The MACC probe on Pandan MP Rafizi Ramli and former aide James Chai is rather puzzling.
From everything we know, neither are decision makers in the 10-year, RM1.1 billion government deal for the development of semiconductor chip technology with Arm Holdings of the UK.
To Malaysia’s detriment, adverse international attention is now focused on its investment climate and whether deals signed may be threatened by enforcement action, especially post earlier bribery allegations over a solar project, which Rafizi denied. There has been no action so far on this.
And even before the conclusion of investigations, MACC chief commissioner Azam Baki already said on Wednesday that his team may propose that two people be charged, but subject to the attorney-general’s decision, a development which Rafizi rightly described as strange.
Rafizi said, "As someone who still has to appear at the MACC to give a statement, such a statement (by Azam) came across as weird to me… This sounds like a decision has already been made even before the probe is completed."
Indeed. There is an undue haste to charge some people who have no decision-making authority, while those who decided and signed the contract are left alone.
Paradoxically, the decision to make a deal with Arm Holdings was allegedly made in haste, one of the things MACC is investigating.
According to The Edge in February, Rafizi said the final decision was made by the cabinet, three ministries were involved, and Prime Minister Anwar Ibrahim himself had a role in it.
He was responding in February to reports that the MACC was investigating the deal following allegations made by some NGOs that the billion-ringgit deal was signed in haste, and it did not receive the agreements from the International Trade and Industry Ministry and the Finance Ministry.
It was also alleged in the reports that several individuals were appointed to high positions within the foreign company (presumably Arm Holdings) after they resigned from the Economy Ministry.
Deal brought to cabinet thrice
The Edge further reported: “Rafizi said that the proposal for the deal was brought to the cabinet three times, involving meetings co-chaired and comprising the three ministries involved in the negotiations with Arm (Holdings).
“To say that it was rushed is to accuse the prime minister, finance minister II and investment, trade and industry ministers too because they were all part of the process.
“In fact, they negotiated directly with Masayoshi Son without the economy minister,” said Rafizi, the economy minister then. Son is the head and major shareholder of Softbank, Arm Holdings’ 90 percent shareholder.
So far, none of them has denied Rafizi’s statement. Shouldn't the MACC have called in all those who were involved in these meetings for questioning as well?
There is no sign that they were, and if they were not, then the investigation on both Rafizi and Chai would have been woefully inadequate.
It is easy to understand why there is a perception that this investigation is politically motivated under such circumstances - Rafizi is now a vocal critic of both Anwar, with whom he has fallen out, as well as Azam, who has been investigated for buying shares above his allowed limit.
On March 13, Rafizi urged Putrajaya to reveal the full findings of a shareholding investigation into Azam, claiming that the probe had uncovered a total of RM14 million in shares held by the MACC chief commissioner.
However, the government has declined to reveal the findings so far. Azam’s last day with the MACC is May 12, after which a new commissioner, retired High Court judge Abdul Halim Aman, takes over.
Election-related?
The other thing hanging over this investigation is that there seems to be a general view that an election is around the corner.
If Rafizi and Chai are charged before that in court, then Rafizi’s name is smeared even before the election.
Rafizi has already said he will be contesting in Pandan but not under the PKR banner, a clear indication that he may contest as an independent or a new party formed by him and his supporters.
Including Rafizi, that may amount to seven MPs in safe PKR seats currently. They won’t be that safe for PKR anymore.
The Madani government would be keen to undermine that effort as it is a direct threat to its existence. Any dirt that can be dug up on Rafizi and reduce his influence with the electorate would be welcomed.
Clear, ever-present danger
However, there is a clear, ever-present danger in such moves. Azam’s credibility as the MACC chief is at an all-time low, considerably eroded not just by the share trading scandal but by unprecedented allegations reported in Bloomberg and widely circulated, which claimed that MACC officers helped a “corporate mafia” to gain control of listed companies.
Thus, when a former economy minister, known for whistleblowing, exceptional courage, integrity, and a strong stance against any form of corruption, is hauled to court on what is perceived to be trumped-up charges with little evidence, there is likely to be a strong public backlash against this government.
On top of that, when a deal with Arm Holdings, a respected international company in the area of research and development of semiconductor chips, whose major shareholder is Softbank with a 90 percent stake, is called into question needlessly, it raises considerable investor concerns.
New investors may be reluctant to invest in Malaysia when political considerations and apparent use of regulatory agencies for political persecution come to the fore. The companies involved are far from insignificant.
SoftBank, in which legendary software and AI entrepreneur Son holds a near 30 percent stake, has a market value of some US$200 billion (nearly RM800 billion).
Arm Holdings is SoftBank’s move into chip development, controlling 90 percent of the company, and is worth some US$250 billion.
The deal Malaysia has with Arm Holdings is for access to its proprietary intellectual rights over 10 years, not as it is implied, a one-off large payment of RM1.1 billion in reports, which use the figure constantly in the headlines.
A licensing arrangement
It’s effectively a licensing arrangement for access to technology and expertise for Malaysia to develop its own chips.
It is aimed at moving the Malaysian semiconductor value chain up to design instead of mere manufacturing, as it is now, one of the few efforts to raise capability.
In the future, it could involve, in addition to chip development, AI collaborations too, as Softbank owns or invests billions in companies across AI, software, e‑commerce, telecommunications, and robotics. It’s a useful alliance.
What a pity that such a noble endeavour now appears to be mired deeply in political machinations. And what a loss to the country.
When will our politicians stop? Will there be no limits to their impropriety in the name of holding on to power? - Mkini
P GUNASEGARAM says among the worst things we can do is hinder the good work of others.
The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT.
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