Hisham, Haris and the business linkages between the Umno families

You cannot fault Hishamuddin Hussein for stating that he did not know what his brother is doing. As Home Minister, Hishamuddin is not obliged to track the going-ons of his own brother, yet it still is illogical for someone in his position to “not know” what his own brother is doing especially when it involves dealings with another government.

Haris Onn Hussein is no small time businessman. A Cambridge graduate with a Bachelor of Arts in Economics, he knows how to do business. This former accountant returned to Malaysia in 1992 and started work at DCB Sakura Merchant Bankers Berhad.

He has since moved on from being a salary earner to one who is paying out salaries. He is Managing Director of Konsortium Lebuhraya Utara-Timur (KL) Sdn Bhd (Kesturi), a partnership with Malaysian Resources Corporation Bhd (MRCB) and Ekovest Bhd. Kesturi had successfully bid for the Duta-Ulu Kelang Expressway (DUKE) project on a build-and-operate basis over a concession period of 34 years.

But it is his standing as chairman of Lembah Sari Sdn Bhd, alleged to be formerly known as Liberal Technology, that has thrown Haris into the spot-light via a news article published in the Austarian newspaper The Age.

Business linkages between the 'ruling families' of UMNO

The Age charges that a Malaysian company, Liberal Technology, was hired by Australian company Securency to help win banknote contracts.

It would have flown under the radar if not for the vague fact that Liberal Technology’s biggest shareholder is or was Haris Onn Hussein, as highlighted by The Age; and this close association to members close to the Malaysian ruling government opens ups the possibility of corruption and abuse of power.

Liberal Technology’s directors in a written statement have countered charges made by The Age. They state that Haris had discharged all shares in their company in 2006, three years before the said agreement between Securency and Liberal Technology. Thus, Haris is in no way associated to Liberal Technology as charged by the paper.

However, Liberal Technology’s official records with Companies Commission of Malaysia had, until June 2011, listed Haris Onn Hussein as owning 180,000 shares.

The directors of Liberal Technology were queried as to why Haris’s was still holding shares within their company, as mentioned in the official records with Companies Commission of Malaysia, to which they answered that it was a clerical mistake whereby the secretary had forgotten to update shareholders records with the commission - a five year lapse until the issue was pointed out by The Age.

Adding to the confusion is that the directors were not able to clarify the link between their firm and Lembah Sari. According to the annual report of another Haris-linked firm Scomi, Lembah was formerly known as Liberal Technology. Had Liberal Technology transformed or were there plans for it to transform or be absorbed into Lembah Sari? This, the Liberal directors were unable to answer, casting doubt as to their other replies.

Incidentally, Scomi is also linked to the son of Malaysia's 5th prime minister Abdullah Badawi. It was the corporate vehicle that catapulted Kamaluddin Abdullah Badawi into the billionaire stratosphere.

The Australian connection

So, is Haris Onn Hishammudin linked or not linked to a company currently being investigated for corrupted practices by the Australian government?

It is all very convoluted and vague. One can expect half truths and spins to fly free-for-all from government sources. But through it all, what is glaring are the business linkages between the different 'ruling families' in UMNO, the political party that heads the Malaysian government.

There are a clear signs from Hishammuddin of trying to distance himself from his brother’s business dealings if it is proven that Haris does have connections to Securency and the purchasing of banknotes. He is expected in Canberra soon to sign the deal under which Australia will transfer 800 asylum seekers to Malaysia and accept 4,000 refugees in return.

The controversial agreement is drawing criticism in Australia as well as Malaysia, and Hishamuddin would want to stay clear of any additional controversy with the Australian government or people.

But the latest revelations that his own brother may be involved in shady business with another Australian entity will not auger well for him and do what he will, Haris will continue to draw attention and questions as to his former or current association with Liberal Technology and Securency.

The Mafia in Malaysia

What is also becoming clearer by the day is the structure of Malaysia's ruling government and the involvement of the leaders' immediate family in Malaysian business.

It is sad that the Malaysian Anti-Corruption Commission and other governing agencies have not picked up on these irregularities, and it takes a foreign news-article to wake them up as to what is going on in this country. By then, the rest of the world would also be treated to yet another chapter of high-level Malaysian corruption.

Already, the country has a name for nepotism, crony politics and endemic corruption. It does not help that the mother of Hishammuddin and Haris is the sister of Prime Minister Najib Razak's mother. Their dad was third prime minister Hussein Onn and Najib's was second prime minister Abdul Razak.

Dynastic politics intertwined with murky big-time business deals would scare away any serious investor in any part of the world. Therefore, not only Hishammuddin should take notice of what his brother or any other family member is doing, so too should Najib.

Otherwise, it may be seen as organized crime, and the ruling network in UMNO well able to challenge any of the big-time Mafia families in the world.

- Malaysia Chronicle