“If I contest, I will definitely be accused of being a homosexual, of having sex with animals and others. You do not know him (Dr M) like I do. At that time, I also did not have the financial clout. All monies were held by Daim.”
That is a translation of what Malaysia’s fifth Deputy Prime Minister Musa Hitam (1981-1986) had to say about the evil and racist Mahathir Mohamad whom he served for five years.
Malaysia’s seventh Deputy Prime Minister Anwar Ibrahim (1993-1998) paid and is still paying a heavy price for having the courage to defy and challenge Mahathir and the Umno-led Barisan Nasional (BN) system.
The only difference between Musa and Anwar is that the latter seems to have the stamina and resolution to wage a protracted political battle against Mahathir and BN-Umno.
Dr M is really that bad
The not-so-flattering words hurled at Mahathir and Daim by Musa, and by many other former BN-Umno leaders are telling.
As deputy prime ministers, each having served only five years under Mahathir’s 22-year authoritarian regime, they surely know the dirt in the Mahathir-Umno-BN system and what they are talking about.
Now Mahathir has been exposed by Wikipedia as the second richest former head of government after deposed Egyptian President Hosni Mubarak whose wealth stands at somewhere between US$40 billion and US$70 billion.
Mahathir’s estimated net worth of US$44 billion (RM132 billion) is a bane to Malaysian politics and to the detriment of Malaysians.
It shows Mahathir’s available awesome war chest and capability to remain as Malaysia’s kingmaker, turning his successor Abdullah Badawi and current premier Najib Abdul Razak into pawns that he can either use, manipulate or discard.
Najib next to bite the dust
Abdullah has bitten the dust, Najib will soon face the same fate.
However, the biggest fear is not only how and what Mahathir and Daim can do to Najib.
It is the extensive socio-economic damage to the people and country that Mahathir can and will do with his war chest aided by the racist and Taliban-like Perkasa of which he is adviser.
Without Mahathir’s financial backing, Ibrahim “Perkasa” Ali is nothing more than a pariah dog barking up the wrong tree.
Malaysians have definitely seen through Mahathir’s evil deeds to Malaysians and Malaysia.
Read this http://victorlim1982.blogspot.com/2012/12/najib-may-quit-before-ge13.html, this http://victorlim1982.blogspot.com/2012/12/malaysias-dr-jekyll-and-hyde-so-areumno.html and this http://victorlim1982.blogspot.com/2012/11/the-day-pm-najib-outfoxed-all.html if you had yet to.
Indeed, be afraid, be very afraid of the agenda of this 'Dr Devli' called Mahathir (http://victorlim1982.blogspot.com/2012/08/mahathir-is-no-god-fearing-man.html).
The question: Is it too late for a peoples’ power or uprising to upstage BN-Umno and Mahathir?”
Reproduced below are for those who had yet to read about Malaysia's extensive corruption and capital flight in the last decade:
Mahathir’s mean war chest means Najib is out
Yesterday's deluge of very disturbing stories for Malaysians cannot be ignored and I have reproduced below.
How not to be bankrupt with all the exposes?
Former premier Mahathir Mohamad is so filthy rich that he can easily cause much trouble for Malaysians politically.
It is so frightening to read and forecast what Malaysians can expect in the next 13th General Election.
The super corrupt, evil and racist Umno-led Barisan Nasional leaders mean every word when it says it will win at all cost to remain in power to govern Malaysia:
Tuesday, 18 December 2012 11:16
CASE OF THE MISSING NAME: So is Dr M the world's 2nd richest ex-leader with $ 44 BILLION?
Written by Joe Fernandez, Wong Choon Mei, Malaysia Chronicle
The oddest thing happened a day ago when former Malaysian prime minister Mahathir Mohamad's name was mysteriously removed from a Wikipedia list detailing the wealth of former and current heads of state and government in the world.
Citing 53 references, the Wikipedia page had listed Mahathir as the second richest former head of government after deposed Egyptian President Hosni Mubarak whose wealth stands at somewhere between US$ 40 billion and US$ 70 billion.
However, while the Wikipedia page is still available in Malaysia, Mahathir’s name appears to have been mysteriously removed on Mon 17 Dec 2012 minutes after Malaysia Chronicle ran a story with the headline Mahathir now the world's second richest ex-leader with US$ 44 BILLION? Alerted by a staff that Mahathir's name had been replaced on the No. 2 spot by the late Indonesian president Suharto, the editors decided to withdraw the story pending further checks and granting that information on Wikipedia can sometimes be manipulated.
(Refer to the photographed version below of the page with Mahathir’s name clearly listed after Mubarak and compare it with the modified version as per the link http://en.wikipedia.org/wiki/List_of_heads_of_state_and_government_by_net_worth.)
It must be noted the story was written in good faith and based on the Wikipedia allegation that Mahathir possessed a fortune of some US$ 44 billion. Obviously, if true, then there can only be bad implications for both Malaysia and Mahathir for how else could a prime minister elected by the people accumulate so much wealth without being involved in some way or other in corrupt activities.
Whether Mahathir really possesses such a staggering sum as US$44 billion - no one knows. And like his name oddly 'disappearing' from the Wikipedia list, the complex convolutions that need to be unraveled to reach the truth of how rich Mahathir and his family really are, will surely be beyond the efforts of even Hercule Poirot and Miss Marple combined. Indeed, an army of international accountants, auditors, financial and banking specialists would be required, no less.
Extorted Taib and Jeffrey?
Even so, according to one of the references cited by Wikipedia, Mahathir’s modus operandi may be deduced by extrapolation and logical deduction from that adopted by Mubarak i.e. being in virtually every piece of business deal in the country thanks to guaranteed profits from monopolies, red tape fees, bribery fees, nepotism and whatnot. http://www.financetwitter.com/2011/02/marcos-mubarak-mahathir-whos-the-richest-man.html
Mahathir came to power in 1981, retiring only in 2003. The 1980s were a politically and economically turbulent decade for Malaysia as Mahathir struggled to stamp his control over his party, rivals and the government. Money always helps in any tussle. This is something that Mahathir, now 87, would have realized from early on.
Some political observers believe he may have launched himself on building up his personal war chest to finance his dynastic politics by first preying on Sabah strongman Jeffrey Kitingan and on Taib Mahmud of Sarawak. And to this day, Taib is accused of still 'feeding' Mahathir to stay in power as Putrajaya’s Chief Proxy in Borneo.
There’s no way that Taib could have stayed on as Chief Minister for so long in Sarawak and out of reach of the Malaysian Anti Corruption Commission (MACC) without him taking care of the powers-that-be in Putrajaya, the administrative capital of the federal government. Alternatively, those in Putrajaya are using Taib to bleed Sarawak dry.
It’s no secret that Mahathir has always detested Taib and tried to humiliate him upon becoming Prime Minister in 1981 by demoting him to the post of Federal Territory Minister allegedly to show his utter contempt for the man. There might have been some method in this madness. Mahathir’s loathing of Taib would have cost the latter plenty and more than usual. All the more reason to keep Sarawak on her knees and subservient to Putrajaya as a vassal state.
Jeffrey refused to part with even a sen to Mahathir before ISA
Taib “refused” or declined/neglected to take up his appointment as Federal Territory Minister and returned to Sarawak with his tail between his legs, upon Mahathir becoming Prime Minister, to take over from his uncle, Abdul Rahman Ya’kub, as Chief Minister. By that time, the Sarawak United People’s Party (Supp) under Stephen Yong was threatening to leave BN unless the allegedly anti non-Muslim Rahman was removed as Chief Minister.
Jeffrey, as the political grapevine goes in Sabah where there are no secrets; refused to part with even a sen to Mahathir and the latter coincidentally had him incarcerated under the draconian Internal Security Act (ISA) for two two-year terms.
Jeffrey was accused by Mahathir of plotting to take Sabah out of Malaysia by force and establishing a Christian Republic with him as President.” Mahathir is widely believed in Sabah to have stage managed relieving Jeffrey of all his overseas accounts for his growing gravy train before letting him out just in time for the 1994 state election.
The fact is that Jeffrey, at one time, was wealthy behind comprehension and he doesn’t seem to have that kind of money anymore and coincidentally after his incarceration under the ISA.
Mahathir apologists claim that many of Jeffrey’s trusted aides and nominees also made off with millions kept under their names abroad, on business in Sabah and elsewhere. In one particular case, the figure reportedly totaled US$ 700 million kept in Australia.
These aides and nominees are no longer with Jeffrey but some of them, also doing business with the ruling party especially in the timber trade, are believed to be financing his politics “perhaps out of guilt for their past”.
Jeffrey's jailing for 'Christian republic' a typical Dr M red herring to cover money fight?
It’s not known if and how much Mahathir and/or the state could have taken (or 'fined') from Jeffrey officially and unofficially. But that doesn't stop the talk from buzzing around the coffee shops in Sabah.
One clue comes from the US$ 4 billion figure cited by Mahathir from a Price Waterhouse Report on an audit done on the Sabah Foundation in the wake of the fall of the Parti Bersatu Sabah-led Sabah state government in 1994. The Report found the figure as a difference between the actual or higher spot price of timber and the lower longterm contract price.
Mahathir, probably to throw a red herring on him taking Jeffrey’s money, piously implied that the money was there but went missing during the latter’s stewardship of the Sabah Foundation.
Jeffrey had responded since then, whenever the issue was raised, that Mahathir was telling tall tales. Timber, explained Jeffrey, could not be sold on a long term contract basis at spot prices. The more you buy, the cheaper you get and vice versa. Also, buying forward for delivery in the future was not the same as buying now. Credible or not, that's been Jeffrey defense all this while.
Taib was 'luckier'
However, the truth may lie somewhere between Mahathir’s spin and Jeffrey’s explanations. In any case, the Sabah opposition leader has never been charged with corruption of any sort.
But no one in Sabah will deny that Jeffrey was too wealthy for his own good at one time and was now reduced to living on his pension from the Sabah Foundation, Parliament and the state assembly. If he runs into shortfalls, and his former aides and nominees can’t cough up soon enough, he sells a land here, a property there or turns to his elder brother Joseph Pairin Kitingan, the Huguansiou – paramount chief – of Sabah.
If rumors are true, Mahathir would have milked as much; if not more from Taib, than from Jeffrey, for his gravy train but the former Prime Minister obviously ensured that the Sarawak leader still stayed fabulously wealthy to ensure Muslim domination of his Christian Dayak-majority state.
In Jeffrey’s case, Mahathir may have wanted him not only broke, but down and out, so that the Orang Asal as Christians would not have the finances to strike out politically on their own and challenge Putrajaya’s determination to marginalize and disenfranchise them through systematic racism, prejudice and opportunism as evident in internal colonisation policies.
US$ 100 billion went missing during Dr M’s premiership
Jeffrey and Taib may have been just the starters for Mahathir, with the main course consumed throughout the his 22-year tenure as PM.
As Barry Wain’s book, Malaysian Maverick: Mahathir Mohamad in Turbulent Times, shows - at least US$ 100 billion went missing during Mahathir’s time as Prime Minister from 1981 to 2003.
Much of these missing monies may be the difference between the actual cost of government procurements, contracts, tenders, permits, concessions, quotas, licences and the like and the amount that they eventually cost the tax payers i.e. double, triple or even up to ten times the actual amount.
More recently, the Automatic Enforcement System (AES) costing the Public Treasury ten times what it should be is a case in point.
Then, there’s the infamous case of Bank Negara ostensibly “losing” US$ 30 billion in the forex market during Mahathir’s premiership, “losing” various other sums on schemes like trying to take over the International Tin Market in London, untold sums on replacing the Chinese role in Malaysia with the Japanese under the notoriously racist Look East Policy and crippling the Public Treasury with the equally discrimiative Buy British Last Policy. All these smack of a money trail under the guise of Mahathir's notorious Malaysia Boleh (Malaysia Can) brand of “patriotism”.
Mahathir & Co, as former Finance Tengku Razaleigh Hamzah once told an audience in Australia not so long ago, was awarding government contracts to themselves. Razaleigh was then accused by the Mahathir administration of “betraying” the country by badmouthing it overseas. It’s seems Mahathir was Malaysia and Malaysia was Mahathir.
Mahathir could only have done what Razaleigh accused him of doing by taking government money for himself through a network of nominees, cronies, fat cats and the like. In that case, he would have been no different from Mubarak and the many other corrupt dictators in the 3rd World who bled their countries dry and saddled them with crippling National Debt Burdens during their tenure in power.
Catching the eye of the CIA?
It’s likely that between Wain’s tell-all book and the Wikipedia list, Mahathir may have resigned from the premiership in 2003 for fear that he would be made to account for his abuse of power and conflict of interest issues in office.
He has been accused of devising a way to leave office but still hold on to the reins of powers from the background to ensure that the long arm of the law never catches up.
The public perception is that the Umno Supreme Council is firmly in Mahathir’s pocket and eating out of his hands while Najib Razak plays at being Prime Minister. Everyone can still recall Mahathir’s long goodbye which he set in motion after shedding tears on national TV and wailing emotionally that he had “failed the Malays and failed to change their mindset”.
It may also be more than coincidence that Wikipedia has managed to compile a listing of Mahathir’s ill-gotten gains in time for the run-up to the 13th General Election. This appears to be the work of the Central Intelligence Agency (CIA) in the clearest indication yet from Washington that it wants Mahathir and the ruling Barisan Nasional (BN) out of the picture for good. This is the classic modus operandi of the US Government i.e. release damaging personal financial information to destroy the credibility of their targets designed for destruction.
Mahathir has so far from all accounts been careful enough to salt away his wealth in countries which are out of reach of the SWIFT and IBAN international banking tracking systems initiated and financed by the United States to track ill-gotten gains, money laundering and financing of global terrorism. Japan is believed or rumoured to be among the countries where the former Prime Minister has a considerable number of his assets.
Mahathir has huge enough war chest to create a lot of trouble
The bottom line is that Mahathir, given his huge war chest, can continue to influence and dictate the politics of the Malay Nation in Malaysia i.e. the Malay-speaking communities drawn from the Bugis, Javanese, Minang, Acehnese and Indian Muslims in Peninsular Malaysia. He is reportedly financing Perkasa, an extremist fringe organization run by his puppet Ibrahim Ali and has attempted to meddle in the politics of Opposition Leader Anwar Ibrahim's Parti Keadilan Rakyat as well as PAS.
Already, Mahathir is in control of the huge funds at the disposal of Petronas mostly from Sabah and Sarawak. He has been accused of failing to make a distinction between Petronas funds and his money, at least in the amount poured into his Perdana Leadership Foundation, and he freely uses the corporate jets and yachts belonging to the oil corporation. He has been photographed on the yacht holidaying somewhere in the Mediterranean. Even the Agong, the Malaysian King, doesn’t get this privilege.
Mahathir also has the funds to poke into countries like Palestine and Bosnia-Herzegovina among other places through his Perdana Leadership Foundation – ostensibly to spread his hare-brained theories on leadership and vision-building -- and has been suspected by Washington in the past of channeling money for arms to these places, among others. This is something where the Americans will draw the line.
Malaysia Chronicle
Tuesday, 18 December 2012 16:59
BUT WILL NAJIB DO ANYTHING? Account for the humongous illicit outflows - Guan Eng tells PM
Written by Lim Guan Eng
Finance Minister Datuk Seri Najib Tun Razak must fully account to 28 million Malaysians for the shocking RM 200 billion in dirty money siphoned out of Malaysia in 2010 and the scandal of RM 871 billon lost over the last 10 years or else admit the failure of his ETP. Najib’s stubborn silence and failure to act over this RM 871 billion scandal demonstrates not only his failure to uphold pubic accountability but that the BN government condones the practice of outflow of illict or dirty money.
Washington-based financial watchdog Global Financial Integrity (GFI), in its latest report which tracks capital flight, says the level of illicit flows from Malaysia in 2010 was the highest in 10 years. RM 197 billion of dirty money was siphoned out of Malaysia in 2010 compared to RM 93 billion in 2009, an increase of 112 %. Malaysia has the shameful record of being the No.2 country in the world after China, of illicit outflow of dirty money.
Figures are 'conservative' estimates
The GFI report, ‘Illicit Financial Flows From Developing Countries: 2001-2010', is co-authored by GFI economists Sarah Freitas and Dev Kar, who is a former senior economist at the International Monetary Fund. GFI has warned that capital flight in Malaysia is "at a scale seen in few Asian countries".
GFI described its estimates of global dirty money as "extremely conservative". Whilst Malaysia was ranked No. 2 globally in 2010, Malaysia is ranked No. 3 globally over 10 years from 2001-2010. The total 10-year estimate for Malaysia is US$285 billion (RM871.4 billion), while China is US$2,740 billion, and Mexico, US$476 billion.
GFI said that trade mispricing - the practice of shifting profits overseas by over- or under-invoicing intra-company transactions - accounts for an average of 80.1 percent of illicit financial flows from developing countries. The rest of the dirty money involves proceeds of corruption, bribery, theft, and kickbacks.
Where are the RESULTS of BNM probe
Despite Najib’s promises last year that a probe would be conducted by Bank Negara, Bank Negara has yet to announce the result of its investigations or explain the massive illicit capital flight, despite offers of help from top GFI economists. Is this another case of BN’s “Janji Tak Ditepati” of unfulfilled promnises?
The GFI report merely confirms the findings by the 2012 Transparency International report that Malaysia topped the Bribe Payer’s Survey in terms of lost business due to bribery. In this area, Malaysia ranked worst out of the 31 countries, worse than even Indonesia (47%), Pakistan (42%) and Russia (39%).Najib should come clean about this RM 871 billion scandal and wash away the shame it has brought to Malaysia by inviting top GFI economists who drafted the report to get to the root of this scandal.
Lim Guan Eng is the Penang Chief Minister & the DAP sec-gen
Tuesday, 18 December 2012 17:41
Dirty money costing developing world $ 6 trillion, led by China & MALAYSIA
WASHINGTON- Crime, corruption and tax evasion have cost the developing world nearly US$ 6 trillion over the past decade, and illicit funds keep growing, led by China, a financial watchdog group said in a new report.
China accounted for almost half of the US$858.8 billion in dirty money that flowed into tax havens and Western banks in 2010, more than eight times the amounts for runner-ups Malaysia and Mexico.
Total illicit outflows increased by 11 percent from the prior year, Global Financial Integrity, a Washington-based group that campaigns for financial accountability, said in its latest report released on Monday.
“Astronomical sums of dirty money continue to flow out of the developing world and into offshore tax havens and developed country banks,” said Raymond Baker, director of GFI.
“Developing countries are hemorrhaging more and more money at a time when rich and poor nations alike are struggling to spur economic growth. This report should be a wake-up call to world leaders that more must be done to address these harmful outflows,” he said.
All the countries in the top 10, which this year saw India, Nigeria, the Philippines and Nigeria join the ranks, face significant problems with corruption, and in most there are vast gaps between rich and poor citizens as well as internal security problems.
Leaders of the Group of 20 major economies increasingly are focusing on ways to crack down on money laundering, bank secrecy and tax loopholes to prevent funds stolen from public coffers or earned through criminal activity from depleting the budgets of developing countries.
The sums are so huge that for every dollar in foreign direct aid, 10 leaves developing countries.
China lost US$420.4 billion in 2010 and over the decade lost a total of US$ 2.74 trillion. And its losses are steadily rising. In an October report, GFI said another US$602 billion in illicit flows left China in 2011 for a total of US$3.79 trillion between 2000-11.
However, the numbers in the latest report are not directly comparable with earlier data because GFI has updated its methodology, making the estimates somewhat more conservative. It measures illicit flows by calculating the difference between fund inflows from loans and net foreign direct investment, and the outflows from a country to pay for trade, cash transfers and other earnings.
Aware of the destabilizing impact of corrupt money, Chinese leaders are embarking on a crackdown. Outgoing President Hu Jintao recently warned corruption threatens to destroy the communist party and the state. In Russia, President Vladimir Putin last week also put the issue high on his agenda as citizen protests over corruption mount.
“Our report continues to demonstrate that the Chinese economy is a ticking time bomb,” said Dev Kar, GFI’s lead economist, who compiled the report. “The social, political and economic order in that country is not sustainable in the long run given such massive illicit outflows.”
Mexico lost US$51.17 billion in illicit flows in 2010 for a total of US$ 476 billion over the last decade, which does not even count the billions of dollars in bulk cash that probably left under organized crime and drug dealing.
Malaysia, an export-dominated economy with a wealthy elite, lost US$64.38 billion in 2010 and US$285 billion cumulatively between 2001 and 2010, the report said. Illicit financial flows have grown by 13.3 per cent a year since 2001, robbing countries of wealth and benefiting a handful of corrupt leaders.
Kar said the worsening picture over the past decade coincides with the globalization of finance and loosening of capital controls, changes that make it easier to transfer funds to Western banks and to tax havens.
“Until governance improves and measures to shrink the underground economy take hold, we will not see a sustained decline in illicit flows,” Kar said.
GFI called on world leaders to accelerate efforts to curtail the flow of dirty money by clamping down on secret bank accounts and ownership of shell companies; reforming customs and trade protocols so that export/import payments cannot be used to hide illegal fund transfers; requiring multinational companies to report their profits by country to prevent tax avoidance; and strongly enforcing anti money-laundering laws.
- Reuters
Tuesday, 18 December 2012 12:35
M'sia is world's No 2 in illegal capital flight: RM200 BILLION DIRTY MONEY SIPHONED OUT
Close to RM200 billion of dirty money was siphoned out of Malaysia in 2010, putting the country second only to Asian economic powerhouse China in global capital flight for that year.
Washington-based financial watchdog Global Financial Integrity (GFI), in its latest report which tracks capital flight, says the level of illicit flows from Malaysia in 2010 was the highest in 10 years.
GFI has introduced a new and more conservative methodology in its estimates of illicit financial outflows, which help to zero in exclusively on dirty money. As such, estimates from its previous reports have been revised.
Last year, GFI put the figure of illicit outflows for Malaysia in 2009 at US$46.86 billion (RM143.3). This has been altered to US$30.41 billion (RM93 billion).
The latest report finds a dramatic jump of capital flight in Malaysia - from US$30.41 billion (RM93 billion) in 2009 to US$64.38 billion (RM196.8) in 2010.
GFI has yet to obtain data for 2011 and 2012, but these will be included in future reports.
The global financial watchdog has warned that capital flight in Malaysia is "at a scale seen in few Asian countries".
The GFI report, ‘Illicit Financial Flows From Developing Countries: 2001-2010', is co-authored by GFI economists Sarah Freitas and Dev Kar, who is a former senior economist at the International Monetary Fund.
According to GFI, for the cumulative illicit financial outflows over 10 years - from 2001 to 2010 - Malaysia is ranked No 3 in the world, after China and Mexico.
The total 10-year estimate for Malaysia is US$285 billion (RM871.4 billion), while China is US$2,740 billion, and Mexico, US$476 billion.
Prime Minister Najib Abdul Razak has disputed GFI's figures. Last year, he gave Parliament a much lower figure of RM135.3 billion for illicit capital outflows from 2000 to 2009.
Nevertheless, GFI data was backed by a different study earlier this year by another organisation - the London-based Tax Justice Network, which found Malaysia among the top countries when it comes to capital flight.
Graft accounts for 20% of dirty money
GFI said that trade mispricing - the practice of shifting profits overseas by over- or under-invoicing intra-company transactions - accounts for an average of 80.1 percent of illicit financial flows from developing countries.
The rest of the dirty money involves corruption.
"Illicit transfers of the proceeds of corruption, bribery, theft, and kickbacks, accounting on average for 19.9 percent of illicit outflows over the decade, are on the rise as a percentage of total illicit financial outflows," said GFI.
"Crime, corruption, and tax evasion cost the developing world US$858.8 billion in 2010, just below the all-time high of US$871.3 billion set in 2008."
GFI described its estimates of global dirty money as "extremely conservative" as they do not include trade mispricing in services, same-invoice trade mispricing, hawala transactions, and dealings conducted in bulk cash.
"This means that much of the proceeds of drug trafficking, human smuggling, and other criminal activities, which are often settled in cash, are not included in these estimates," said Kar (right).
Asia is the biggest losers of capital, says the GFI report.
"We found that Asia, accounting for 61.2 percent of cumulative outflows, was still the main driver of such flows from developing countries.
"Indeed, five of the 10 countries with the largest illicit outflows - China, Malaysia, the Philippines, India, and Indonesia - are in Asia."
GFI said increasing transparency in the global financial system is critical to stemming the outflow of illicit money from developing countries.
Following the release of the previous GFI report in January last year, Najib, who is also the finance minister, kicked the ball to Bank Negara's court, saying that it would provide an explanation on the findings.
Soon after, Deputy Finance Minister Donald Lim announced that Bank Negara has launched a probe.
But to date, Bank Negara has yet to announce the result of its investigations or explain the massive illicit capital flight, despite offers of help from top GFI economists. - Malaysiakini
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