Have the LCS, MACC chief's shares scandals been forgotten?

 

Former prime minister Dr Mahathir Mohamed’s infamous quote - “Melayu mudah lupa” - can be extended to all Malaysians. Events, especially scandals of the past, are quickly forgotten when others surface.

But Malaysians have to be reminded continually of many issues that had previously surfaced and attempts are being made to downplay or even sweep them under the carpet.

In the lead-up to the 15th general election, the acquisition of littoral combat ships (LCS) running into billions was on every citizen’s lips. Rafizi Ramli, now the economic affairs minister, led the accusations of impropriety.

After being quoted as saying that he would go after the Malaysian Anti-Corruption Commission (MACC) chief Azam Baki for an unrelated raid on his offices, Rafizi backtracked and said the focus should be on ensuring the independence of the anti-graft agency.

But Azam (above) himself was involved in the “my brother used my account” affair. More of that later on.

RM6b paid, still no ships

Parliament’s Public Accounts Committee tabled a report in August on the procurement of the LCS, two years after starting a probe into the RM9.13 billion contract.

The committee said the project to construct six ships was awarded by the Defence Ministry to Boustead Naval Shipyard Sdn Bhd through direct negotiation, and the government has paid RM6.08 billion or 66.65 percent of the cost so far.

Five of the ships were supposed to have been handed over to the navy four months ago, but none has been delivered.

A declassified forensic audit report on the LCS revealed that several attempts were made to conceal irregularities. The report also noted that there were incidents where electronic evidence and documents were destroyed, a further indication of a cover-up.

So, what has happened to the investigations? Has the money trail been traced and where does it lead to? End of the matter? What about the RM6 billion paid and there’s nothing to show? Where did the money go?

Former managing director of Boustead Naval Shipyard Sdn Bhd (BNS) Ahmad Ramli Mohd Nor in August pleaded not guilty to three charges of criminal breach of trust over the LCS scandal.

The 78-year-old former Royal Malaysian Navy chief was alleged to have authorised payments totalling more than RM21 million (US$4.7 million) to three companies without the approval of the board of directors of the company.

Rafizi may have gone into silent mode but what about other members of the cabinet who thumped their chests and promised a clean government? Are they going to watch with folded arms as the loot disappears without a trace?

Why have they taken their feet off the pedals? Are some of them complicit in the dirty deals of the LCS? Or were they recipients of some of the dirty money?

The MACC’s silence on the matter causes concern. While Azam was quick to announce the progress investigations into a High Court judge, he has yet to publicly comment on the developments on the LCS issue.

‘My brother did it’

But Azam himself has also not addressed the accusations against him. In December last year, economist and advocate of good governance, Edmund Terence Gomez, resigned as a member of an MACC panel after it failed to discuss reports implicating the top leaders at the anti-graft agency.

In his resignation letter, Gomez said disturbing questions had been raised about the “nexus between business and law enforcement” and a “conflict of interest” situation involving Azam and his extensive ownership of corporate stock.

Initially, in response, Azam said: “I don’t owe anyone any explanation about what actually happened back in 2015. However, as I’ve explained to the board members, my stock market account, at that time, was used by my brother Nasir to purchase shares.

“After that, in the same year, those shares were transferred to his own stock market account, when he got his own account.

“I don’t have any pecuniary benefit or personal interest in the purchases made (by my brother) in 2015,” he said.

Allowing a third party to use one’s account itself is an offence under section 25(4) of the Securities Industry (Central Depositories) Act 1991.

Subsequently, the Securities Commission Malaysia (SC) announced that Azam operated the account that he had opened, in that he had given instructions to buy, sell and transfer securities from the said account.

But this does not absolve him of wrongdoing as he had breached a clause in the “Behaviour and Discipline Management of Public Service Officer” circular, which imposes conditions on share trading and ownership.

This circular issued by the Public Services Department states that civil servants are not prevented from purchasing shares provided as follows:

• Does not exceed 5 percent of the paid-up capital or RM100,000 of the current value whichever is lower in any one company which is incorporated in Malaysia;

• Does not exceed 5 percent of the paid-up capital in investment or industrial-centric companies established by state or federal governments.

With Anwar Ibrahim, Rafizi, and even Ahmad Zahid Hamidi extolling the virtues of a clean government and not brooking any signs of corruption, can we expect some action, or will it be the same as in the past? - Mkini

---

R NADESWARAN is a veteran journalist who writes on bread-and-butter issues. Comments: citizen.nades22@gmail.com

The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT.