Moneychanger loses licence over RM10m transfer, but Negri MB gets off scot-free

Putrajaya has cleared Negri Sembilan Menteri Besar Datuk Seri Mohamad Hasan of any wrongdoing for transferring RM10 million out of the country but the moneychanger involved has lost his licence, a move which has stumped opposition lawmakers.

Minister in the Prime Minister's Department Nancy Shukri said in a written reply today to Seremban MP Anthony Loke Siew Fook (pic) that there were no elements of corruption in how Mohamad obtained the money.

Nancy revealed that the Attorney-General's Chambers had reviewed the findings of the Malaysian Anti-Corruption Commission (MACC) into the case and had decided not to charge Mohamad as it had found that the money was obtained legally.

"The AGC decided that it was better that action be taken against the moneychanger instead," she said.

The moneychanger, Salamath Ali Money Changer, was fined and had its licence revoked.

Loke, however, questioned this, pointing out that where the money had come from was immaterial.

"We are not asking where the money came from. That is another issue. But the fact that he did transfer money illegally itself was wrong," Loke said at the Parliament lobby today.

Loke then cited a recent report in The Malaysian Insider which stated that Bank Negara had fined a "Tan Sri" nearly RM200 million for illegally transferring funds through a moneychanger.

"When ordinary business people make an illegal transfer, they are fined, but when the Negeri Sembilan MB, who is also an Umno supreme council member does the same, no action is taken,” noted Loke.

"Why are there such double standards and selective prosecution?"

Mohamad, who became menteri besar in 2004, was investigated by Bank Negara Malaysia for allegedly transferring funds amounting to RM10 million to London through Salamath Ali.

Mohamad’s illegal transaction had surfaced because of Bank Negara's drive to go after hot money sent through Indian-Muslim money changers in the system known as hawala — which financial authorities and even the United Nations had promised to eradicate as it could be a conduit for financing global terrorism and crime.

Bank Negara was quoted in 2009 as saying that Salamath Ali had contravened Section 30 of the Money-Changing Act 1998 and its licence had been revoked on October 26, 2009 and investigations into the moneychanger had begun.

In Malaysia, only banks and remittance agents are licensed to transfer money out of the country. Money transferred out through the licensed entities are recorded and monitored by Bank Negara.

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