Corruption:
Public perception far more powerful than stats
By
Chua Jui Meng
JUST take the latest Corruption
Perception Index (CPI) released by TI-Malaysia, on behalf of Berlin’s Transparency
International, with a pinch of salt.
The
TI finding is derived from statistics provided by the Malaysian government. This
is why Malaysians find TI’s announcement that the country’s CPI had improved unbelievable.
Also,
there cannot be a compatible comparison with the previous year’s CPI report
because the scoring system this year had been revised. A comparison would
likely be misleading.
I
need not dwell into the hundreds of financial scandals exposed over the years by
the media and political parties to prove my point. Also, many of the fiascos
are backed with credible evidence.
I
only need to highlight five high profile examples. But, before I state the
cases, let me first take you back to 1983.
The
first billion-ringgit financial scandal in Malaysia, which came with a murder
suspense, unfolded in 1983. Do you remember what it was?
It’s
the Bumiputra Malaysia Finance (BMF) financial scandal cum murder of its internal
auditor Jalil Ibrahim who was found dead in a banana grove in Hong Kong in July
1983.
The
federal government had to bailout BMF three times to a tune of RM2.5 billion to
keep it afloat.
After
29 years, has anyone been punished for the financial scandal? Has anyone been
convicted for the murder?
Now
I wish to highlight the five high profile cases:
Ø Does anyone know why Mongolian interpreter Altantuya
Shaariibuu was murdered, despite the convictions of two police security
officers who served Prime Minister Najib Abdul Razak and his wife? Why is the
Barisan Nasional (BN) government so fearful of the French court’s ongoing probe
on alleged corrupt practices over Malaysia’s Defence Ministry’s purchase of two
French-made second hand Scorpene submarines at an inflated price of RM6.7
billion?
Ø How did former Women, Family and Community Development
Minister Shahrizat Abdul Jalil’s family secure a RM250 million cattle breeding
project from the government without any experience and failed the project, but
spent tens of millions of ringgit buying condominiums, luxury cars, land and failed
investments, etc;
Ø How businessman Michael Chia was caught carrying RM40
million in Singapore currency in Hong Kong and then claimed that the money
belonged to Sabah Chief Minister Musa Aman who then claimed that the money was
a donation to Sabah Umno;
Ø No plausible explanation by Prime Minister Najib Abdul
Razak on the Global Financial Integrity Report that over the last decade,
Malaysia’s illicit capital outflow was the fourth largest in the world
amounting to RM1.08 trillion! Similar results were also found in a study
commissioned by Tax Justice Network (TJN), a London-based organisation of
professionals including economists and tax consultants; and
Ø Disclosure of the Manser Bruno Fund of Sarawak Chief
Minister Taib Mahmud’s family wealth at RM65 billion which begs the question of
what is the true wealth of Umno’s prime ministers from Mahathir Mohamad onwards
and their top leaders.
Just
these five examples are enough to tickle the funny bone of Malaysians and laugh
until their ribs hurt to hear that the country’s CPI has improved by moving up
six places to 54.
The
fact that the TI findings are probably based on statistics provided by the federal
government is enough to raise biasness.
The
assertion by Pemandu that Malaysian crimes had gone down, based on government
statistics, also gave us a good placing in the World Peace Index.
When
this was announced, the people rebutted by showing that crime had actually
increased based on their own experience and of the perception of the people.
Obviously
the report was based on police’s own statistics which the people did not
believe and rejected outright.
Both
government and the police had to withdraw and agreed with the overwhelming
public outcry.
Now,
even a retired inspector-general of police, Musa Hassan, is disputing the
police force’s crime statistics and also made damning accusations that ministers
had interfered in police work and investigations.
The
TI finding would have been more credible if it was based on independent surveys
conducted with the public.
The
following are two reports reproduced for those who want more details on the
issues raised:
Thursday, 06 December 2012 12:15
POSER FOR NAJIB: Has M'sia really
done better in the Corruption Perception Index?
Written by Ramon Navaratnam
It is arguable whether Malaysia has really done better in the
latest Corruption Perception Index (CPI) released by TI Malaysia , on behalf of
Transparency International in Berlin .
As the TI - CPI Report states
clearly , the scoring system this year has been upgraded . Hence it cannot be
accurately compared to last year's scoring. Thus it can be misleading to
highlight the claim that Malaysia has moved up 6 places to number 54 this year,
compared to the ranking of 60 last year .
Furthermore Malaysia scored 49 out
of 100 marks for this year . This is below the half mark of 50 thus placing
Malaysia amongst the 2/3 of the 176 countries surveyed ,that have serious
corruption problems .
So how can say that we have
improved . If at all we have improved , then it is a very insignificant
improvement , which does not deserve all the praise bestowed on this dubious
success.
Disappointing
Indeed it is disappointing that
after so many Government initiatives through Macc and Pemandu to combat
corruption , we are not making much headway to improve the universal perception
that we have a high level of corruption in Malaysia .
More disturbing is the TI Briber
Payers survey which indicates that we scored the worst score at 50 % of
respondents who `failed to win a contract or gain new business because a
competitor has paid a bribe ``in the last 12 months !
This is very damaging to our image
especially to the foreign and domestic investors and our overall perception of
well-being and the new Happiness Index that we plan to introduce in the
national budget .
All this begs the question as to
why we should go so far to pat ourselves on the back for perceived success when
we should be ringing our hands in concern and do much more to fight corruption
? Being unduly optimistic can in fact become counter-productive as we can
become unnecessarily complacent and lose the war against corruption.
But perhaps there could be some
misconception or misunderstanding on the part of TI Berlin in their analysis of
our corruption ? It may be that local and foreign contractors fail so badly to
get contracts and new businesses, because of our official preferential
treatment that we widely practise in the award of Government contracts for
goods and services ?
Therefore I would urge Pemandu and
TI Malaysia therefore to take this matter up with TI in Berlin to set this bad
record straight .
Could also our low scores in
combatting corruption , be due to our relative lack in our success to fight
Grand Corruption , which includes the Big Fish that get away ? We seem to be
more successful in catching the small fish or Ikan Billis - and this is most
unfortunate , as it sends the wrong signals to the public !
But there are lessons to be learnt
. Now that we know how poorly we are assessed by TI Berlin, even with the new
revised CPI , we need to introduce much stronger measures to fight Grand
Corruption .
We need to raise our sense of
urgency and political will , to go all out to fight corruption or we will
surely lose out in improving our quality of Governance , our Quality of Life
and Happiness and also our prospects to achieve Industrial status by 2020 !
Tan Sri Ramon Navaratnam is
a retired top civil servant & past president of Transparency International
Malaysia
Trail that led all the way to the PM: Lorrain takes
BMF secret to the grave
In the eyes of the world, former
Bumiputera Malaysia Finance chairman Lorrain Esme Osman, who died in exile in
London on Monday was an unknown banker until the day, one of his auditors,
Jalil Ibrahim, turned up murdered in July 1983 in a banana grove in Hong Kong.
Lorrain, 79 and a Eurasian from
Penang and an ex-Christian, eventually took the initial rap and pleaded guilty
in London in 1993 under a plea bargain to a charge of financial negligence in
giving unsecured loans to the tune of RM 2.5 billion in the 1980s to George
Tan, a Sarawakian who headed the Carrian Group of Companies until it collapsed
like a house of cards.
Even now RM 2.5billion is a huge sum
to embezzle and take out of the country without any involvement of top
government leaders. The Malaysian financial system makes this virtually
impossible, and more likely than not, such deals are transacted on behalf of
the top politicos of the day.
It is a sad reflection that nearly
30 years on, and Lorrain finally passed on, the wheels of corruption are still
busily rolling in Malaysia. The system has not changed but instead grown
dramatically much worse. Most glaring is the Scorpene submarines graft scandal
involving Prime Minister Najib Razak and spanning three countries,
Malaysia-France-Mongolia.
Malaysians should indeed take a
moment to reflect on this or another 30 years might pass, with the jury having
no choice but to point out that corruption has worsened even more. If that
happens, Malaysia would surely be in receivership and this is another reason
why its citizens should wake up now and tackle the scourge of corruption with
strong action. The wheels of time truly wait for no one, as Lorrain will attest
to.
Trail that led right up to the PM
When Jalil was found, the only thing
linking him to Malaysia was a coin caught in the lining of his trousers. He had
no wallet or ID of any kind on him but a colleague had apparently reported him
missing 24 hours earlier.
The Hong Kong Police got their hands
on Jalil’s personal diaries and some letters which revealed that he had
stumbled on something big by way of financial irregularities at BMF.
One Hong Kong Independent Commission
Against Corruption (ICAC) officer asked Lorrain: “You have been fighting all
this while for the benefit of others. Isn’t it time to do something for your
own benefit?”
So a deal was concluded. As Lorrain
would not plead guilty to corruption and certainly not to all the 43 charges,
the Hong Kong prosecutors suggested the one single charge of financial
negligence, which Lorrain finally accepted.
Lorrain, who had fled to London in
1983 to avoid being extradited to Hong Kong, spent two months in Stanley Prison
in the British crown colony before being released. He had in fact already
served six months at the Lai Chi Kok Detention Centre while awaiting trial, and
another four months for remission. The ICAC submitted over 30,000 pages of
evidence against Lorrain to the British High Court, the Court of Appeals and
finally to the House of Lords.
The Carrian Case is the longest
criminal case in Hong Kong judiciary history spanning over 17 years at a cost
of HK$210 million and with over 4 million pages of exhibit.
Lorrain’s guilty plea closed the
file on a long-running case. He continued to claim innocence upon his release
and was dismissive of Jalil but nevertheless conceded, rather disingenuously,
that “there was a lack of supervision and oversight at BMF” under his watch. He
ostensibly never returned to Malaysia where the suspicion is that he was
protecting the other culprits involved in the BMF financial scandal. The trail,
it’s widely believed, led right up to the Prime Minister, who was then Mahathir
Mohamad.
Siphoning money
George Tan, the story goes, was just a conduit to siphon money out of BMF. No proof was ever produced anywhere that the massive loans taken from BMF were entirely for the purpose of doing business. Instead, blame was placed on the collapse of the Hong Kong property market for the loans going sour.
George Tan, the story goes, was just a conduit to siphon money out of BMF. No proof was ever produced anywhere that the massive loans taken from BMF were entirely for the purpose of doing business. Instead, blame was placed on the collapse of the Hong Kong property market for the loans going sour.
Between Dec 6, 1985 when he was
arrested at his London home on a provisional extradition warrant from Hong Kong
until he was jailed for two months in 1993, Lorrain fought a long and costly
legal battle for 90 months from Brixton Prison to remain in London. He took on
the Home Office and complained to the European Commission of Human Rights. He
launched several habeas corpus applications and judicial reviews, appealed to
the House of Lords several times and put in several bail applications.
Meanwhile, the public lost all hope
of ever seeing other culprits behind bars, Lorrain, Tan and smalltime
businessman Mak Fook Than – convicted of Jalil’s murder – and three other BMF
directors aside.
Mak’s lengthy 24-paged statement
about his “ministerial business” trip to Hong Kong went missing during the
trial. During his interrogation by the Hong Kong police, Mak claimed that he
was in Hong Kong at the behest of a senior Malaysian Minister to collect “some
money” from a Malaysian national residing in Hong Kong. He denied having said
so after the disappearance of his 24-paged statement.
Lorrain had in one public interview
in London hinted at the possibility that Jalil was being blackmailed by Mak
“who wanted more”. That’s akin to saying that the blackmailer wanted the goose
that was laying the golden eggs, dead. In fact, investigations into the Jalil
murder revealed that Lorrain was “holidaying” in Hong Kong at the same time
that the BMF auditor met his grisly end.
Another favourite theory floated by
Lorrain in public was that “someone wanted to embarrass the Malaysian
Government” and thought that one way would be to do in Jalil, presumably the
banana stretch in Hong Kong being equally embarrassing. He was once reported as
saying he suspected a Russian diplomat who was caught spying in Malaysia and
sent home. But by that stage, one could be forgiven for expecting Lorrain to
claim that the Ku Klux Kan, the Mafia, Mossad and the CIA were all suspects in
Jalil’s murder.
But whichever individual or group
that financed his exile in London and all the expensive trials and court
appeals are another mystery that perhaps only some senior top leaders in the
Malaysian government with privileged information will ever know. – Malaysia
Chronicle