concerns
remain on the readiness and capacity of the small and medium enterprises (SMEs) in ensuring that adequate internal measures have been put in place to potential acts of corruption. specially still lack the know-how lementing such measures. There e greater capacity building in place to assist SMEs,” he says.

However, among major corporations in uch as those related to Nasional and the Employees Fund, the guidelines are being owed, says a CEO of a listed company.

The compliance department has grown bigger, he says. In an email interview with StarBizWeek, SC says that it will take steps to mandate companies to establish and implement anti-corruption measures.

"While there may be additional costs in putting these anti-corruption in place, it is important for comealise that these measures will m to avail themselves of the statutory ddefence provided for under Section 17A (4) of the MACC Act,” says the commission.

Vulnerable businesses

Past experiences indicate that compaed with procurement, governracts and the construction sector ulnerable to corruption and kickbacks.

While government and key industry ve introduced several anti-coreasures such as open tender corrupt practices continue to be prevalent in such sectors.

In fact, between 2013 and 2018, nearly 43% of the total complaints received by MACC were on the procurement sector.

Experts say that the trend is expected to change as businesses in Malaysia fully comply with Section 17A, following its enforcement. The adoption of anti-bribery ISO 37001 standards will also bolster Corporate Malaysia zero-tolerance approach towards corruption.

Facilities management service provider GFM Services Bhd, which is actively involved in government contracts, welcomes the enforcement of Section 17A.

Group managing director Ruslan Nordin believes the corporate liability provision not only upholds a business’ integrity, but also protects shareholders’ value and preserves profitability of the company.

“We view that there is adequate time for corporates in Malaysia to implement the guidelines by June 1 next year,” he says.
Senior lawyer Lim says that Section 17A imposes a duty on all businesses, its directors and officers to be honest in their internal and external dealings.

“This is to be welcomed, corruption increases the cost of transaction, and with this new provision, it should reduce the cost of business,” he says. UHY Malaysia managing director Steven Chong Hou Nian believes that compliance with Section 17A offers businesses an opportunity to exhibit positive values in their corporate culture.

“I opine that the qualitative gains from Section 17A compliance outweigh the additional costs,” he says.

He was also asked whether Section 17A will be successful in reducing corruption within procurement and tendering for government contracts.

To this, he said that the government has pledged to re-design the entire public procurement system while introduce relevant technologies to facilitate a clean, efficient and transparent procurement regime.

“The effectiveness of what Section 17A seeks to achieve, would naturally be premised upon the ecosystem that the MACC Act would operate within.

“The eventual success of the initiative is anyone’s guess, yet I applaud the nation for boldly taking this step forward. This is indeed a success in its own right,” says Chong.

Source link

Guidelines on Adequate Procedures

Corporate liability laws in other countries - Business News

Declining performance of Malaysia's civil service, World Bank report

Thursday 2 May 2019

Penang State to study Airbnb woes before legalising operations; Using Airbnb to settle mortgages?

Airbnb, Why the New Logo?

HOW other cities worldwide tackle their Airbnb problems are being studied to see if the home-sharing business could be legalised or regulated in Penang.

The office of the Penang State Exco for Tourism Development, Arts, Culture and Heritage (Petach) is studying their policies to tackle the issue of residential home owners who rent out their units as if they were running a hotel or serviced apartment.

Its exco member Yeoh Soon Hin (pic) said the global home-sharing business was quite established in Penang now that when people buy a house or condominium unit, someone might approach them and offer to guide them to sign up with Airbnb and make money from their new property.

He told the assembly that Penang Global Tourism had met with Airbnb’s management team to discuss how to regulate the business.

“Airbnb told us that they are ready to cooperate and register Airbnb units in Penang with the local authority, but we have no laws or policies for this yet,” he said.

Yeoh said in San Francisco, Airbnb operators are limited to renting their homes to a maximum of 90 days a year.

“In Catalonia, Spain, Airbnb operators can be fined up to 30,000 Euros (RM140,000) and the unit owners fined up to 90,000 Euros (RM420,000) if there are complaints.

“In Singapore, the Urban Redevelopment Authority is proposing to limit Airbnb units to only allow up to six people each time to rent them and for only up to 90 days a year.

“For strata units, Singapore plans to allow it only if at least 80% of all unit owners in the building give consent.

“Japan enacted a law to allow home-sharing of units for only up to 180 days a year,” he said when replying a question from Daniel Gooi Zi Sen (PH-Pengkalan Kota).

Gooi said he was concerned because despite strong enforcement from Penang Island City Council since 2017 to stop residential property owners from using their units commercially, the Airbnb portal lists thousands of units in Penang.

“We cannot deny property owners from benefitting from their assets, but we also cannot let them continue to operate without paying their dues such as commercial assessment rates or the hotel fee,” he said.

Yeoh said Petach was studying how Airbnb operators are regulated while waiting for the federal government to draft laws on home-sharing.

“We raised the issue and were told that the Housing and Local Government Ministry and the Tourism, Arts and Culture Ministry are studying possible laws on this.”

Yeoh said the business was unfair to neighbours, the hotel industry and local authorities.

“They are paying assessments and utility rates for residential units but are using those units commercially while legal hotels that comply with all laws such as safety and traffic provisions pay much more.

“The peace and privacy of their neighbours are being intruded upon,” Yeoh said.

He said his team in Petach was also considering the possibility of recommending that Airbnb operators be charged double or triple the current residential assessment rates that they are paying now after they are legalised.

By arnold loh and r. sekaran at the penang state assembly

MUCH has been said about Airbnb in the news of late. The Malaysian Association of Hotels (MAH) Penang branch has claimed that the emergence of Airbnb and illegal accommodation are among the main causes for Penang hotel occupancy rate to decline.

Another news report indicated that Airbnb operators are required to register with Kuala Lumpur City Hall. At this point in time, it is vital to see the concept of Airbnb. The platform was started to connect people who were looking to rent their homes to those who wanted hotel-free stay accommodation for short periods. The reason for the registration must be for the purpose of regulation by the authorities.

The claim by MAH that the emergence of Airbnb has caused hotel occupancy rates to drop must also be examined.

In terms of cleanliness and hospitality, although hotels do fit the bill, not all hotels are in that category. All hotels must be refurbished and kept clean at all times. It may be a bit too much to ask for luxury bedding or first class service, but cleanliness and pleasant service is not too difficult.

Airbnb hosts are conscious about their guests and the reviews that are given on the website. They go the extra mile, and it is not always accurate to say that Airbnb is cheaper and therefore people choose them over hotels. It is the space, the home away from home concept, and being looked after, the occasional bottle of wine left for guests, the fruit basket, the bottles of fruit juice and mineral water in the fridge — all of these go a long way in wooing guests.

In terms of protection for the hosts and the guests, Airbnb has enough protection in place. It is up to the renter to choose who they want to rent out to. Those who want to rent and those who are renting out their properties have their profiles. Reviews as to the safety of the place and its convenience — all can be seen from the website. It is a very transparent website and no one can complain that they were not aware that there was a danger or that they did not get their money’s worth. There are times that unfortunate Airbnb hosts unwittingly allow roguish guests and their premises are wrecked. The Airbnb hosts too, have a risk to take.

From the reports, it is unclear of the need for Airbnb to be registered or regulated. Hotel operators are required to register as it is a business. Airbnb is a service platform and not a business. For hosts, it is an additional income — especially for the elder population whose children have left, or even for those with university fees to pay, this additional income will be a good supplement. Unlike hotels and motels, Airbnb operators are there on a temporary basis. Sometimes, the owner may get a long-term tenant, and may not want to continue with the Airbnb concept.

Maybe we can take a leaf from countries where Airbnb has been regulated. In Los Angeles, United States, a regulation was passed for short-term rentals (vacation) with an initial cap on rentals for up to 120 days with flexibility to increase that number of days.

In New York, it is illegal to rent out an entire residence for less than 30 days. Short-term rentals are permitted if the homeowner is also staying there throughout the rental period and there are no more than two renters. This would be ideal for an elderly couple who would enjoy the company of young tourists who would in turn enjoy being in a home environment.

In Japan, anyone wanting to list their property on Airbnb will need to register with the local government, who will conduct fire and safety checks on the premises. The new regulations also limit rentals to 180 days per year.

Singapore has prohibited public housing rentals that are under six months, or three months in the case of private housing without the approval of the Urban Redevelopment Authority. In London and Paris, new laws have limited short-term rentals up to 90 days per year, and Liverpool City Council has pushed for national regulations to ensure that landlords register short-term rental properties.

Regulation is of critical importance in shaping the welfare of economies and society. Any form of regulation must work effectively and serve the public interest. Government agencies, in this case, the local councils are responsible for implementing regulatory policies and must be aimed towards protecting the consumer. When imposing such regulations on individuals, such as Airbnb hosts, there must be a goal that will help the government to achieve its purpose. The objective of a government or regulatory body is to ensure better and cheaper services and goods, and to provide a fair competition to any particular industry without encouraging a monopoly. Airbnb may be regulated and the town and city councils may want to draw up guidelines following from the examples cited above.

By GRACE XAVIER
Grace Xavier is research fellow at the Faculty of Law, Universiti Malaya and she can be reached at gracem@um.edu.my

Using Airbnb to settle mortgages

Survey: Hosting helps to repay loans, provide extra income

https://www.thestar.com.my/business/business-news/2019/07/03/md-the-cost-and-security-issue-of-airbnb/?jwsource=cl

PETALING JAYA: More Malaysians are relying on Airbnb to settle their mortgages given the property overhang that is engulfing the sector.

According to an Airbnb survey of more than 2,000 Malaysian hosts and guests, half of the Airbnb hosts said it had helped them pay for their homes while 40% said Airbnb provided a supplementary income for them to make ends meet.Malaysia is Airbnb’s fastest growing country in South-East Asia for the second consecutive year.

It saw more than 3.25 million guests in Malaysia over the past 12 months ended July 1, which translated to a 73% increase from the previous period.There are more than 53,000 Airbnb listings in the country.

Axis REIT Managers Bhd investment head and former Malaysian Institute of Estate Agents president Siva Shanker said many of the Airbnb hosts were investors and speculators who purchased the properties during the upturn, with the intention of selling them at a higher price.

“However, when the property market started to make a turn for the worse, many of these speculators found it difficult to sell or rent out their units but at the same time they needed income to service their loans,” he told StarBiz.

Siva said many of the buyers and investors had bought the units on the advice of some people with questionable skills and credentials.

“Many of the people, who claimed to be experts, gave false assurances that the properties could be sold at a premium of up to 40% within a couple of years, or that they would be able to get high rental yields.

“This is essentially a get rich quick scheme and many people believed in them. But then the market crashed and many of the buyers are saddled with a property that they can’t sell or rent out.”

Siva said many of the so-called “advisers” had rebranded themselves as Airbnb consultants when the property market slumped.

Airbnb is an online booking platform that allows people to rent out their properties or spare rooms to guests.

PPC International managing director Datuk Siders Sittampalam said the concept of Airbnb needs to be regulated.

“It’s never been regulated in the past, especially in terms of taxes. How do you determine things such as cost and security?”

Siva concurred that proper regulation need to be put in place to for Airbnb operators.

“You don’t know who’s going into your apartment. Every other day, your occupants are changing.

“They could be illegal immigrants, running criminal activities, being a nuisance and disturbing the neighbours.

“How is the unit considered ‘gated and guarded’ when the owner is the one that opens the door to these strangers?”

With no proper regulation in place, Siva said the value of the apartment will deteriorate.

“The owner is running it like a hotel, except he doesn’t have the upkeep skills of a hotelier. Within a year, the apartment will look run down. By then, new properties will be up in the market and new owners will be looking to rent them out.

“The owner of the run down apartment is going to have difficulties finding tenants, but he still needs to fulfil his monthly mortgage. Eventually, it becomes a vicious cycle. To stop this, we need to educate the public and get rid of the self-proclaimed property gurus.”

Another concern is the Airbnb having a huge impact on the local hotel industry.

According to Impiana Hotels Bhd executive director Azrin Kamaluddin, hotels that havemore than four stars will face limited to no impact from the rising popularity of Airbnb.

“The hotels offer distinct product differentiation as they provide experience and service to guests.

“What Airbnb does is offer accommodation as a commodity.

“I believe that owners of four and five star serviced residences that do not lease back their units to operators as well as hotels that are three stars and below would be disrupted by Airbnb.

“It is imperative for hotels that have three stars and below to reinvent themselves to stand out from the competition posed by Airbnb,” he said.

On the potential launch of Airbnb Luxe, Azrin said it would not have an impact on four to five-star hotels, given the relatively small volume and higher price tag of US$1,000 per night.

Siders concurred that Airbnb would only have an adverse impact on budget hotels.

“The four-star and five-star hotels offer different types of services and amenities.”

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Read more:

13 Places Cracking Down on Airbnb - Condé Nast Traveler

Friday 23 November 2018

South Korean Christian-based cult leaders pastor Lee jailed for raping followers

South Korean Pastor Lee Jaerock was convicted of the multiple rape of eight female followers — some of whom believed he was God. — AFP

Religious devotion is widespread in technologically advanced South Korea
South Korea has proven fertile ground for religious groups with strong, unambiguous ideologies that offered comfort and salvation

A South Korean cult leader was convicted Thursday of the multiple rape of eight female followers -- some of whom believed he was God -- and jailed for 15 years.

Pastor Lee Jaerock's victims were "unable to resist as they were subject to the accused's absolute religious authority", judge Chung Moon-sung told the Seoul Central District Court.

Religious devotion is widespread in technologically advanced South Korea, with 44 percent of people identifying themselves as believers.

Most belong to mainstream churches, which can accumulate wealth and influence with tens of thousands of followers donating as much as 10 percent of their income.

But fringe groups are also widespread -- experts say around 60 people in the country claim to be divine -- and some have been implicated in fraud, brainwashing, coercion, and other behaviour associated with cults worldwide.

Lee set up the Manmin Central Church in Guro, once a poor area of Seoul, with just 12 followers in 1982. It has now grown to 130,000 members, with a spotlight-filled auditorium, sprawling headquarters, and a website replete with claims of miracle cures.

But three of Lee's followers went public earlier this year, as South Korea was swept with a wave of #MeToo accusations, describing how he had summoned each of them to an apartment and raped them.

South Korean Pastor Lee Jae-rock arrives at the Seoul Central District Court to attend his trial on Thursday. | AFP-JIJI

"I was unable to turn him down," one of them told South Korean television.

"He was more than a king. He was God," added the woman, who had been a church member since childhood.

Lee told another that she was now in Heaven, and to strip as Adam and Eve went naked in the Garden of Eden. "I cried as I hated to do it," she told JTBC television.

Eight women laid criminal complaints, and the court found Lee raped and molested them "tens of times" over a long period.

"Through his sermons the accused has indirectly or directly suggested he is the holy spirit, deifying himself," the judge said.

The victims believed him to be "a divine being who wields divine power", he added.

Lee, who denied the charges, stood with his eyes closed as the judgement was read, showing no emotion, while around 100 followers filled the courtroom to overflowing, some of them sighing quietly.

The 75-year-old's lawyers had accused the women of lying to seek vengeance after being excommunicated for breaching church rules.

- Second Coming -

South Korea has proven fertile ground for religious groups with strong, unambiguous ideologies that offered comfort and salvation that appealed strongly during times of deep uncertainty.

More recent versions have claimed a unique knowledge of the path to material and spiritual prosperity -- a message that resonates in a highly competitive and status-focused society.

According to a 2015 government survey, 28 percent of South Koreans say they belong to Christian churches, with another 16 percent describing themselves as Buddhist.

But according to Park Hyung-tak, head of the Korea Christian Heresy Research Institute, around two million people are followers of cults.

"There are some 60 Christian-based cult leaders in this country who claim to be the second coming of Jesus Christ, or God Himself," he told AFP.

AFP/File / MENAHEM KAHANA

"Many cults point to megachurches mired in corruption and other scandals in order to highlight their own presumed purity and attract believers," he added.

On his own website, Lee says that God has "anointed me with His power" but the Manmin Central Church has been condemned as heretical by mainstream Christian organisations, partly because of its claims to miracle healing.

In one example on the church website, Barbara Vollath, a 49-year-old German, said he was born deaf but her bone cancer was cured and she gained hearing in both ears after Lee's daughter and heiress apparent Lee Soojin prayed for her with a handkerchief he had blessed.

South Korean cults can have deadly consequences: in 1987, 32 members of an apocalyptic group called Odaeyang, were found dead at their headquarters in an apparent murder-suicide pact, including its leader, who was under police investigation for embezzlement.

And they can influence the highest reaches of power.

Choi Soon-Sil, the woman at the centre of the corruption scandal that brought down her close friend president Park Geun-Hye, is the daughter of late religious leader Choi Tae-min.

The elder Choi became Park's spiritual mentor after establishing his own church, Yeongsegyo ("Spiritual Life"), combining tenets of Buddhism, Christianity and shamanism.
Source: AFP

On a mission from God: South Korea's many cults

The jailing of a South Korean religious leader on Thursday for the rape of multiple followers is the latest example of religious cults in the country.

The world's 11th-largest economy is technologically advanced but has a history of cult organisations and charismatic religious leaders, some of whom have amassed enormous wealth and influence.

Here are some groups that have previously attracted controversy or had brushes with the law. Pastor Lee Jaerock, a South Korean cult leader was convicted Thursday of the multiple rape of eight female followers. Here are other South Korean cult groups that have made headlines +4

Pastor Lee Jaerock, a South Korean cult leader was convicted Thursday of the multiple rape of eight female followers. Here are other South Korean cult groups that have made headlines

The World Mission Society Church of God predicted the end of the world would come on December 31, 1999.

However, being wrong has been no barrier to its fortunes, and an anti-cult group estimates that it has more than 200,000 followers, although it claims more than two million.

Its founder Ahn Sang-hong, who died in 1985, is worshipped as the Heavenly Father, who it says will come for the salvation of 144,000 souls -- the number appears in a biblical prophecy.

Ahn's wife Jang Gil-ja is regarded as the Heavenly Mother. Its aggressive evangelical activities in south east Asian countries sparked controversy.

Shincheonji, or the Temple of the Tabernacle of the Testimony, suggests that its founder Lee Man-hee has donned the mantle of Jesus Christ and will take 144,000 people with him to Heaven, body and soul, on the Day of Judgement.

But its adherents have long surpassed that number, and critics say they have to engage in endless loyalty competitions to earn credits to be included among the saved, sacrificing their everyday lives and leading to serious family disputes.

Shincheonji 'is the nation of God, created by Him to fulfil what is in heaven on this earth in today´s time', it says on its homepage, adding that Lee 'is creating God´s kingdom of heaven here on earth, exactly as he witnessed it in heaven'.

The female leader of a doomsday cult and three of her acolytes were arrested this year for allegedly holding some 400 followers captive in Fiji and subjecting them to violence and barbaric rituals.

Victims were hit hundreds of times in ceremonies known as 'threshing floors', defectors told South Korean media.

Shin Ok-ju, founder of the Grace Road Church, has gone on trial on charges of violence, child abuse, exploitation and incarceration, among others.

One of South the largest and best-known cults is Providence or Jesus Morning Star, also known by the acronym JMS -- which matches the initials of its founder Jung Myung Seok.

He set it up in 1980 as a breakaway from the Unification Church, also known as the Moonies.

Jung was released from prison earlier this year after serving a 10-year sentence for the rape and sexual assault of four female followers.

He told them to have sex with him to purge themselves of sin.

Guwonpa, or 'Salvation Sect', came to national attention when the Sewol ferry -- whose operating company was run by its leader Yoo Byung-eun and his family -- sank in 2014 with the loss of more than 300 lives, most of them children.

On the run from charges of corruption and negligence, Yoo's body was found in a field, so badly decomposed that authorities were unable to determine the precise cause of death.

In 1987, 32 members of an apocalyptic cult called Odaeyang, meaning 'five oceans', were found dead at their headquarters in the southern city of Yongin in an apparent murder-suicide pact.

Among them was the cult's leader Park Soon-Ja, who had been under pressure from her lenders over $17 million of debts and was under police investigation for embezzlement.

Police said Park's two sons and a cult official strangled her and 28 others before killing themselves.

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