Rightways to Success: Dr. Mahathir

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Monday, 11 November 2019

Shocked! Najib's actions showed personal interest beyond that of public office — judge

https://youtu.be/3DeFWJ6nRJE

KUALA LUMPUR (Nov 11): Justice Mohd Nazlan Mohd Ghazali took an hour to deliver his decision today that the prosecution has successfully established a prima facie case against former premier Datuk Seri Najib Razak on all seven charges in the SRC International Sdn Bhd trial.

What was significant was that the judge devoted half an hour to just one charge, namely abuse of power.

Najib also faces three criminal breach of trust charges and three money-laundering charges in relation to the alleged embezzlement of RM42 million from SRC in 2014 and 2015.

On the power abuse charge, Justice Nazlan said evidence adduced by the prosecution showed that the series of actions taken by Najib in respect of SRC showed personal interest beyond that of public office.

Najib, who is also the member of parliament for Pekan and former Barisan Nasional chairman, had agreed to the recommendation made by the Economic Planning Unit to approve a RM20 million launching grant for SRC when the company initially applied for a RM3 billion grant, the judge noted.

"Before SRC was placed under 1Malaysia Development Bhd (1MDB), SRC's Articles of Association under Section 67 stipulates that the accused as PM has the power to appoint and remove the members of the board of directors of the company," the judge said.

More importantly, Justice Nazlan said Najib responded to a letter dated June 3, 2011 from SRC's former chief executive officer (CEO) and managing director, Nik Faisal Ariff Kamil, who sought a RM3.95 billion loan.

"Najib made a notation on the letter addressed to the Retirement Fund Inc (KWAP) CEO Datuk Azian Mohd Noh stating in fact that he was agreeing to it, and wanted Azian to look into it.

"It should be highlighted that KWAP is a statutory institution which in effect reports to the finance minister and KWAP board members and whose investment panel members are appointed by the finance minister, under Section 6 and 7 of the KWAP Act," the judge said.

Najib the ultimate boss

Justice Nazlan said Najib had informed then Treasury secretary-general and KWAP chairman Tan Sri Dr Wan Abdul Aziz Wan Abdullah to expedite the approval of the SRC loan, and that this happened after Wan Abdul Aziz and Azian had briefed Najib that KWAP was initially considering extending a loan of only RM1 billion.

"Crucially, Wan Abdul Aziz testified under cross-examination that he did not consider the said communication with the accused as an instruction from Najib. In addition Azian, the former KWAP CEO, testified there was no legal compulsion. She could not deny that there was a certain amount of influence in the notation directed to her in the June 3, 2011 letter.

"This was due to the fact that Azian felt Najib was the PM and the minister in charge of KWAP and her "ultimate boss"," the judge said, adding that before KWAP approved the loan, SRC had written to the finance ministry seeking a government guarantee in anticipation of the RM2 billion loan.

The judge also noted the deputy secretary-general of Treasury, Datuk Mat Noor Nawi, had testified that the transfer of the share of ownership of SRC from 1Malaysia Development Bhd (1MDB) to Ministry of Finance Incorporated was executed by Najib, who was also the finance minister.

Justice Nazlan said the series of conduct and involvement of Najib with regard to SRC, if viewed in totality, cannot be construed as purely being a lawful exercise of his official duty as either the prime minister, finance minister or advisor emeritus of SRC.

"This is because such conduct and involvement was beyond the ordinary and outside the usual conduct or involvement expected of a prime minister and finance minister, similarly circumstanced.

"Such conduct and involvement exhibited by the accused instead serves only to demonstrate the existence of private and personal interest on the part of the accused in SRC, which interest, in my judgement, is in the nature that is envisaged under the law to fall within the ambit of Section 23 of the MACC Act," the judge ruled.

Justice Nazlan further reasoned that the argument that Najib had not given any instructions or directions but merely made requests and had no role to play in securing the KWAP loan cannot withstand the court's scrutiny.

He said if these were couched as mere requests it is manifest that they were made by Najib because they were meant to be obeyed.

"Everyone else in the picture was in a position subordinate to the accused. These included the secretary-general of the Treasury and the (then) Second Finance Minister (Datuk Seri Ahmad Husni Hanadzlah)," he said.

Justice Nazlan said the prosecution has also showed that Najib participated in the decision-making process at the meetings of the Cabinet, which the ex-premier chaired and where the two government guarantees for the loans extended by KWAP to SRC were approved.

This, he said, is clearly is a decision or action taken by Najib in relation to the government guarantee, which was to guarantee KWAP the repayment of the loan by SRC, in which Najib had an interest of a nature that is caught under Section 23 of the Malaysian Anti-Corruption Commission Act 2009.

"In fact the accused himself, as the PM who chaired the meetings, had tabled the Cabinet paper on the second government guarantee at the meeting which approved the same on Feb 8, 2012.

"There was no disclosure, let alone any attempt to excuse himself from the deliberation on the Cabinet papers at the either of the said meetings," he said, adding that Najib also subsequently chaired a cabinet meeting where a short-term loan was approved when SRC nearly defaulted KWAP payment.

"Given the accused's control over SRC, he could cause the transfers of RM42 million which were through intermediary companies credited into his personal accounts and eventuality utilised and spent to his own advantage. This is gratification to the accused pure and simple," he said, in ruling that Najib has to enter his defence on the abuse of power charge.

Najib is charged under Section 23 of the MACC Act for allegedly using his position as the prime minister and finance minister to commit bribery involving RM42 million when he participated in or was involved in the decision to provide government guarantees for loans from the Retirement Fund Inc to SRC amounting to RM4 billion.

He is alleged to have committed the offence at the Prime Minister's Office in Putrajaya between Aug 17, 2011 and Feb 8, 2012. If convicted, he faces a jail term of up to 20 years, and a fine of not less than five times the amount or value received or RM10,000, whichever is higher.

The Edge is reporting the proceedings of the SRC trial live.

Users of The Edge Markets app may tap here to access the live report.

Wednesday, 30 January 2019

The price we pay to axe East Coast Rail Link (ECRL)

https://youtu.be/GMsutBaUjwA

KUALA LUMPUR: Loss of jobs, harm to diplomatic ties with China, damage to the economy plus a RM20bil compensation are awaiting Malaysia if the East Coast Rail Link (ECRL) project is cancelled.

The billion ringgit 688km long track linking Selangor, Pahang, Trengganu and Kelantan is already 20% completed, says MCA president Datuk Seri Dr Wee Ka Siong on the trail of potential damage if the project set for completion in 2024 is axed now.

The Ayer Hitam Member of Parliament who issued an open letter to Prime Minister Tun Dr Mahathir Mohamad and Cabinet Ministers on the matter, said he earnestly hoped the Cabinet can explore the effects of axing the project.

The ECRL project whose construction contract was awarded to China Communications, Construction Co Ltd (CCCC) and financed by China is a hot topic in the past few days, and its fate is expected to be made known officially this week.

Yesterday, Dr Mahathir said Malaysia will be “impoverished” if the government proceeds with the ECRL project.

While not confirming that the project has been scrapped, Dr Mahathir said paying compensation is cheaper than bearing the cost of the project.

Below is Dr Wee’s letter in full:

An open letter to YAB Prime Minister and Cabinet Ministers

The cancellation of the ECRL project and the bickering between two Cabinet ministers over the issue has become the talk of the town. I foresee this issue to be a hot topic in the Cabinet meeting this Wednesday (Jan 30).

Whether the cancellation of ECRL was discussed in previous Cabinet meetings or not, I earnestly hope the Cabinet can explore the effects of axing this project.

Take a moment to consider factors such as the friendship between the people of both countries, jobs and economy, diplomatic ties and the reputation of Malaysia.

On the bilateral relations between Malaysia and China, I can safely say that putting a stop to the ECRL project will harm the diplomatic ties between Malaysia and China.

If we put ourselves in China’s shoes, we will surely respond negatively as well if our overseas investment is treated as such.

A nightmare looms should China take any retaliatory action, such as reduce or even halt the import of commodities (palm oil in particular) from us.

If that happens, Felda, Sime Darby and other big corporations will be the first to feel the heat.

The livelihood of some 650,000 smallholders and their families will be directly affected.

From the economic perspective, the ECRL project is likely to boost the GDP growth of three east coast states by 1.5%.

It will also spur the development of the east coast, enhance connectivity between the east and west coast, and close the economic divide between the two coasts.

Through bridging the rural-urban divide, the overall development of Malaysia will be more balanced and comprehensive.

The rail link is 20% completed, with several tens of billions paid to the contractor.

On top of that, Malaysia will be penalised for cancelling the RM30bil loan from the EXIM Bank of China.

We will have to repay the loan and compensation within a short period of time.

From my experience in administering engineering projects, any breach of contract will result in a hefty penalty. The compensation for cancelling ECRL could reach RM20bil.

Financial losses aside, scrapping the ECRL will also bring a negative impact to Malaysia’s reputation in the international arena and erode Malaysia’s trustworthiness.

Judging from my past experience dealing with China and its officials, as well as the friendly gestures displayed by China so far, I can conclude that China is willing to achieve a win-win solution instead of situation where both sides lose out.

The Malaysian government can consider restructuring the project timeline or reducing the project scale, which are alternatives that work in Malaysia’s favour while maintaining the amicable ties between Malaysia and China.

The government should also keep the small and medium enterprises in mind.

Business owners in 150 related industries, including tens of thousands of contractors who have taken a loan to purchase equipment, will suffer greatly should ECRL be cancelled.

China is Malaysia’s largest trading partner since 2009, with bilateral trade figures reaching US$100bil. Business linkages and people-to-people exchanges have also flourished over the years.

Products such as palm oil, bird’s nest, Musang King, white coffee, etc, are exported to China, while people from both countries visit each other for vacations and academic exchanges, benefitting Malaysians of all races.

All these have contributed to the income of various communities and brought in foreign exchange earnings for the country.

It takes years to build a bilateral relationship, and only seconds to destroy it.

The Malaysian government should appreciate our friendship with China and try its best to achieve mutual benefits and common prosperity with China.

Prioritise the economy and the livelihood of the people, and put an end to the political game to discredit your opponents.

For the sake of the people in the east coast as well as the whole of Malaysia, the government should not cancel the ECRL project.- The Star

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Rocky times ahead for China FDI in Malaysia

Keep China's faith in us; Relationship with China is crucial, says expert

Tuesday, 4 September 2018

Rocky times ahead for China FDI in Malaysia

Li: ‘Malaysia must remember that by targeting Chinese investors in an unreasonable way, this will scare away not only FDI from China, but also from other countries.’ - credit: Malaysia Today

Great wall of controversy: Dr Mahathir’s criticism of Alliance Steel’s barricade for its RM6bil integrated steel complex has upset some Chinese investors.

A series of attacks on China-funded projects in Malaysia by the Prime Minister is causing anxiety not only to Chinese nationals but also locals.

INVESTMENTS and mega contracts linked to China will have to brace for rocky times ahead if Prime Minister Tun Dr Mahathir Mohamad continues unchecked with his incessant tirade against Chinese endeavours in Malaysia.

The golden era for Chinese investments, which possibly peaked during the rule of former prime minister Datuk Seri Najib Razak, seems to have come to an unceremonious end.

The future of foreign direct investment (FDI) from China is now seen as unpredictable – at least for the next 3-5 years – under the new government of Dr Mahathir, according to Datuk Keith Li, president of China Entrepreneurs Association in Malaysia.

Li: ‘Malaysia must remember that by targeting Chinese investors in an unreasonable way, this will scare away not only FDI from China, but also from other countries.’

“The series of comments made on Chinese investments by the PM have affected the confidence of Chinese investors. Those who originally wanted to come are adopting a wait-and-see attitude, while those already in are careful about their expansion plans,” says Li in an interview with Sunday Star.

The outspoken leader of Chinese firms notes that businessmen from the mainland are “worried”, although some comments of the Prime Minister were later “clarified” by other Cabinet Ministers or the PM’s Office.

“Malaysia must remember that by targeting Chinese investors in an unreasonable way, this will scare away not only FDI from China, but also from other countries as well,” adds Li.

Since his five-day official visit to China that ended on Aug 21, the 93-year-old Malaysian leader has caused anxiety to all by making shocking announcements.

While summing up his China trip on Aug 21, he declared he would cancel the RM55bil East Coast Rail Link (ECRL) and two gas pipelines being built by Chinese firms.

As the ECRL is of strategic importance to China’s Belt and Road Initiative – the policy which Dr Mahathir has repeatedly voiced his support for, Beijing would expect a renegotiation of the contract terms rather than an outright cancellation.

Dr Mahathir had reasoned that with national debt of over RM1 trillion, Malaysia could not afford these projects. In addition, these contracts are tainted with unfair terms and smacked of high corruption.

Although the Prime Minister said Chinese leaders understood Malaysia’s situation, reactions of Chinese nationals on social media were unforgiving with many suspecting Dr Mahathir “has other motives”.

Many see Dr Mahathir as attempting to raise Malaysia’s bargaining power in the negotiation for compensation for the cancelled projects. China, according to social media talk, is asking for RMB50bil as compensation.

On social media, there are also suggestions that Dr Mahathir is aiming at his predecessor as most China-linked projects were launched during the rule of Najib.

During the rule of Najib, Malaysia-China relations were intimate.

This has resulted in the influx of major construction and property companies from the mainland, followed by banks and industries.

But on May 9, Dr Mahathir’s Pakatan Harapan coalition toppled the Barisan Nasional government of Najib after the most bitterly fought general election in local history.

The second-time premier has put the blame on Najib for the massive 1MDB financial scandal, which Najib has denied, and mismanagement of the country’s finance.

And while the Chinese nationals are all riled up by the cancellation of ECRL, Dr Mahathir came up with an ill-advised statement.

Last week he ordered a wall surrounding Alliance Steel, which is investing US$1.4bil (RM6bil) for a massive steel complex, to be demolished. This was seen as unreasonably targeting a genuine FDI.

Although the foreign ministry later clarified that the leader had mistaken the wall to be built around the Malaysia-China Kuantan Industrial Park (MCKIP), the anger of Chinese nationals lingers on.

The industrial park is a G-to-G project to jointly promote bilateral investments. There is an even bigger sister industrial park in China that houses many Malaysian firms. All these were built during Najib’s reign.

Dr Mahathir’s statement has also caught the attention of China’s Global Times, the mouthpiece of the Communist Party of China.

In an editorial on Aug 28, the news portal warned: “Many words of Kuala Lumpur can spread to China via the Internet, causing different reactions. How the Chinese public sees China-Malaysia cooperation is by no means inconsequential to Malaysia’s interests.”

It noted “while Dr Mahathir advocates pursuing a policy of expanding friendly cooperation with China ... but when it comes to specific China-funded projects, his remarks gave rise to confusion. Like this time, it is startling to equate the controversy surrounding a factory wall with state sovereignty.”

Global Times added: “When such remarks are heard by Chinese people, the latter find it piercing. They will definitely make Chinese investors worry about Malaysian public opinion and whether such an atmosphere will affect investment in the country.”

In fact, it would be unwise for the government to disrupt MCKIP. Co-owned by Chinese, IJM Corporation and Pahang government, this industrial park has lured in Chinese FDI of over RM20bil.

It is an important economic driver in the East Coast and has aimed to create 19,000 jobs by 2020.

While the “wall” statement might be seen as a minor mistake, Dr Mahathir’s flawed announcement last Monday that foreigners would be barred from buying residential units in the US$100bil (RM410bil) Forest City stirred another uproar.

On Aug 27, Reuters quoted Dr Mahathir as saying: “That city that is going to be built cannot be sold to foreigners. Our objection is because it was built for foreigners, not built for Malaysians. Most Malaysians are unable to buy those flats.”

Currently being developed by Country Garden Holdings of China, this 20-year long project, built on reclaimed land in Johor Bahru, aims to house 700,000 people. As about 70% of the house buyers are Chinese, some locals fear this could turn into a China town.

Unlike Alliance Steel that has stayed silent, Country Garden fought back by seeking clarifications from the PM’s Office.

In a statement, the major Chinese developer said all its property transactions had complied with Malaysian laws.

Citing Section 433B of the National Land Code, it added a foreign citizen or a foreign company may acquire land in Malaysia subject to the prior approval of the State Authority.

In addition, it said Dr Mahathir’s comment did not correspond with the content of the meeting he had with Country Garden founder and chairman Yeung Kwok Keung on Aug 16.

During the meeting, Dr Mahathir said he welcomed foreign investments which could create job opportunities, promote technology transfer and innovations.

In fact, this forest city project – along with ECRL – were the main targets of attack by Dr Mahathir before the May 9 election.

Opposition to these projects had helped drive Dr Mahathir’s election campaign, during which he said was evidence of Najib selling Malaysia’s sovereignty to China.

These projects, together with major construction contracts won by Chinese and the inflow of industrial investments, place the total value of Chinese deals at more than RM600bil in Malaysia.

But few would expect Dr Mahathir to use his powerful position to resume his attacks on China-linked projects so soon after his so-called “fruitful visit” to Beijing.

During his official visit to Beijing, the Malaysian leader was accorded the highest honour by China, due mainly to respect for “China’s old friend” and strong Malaysia-China relations built since 1975.

Dr Mahathir was chauffeured in Hongqi L5 limousine, reserved for the most honourable leaders, and greeted in an official welcome ceremony by Premier Li Keqiang. He was also guest of honour at a banquet at Diaoyutai State Guesthouse hosted by President Xi Jinping.

But beneath these glamorous receptions, there were reservations exuded by the Chinese for this leader whose premiership is scheduled to end in two years.

There were no exciting business deals signed in Beijing. There was absence of high diplomatic rhetoric that “Malaysia-China ties have been elevated to another historic high”, oft-repeated during Najib’s past visits.

Many even notice that Premier Li and Dr Mahathir had a cool handshake after their short joint press conference in Beijing.

And although China promised to buy Malaysian palm oil, the statement was qualified with “price sensitivity”, which means it will not buy above market price.

In addition, there was no mention of “buying palm oil without upper limit”, which was promised to Najib last year.

If Dr Mahathir’s original intention was to target Forest City and its owners, his move has certainly backfired. The country will have to pay a price for his off-the-cuff statement.

The “new policy” will have serious ramifications as it would hit the value of the properties not only in Forest City but also in other China-linked and non-Chinese projects.

Country Garden’s Danga Bay project will also be hit. It now faces a more daunting task of selling the balance of about 2,000 units in Danga Bay, according to a Starbiz report.

Other Chinese developers like R&F Princess Cove and Greenland Group will be affected.

VPC Alliance Malaysia managing director James Wong told Starbiz there may be legal suits against the government.

“That may force Country Garden to scale down because it has invested a lot with its industrial building systems factory and an international school, among other investments. It will impact Country Garden and Malaysia’s property sector negatively,” Wong said.

“Foreign buyers and other foreign companies will shy away,” Wong added.

The change in government and the insensitive comments on China-funded projects have turned Malaysia into a high-risk investment destination for the Chinese, according to Li.

“We don’t know which China projects will be targeted next. Looking back, it’s a blessing in disguise that we were pushed out of the RM200bil Bandar Malaysia project. It is also lucky that Chinese money has not gone into the RM30bil Melaka Gateway project,” says Li, who owns a travel agency in Malaysia.

“In the immediate future, more tourists from China are likely to shy away from Malaysia.

“Malaysia may not hit the target of having three million visits from China this year,” Li adds.

Credit: Ho Wah Foon The Star

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Monday, 11 November 2019

Shocked! Najib's actions showed personal interest beyond that of public office — judge

Wednesday, 30 January 2019

The price we pay to axe East Coast Rail Link (ECRL)

Rail link a huge economic boost, big news for small towns in Malaysia

The rail economics of East Coast Rail Link (ECRL)

ECRL and pipeline projects cancelled !

Malaysia scraps MRT3 project, reviews HSR, ECRL mega projects to reduce borrowings

Don’t brush aside the goodwill, Mahathir !

The world’s oldest PM, Dr. Mahathir must now walk the talk

Rocky times ahead for China FDI in Malaysia

Keep China's faith in us; Relationship with China is crucial, says expert

Tuesday, 4 September 2018

Rocky times ahead for China FDI in Malaysia

Li: ‘Malaysia must remember that by targeting Chinese investors in an unreasonable way, this will scare away not only FDI from China, but also from other countries.’ - credit: Malaysia Today

A series of attacks on China-funded projects in Malaysia by the Prime Minister is causing anxiety not only to Chinese nationals but also locals.

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