Tan Sri Dr Zeti Akhtar Aziz (left) and Tan Sri Nor Mohamed Yakcop. -filepic
Point of contention: According to a source, the MACC is investigating allegations of misconduct involving Zeti and Nor Mohamed.
MACC also investigating ex-minister nor Mohamed ` `
JAYA: Former Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz and former minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop are being investigated by the Malaysian Anti-corruption Commission (MACC) over 1Malaysia Development Bhd (1MDB) funds, says a report. ` `
Police were also investigating Zeti’s husband Datuk Tawfiq Ayman over allegations that he received funds related to 1MDB, Mingguan Malaysia reported yesterday, quoting a source. ` `
“The case has been completed with proposed charges under Section 4 (1) (a) of the Anti-money Laundering, Prevention of Financing of Terrorism and Proceeds from Illegal Activities Act 2001 to be filed in the near future,” the source told the newspaper. ` `
The source reportedly added that the agency’s investigation focused more on the receipt of money into Tawfiq’s account in Singapore after Rm5bil was raised by 1MDB in 2009 via the Ambank Group. ` `
According to the report, the matter was exposed when the MACC sought to recover 1MDB’S assets locally and from abroad, involving several “big names” associated with the sovereign wealth fund. ` `
“Among the 1MDB’S assets abroad are those in Switzerland, Kuwait, Mauritius, Cyprus and Hong Kong, which are worth Rm20.5bil,” said the report. ` `
“These individuals were identified when the Commercial Affairs Department of Singapore on Nov 12 returned the money belonging to the former CEO of SRC International Sdn Bhd, Nik Faisal Ariff Kamil, to the Malaysian government through the Asset Recovery Trust Account of the Finance Ministry worth RM3,617,513.91 (US$864,813.27),” it added. ` `
The Malay paper noted that earlier, Singapore had returned assets amounting to Rm64.42mil (Us$15.4mil) involving the Cutting Edge Industries Ltd account owned by Tawfiq and his business partner Samuel Goh. ` `
On the investigation on Zeti and Nor Mohamed, the source told Mingguan Malaysia that the MACC was investigating allegations of misconduct, with the report noting that every investment involving 1MDB funds at that time was definitely done with Nor Mohamed’s knowledge. ` `
The source also said the MACC was investigating them under the MACC Act 2009 and the Money Laundering Act 2001. ` `
The paper added that when contacted, MACC Money Laundering Division director Mohammad Zamri Zainul Abidin confirmed receiving a complaint from a non-governmental organisation on Dec 22 urging an investigation be carried out on Zeti and Nor Mohamed. ` `
Zamri also confirmed that the MACC had received a report by former prime minister Datuk Seri Najib Razak in October last year against former Goldman Sachs senior manager Tim Leissner, and this was being investigated too. ` `
Source link
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.
PUTRAJAYA: The Malaysian Anti-Corruption Commission (MACC) is widening its investigation into the alleged misappropriation of US$12mil (RM49.3mil) worth of government funds involving a little-known spy agency.
It has already made nine arrests as it looks into unravelling the web of intrigue involving Datuk Hasanah Abdul Hamid, the former director-general of the Malaysian External Investigation Organisation (MEIO).
The anti-graft investigators are probing if the senior intelligence officers had “help” to bring in US$12mil – believed to be from a Middle East source – into the country.
The cash was believed to have been brought in via air, possibly through Kuala Lumpur International Airport.
Highly placed sources in the anti-graft body said this angle needed to be looked into as it would be difficult to carry such a staggering amount of money undetected.
Malaysian laws require those bringing in US$10,000 and above into the country to have it declared at the point of entry.
“Obviously, there was a breach of security because the cash was brought in without raising alarms of the authorities at the airport.
“We want to investigate if those who brought in the money had some assistance so that they need not declare it,” a source told The Star.
Following the remand of officers from the MEIO as well as its former chief Datuk Hasanah Abdul Hamid, investigators found out that the money was brought into the country three months ago in May.
“The timing suggests that the cash was for the general election. But the other question is why the officers had their hands on the money,” said the same source.
Investigators are also not discounting the possibility that the funds could be from 1Malaysia Development Bhd (1MDB).
“We will have to probe deeper before coming to a conclusion,” the source added.
Malaysian Anti-Corruption Commission deputy chief commissioner (operations) Datuk Seri Azam Baki said there was a possibility that the money was brought into the country through the airport.
“Whatever the entry point is, we would like to know how it passed through security. Obviously that would be one angle of investigation,” he said.
Azam said his officers could still manage the investigation but if the need arises, it would seek assistance from other authorities.
Hasanah and seven other former MEIO officers were arrested earlier this week, and a ninth arrest was made on Wednesday night involving a 47-year-old businessman.
The businessman, who has a “Datuk” title and is also a permanent resident of Britain, was arrested in Kota Baru at 11pm on Wednesday.
The MACC has so far recovered US$6.3mil (RM25.9mil) of the US$12mil that was brought into the country about three months ago, as well as RM900,000 in ringgit.
The bulk of the US currency, about US$4.07mil (RM16.7mil), was seized from the businessman.
“We have raided several locations, including a rented condominium in Cyberjaya and the Prime Minister’s Department, where we seized the cash along with other valuable items including a luxury watch.
“Our swoop on the suspects began on Monday and we are not ruling out the possibility of making more arrests in the future,” Azam told a press conference at the MACC headquarters earlier yesterday.
The MACC has already called several witnesses, including three foreigners, and at least 20 more witnesses will be tracked down and called to assist with the investigation, he said.
MEIO was listed as the “research division” of the Prime Minister’s Department under the previous Barisan Nasional administration.
“Initial investigations revealed that the funds were brought into the country about three months ago,” said Azam.
“We are investigating whether this was before or after the last general election (on May 9).
“We are also investigating the source of the funds and which country the money came from.”
And despite its widening scope, the MACC is hoping to wrap up its investigation within two months as long as it does not involve a complicated money trail or require any foreign assistance, he added.
Hasanah was arrested at the MACC headquarters at 4.15pm on Tuesday after she arrived to give a statement to the anti-graft body.
She had previously courted controversy after writing a letter to the US Central Intelligence Agency (CIA) director Gina Haspel, appealing to the United States to support former premier Datuk Seri Najib Tun Razak’s administration.
She and the seven officers are also being investigated under Section 23 of the MACC Act 2009 for abuse of power.
Former premier Najib Abdul Razak was arrested at his residence in Jalan Duta, Kuala Lumpur, this afternoon, according to MACC chief commissioner Mohd Shukri Abdull.
The arrest was carried out in relation to the commission's investigation into the SRC International issue.
Speculation is also rife that the former premier could be charged tomorrow.
Shukri Abdul told the media that the arrest took place at 3pm and the former premier has been taken to the commission's headquarters in Putrajaya for further questioning.
Previously, MACC had recorded Najib's statement twice with regard to the SRC International issue.
Last Friday, Malaysiakini had reported that there is a strong likelihood the former premier would be arrested this week.
GEORGE TOWN: The developer of the Penang undersea tunnel project claims it was duped into paying two individuals RM22mil to stop graft investigations.
Consortium Zenith Construction Sdn Bhd (CZC) senior executive director Datuk Zarul Ahmad Mohd Zulkifli (pic) said they were told that action would be taken against them if they did not pay.
“They (the duo) claimed to be the powers that be. Eventually, we found out it was not true. We were conned,” he said.
He said the company had previously followed all the rules.
“But at that particular period of time, we didn’t know what was the rule of law. It’s not bribery but the act was akin to putting a gun to my head,” he said.
Zarul Ahmad said he could not disclose the details because the case was still being investigated by the Malaysian Anti-Corruption Commission (MACC).
“I believe soon they will come out with something pertaining to those issues,” he said.
Zarul Ahmad said things were different now after the outcome of GE14 on May 9.
“On May 10, I opened my window and I took a nice breath of fresh air and it was wonderful.
“Last time, I couldn’t answer certain things but now, I can because there is freedom of speech. I know I won’t get into trouble for making statements that I want to make,” he said at a hotel here yesterday.
In March, a 37-year-old Datuk Seri was picked up by MACC for allegedly receiving RM19mil from CZC to “help settle” investigations into the controversial RM6.3bil mega project comprising an undersea tunnel and three highways.
Former chief minister Lim Guan Eng said the state government was shocked at the news that CZC allegedly paid RM19mil to an unnamed businessman and RM3mil to an MP.
Zarul Ahmad said they had provided an explanation about the incident which was accepted by the Penang government two weeks ago.
CZC, the special purpose vehicle of the Penang project, had come under the spotlight after its two senior directors were picked up to assist in MACC investigations over alleged corruption claims.
MCA deputy president Datuk Seri Dr Wee Ka Siong had raised numerous concerns about the project, including why the special purpose vehicle did not meet the RM381mil minimum paid-up capital requirement during the tender process.
Zarul Ahmad said they were adopting the just-in-time (JiT) philosophy, meaning the paid-up capital would only be increased when necessary.
He said 90% of the financing was done through the banks and they did not want to incur interests for nothing.
“That is the only way to reduce our cost and maximise returns.
“Why should we increase our paid-up capital to RM300mil or 400mil when we are only using a certain amount,” he said.
‘Enough with being yes men’ - MACC chiefs warns top civil servants against brown-nosing
The Malaysian Anti-Corruption Commission (MACC) has warned civil servants to stop the culture of bodek-bodeking (brown-nosing) in the public service.
Directors-general and heads of department must stop being “yes men” to ministers and deputy ministers, Chief Commissioner Datuk Seri Mohd Shukri Abdull (pic) said.
“Do your own work and don’t interfere in the tasks of others. In fact, civil servants should consider this a warning – from now on, stop with the bodek-bodeking culture.
“By right, ministers have no authority on projects, they can only create policies. That is why the directors-general and heads of department must be brave enough to say no.
“Do not be ministers’ crutches or their yes men. It does not matter if we get kicked around as long as we are doing the right thing,” he told Sinar Harian.
He said that the separation of powers between the legislative, executive and judiciary should be abided by, and boundaries of authority should be clear at each level.
“Do not ever breach the boundaries of another person’s job scope.
“That can cause chaos,” Mohd Shukri said.
He also said heads of department, especially those in enforcement divisions, must give clear and accurate advice to ministers, deputy ministers and other policymakers.
“Only say yes if you know it’s true, don’t just say yes, yes, yes although the matter may be untrue. You must be brave,” he said, adding that they should refer to the MACC if they were unclear about instructions.
Mohd Shukri also called on directors-general and heads of department to be bold enough to give the right advice as demanded by their rank.
“If you are not brave enough to say no to something that is not right, then it’s better to not hold that position in the first place,” he said.
He suggested the Government appreciate those who have served with integrity and not the kaki bodek (apple polishers), saying the latter group was ruining the country’s system.
“Get angry at me if you want, I am speaking the truth and the truth hurts but it’s worth it.
“Look at the situation now. When misdeeds are exposed, who wants to help? No one. Only we can help ourselves,” he said.- The Star
Wan Azizah to civil servants: Serve govt of the day or else ...
Concerned Ministers: (from left) Rina, Dr Wan
Azizah and Dr Maszlee speaking to the media during a press conference
after chairing the national Children’s Well-being Roadmap meeting in
Putrajaya. — Bernama
Civil servants must serve the government of the day and not obstruct the workings of the new administration, says Deputy Prime Minister Datuk Seri Dr Wan Azizah Wan Ismail.
“It has come to my attention that a small number of civil servants are not supporting, but obstructing, the Pakatan Harapan government.
“This is a warning to those doing so that we expect professionalism from our civil service and for them to serve the government of the day,” she said in a press statement after chairing a meeting for a national Children’s Well-being Roadmap in Putrajaya yesterday.
Her warning follows concerns raised by Prime Minister Tun Dr Mahathir Mohamad earlier this month over the loyalty of civil servants who campaigned for Barisan Nasional during GE14.
On the Children’s Well-being Roadmap, Dr Wan Azizah, who is also Women, Family and Community Development Minister, said that more input was needed from stakeholders to develop strategies and programmes to address pressing issues affecting children.
She highlighted the need to develop a more integrated and coherent approach when dealing with children with growth deficiencies.
“We do not want a piecemeal approach to this,” she said.
Dr Wan Azizah said the roadmap would also cover marginalised, stateless and refugee children along with children who are victims of sexual abuse.
“This inter-ministerial meeting was called to create coordination as well as an expression of political will and our determination to get to the bottom of these problems.
“We can’t claim to be a caring society if we ignore and neglect those who are most in need of care,” she added.
Present at the meeting were Health Minister Dr Dzulkefly Ahmad, Education Minister Dr Maszlee Malik, Rural Development Minister Rina Mohd Harun, representatives from the United Nations Children’s Fund (Unicef) and Home Ministry secretary-general Datuk Seri Alwi Ibrahim. - The Star
Lawyers participating in a peaceful rally, calling for the Sedition Act
to be repealed, in Kuala Lumpur in 2014. The law was used in the same
year against, among others, a student activist, and another seven
people, including a journalist, were being investigated under the act. –
EPA pic, February 22, 2018.
Need to relook whistleblowing laws
KUALA LUMPUR: The recent conviction of a whistleblower and the absence of political financing laws are among the reasons that affected Malaysia's global anti-corruption scores, Transparency InternationaI Malaysia (TI-M) president Datuk Akhbar Satar said when presenting the 2017 Corruption Perception Index (CPI) today.
Malaysia ranked 62 among 180 countries in the CPI last year, dropping from 55th spot in 2016.
The index put Malaysia in the same spot as Cuba, with a score of 47 out of 100.
In 2016, Malaysia ranked 55 with a score of 49.
The CPI is a global aggregate index capturing corruption perception in the public sector worldwide based on expert opinions using a scale of 0-100, with a smaller score denomination denoting a higher level of corruption.
"This is the worst score in the last five years and the lowest ranking since CPI was introduced in 1994."
Akhbar said contributing factors to such poor perception of Malaysia include unresolved cases involving 1Malaysia Development Berhad (1MDB), absence of political financing laws and corporate liability provisions in anti-graft laws.
"The reason is simple ... the 1MDB and SRC International Sdn Bhd issues, Felda Global Ventures Holdings Bhd scandal and also the conviction of PKR vice-president Rafizi Ramli for whistleblowing."
Akhbar stressed that Malaysia has to relook into its whistleblowing laws to ensure there is proper protection for those who expose corrupt activities.
"It is very sad that whistleblowers get arrested and punished here when most other countries have tried to enact whistleblowing laws to protect them.
"Here, we are at the opposites. If you don't comply with the whistleblowing policy and use the media to expose corruption, then you are not protected.
The top five countries in the 2017 index were New Zealand (89) and Denmark (88), followed by Finland, Norway and Switzerland (85).
The index also revealed that more than two-thirds of countries worldwide scored below 50, with an average score of 43.
Countries at the bottom of the index were Yemen, Sudan, Afghanistan, Syria, South Sudan and Somalia.
Meanwhile, MACC honorary commissioner and former TI-M president Tan Sri Ramon Navaratnam expressed disappointment on Malaysia's score.
"All the good work done by MACC to robustly fight corruption has been negated by the apparent inability to do more to contain 'grand corruption', which matters in the view of TI," he said.
This year’s Corruption Perceptions Index highlights that the majority of countries are making little or no progress in ending corruption, while further analysis shows journalists and activists in corrupt countries risking their lives every day in an effort to speak out.
The index, which ranks 180 countries and territories by their perceived levels of public sector corruption according to experts and businesspeople, uses a scale of 0 to 100, where 0 is highly corrupt and 100 is very clean. This year, the index found that more than two-thirds of countries score below 50, with an average score of 43. Unfortunately, compared to recent years, this poor performance is nothing new.
This year, New Zealand and Denmark rank highest with scores of 89 and 88 respectively. Syria, South Sudan and Somalia rank lowest with scores of 14, 12 and 9 respectively. The best performing region is Western Europe with an average score of 66. The worst performing regions are Sub-Saharan Africa (average score 32) and Eastern Europe and Central Asia (average score 34).
Since 2012, several countries significantly improved their index score, including Côte d’Ivoire, Senegal and the United Kingdom, while several countries declined, including Syria, Yemen and Australia.
Research analysis
Further analysis of the results indicates that countries with the least protection for press and non-governmental organisations (NGOs) also tend to have the worst rates of corruption.
Every week at least one journalist is killed in a country that is highly corrupt.
The analysis, which incorporates data from the Committee to Protect Journalists, shows that in the last six years, more than 9 out of 10 journalists were killed in countries that score 45 or less on the index.
No activist or reporter should have to fear
for their lives when speaking out against corruption. Given current
crackdowns on both civil society and the media worldwide, we need to do
more to protect those who speak up.
CPI results correlate not only with the
attacks on press freedom and the reduction of space for civil society
organisations. In fact, what is at stake is the very essence of
democracy and freedom.
Top Five Recommendations
Our first-hand experience working in more than 100 countries around
the world shows that activists and media are vital to combatting
corruption. As such, Transparency International calls on the global
community to take the following actions to curb corruption:
Governments and businesses must do more to encourage free speech,
independent media, political dissent and an open and engaged civil
society.
Governments should minimise regulations on media, including
traditional and new media, and ensure that journalists can work without
fear of repression or violence. In addition, international donors should
consider press freedom relevant to development aid or access to
international organisations.
Civil society and governments should promote laws that focus on
access to information. This access helps enhance transparency and
accountability while reducing opportunities for corruption. It is
important, however, for governments to not only invest in an appropriate
legal framework for such laws, but also commit to their implementation.
Activists and governments should take advantage of the momentum
generated by the United Nations Sustainable Development Goals (SDGs) to
advocate and push for reforms at the national and global level.
Specifically, governments must ensure access to information and the
protection of fundamental freedoms and align these to international
agreements and best practices.
Governments and businesses should proactively disclose relevant
public interest information in open data formats. Proactive disclosure
of relevant data, including government budgets, company ownership,
public procurement and political party finances allows journalists,
civil society and affected communities to identify patterns of corrupt
conduct more efficiently.
In troubled waters: An artist’s impression showing where the tunnel project will start on the island.
Land swap under MACC scrutiny
PETALING JAYA: The Malaysian-Anti Corruption Commission (MACC) probe into the controversial Penang undersea tunnel is focused on land swaps that were made for the feasibility and detailed design study which has yet to be completed.
Sources said investigators are scouring documents involving two plots of land – Lot 702 and Lot 713 in Bandar Tanjung Pinang – with a size of 1.48ha and 2.31ha respectively.
The value of Lot 702 is around RM135mil while Lot 713 is around RM160mil.
It is learnt that both parcels of land have since been mortgaged to banks to obtain financing. The state government has also authorised planning permission on both parcels of lands.
“The state government paid the consultant for the feasibility studies by means of two land swaps. The cost for the feasibility study is around RM305mil.
“It has become an issue on why the study cost was inflated so much when it should have been an estimated RM60mil,” sources said, adding that determining the inflation and the reason behind it were among the challenges faced by the investigating team.
The sources also said that the graft-busters have their sights targeted on “somebody” who has been enjoying kickbacks and entertainment from the deal.
The feasibility and detailed design study is for the 7.2km undersea tunnel connecting Gurney Drive on the island to Bagan Ajam in Seberang Perai.
It is part of the RM6.3bil mega project comprising a 10.53km North Coastal Paired Road (NCPR) from Tanjung Bungah to Teluk Bahang, the 5.7km Air Itam–Tun Dr Lim Chong Eu Expressway bypass and the 4.075km Gurney Drive–Tun Dr Lim Chong Eu Expressway bypass.
Yesterday, the investigating team also questioned four officers from several state government agencies on the land swaps.
Sources added that the anti-graft agency also raided a property agency office in Penang and carted various documents away. It is learnt the chief executive officer of the company was not around during the raid.
MACC deputy chief commissioner Datuk Seri Azam Baki said his investigating team has yet to call in any witnesses for the case as they are still conducting a thorough study on the seized documents.
He added that the officers would still be obtaining more documents from the companies involved and also from the state government.
Two bosses of construction firms held for six days as MACC investigates project
Taken away: Officers escorting one of the men out of the courthouse in Putrajaya.
MACC digs deeper
A swap involving two parcels of land worth close to RM300mil is in the spotlight as the MACC intensifies investigations into claims of corruption in Penang’s undersea tunnel project and several accompanying highway projects. Two ‘Datuks’ have been remanded and several key officials in companies and agencies involved in the project have been questioned. But Chief Minister Lim Guan Eng says the project will go on.
GEORGE TOWN: Chief Minister Lim Guan Eng says the undersea tunnel project, now the subject of a corruption investigation, will proceed unless there is a court order to stop it.
He said he was baffled by yet another investigation into the project as the Malaysian Anti Corruption Commission (MACC) had been conducting an investigation into the RM6.3bil mega project comprising the tunnel and three other highways since 2016.
“What are they investigating now? Is it because of the looming general election?
“The project was awarded via an open tender overseen by international accounting firm KPMG.
“Still, I have instructed everyone involved to give their full cooperation to the MACC in its investigation as we have nothing to hide,” said Lim at a press conference at Komtar yesterday.
On Tuesday, graft-busters arrested two “Datuks” involved in the controversial Penang undersea tunnel project to help in investigations into claims of corruption.
The duo, who were picked up in Putrajaya and Penang, have since been remanded for six days to facilitate the probe.
The anti-graft agency raided the offices of four state government agencies – the Penang Public Works Department, Penang State Secretary, Penang Office of Lands and Mines and Penang Valuation and Property Services Department – and three property development and construction companies – Ewein Zenith Sdn Bhd, 555 Capital Sdn Bhd and Consortium Zenith Construction Sdn Bhd’s Penang office.
MACC officers also questioned several officers in charge of the respective agencies and companies. Sources familiar with the investigation said the probe into the undersea tunnel project was also zooming in on land swaps.
Ewein Zenith is a joint-venture vehicle of Ewein Land Sdn Bhd and Consortium Zenith BUCG Sdn Bhd.
The latter is a Malaysia-China joint venture that was awarded the RM6.3bil mega project to build the 7.2km undersea tunnel connecting Gurney Drive on the island to Bagan Ajam in Seberang Prai, a 10.53km North Coastal Paired Road (NCPR) from Tanjung Bungah to Teluk Bahang, the 5.7km Air Itam–Tun Dr Lim Chong Eu Expressway bypass and the 4.075km Gurney Drive–Tun Dr Lim Chong Eu Expressway bypass.
Consortium Zenith BUCG changed its name to Consortium Zenith Construction Sdn Bhd on Jan 18 last year after the withdrawal of Beijing Urban Construction Group (BUCG).
In a related development, Vertice Bhd (formerly known as Voir Holdings Bhd) said the current investigation by the MACC will not impact the progress of the undersea tunnel project.
It said the project was an integral component of the Penang Transport Master Plan and that the role of Consortium Zenith Construction as the main contractor would remain.
Consortium Zenith Construction is a 13.2% associate company of Vertice. PUTRAJAYA: Two high-ranking bosses of development and construction companies have been remanded for six days as graft investigators continue their probe of the Penang undersea tunnel project. The two “Datuks” were held here and in Penang before being brought to court.
A 59-year-old businessman was brought to a magistrate’s court here at 9.40am yesterday and remanded for six days until Monday to help with the Malaysian Anti-Corruption Commission’s (MACC) investigation.
Magistrate Fatina Amyra Abdul Jalil allowed MACC prosecutors’ remand application although the Datuk’s lawyer Hamidi Mohd Noh objected, arguing that there was no need for his client to be held.
“I told the court that my client has been cooperative with the MACC.
“I would also like to point out that my client is innocent and his remand is only to assist the investigation,” he told reporters after the proceedings.
The MACC had initially asked for the Datuk to be held for seven days but the magistrate only allowed six days.
He was arrested at the MACC headquarters at around 8.45pm on Tuesday after being called for his statement to be recorded.
In George Town, another Datuk was brought to court for a remand application at 11.40am.
He was handcuffed and wearing MACC’s orange lock-up T-shirt with black pants when he arrived at the courthouse escorted by MACC officers.
The 49-year-old appeared calm and smiled to reporters but did not say anything before he was led inside.
Deputy registrar Muhammad Azam Md Eusoff granted a six-day remand order and the businessman was escorted out of the courthouse about 30 minutes later.
The case is being investigated under Section 16(a)(B) of the MACC Act 2009 for bribery.
It is also believed that one of the Datuks remanded yesterday tested positive for drugs.
On Tuesday, MACC personnel raided the offices of four state government agencies – the Penang Public Works Department, Penang State Secretary, Penang Office of Lands and Mines and Penang Valuation and Property Services Department – and three property development and construction companies believed to be related to the case.
The project involves a plan to bore a 6.5km tunnel below the seabed to connect north Butterworth and the island.
The tunnel is to connect Bagan Ajam, a mature suburb of about 5km from the Butterworth ferry terminal, to the end of Gurney Drive near the Pangkor Road junction on the island.
Connected to the project are three paired roads to be built on the island as a traffic dispersal system to cope with the traffic that the tunnel would bring to Gurney Drive, which is already densely developed.
The three paired roads are from Teluk Bahang to Tanjung Bungah, from Pangkor Road to the Tun Dr Lim Chong Eu Expressway – part of this stretch will be underground – and from Air Itam to the expressway near the Penang bridge.
To finance the construction, projected to cost RM6.3bil, the state government is giving payment in kind of 44.5ha of state land to the contractor, Consortium Zenith Construction.
Chief Minister Lim Guan Eng told the state assembly in 2014 that the land was valued at RM1,300 per sq ft and the project, ending with the tunnel, is scheduled for completion in 2025.
It was reported last March that RM135mil worth of land had been given to the contractor as payment to fund the feasibility studies and detailed studies.
A public-listed company announced in January 2016 that it had secured an agreement to buy 20.2ha of the land from the contractor over 10 years at RM1,300 per sq ft.
It is believed that the MACC is looking into why the state government allowed the contractor to presell state land despite delays in the project construction.
More to be called up for questioning
GEORGE TOWN: Investigations into allegations of corruption in the proposed Penang Undersea Tunnel project are expected to deepen with more people likely to be called up for questioning.
A source in the Malaysian Anti-Corruption Commission (MACC) said the focus was on the feasibility and detailed design study, which had been paid for but not completed.
“We will call in more people involved in the project to assist in investigations into the study,” the source said.
He declined to comment on whether more arrests would follow after two “Datuks” were remanded for six days yesterday to help in the investigations.
The two were remanded in George Town and Putrajaya for investigations into the corruption allegations.
The MACC source declined to share details on evidence collected that led to the remand of the two Datuks yesterday but confirmed that it was about the delayed feasibility study and detailed designs.
The feasibility, detailed design studies and environmental impact assessment was reported to cost RM305mil with RM220mil already paid. Since 2015, NGOs, government agencies, political parties and state assemblymen had asked about the payment and studies, only to be met with replies they considered unsatisfactory.
Last July, the Works Ministry and Board of Engineers Malaysia (BEM) repeatedly asserted that Penang significantly overpaid, by four times, design fees involving three roads.
Barisan Nasional strategic communications director Datuk Seri Abdul Rahman Dahlan sought the professional opinion of BEM, and it was reported that BEM replied that the detailed design costs were four times higher than the maximum allowed under the gazetted scale of fees based on the total project cost.
Last August, the state government declared that the feasibility studies would be ready by September.
In October, however, Works Minister Datuk Seri Fadillah Yusof said his ministry “had not seen a single page” of it.
MACC to make more arrests - Penang undersea tunnel project
More arrests are likely in the investigations into claims of corruption in Penang’s RM6.3bil project involving an undersea tunnel and three highways after MACC officers raided 12 more places and took statements from a dozen witnesses. They are looking into an agreement on payments to the concessionaires but Penang Chief Minister Lim Guan Eng says there was no wrongdoing and that not a single sen has been paid for the undersea tunnel project.
PETALING JAYA: Investigators looking into the allegation of corruption in the Penang undersea tunnel project are said to be thoroughly looking through the papers related to the contract for the feasibility study for the undersea tunnel.
“The agreement looks suspicious and the feasibility study for the mega project does not exceed RM305mil as announced by the state government,” sources said.
“The state government might have made a payment which is way different than the real value of the study,” they said.
On Thursday, The Star reported that the graft-busters were zooming in on the land swaps of two plots of land in Bandar Tanjung Pinang.
The sources also say that the reclaimed land for the land swaps were of high value for development. It is believed that the state JKR has set the value for the study and that allegations of misappropriation were raised when the value that was paid far exceeded the initial value.
To finance the construction of the tunnel and three paired roads on the island, projected to cost RM6.3bil, the state government is giving payment in kind of 44.5ha of state land to the contractor, Consortium Zenith Construction.
Chief Minister Lim Guan Eng had told the state assembly in 2014 that the land was valued at RM1,300 per sq ft and the project, ending with the tunnel, is scheduled for completion in 2025.
It was reported last March that RM135mil worth of land had been given to the contractor as payment to fund the feasibility studies and detailed studies. However, the study has not been completed although the land has been handed over.
A public- listed company announced in January 2016 that it had secured an agreement to buy 20.2ha of the land from the contractor over 10 years at RM1,300 per sq ft.
It is believed that the MACC is looking into why the state government allowed the contractor to presell state land despite delays in the project construction and the study.
Source: The Star Malaysia reports by MAZWIN NIK ANIS and INTAN AMALINA MOHD ALI
