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Malaysia lost RM4.5t due to Dr M and Daim’s leakages over 26 years?
KUALA LUMPUR, Nov 17, 2024: The Coverage has posted a report titled Malaysia Lost RM 4.5 Trillion Due To Tun M & Daim Corruption And Leakages Over 26 Years.
There is no need for No News Is Bad News to comment or add more as the details are all in the stories posted by The Coverage:
Malaysia Lost RM 4.5 Trillion Due To Tun M & Daim Corruption And Leakages Over 26 Years
17 November, 2024
Estimating the actual cost of corruption to society is daunting, due to its profound, ubiquitous and systematic impact on various realms of the socioeconomic life of a nation. Nonetheless, even conservative approximations can yield earth-shaking numbers.
As one way to estimate the monetary loss to corruption, EMIR Research used an approach similar to that in the study by Dreher, Kotsogiannis and McCorriston in 2007.
Dreher with his colleagues used structural equation modelling to construct a cardinal corruption index for approximately 100 countries and eventually compute a measure of the losses due to corruption as a percentage of Gross Domestic Product (GDP) per capita. First, corruption was treated as a latent (unobservable) variable, and the authors were able to retrieve its measure (cardinal corruption index) by modelling the relationships between this latent variable and its underlying observable causes and indicators (for example, GDP per capita; capital control restrictions; financial development as proxied by private credit as a share of GDP; and consumption of cement to capture projects where the scope for corruption is high).
Then by benchmarking the index to estimates of the losses due to corruption from an external source (cost of setting up a new business as a percentage of GDP per capita), the authors were able to derive a value for each of the countries in terms of the losses as a percentage of GDP per capita that arise due to corruption.
As was reported under Najib Razak’s “Government Transformation Program” in 2010, corruption in Malaysia averaged around 1% to 2% of the Gross Domestic Product (GDP) or RM10 billion a year over the preceding years. This figure seems to be way below the global average cost of corruption as a percentage of a GDP estimate in Figure 1, which is about 10%, while, at the same time, based on EMIR’s Rasch-derived estimates, Malaysia was hovering around the global average corruption level over the period from 2000 to 2010.
However, even though Malaysia’s 2% figure for the early 2000s appears as a gross underestimate, let us still work with this number as a publicly reported figure.
Therefore, we assume that, from 1997 to 2010, the economic loss due to corruption in Malaysia was about 2% of GDP, considering that this is a lower estimate.
The next publicly reported data point is by Transparency International Malaysia (TI-M) and World Bank. According to TI-M and World Bank estimates, since 2013, Malaysia has been losing close to 4% of its GDP annually to corrupt practices. The increase from 2% in 2010 to 4% in 2013 implies 26% annual growth. Therefore, corruption would be 2.25% in 2011 and 3.17% in 2012 (Table 2). And, it is reasonable to assume this 26% yearly growth dynamic shall at least remain — probably, again, as a lower estimate — into the future years, given the massive amount of corruption unearthed during Najib Razak’s administration time and even more recent times.
Interestingly this 26% annual growth figure corresponds well with the PricewaterhouseCoopers (PwC) reports. A PwC report in 2016 showed that bribery and corrupt activities amongst private entities in Malaysia rose from 19 per cent in 2014 to 30 per cent in 2016, which again implies 25.7% annual growth.
Pulling all these figures together , we can estimate Malaysia’s total economic cost of corruption by RM2.3 trillion over the last 26 years.
Interestingly, a nearly identical figure, RM2.2 trillion , can be derived using the benchmarking method based on global corruption-related data points . Naturally, those global data points, as often reported by government officials, are also very conservative estimates.
The total monetary loss figure can still be significantly higher due to the investment multiplier effect, which refers to the stimulative impact of public or private investments. Productive government spending creates productive economic activities across industries, boosting workers’ income in various economic sectors, and the effect is bound to ripple a few times through the economy. However, public money lost through leakages and corruption will not result in this wide spreading of the economic stimulus, thus constituting additional opportunity cost to the public.
Investment multipliers are usually greater than 1. However, consistently keeping to a very conservative line of the estimates, each RM1 out of an estimated above loss of RM2.2 trillion – RM2.3 trillion could easily result in at least an additional RM1 opportunity cost bringing the total amount to a whopping RM4.5 trillion over the last 26 years.
Yet, still, we must remember that all the above are frugally conservative estimates!
Furthermore, many indirect costs of corruption are bound to remain immeasurable and unaccounted for, as corruption does more than anything else to destroy the various central relationships needed for peaceful, harmonious development—it undermines the very glue that holds society together. It is often at the root of political dysfunction and social disunity.
The corruption also leaves the nation bare open to neo-colonisation and exploitation and poised to lose its global competitive advantage. It discourages local and foreign investment, especially the ones that can create high-value jobs and economic activities, while exploitative foreign investment will still be there and thrive with the high level of corruption. Through a distortion in spending priorities, corruption undermines the ability of the state to promote sustainable and inclusive growth.
In short, corruption is at the heart of our failures as a society.
This is why despite its massive wealth of oil, gas, palm oil, rubber, timber, agriculture and many others, Malaysia was not able to keep pace with many other countries in the region that are less blessed with natural resources. Forgetting not how much Malaysia is protected from the massive natural calamities. Malaysia is designed to succeed from its inception. Only man, i.e. leadership can profoundly impact the natural Malaysia’s DNA to succeed.
The wealth of resources is something that always gives unwise stewards of nations an illusion that they govern it well — bad governance and continuous plundering of the resources but the country is still standing. But can Malaysia continue to bleed ?
If we look at the declared national debts including liabilities reaching RM1.5 trillion, almost 80% of the GDP end-2022, and look at the conservative estimated loss due to corruption and leakages for the last 26 years at RM4.5 trillion, Malaysia could have prospered without any debt and/or borrowings. We must remember while the natural resources are all finite, like oil and gas, the government funding requirement to support nation’s growth will continue to increase infinitely. This has pushed many nations in the middle east, for instance to looks at diversifying the economy credibly through impactful digital transformation and reduce over reliance on oil and gas.
For a moment let us pause and think what could we have done with RM4.5 trillion that we have lost (albeit conservative numbers) for the people and the nation?
Source : Business Today
Daim Inheritor Must Surrender 40% Of UMNO Wealth & Taxes Would Be Due On The 60% – Unlawfully Retained Reported Old UMNO Billions
17 November, 2024
MACC, acting on the directive of Prime Minister Anwar Ibrahim, was apparently probing former leaders including one time Finance Minister II Daim Zainuddin and former dictatorial Prime Minister Mahathir Mohamad. They may have unlawfully retained reported Old Umno billions in assets!
Commentary And Analysis . . . The elephant in the room, on former Finance Minister II Tun Daim Zainuddin and past leaders including dictatorial former Prime Minister Tun Mahathir Mohamad, can only be the reportedly mysterious billions in Old Umno assets which allegedly went missing after the party was declared unlawful on 4 February 1988. Daim, at one time, was Umno Treasurer.
Commentary And Analysis . . . The elephant in the room, on former Finance Minister II Tun Daim Zainuddin and past leaders including dictatorial former Prime Minister Tun Mahathir Mohamad, can only be the reportedly mysterious billions in Old Umno assets which allegedly went missing after the party was declared unlawful on 4 February 1988. Daim, at one time, was Umno Treasurer.
MACC, acting on Prime Minister Anwar Ibrahim’s directive, has apparently been probing former Umno leaders who may have retained the old party’s reported billions in assets. The Anwar unity government could do with Old Umno’s missing billions as state revenue. In law, Old Umno assets must be distributed among party members including Mahathir, Daim and Anwar.
Under the Definition in international law, national law being read as compliant, money laundering remains the accumulation of capital beyond what’s legitimately possible during lifetime. Such assets can be frozen by civil action, seized and forfeited as state revenue. Again, Daim’s case isn’t criminal but civil action on money laundering assets. It’s about impossible wealth not possible to be accumulated within lifetime except by being party for illegalities.
If civil action was challenged, criminal suits would be instituted.
The former finance minister risks being fined, jailed, and jailed further in default on fine, if criminal case was instituted on money laundering assets.
The alleged money launderer, based on recent precedent, can surrender 40 per cent of impossible wealth without prejudice i.e. with no admission of liability. Taxes would be due on the 60 per cent retained by the alleged money launderer.
Having said that, it would be politically inexpedient if the government allows Daim 60 per cent of the Old Umno assets. Also, in law, the ownership of “secret profits” lies with the principals i.e. the government and/or companies. In “secret profits”, the principal sum would have been used for making money. Daim, in law, can’t keep “secret profits” as the government and/or company remains the owner.
Daim
Briefly, it was in the media that something happened before 2003 when Mahathir stepped down after long goodbye. There was estrangement between the outgoing Prime Minister cum Finance Minister and Daim.
There were all sorts of reports in the media, and rumours, after Daim stepped down as Finance Minister II. Mahathir, it appears, never trusted bosom pal Daim with the Finance Ministry. It’s not known what Mahathir feared. It could not have been about Bank Negara’s gold reserves and holdings in SDR (special drawing rights) and basket of foreign currencies. It may have been Daim being privy to Mahathir’s deepest and darkest secrets.
Old Umno
Some reports hinted that Daim was sacked, that Mahathir and him were not on speaking terms, that the former Finance Minister could not leave the country, that he was under house arrest, and that he claimed that the Old Umno assets were his for the taking and/or keeping. Daim allegedly denied Mahathir the full listing of Old Umno assets. Later, there were reports that Mahathir and Daim settled the Old Umno assets between themselves.
There were several media reports which alleged that Daim had billions in RM500 and RM1K notes in Taiwan. The notes had been demonetised in the wake of the 1997/1998 Asian Currency crisis which saw Anwar being sacked as Deputy Prime Minister, Finance Minister and Deputy New Umno President.
Anwar swore, at international media briefing, that he would drag Mahathir and Daim in particular to justice for abuse of power, conflict of interest, and criminal breach of trust arising from “deriving personal benefits” i.e. based on bribery and corruption.
Black Book
Mahathir himself, who never had much grassroots support among those originating from the Archipelago, reportedly keeps thick black book on everyone’s sins. It explains Mahathir routinely taking to the media and describing the Archipelago Muslim as lazy, shameless, and carrying “inferior genes”. Mahathir first made the claims in “The Malay Dilemma” penned in 1969.
Mahathir was most comfortable with loyal non-Muslim cronies and Muslim like himself originating from the Indian subcontinent. These included the descendants of Arabic and Turkish speaking mercenaries and fortune hunters in south India. Umno moneybag Syed Mokhtar Al-Bukhary from the Yemeni community in south India remains case in point.
At the same time, in contradiction in terms, Mahathir denied Indian heritage except for “spoonfuls of blood (Indian)”. “Otherwise, I am Malay,” he told the media after attacking India for allegedly “invading and occupying Kashmir”. The Definition of Malay in Article 160(2) wasn’t about “blood” but “form of identity”. The Constitution, being colour-blind, cannot get into “race”, genes, and geographical origin.
Mahathir, shooting himself in the foot, said with straight face that he doesn’t know from which part of India the family came. Mahathir’s family tree is in “Mahathir . . . Profile In Courage”, the biography written by J.V. Morais who also hails from Kerala in southwest India. Morais founded the “Who’s Who in Malaysia” annual publication.
In law, the Constitution cannot be seen as going against itself.
Already, several Articles in the Constitution have been rendered redundant after Article 153 ceased existence in 1972 when the 15 years sunset clause allowing discrimination ended.
The redundant Articles include 160(2) on form of identity and Article 3 which originated as abberation in law. Article 152 was rendered redundant by Bahasa Malaysia eclipsing Bahasa Melayu.
Muslim
It’s unlikely that Anwar wants assets, no matter how acquired, held by Muslim individuals, families and/or companies, lest there’s political fallout on the affirmative action programmes. So far, except for Riza Aziz — Datin Seri Rosmah Mansor’s son — and Datuk Ahmad Maslan, no Muslim had assets seized by civil action. The duo had assets seized before the Anwar government was installed in late November 2022.
There are reports that Mahathir and Daim, fearing the worst, may have been involved in the “Dubai Move” for bringing down the Anwar unity government. No one can escape Karma, the law of cause and effect. In Islam, sunnatullah is God’s law on cause and effect.
Again, Dubai or no Dubai, Anwar has eyes on the Old Umno assets allegedly held by Daim, Mahathir and others.
Malay Group Urge The MACC To Start Its Investigation On Mahathir Children That Have Accumulated Billions In Such A Short Time
21 March, 2023
A Malay group demanded today the former leader come clean on the wealth source of his two sons Mirzan and Tan Sri Mokhzani.
At a news conference here, Jaringan Melayu Malaysia (JMM) alleged the two sons of Malaysia’s fourth and longest-serving prime minister had become rich from financial misappropriation during Dr Mahathir’s 22-year administration.
To back its claim, JMM held up a list of supercars allegedly owned by multi-billionaire Mokhzani worth RM36.2 million in total, including one McLaren P1 said to be worth RM6.2 million.
“It is unfair for somebody who tries to reproach others, but he also has his own weakness,” JMM president Azwanddin Hamzah told reporters, referring to Dr Mahathir.
Azwanddin said it is “suspicious” that Mirzan and Mokhzani could have accumulated such billions of ringgit in wealth in such a “short time”, although he failed to elaborate on the timeline of the duo’s wealth growth.
He repeatedly gave Malaysia International Shipping Corporation Bhd’s buy of Konsortium Perkapalan Bhd in 1998 as an example of how a bailout during Dr Mahathir’s time had benefited Mokhzani, although the latter was owned by Mirzan.
JMM also did not explain the source for its list of supercars and how they were linked to Mokhzani, although it did provide a list of corresponding registration plate numbers.
“The authorities do not need to ask for any evidence or testimony, because this issue is always in the media, same as the case of Wall Street Journal,” JMM said in an accompanying statement, as it urge the Malaysian Anti-Corruption Commission and the police to start its investigation on Dr Mahathir’s children.
Source : Malay Mail
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