‘US$30mil held on trust for Musa Aman’

Whistleblower website Sarawak Report has revealed more documents purportedly from the Hong Kong Independent Commission Against Corruption (ICAC), claiming that a Sabah lawyer has a Swiss bank account holding close to US$30 million on trust for Sabah Chief Minister Musa Aman.

In its latest posting, the website claimed that evidence from the Hong Kong authorities shows that the account was opened in the lawyer’s name with the Swiss Bank UBS in Hong Kong. This is allegedly operating under written instructions that the money is to be held on trust for Musa.

“A letter dated 25th May 2007, and now in the possession of the ICAC, stated the account should ‘hold (the money) on trust for Aman,” the report states.

“Investigators noted that on 31st May 2008, that account contained US$29.6 million!”

The website based its allegation on a flow chart said to be compiled by the ICAC, showing a money trail leading from timber kickbacks to Musa’s personal bank account with UBS in Zurich.

The chart tags the lawyer’s bank account with the words ‘Hold on trust for Aman’.

It illustrates how millions in Euro and in US, Hong Kong and Singapore dollars flowed from certain companies into accounts managed by Sabah timber trader Michael Chia and his nominees in Hong Kong, to a number of British Virgin Island companies and then to the lawyer’s account.

The accumulated money was then passed into an account in Zurich in Musa’s name, according to the chart.

The website claimed that it has copies of numerous bank statements that verify the information in the flow chart.

Musa has denied the allegations linking him with Chia, who was detained and charged with money laundering by trying to smuggle S$16 million into Malaysia.

Following Chia’s arrest in Hong Kong, investigators got the ICAC to freeze his bank accounts for up to three years.

Sarawak Report also claimed that an instruction to forward US$22.4 million from the lawyer’s account to Musa’s account had been frozen together with the money when the ICAC investigators moved in.

However, the three-year statutory period on investigations expired late last year and the money is now believed to have been accessed by the account holders, it said.

The website blamed the collapse of the case and the subsequent release of all the money to Musa and his collaborators, on Attorney-General Abdul Gani Patail’s (left) refusal to sign a cooperation agreement on the investigation.

It alleged that Abdul Gani, who has close family connections with Musa’s family, has been protecting the latter and had blocked his office from pressing charges.

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‘US$30mil held on trust for Musa Aman’
Apr 16, 2012 – Malaysiakini

“Hold On Trust For Aman” – More Devastating Evidence From The ICAC Investigation!

Nominee – Lawyer Richard Christopher Barnes was holding tens of millions of dollars in a Hong Kong bank account “in trust” for his client Musa Aman, before it was forwarded to a UBS Zurich account in the Chief Minister’s own name!

A multi-million US dollar account, opened in the name of Richard Christopher Barnes with the Swiss Bank UBS in Hong Kong, was operating under written instructions that the money was to be held in trust for Musa Aman, according to evidence gained from the Hong Kong authorities.

A letter, dated 25th May 2007 and now in the possession of the Hong Kong Independent Commission Against Corruption (ICAC), stated the account should “hold [the money] on trust for Aman”.

Investigators noted that on 31st May 2008 that account contained USD 29.6 million!

Flow chart to Musa’s own Zurich account!

A key flow chart, compiled by the ICAC, shows a money trail leading from timber kickbacks to Musa Aman’s own personal bank account with UBS in Zurich!

Barnes, a Sabah lawyer, was believed to be acting as a nominee for Musa Aman. The information on his key account relating to the Chief Minister, UBS A/C231117, forms part of a flow chart analysis, compiled by ICAC investigators, who were tracing the money flowing in and out of the Hong Kong bank accounts controlled by one of Musa’s other known side-kicks, Michael Chia (Chia Tien Foh).

Chia had had been arrested in the city-state while attempting to smuggle SG$16million in cash to Malaysia, sparking a major money laundering investigation.

A parallel investigation was undertaken by Malaysia’s Anti-Corruption Commission (MACC). However we have learnt that inter-country cooperation was blocked by Musa’s close family contact, the Attorney General, Abdul Gani.

The ICAC flow chart (below) illustrates how money was coming into Chia’s accounts from companies related to timber production in Sabah and flowing out to accounts being managed on behalf of Chief Minister, Musa Aman, including the one in the name of Richard Christopher Barnes.

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“Hold On Trust For Aman” – More Devastating Evidence From The ICAC Investigation!
April 15th, 2012 – Sarawak Report

Soi Lek’s brother named in graft probe

KUALA LUMPUR, April 15 — Police today confirmed Datuk Seri Dr Chua Soi Lek’s brother is among three people being probed for alleged corruption involving a company called Xian Leng Holdings Bhd.

A special audit of the company recently found that former company director Chua Chong Seng, along with other directors did not follow the group’s accounting procedures in capital expenditure (capex) amounting to RM90.7 million between the firm’s financial years of 2005 and 2008.

The Edge reported that based on a filing with Bursa Malaysia yesterday, the group said the three former directors and substantial shareholders — former managing director Ng Huan Tong, his wife Lim Wan Hong and Chong Seng — were the signatories of cash cheques amounting to RM85.7 million given out under questionable circumstances to pay four contractors for the construction of fish ponds. The remaining RM5 million was paid out to 52 contractors.

Federal CCID chief Datuk Wira Syed Ismail Syed Azizan confirmed that a police report had been lodged on the matter last Friday, and that an investigation is being carried out.

“We have received the report, we will look into and decide the next course of action,” the Syed Ismail told The Malaysian Insider.

In its note to Bursa Malaysia yesterday, Xian Leng had highlighted the irregularities involving the dubious cash withdrawals.

“The RM85.7 million [out of the total RM90.7 million capex] paid to the four contractors was made under questionable circumstances. The bulk of the payments were made via cash cheques and there was a lack of corroborative evidence showing that the amount was paid to and/or received by the contractors.

“The issuance of cash cheques for such large sums of money is a departure from the procedures prescribed by the group’s finance manual,” said Xian Leng after submitting the audit by PricewaterhouseCoopers Advisory Services Sdn Bhd to the exchange.

As a result of not being able to account for the capex, Xian Leng’s fixed assets have been impaired by RM51.9 million to date.

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Soi Lek’s brother named in graft probe
April 15, 2012 – TMI

More bite for MACC, only if BN gets two-thirds?!

Is it a bribe, threat or extortion? It is outrageous for the PM to make such an idiotic statement saying that he would give more bite to the MACC only if BN gets two thirds majority in the next general elections.

As one online reader puts it, “Well, wouldn’t it be easier for us to vote Pakatan into power and push them to reform, not just the MACC but also police, judiciary, Attorney-General’s Chambers, Election Commission and many others.”

Other comments are more blunt:

“His latest public statement must go into the annals of the nation for its sheer defiance of logic and intelligence.”

“The chances of MACC being given more bite is zero as long as BN is in power.”

“To ask for more power as a precondition to fight corruption is ridiculous, more so for the government of the day. Najib is indirectly admitting incompetence or/and lack of political will to fight corruption. Malaysians should know what to do with Umno-BN.”

The following are some of the comments by indignant Malaysians.

Reforming MACC: Tickled by PM’s two-thirds poser

Aliran is tickled by the Prime Minister’s so-called pledge that he would give more bite to the Malaysian Anti-Corruption Commission (MACC) if voters hand the Barisan Nasional its coveted two-thirds parliamentary majority in the coming general election.

We’re bemused because the federal government does not need a two thirds majority to give teeth to the MACC as it does not require a constitutional amendment. What it does need, though, is political will and commitment from the federal government to ensure that the MACC is fully and fiercely independent.

A truly independent anti-corruption watchdog would not only catch ‘ikan bilis’ but also the elusive ‘sharks’, many of whom have connections with people in high places. This also means that the MACC would be empowered to catch people at, for instance, ministerial level, if need be, without fear or favour.

Additionally, the “pledge” appears to be a thinly veiled threat to voters, thereby making it sound more like a bargaining chip.

Anyway, even if the BN proposal to make the MACC truly independent requires that the existing law pertaining to the MACC be amended, we are confident that Pakatan Rakyat parliamentarians, who have been clamouring for an independent watchdog all along, would fully support the amendment.

Indeed, the rakyat as a whole would give their wholehearted support to this noble endeavour to put a stop to taxpayers’ money being abused by certain individuals.

We therefore call upon the Prime Minister to take immediate steps to unleash the MACC before the next general election.

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Reforming MACC: Tickled by PM’s two-thirds poser
By Aliran, on 28 February 2012

Ku Li: Corruption may see BN’s downfall

Razaleigh pointed that no ‘public relations exercises’ can mask corruption and ‘dysfunctional democracy’.

KUALA LUMPUR: Respected Umno veteran Tengku Razaleigh Hamzah today said no government rife with corruption can survive public anger and warned Putrajaya that it may suffer the same fate as ousted regimes in the Arab Spring.

Speaking at the Royal Selangor Club luncheon talk earlier today, the Kelantan prince spoke of Malaysia’s “dysfunctional” political economy, which he blamed on money politics as a result of the of the policies under the tenure of former prime minister Dr Mahathir Mohamad.

Malaysia under Mahathir is often characterised by neo-liberal policies which Razaleigh said kickstarted the politics-business relations and resulted in crony capitalism.

“As a consequence of economic policies in the past, inequalities have also widened. Today, Malaysians suffer from a very wide inequality… and the widening inequality will go into a deeper crisis of confidence among the people.

“No democratic system, no institution as envisaged by our Federal Constitution, can survive a political economy of this nature.

“There is too much money in politics and it has become inseparable from power and the electoral process,” he said.

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Ku Li: Corruption may see BN’s downfall
February 16, 2012 – FMT

Spouse of ex-Iskandar top exec charged with graft

KUALA LUMPUR, Dec 27 — The husband of a former senior official in Iskandar Investment Berhad (IIB) was charged with corruption today in Johor Baru for allegedly soliciting RM1.6 million as inducement to obtain a project.

Mohd Amin Suhaimi, 52, claimed trial at the Sessions Court in Johor Baru to three counts of soliciting and receiving bribes from construction company Detect Engineering Sdn Bhd to secure the tender for the construction of a boarding school in Pulai.

It is believed the project, sited at Lot PTD Mukim Pulai, is worth some RM40.8 million.

According to Star Online, Mohd Amin was alleged to have solicited RM816,900 in cash from Detect Engineering Sdn Bhd director Mohd Hassan Madon, 48, through middleman Mohd Iskandar Fahmi Abdullah, 52. He was accused of committing the act at a hotel on Jalan Harimau in Taman Century, Johor Baru, at about 5pm on April 22 last year.

Under the second charge, Mohd Amin allegedly received RM500,000 from Hassan through Mohd Iskandar at a parking lot inside a shopping mall on Jalan Wong Ah Fook at 4pm on June 4 last year.

Under the third charge, he was accused of receiving RM316,900 in cash for helping the company obtain the project from IIB, at a parking lot in a shopping complex along Jalan Trus between 2pm and 3pm on June 9 last year.

He was accused of committing the offences under Section 16(a)(A) and charged under Section 24 of the Malaysian Anti-Corruption Commission Act (MACC) 2009.

The charge carries a jail term of up to 20 years and a fine of not less than five times the amount of bribe or RM10,000, whichever is higher.

Bail was set at RM100,000 and the Sessions Court judge fixed January 27 for mention.

According to previous reports, it is believed Mohd Amin is the husband of Arlida Ariff, formerly IIB’s chief executive officer who was removed late last year amid speculation of alleged irregularities in the awarding of infrastructure contracts.

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Spouse of ex-Iskandar top exec charged with graft
December 27, 2011 – MI

A cock-and-bull story, Awang Adek

YOURSAY

‘Come on, what kind of company gives donation secretly in cash, a fixed amount every month and goes to great extents to cover the money trail.’

Awang Adek: Yes, I received cash deposits, but…

Malaysian Born: This is really very disturbing. The fact that a deputy minister can receive money into his personal account from businessmen who have commercial activity with his specific ministry is not just unacceptable but a clear conflict of interest.

Taken from a different perspective, how can a politician receive money in the form of donations for his constituency in his personal account? Even lawyers have to set up a client’s account when receiving funds to be re-disbursed.

Kgen: I don’t think this Umno leader is exceptional. The only difference between him and other corrupt Umno goons is that his case is exposed while others remain hidden.

These people are so bold and shameless that they can take money openly and bank it into their personal bank accounts. They know that MACC (Malaysian Anti-Corruption Commission) won’t touch them.

It only gets inconvenient if there is a power struggle and they gets exposed by a rival, but they still won’t fall as long as they are in the boss’s good books.

Look at Women, Family and Community Development Minister Shahrizat Abdul Jalil. She is still looking secure in her job.

Multi Racial: Well, this is a clear-cut case of corruption. Deputy Finance Minister Awang Adek should resign immediately. It is shame that he even got the gumption to explain that the money received is for something else.

If this is accepted, then whenever someone is caught for corruption, they will just explain that the money is a donation for political financing. No wonder, only a handful criticised the Shahrizat case as many are in the same boat.

If Umno members want to save their party, they have to come out to insist all these leaders be charged, otherwise it will not only bring down Umno, but also the country if such practice is allowed to continue.

Never mind if Umno members refuse to do anything. Malaysians must come out in full force to get rid of those corrupted, racist and religion extremists in the next general election. They must not be allowed to serve in the Parliament and state assemblies.

The above is a selection of comments posted by Malaysiakini subscribers.

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A cock-and-bull story, Awang Adek
Dec 22, 2011 – Malaysiakini

MAS probes graft claims in cargo unit, boss put on leave

KUALA LUMPUR, Dec 21 — Loss-making Malaysia Airlines (MAS) is investigating allegations of kickbacks in its cargo unit which has led to MAS Airlines Cargo (MASkargo) managing director Shahari Sulaiman to go on leave since early last month, sources said.

The Malaysian Insider understands that an internal investigation report has been sent to the MAS board although the unprofitable flag carrier has not lodged a police report over the issue.

“It is related to kickbacks in MASkargo and the board already has a report on the matter,” a source told The Malaysian Insider.

The source added new managing director Ahmad Jauhari Yahya and the top management have been going through the books for all divisions in the national carrier that has posted losses of some RM1.2 billion in the three quarters of the current financial year. MAS is not expected to make profits until 2013 despite a new business recovery plan.

“They are cleaning up the company. This is just the start,” he added.

However, it is not clear why MAS has not lodged a police report over the alleged kickbacks in MASkargo, which made a record pre-tax profit of RM142 million in 2010.

The Business Times had reported that Shahari has been away since early November 2011 after fresh allegations about problems in the cargo unit.

The new MAS board had begun looking into all aspects of the airline operations after a share swap between the national carrier and Asia’s biggest budget carrier, AirAsia in early August. It is understood that investigations started and a domestic inquiry was done but fresh allegations revived the probe.

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MAS probes graft claims in cargo unit, boss put on leave
December 21, 2011 – MI

Malaysia gets top billing…for illicit financial outflows

For the first decade of the new century, Malaysia has lost a staggering RM1.08 trillion (US$338 billion) in illicit outflows which is the fourth highest in the developing world.

In the period 2000-2009, China lost US$2.74 trillion in illicit financial outflows and was the developing country with the largest illicit outflows, according to a country ranking published in the report. Mexico ranked second, with US$504 billion and Russia third with US$501 billion while our closest-ranked regional neighbour is the Philippines, who at 13th place lost US$121 billion.

Illicit outflows can be taken as a benchmark or indication of the scale of corruption. This means Malaysia has the most corrupt set of leaders in Southeast Asia, who are also the 4th most corrupt in the world, stashing the massive amounts of money they plunder overseas.

The Global Financial Integrity (GFI) reported in January that RM930 billion flowed out of Malaysia from 2000 to 2008, growing to RM218 billion per year from an initial RM71 billion in that period. Malaysia lost RM150 billion in illicit outflows in 2009. The report elaborated further by stating that the increase was “at a scaled seen in few Asian countries” and continued added, “The volume of illegal capital flight from Malaysia has come to dwarf legitimate capital inflows into the country in recent years.”

Bribery, theft and kickbacks

The warning bells were sounded as early as January 2011 by the likes of Opposition Leader Anwar Ibrahim, who questioned the apathy shown by the government towards the problem of illicit outflow via corruption and tax evasion practices.

Corruption – bribery, theft and kickbacks – accounts for the other half of illicit flows and dominate the Middle East, North Africa and developing Europe, the report said.

The falsification of import/export invoices, known as trade mispricing, accounts for just over half of all illicit financial flows and is particularly prevalent in Asia and the West.

To stem the tide, Bank Negara Governor, Dr Zeti Akhtar Aziz, tabled the Money Business Services Act in March; an act that has since came into effect on December 1st. The new law supports the development of a more dynamic, competitive and professional money services business industry, while strengthening safeguards against money laundering, terrorist financing and illegal activities, according to Bank Negara.

Half-hearted Act

Yet, the Act seems too little too late, since it is a mere knee-jerk reaction to a decade old problem. After a decade where Malaysia has lost RM1.08 trillion, in-action by the Barisan Nasional government has cost us dearly. This is a governement that has been bleeding money for the longest time and is prime for an economic implosion that would default the country.

With inflation clocking in at 3.4% in September after touching a 27-month high of 3.5 per cent in June, food inflation remains the biggest concern, increasing to 5% year-on-year in September from 4.6 per cent in August. Malaysians are headed for hard times with less value for the ringgit in their pockets as opposed to the cost of living. And what has been the Finance Minister’s response to this?

None.

Not a sound, only grandiose announcements from Najib

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M’sia the 4th most corrupt nation in the world but not a sound from Najib
16 December 2011 – Malaysia Chronicle