Another proof of Corruption - Dirty leaky Little India

Hurriedly undertaken projects funded by taxpayers’ money have cost more for repairs  of the shoddy works. Paintwork is peeling off, fountain developing a leak and then, a shut down.

Structures have more sand than cement, old garbage lodged in corners, cavities, drains and back-lanes can be seen everywhere. We are not only seen as ‘Apple Polishers’ but a nation possessing a culture of filth, disposing our garbage everywhere!

In the first part of his exposure of Little India, Harakahdaily's environmental photojournalist ARSHAD KHAN lamented there was nothing to shout about in this corner carved out of Brickfields, a working class area in Kuala Lumpur. Concluding his report with this second part, he takes us on a tour of rubbish dumps and shoddy works that characterise the city's latest and much trumpeted 'tourist attraction'. 

WHAT DRAINS ARE FOR ... Clogged drains are everywhere here.

The fountain is not the only place with leakage in Brickfield's Little India. Besides the water, perhaps some funds also leaked away.

 But that is very normal here, taxpayers’ money spent, not accounted for; just like roofs, buildings and bridges collapsed without any one's care.

When this 'Indian town' was first visited on November 4, 2010 following the frenzied media publicity, the crowds here were seen simply mingling around, with no one seen admiring or even taking any snaps of the new structures and paintwork.

Some commented that the former layout and work were more original than the new artificial one. True, if compared to other locations.

PAINTWORK OR PATCHWORK ...A closer look reveals the shoddy works at the 'elephant fountain'

Since I have some experience loafing around India itself and Singapore, this in Malaysia has other messages than the actual picture someone has been trying to paint.

Hurriedly undertaken projects funded by taxpayers’ money have cost more for repairs  of the shoddy works. Paintwork is peeling off, fountain developing a leak and then, a shut down.

Structures have more sand than cement, old garbage lodged in corners, cavities, drains and back-lanes can be seen everywhere. We are not only seen as ‘Apple Polishers’ but a nation possessing a culture of filth, disposing our garbage everywhere!

Developed nations no longer have to display signboards reminding their citizenry not to litter or smoke. But habits and culture, it would seem, are impossible to change.

Shut down at the fountain

At the fountain someone commented 'they’ wanted the fountain to be different, requiring major changes, hence the shut down.

TRUNKS WITHOUT WATER ...The elephants stopped playing long ago after a shut down

How else to camouflage shoddy work? Why the flip flops with taxpayers’ money that also goes towards salaries of civil servants and politicians? 

Another mismanagement, misuse of authority and funds.

Why the leaks? Why is the paint falling off? What can the ordinary people expect out of something that benefits only certain group without the approval of taxpayers? This whole project is political in nature but disastrous in economics and returns.

By Arshad Khan, Harakah Daily 

A Malaysian Saga of Corruption Ignored

One of Mahathir's protégés evades charges, but his accusers are nearly capsized

On June 4, 1995, Tajudin Ramli, then one of Malaysia's brightest bumiputera, or native Malay stars, was named a Tan Sri, the country's second highest honor, by the country's reigning sultan. At the time he had been the managing director of Malaysian Airline System, Malaysia's nationally owned flag carrier, since July 1, 1994.

Like his friend the former Prime Minister Mahathir Mohamad, the then 49-year-old Tajudin was a native of Alor Setar in Kedah state. He would be the recipient of a long list of national honors including being president of the Malay Chambers of Commerce and Industry of Malaysia. He was regarded as a shining example of the bumi businessman that Mahathir wanted to foster to run the country and take the commanding heights of the economy back from the ethnic Chinese.

Unfortunately, according to a long list of whistle-blowers within the airline, he was also involved in looting it of tens of millions of dollars and very nearly putting it into bankruptcy, so that it had to be rescued by the government before he was forced out in 2001. It is a story that has taken years to emerge, and when officials recommended prosecution, they came under fire that nearly ruined their careers and almost put them in jail.

According to allegations in documents made public last week on Malaysia Today, the widely read website of fugitive gadfly Raja Petra Kamarudin, Tajudin colluded with three other MAS officers and directors through two nominee companies, one in Singapore and the other in Hong Kong, to establish a company called Advanced Cargo Logistics GmbH Germany, at Hahn Airport in Frankfurt, Germany, to provide ground-handling services for MAS.

According to a report filed in March of 2007, to then-Prime Minister Abdullah Ahmad Badawi by Ramli Yusuff, the director of Malaysia's Commercial Crime Investigation Department and an official who seems to have been singularly incorruptible, "Tan Sri Tajudin Ramli was in control of MAS from 1994 to 2001. When he left MAS in 2001, MAS had accumulated losses in excess of RM8 billion (US$2.54 billion). Many projects were made under very suspicious circumstances."

The ACL agreement, Ramli's report said, "was not an arms-length dealing." Evidence showed that all of the directors were closely connected to Tajudin, including Rizana Mohd Daud, Tajudin's sister-in-law, his brother, Bistamam Ramli, and companies owned by Tajudin or his family.

MAS suffered losses of approximately RM10-16 million per month from the moment the government-owned airline began to operate into the Frankfurt airport, according to Ramli's report. "As of November 2000, MAS had suffered RM174 millon in losses." To prevent the airline from going bankrupt, the MAS board closed the Hahn project, only to have ACL sue the airline for RM300 million for breach of contract on the basis that the contract obligated MAS to fly into Hahn for 10 years. Tajudin himself then sued various parties and the government of Malaysia for RM13.6 million.

Ramli recommended a series of charges against Tajudin, Wan Aishah Wan Hamzah, the former MAS director, and others for not declaring their interest in ACL.

"Since ACL is controlled by Tajudin's family companies, it is therefore presumed…that he has used his office and position as Executive Chairman of MAS to benefit ACL when MAS entered into (the agreements,)" the report continued. "This offence is punishable with mandatory imprisonment (up to) 20 years and a fine not less than five times the sum of gratification."

"CCID's investigation has disclosed that there is sufficient evidence to prosecute Tajudin, Wan Aishah and (another official) for all of the above offenses." The case was then handed over to the Malaysian Anti-Corruptin Agency for investigation and possible prosecution.
What happened then was totally unexpected. Instead of preferring charges against Tajudin, the Malaysian Anti-Corruption Commission (MACC) went after Ramli Yusuff on three separate allegations, all widely reported in the media, that he had not declared his assets as required under Malaysian law despite the fact that he had declared them as required every year since he had been in office. He was also accused of misusing a Malaysian police airplane although on the flight in question he was on duty, in uniform, and escorted by other police officers. Malaysia's mainstream media, all of which are owned by component parties of the national ruling coalition, wrote that Ramli and his family possessed assets worth RM27 million. He was accused of abuse of power for allegedly forcing villagers in the Lahad Datu district of Sabah off their land to allow a company in which he had an interest to take it over.

Officials brought 75 witnesses to testify against Ramli in a Sessions Court in Kota Kinabalu. Ultimately, Ramli would face charges in three different courts as officials appealed his not guilty verdict before he was finally acquitted for good on Aug. 9. Inspector General of Police Musa Hassan, one of the country's top police officials, appeared in the Kota Kinabalu court to testify against Ramli, only to have Judge Supang Lian tell him that his "evidence was incredible and not to be believed."

Attorney General Abdul Gani Patail appealed the Kota Kinabalu ruling to the High Court but lost again before Judge Rahman Sebli, who acquitted Ramli. Finally, Ramli was acquitted earlier this month outright by Judge SM Komathy, for the third time without having to put on a defense.

Ramli, however, wasn't the only one to go before the courts. His lawyer, Rosli Dahlan, who was also the lawyer for the airline itself, prepared Ramli's defense against the criminal charges only to be arrested himself on charges of collaborating with Ramli. At one point, on a pretext that Rosli had mishandled a letter from the MACC, police officers invaded Rosli's office, arrested and handcuffed him, then kept him in a cell overnight, refusing him medical treatment for injuries to his wrists from the handcuffs. They also refused his request to file a report against the arresting officers.

Rosli went to court in January in a court specially created to handle MACC cases, only to have the case fizzle out when a prosecutor announced that neither Rosli nor Ramli had been charged for corruption and that Rosli wasn't a suspect for anything.

"One wonders why, in Allah's name, since Rosli was a witness, did the MACC not interview him nicely or ask for his cooperation?" asked blogger Din Merican. "Why did the MACC abuse, arrest and charge him if they needed his cooperation? Why did the MACC conspire with the mainstream media to widely publicize that Rosli was arrested and charged for hiding assts worth RM27 million? Why after doing all that, then did they on the first day of Rosli's trial the MACC meekly admitted that Rosli was just a witness? Is there something amiss?

For his part, Rosli has charged that the MACC, Bank Negara, the government of Malaysia and the three major newspapers owned by the political parties had conspired with those in power to damage him for his attempts to defend Ramli.

And for his part, Tan Sri Tajudin Ramli remains uninvestigated and uncharged, and a continuing example of bumiputera power at the top of Malaysia's political and social structure.

Asia Sentinel.com 

PM quiet on Malaysian Indian claims of discrimination

The Human Rights Party, a political group representing disaffected Malaysian Indians, posted a message to Prime Minister Manmohan Singh on its website to remind that their community faces “state-sponsored racial and religious segregation” in Malaysia from “womb to tomb.” According to the 2002

High-Level Committee on the Indian Diaspora, Malaysia had the world’s second-largest Indian diaspora, numbering nearly 1.7 million. Though they are disproportionately represented in fields like medicine and law, they are the poorest of the three main ethnic groups of Malaysia.

The HRP is the new avatar of the Hindu Rights Action Forum, a political rights groups that accused the Malaysian government of discrimination against Indian Malaysians. The forum was banned in 2007 and their founder, P. Uthayakumar, was jailed for 17 months.

The HRP had requested but did not receive an audience with Prime Minister Manmohan Singh. Asked about Malaysia’s discriminatory policies, Singh diplomatically said he had faith that Malaysia, “a multicultural, multireligious democracy,” had the “flexibility” to handle such issues.

Singh and Malaysian Prime Minister Najib Tun Razak on Wednesday inaugurated an urban  renewal project for an Indian area of Kuala Lumpur, Brickfield, that was renamed Little India. Some 3,000 Malaysian Indians waited for as long as three hours to see the inauguration ceremony, but they were kept at a distance by barricades and their view of the official dias blocked by stands and equipment. Indian officials admitted they weren’t certain if Singh even knew the audience was there.

Indian media people who asked local about the political climate in Malaysia were repeatedly told “no comment.” The few who were brave enough to be slightly critical of the government, hastily withdrew their comments.

The HRP was critical, calling Little India of being “propaganda” and the area designed to “camouflage the real ground reality” of the Malaysian Indian.

Political disaffection among the community has been evident in Malaysia. Following the Hindu Rights Action Forum campaign, the government - allied Malaysian Indian Congress, was badly defeated in August 2008 elections, winning only three out of nine seats they contested. The array of local Indian leaders, including the head of the Malaysian Indian Congress, who welcomed Singh received no applause from the Little India crowd when their names were read out.

A key HRP demand has been that the present preferential treatment for Malays for university student slots be abolished. It requested that Singh consider providing them seats in Indian higher education institutes.

*****

Following are the remarks by the Prime Minister, Dr. Manmohan Singh during the Inauguration of LITTLE INDIA at Brickfields:

“I am delighted to be present at the official inauguration of 'Little India' in Brickfields.

I am overwhelmed by the warmth of your welcome. On behalf of the people of India, I thank you for this magnificent celebration of friendship and brotherhood, and bring to you their greetings.

Malaysia represents the best of Asia. It is diverse, welcoming and beautiful. It is home to people of different ethnic backgrounds, races and religions. Malaysia sets an example for the world of tolerance and peaceful co-existence.

The Indian community has made important contributions to the development of Malaysia during the past hundred years. They have worked with sincerity and dedication. They have excelled at medicine, law, engineering and accountancy. They have participated at each stage in the building of Malaysia.

The Malaysian Government’s decision to dedicate the area of Brickfields, which is one of the oldest Indian settlements in the country, as "Little India" is a tribute to the contribution to nation building of all Malaysians of Indian origin.

On this special occasion, I have the pleasure to announce that India would be presenting a Torana Gate to the residents of Brickfields as a mark of India-Malaysia friendship.

In the long march of history the paths of India and Malaysia have often crossed. We share close bonds of history and culture. We are pluralistic nations, committed to a composite culture that is unique and tolerant of the diversity in our societies.

Swami Vivekananda, one of India's greatest philosophers, once said that "Variety is the first principle of life." Brickfields embodies that principle. It is a place in which the three communities of Malaysia live in peace and harmony with each other.

It is here that the Vivekananda Ashram, built in 1904, is located. And it is here in Brickfields, that Malaysians of Indian origin can give full expression to their individualism and culture.

As citizens of Malaysia, the Indian community’s hopes and aspirations, life, family and future lie in this country. Yet they have maintained cultural and spiritual links with India. We welcome their desire as Persons of Indian origin to re-connect with their cultural roots even as they serve their country of adoption. The Indian community is well placed to be the bridge of friendship and understanding between India and Malaysia.

Malaysia under the dynamic leadership of Dato' Sri Najib has entered a new era of progress and prosperity. We wish him all success as he leads Malaysia to a better tomorrow.

Dato’ Sri Najib has extended his hand of friendship to India. I fully reciprocate his friendship. After my discussions with Dato’ Sri Najib today, I can say with confidence that India-Malaysia relations are poised for significant expansion in the coming years. Improving ties with Malaysia will be a very high priority of India’s foreign policy in the years ahead.

Before I conclude, I wish to recall what Rabindranath Tagore once said: "A civilization must be judged and assessed not by the level of power it has reached but by how it develops and expresses a love of humanity."

It is to that high ideal that we must aspire and I hope that Brickfields will serve as a worthy example in that respect.” 





Pramit Pal Chaudhuri Hindustan Times

& Indian Malaysian Online.com 

UMNO's Corporate Cornucopia

How Malaysia's companies funneled money into the country's biggest political party

In the 1980s and 1990s, Halim Saad and Tajudin Ramli were two of Malaysia's brightest stars, picked by former Prime Minister Mahathir Mohamad to lead the country's ethnic Malays onto the national stage as exemplars of a new Bumiputera business culture that would catch up with the ethnic Chinese who had dominated commerce as long as Malaysia had been in existence.

When Mahathir took office, insiders say, his plan was to create a cadre of 100 super-rich bumis who in turn would help rural Malays into prosperity under a ko nsep payung, or umbrella concept routed through the United Malays National Organization, much the way he envisioned driving the country into industrialization through massive projects. But greed intervened. Once the privileged got rich, there was little incentive to share it with the kampongs, the Malay rural villages. Many of the companies eventually collapsed and are being supported by government institutions such as Kazanah Nasional, the country's sovereign investment fund, or the Employee Provident Fund.

Although the Umno connection was widely assumed during Mahathir's 22 year reign as prime minister, today a flock of explosive court documents filed in different Kuala Lumpur courts appear to be breaking open conclusively the open secret that Tajudin and Halim and others were essentially front men for the United Malays National Organization, the country's biggest ethnic political party and part of a class of rentier businessmen who became known as Umnoputras, a play on the word Bumiputera, or native Malaysians, predominantly ethnic Malays.

Nor were they alone. Others included Syed Mokhtar Al Bukhary, one of Malaysia's richest men, as well as Yahaya Ahmad, who headed Mahathir's national car project and who tragically was killed with his wife in a helicopter crash, and Samsuddin Abu Hassan, introduced by Mahathir to the government of Nelson Mandela but who had to flee South Africa after being accused of misappropriating millions and evading South African debts totaling about R50 million (US$7.233 million at current exchange rates). Samsuddin left behind his glamorous wife, Melleney Venessa Samsudin, along with a failed Durban bank, and returned to Malaysia.

Samsudin ultimately ended up on the board of directors of Mitrajaya Holdings Bhd., another Umno-linked company that has played a significant role in major national projects including the Kuala Lumpur International Airport, KL's Light Rail Transit System, the CyberJaya Flagship Zone and numerous other projects.

At least 23 of Malaysia's biggest companies (see list below) appear to have been vehicles for Umno to siphon off vast amounts of money in government contracts as Mahathir's plans went awry. The companies and the people who run them are so hard-wired into Umno, the government and its investment arms that de-linking them would probably destroy the party. That in effect makes a mockery of Prime Minister Najib Tun Razak's widely publicized speech in July in which he promised to root corruption out of his party.

Much of the ownership appears to have been channeled through a mysterious company that emerged in 1993 to stage an RM800 million management buyout of a major chunk of Malaysia's media including the New Straits Times Press (M) Bhd and TV3. Realmild already owned a controlling interest in Malaysian Resources Corporation Bhd, which got the contract to develop the massive Kuala Lumpur Sentral transport hub. It also acquired ownership of the Labuan and Sabah Shipyards, which supply the Malaysian Navy, as well as Redicare and Medivest, which were awarded lucrative contracts to supply medical supplies to government hospitals.

In September, Syed Anwar Jamalullail, the brother to the Sultan of Perlis, and others testified in a tangled court battle in a Kuala Lumpur High Court that Daim Zainuddin, the prime minister's close associate, often told Malay businessmen to act as nominees in the management of Malaysia's top companies. The long-running suit was launched five years ago in2005 by Khalid Ahmad, a former Realmild director, who alleged he had been cheated out of a RM10 million payment for five percent of Realmild's shares by Abdul Rahman, thought to be the beneficial owner.

According to the testimony, Abdul Rahman paid out the RM10 million but later reneged after he learned from Mahathir that the shares actually belonged to UMNO. The trustees for Realmild in fact were Mahathir himself as well as former Berita Harian Group Editor Ahmad Nazri Abdullah, New Straits Times Group Editor Abdul Kadir Jasin and Mohd Noor Mutalib. Another witness, Ahmad Nazri, said in a deposition that he held the majority share of 80 percent in Realmild, although 70 percent of the shares were actually in trust for Mahathir.

The companies others ran included Faber Group Bhd, a member of the UEM Group, now involved in integrated facilities management and property solutions sectors; KUB Malaysia Bhd. A holding company dealing in information, communications & technology, property, engineering & construction and food related industries.

The companies have been involved a wide variety of activities including media, property development, construction, toll roads, hospital equipment, logistics and distribution, cellular telephony and other businesses. What they had in common was that most of them benefited from government contracts doled out by the Barisan Nasional, the ruling coalition that has controlled Malaysia since its inception as a country. The other thing they had in common was that at some point most of them were mismanaged into financial trouble of one kind or another and had to be bailed out or bought out by the government.

Realmild unloaded Malaysian Resources Corporation Bhd onto the Employee Provident Fund in late 2005 as part settlement for an outstanding Rm500 million loan. Putera Capital Bhd, is threatened with bankruptcy. It formerly owned the Putra World Trade Center, Umno's headquarters, which rents out office space to businesses. UEM Builders Bhd, an offshoot of United Engineers Malaysia (UEM), along with UEM World Bhd, was dumped onto Kazanah Nasional, the investment holding arm of the government and the government's strategic investment vehicle.

Kazanah Nasional now also owns PLUS, which held the tollway contract for the national north-south highway, as well as Pharmaniaga, a former UEM subsidiary dealing in hospital supply and other services. Court documents show that MAS, then the state-owned flag carrier, was taken over and privatized by Tajudin Ramli only to lose an estimated RM8 billion (US$2.77 billion at current exchange rate), with a major part of that being funneled into a Frankfurt, Germany cargo logistics company whose directors were closely connected to Tajudin.

According to the website Malaysia Today, Tajudin's lawyers revealed that Tajudin had only been a front man for Umno and that Umno "not only has to protect him from prosecution but that they also had to ensure that the government bought back the shares at the same price that they were sold to him although the shares were only worth a portion of the real value."

Other depositions made available in recent weeks have listed a long series of documents detailing misdoings in UEM/Renong, once headed by Halim Saad, which has long been accused of looting the government treasury through vastly overpriced construction contracts. Halim told the press in September that he had left the UEM/Renong board in 2001, saying authorities wanted Kazanah to take it over "to prevent a systemic risk to the banking system in Malaysia and to enable a sustained restructuring of the group."

UEM itself is still at it. The government-linked company was given the contract to build a second bridge from the mainland to the northern city of Penang at a price estimated in 2007 at Rm2.7 billion. It has since climbed to RM4.3 billion without figuring in a variety of ancillary costs including compensation for fishermen and project development costs of RM285 million, with the total now nearing RM5 billion.

Other documents show how completely the country's press was in the thrall of UMNO. Media Prima Bhd, a listed company, apparently took over the ownership from Realmild of TV3, 8TV, ntv7 and TV9 as well as 90 percent of the equity in The New Straits Times Press (Malaysia) Bhd, which publishes three national newspapers; the New Straits Times, Berita Harian and Harian Metro. It also owns three radio networks, Fly FM, Hot FM and One FM. Other cross media interests of Media Prima include content creation; event and talent management.

It also owns outdoor advertising companies Big Tree Outdoor Sdn Bhd, UPD Sdn Bhd, Right Channel Sdn Bhd, Kurnia Outdoor Sdn Bhd and Jupiter Outdoor Network Sdn Bhd. It is online through a digital communications and broadcasting subsidiary, Alt Media, with the Lifestyle Portal gua.com.my and the newly launched TonTon, a cutting-edge video portal with HD-ready quality viewing experience that offers the individualism of customized content and interactivity of social networking.

The companies:
Faber Group Bhd
KUB Malaysia Bhd
Malaysian Resources Corp. Bhd
Media Prima Bhd
New Straits Times Press (M) Bhd
Putera Capital Bhd
UEM Builders Bhd
UEM World Bhd
PLUS
Pharmaniaga
Utusan Melayu (M) Bhd (partly owned by Syed Mokhtar Albukhary, another Mahathir crony and one of Malaysia's 10 richest men according to the Forbes List
Renong Bhd
Realmild Sdn Bhd
Mahkota Technologies (Also a partnership with Syed Mokhtar Al Bukhary
Malaysian Airlines
Celcom
Malaysian Helicopter Service
Temasek Padu Sdh Bhd
Sabah Shipyard
Labuan Shipyard
Redicare
Medivest

Asia Sentinel.com

Najib's Pastoral Picture of Malaysia

Despite the prime minister's speech to the UN, his country is facing serious racial tension

Malaysia's Prime Minister, Najib Tun Razak, made an eloquent speech to the United Nations earlier this week, telling the assembled body that, among other things, Malaysia "is a multi-racial, multi-religious, multi-cultural and democratic society that has benefited from the positive interaction and synergy between the various communities. Mosques, temples, churches and other places of worship co-exist in harmony.
"Although Islam is the official religion, we honor other religions – Buddhism, Christianity, Hinduism – by making their religious and cultural celebrations as national holidays and celebrate them as national events. It is this equilibrium that leads to moderation or wasatiyyah in the Islamic tradition of mutual justice."

That picture of Malaysia, thought to have been crafted by the giant US public relations firm APCO Worldwide for delivery in New York, is badly frayed, however. Many people in Kuala Lumpur say racial tension is higher than it has been since 1987, when former Prime Minister Mahathir cracked down in the so-called Operation Lalang and threw lots of top opposition politicians in jail under the Internal Security Act, which allows in effect for indefinite detention without trial.

Political events since the 2008 general election have led to ever-rising tension, particularly between Malays and Chinese although there have been strains in the Indian community as well. It is unclear today how far down into the society that racial bitterness extends. On many occasions, the two races have worked together to attempt to calm racial tensions. Last year, when unknown vandals firebombed a Christian church in a Kuala Lumpur suburb, urban Malays went to the church to attempt to calm anger.

Najib's attempts to unify his country are facing deep problems, many of them caused by former Prime Minister Mahathir Mohamad, who has taken on the question of special rights for the Malay majority and played a major role in the development of a Malay superiority NGO called Perkasa, whose fiery leader, Ibrahim Ali, has been perceived as a Mahathir ally although he is an independent legislator.

"Perkasa's vocal spokesmen Ibrahim and Mahathir seem hell bent – through such vociferous bickering – to stop Prime Minister Najib Razak from implementing his New Economic Model which is supposed to liberalise the economy from the clutches of the economically stifling, much corrupted and skewed New Economic Policy that heavily plays on 'Malay rights," wrote Raja Petra Kamarudin, the editor of the influential blog Malaysia Today.

"The problem is a segment of the Malays fear what is needed to revive private investment, especially domestic private investment, could cause Najib to lose the general election," said an analyst with a Kuala Lumpur-based think tank. "This assumes that the Malay electorate would be hostile to policy measures to ameliorate the NEP's re-structuring objectives. Najib has said this will now be applied on nationally rather than on a company basis while continuing the focus on reducing poverty.  Perkasa's strength comes from its linkage with Mahathir who still commands some support in Umno and among the Malay community. Undoubtedly, Malays who feel threatened by prospect of less contracts etc from the Government will be hostile to Najib's economic plans."

The Sept. 27 death of another lawmaker, Parti Islam se-Malaysia state assemblyman Che Hashim Sulaima, will kick off the 12th by-election since the 2008 electoral surprise that gave the opposition control of four states and shocked the ruling Barisan Nasional. The United Malays National Organisation is expected to pull out all the stops in going after the Kelantan seat. With the Islamic fundamentalist PAS in the unanticipated role of positioning itself as a moderate party seeking to attract non-Malay votes, it remains to be seen if UMNO will attempt to appeal to voters by emphasizing Malay superiority.

Mahathir has been fanning the flames of unrest by his continuing demand for the continuation of special treatment for Malays, a cause he has espoused ever since the publication of his book, The Malay Dilemma. In that book, Mahathir argued that because Malays were rural and backward and because the economy was controlled by urban Chinese, they needed special treatment. After disastrous racial riots in July of 1969, the government agreed with Mahathir and created the New Economic Policy, in affect an affirmative action program for a majority race. For 40 years, they have been given that special treatment but they have advanced relatively little vis-à-vis the Chinese. Today, social scientists argue that affirmative action to help the Malays has been a crutch that has cushioned their lives and kept them from healthy competition.

But changing that policy is messing with a powder keg. Rallies against changing it have drawn thousands of angry Malays. Mahathir fanned the flames considerably by lending his public support to a Malay superiority rally in Terengganu on May 13, the anniversary of the 1969 race riots that took hundreds of lives. The octogenarian former leader has not broken with Najib, partly out of his loyalty to Najib's father, who reinstated him in politics after he was expelled from UMNO following publication of his book. But he continues to demand special treatment for Malays. In his blog, Che Det, on August 30, he wrote that the leader of the Chinese Economic Congress was racist for calling for a meritocratic society.

"It is racial because he was advocating taking away the protection afforded by the NEP and quotas from the bumiputeras (native Malays) and not from any other race," Mahathir wrote. "I am not proud of the protection afforded the bumiputera. It implies weakness. I don't think Malays and other bumiputera like to think that they are inferior in any way. But the reality is that in Malaysia the bumiputeras need new skills and a new culture even. These cannot be had by them in a mere 20 years. The original planners of the NEP were too optimistic."

Najib hired the US public relations firm APCO to come up with a US$40 million program to seek to pull the races together as well as to seek to burnish his own image overseas, tarnished as it has been by a long series of scandals. The program, called 1Malaysia, is considered by most people to have failed.

Despite the fact that the special rights have become a millstone around their neck instead of moving them into a higher income bracket. Especially, critics say, it has created a rentier class of so-called "Umnoputras" who skim off contracts through government–linked companies to enrich themselves and that little of the benefit trickles down to the rank and file

When Najib took office in April 2009, he started seeking to modify the program, called the New Economic Policy. That has led to continuing tension. In May, some 1,500 members of the Malay Consultative Council, a group of 76 Malay-rights organizations, summarily rejected Najib's plans to replace it with what the premier called his New Economic Model.

At the forefront of the protest against Najib's plans has been Ibrahim Ali, who has not only threatened non-Malays but launched a series of attacks on moderates. Among other things, Ibrahim has sought to have top officials including Chua Soi Lek, the president of the Malaysian Chinese Association – the second biggest component of the Barisan Nasional after the United Malays National Organisation – arrested for sedition, basically for talking back at him. He has demanded also that shariah laws be amended to prohibit non-Muslims from entering mosques and prayer rooms – which they have done traditionally. He has also demanded that Nurul Izzah Anwar, an MP and opposition leader Anwar Ibrahim, be jailed as well after Nurul accused Mahathir of inciting racial animosities.

Asia Sentinel.com

Another Malaysian By-Election

A longtime dissident returns to the tricky job of leading UMNO efforts in Kelantan

The result of Malaysia's 12th by-election to occur since tumultuous national elections in 2008 is in practical terms irrelevant. Whether or not Parti Islam se-Malaysia (PAS) retains the state seat of Galas on Nov. 4 by-election will make no difference to the Islamic party's control of the state legislature.

But it will be a test of the influence of the United Malays National Organisation's most distinguished internal dissident, Tengku Razaleigh Hamzah, and his calls for sweeping reform of Umno. Galas is part of Razaleigh's federal parliamentary constituency and is centered on his home town of Gua Musang in the south of the state. And, together with a federal seat by-election on the same day, the election is expected to play a role in whether Prime Minister Najib Razak will go to national polls in early 2011.

But interpreting the Galas result will not be easy. The 73-year old Razaleigh, usually known as Ku Li, is between a rock and a hard place. On the one hand the Kelantan aristocrat knows that his calls for reform of Umno are unlikely to make much progress if the erosion of support for the Umno-led Barisan Nasional ruling coalition that was seen both in the 2008 federal election and in subsequent bye-elections is stemmed or reversed.

On the other hand Razaleigh has no choice but to support his own party and the candidate he himself chose in this local election. Recognizing his difficult position, Razaleigh has been playing down the significance of the election. But there is little doubting the attention it has been getting in the media because of him.

Ministers in the government that Razaleigh relentlessly criticizes have been trooping to Gua Musang to kiss his hand and try to shore up Barisan support among the voters. They too doubtless have mixed feelings, one the one hand needing to show Umno making a comeback, on the other worried about the enhanced reputation Razalaigh may acquire should Umno poll well here but not elsewhere.

Razaleigh, once billed as bapak ekonomi or "father of the Malaysian economy" for his role running Pernas, which was created to encourage Malay-controlled businesses in 1975, as well as creating the national energy company Petronas and then as Finance Minister, but who has been out of power since narrowly losing to Mahathir in 1987, may have little clout in today's UMNO or following in its higher echelons. But his stringing criticisms of corruption in the Barisan and of Umno's hypocritical attempts to compete with PAS on religious issues have found a ready audience in a wider community. For all of Prime Minister Najib's talk of his 1Malaysia slogan, many in Umno continue to pander to more extreme views of Malay and Muslim supremacy that are being peddled by the chauvinist Perkasa movement and aided and abetted by former Prime Minister Mahathir Mohamad. Razaleigh's criticisms of the Barisan have been getting plenty of media coverage, a privilege not so available to opposition parties.

The odds are certainly stacked against a national comeback by Razaleigh. Yet in the event that Anwar Ibrahim ends back in jail at the same time the opposition still does well in the election, moderate elements from all races might look to him as representative of an older and more tolerant version of UMNO as existed, at least in many minds, before Mahathir's reign.

What is far from clear is whether the voters in Galas, and particularly the Chinese (20 percent) and Orang Asli (aboriginals, 16 percent ) who deserted the Barisan in the last election come back to it. On the one hand both are known to respect Razaleigh personally and like his inclusivist views on racial and religious issues. On the other hand the Chinese may have yet to be convinced that at the national level the 1Malaysia slogan is more than rhetoric, or that the Malaysian Chinese Association is a credible member of the Barisan.

As for the Orang Asli, traditional Barisan supporters, they have been wooed by a state government which promises to prevent further shrinkage of their traditional lands as a result of acquisitions by members of the Kelantan royal family and other well-placed persons.

As it controls the state government, PAS itself has been buying loyalties through grants of state lands and has been vigorously attacking the federal government for its denial of the Kelantan state government's proper share in oil royalties. This ill-conceived Mahathir-era punishment for electing an opposition government does UMNO no favors. But at least Razaleigh is not tainted by it. As the author of the 1974 legislation that provided for a royalty to the states he has backed Kelantan's claim against the federal government.

However, Nov. 4 will test whether support for Razaleigh overrides deep national dissatisfaction with the Barisan, which Razaleigh himself believes shows no signs of abating. Indeed within Umno there are now those who think that it could lose control of the majority of state governments.

But others believe that Najib has sufficiently steadied the Umno/Barisan ship that he can look to an election in the first half of 2011, perhaps to coincide with state elections due next year in Sarawak. The economy is doing well enough thanks to high oil, rubber and palm oil prices – and government spending. There have been no major racial incidents such as Hindu temple destructions and cow head displays to upset minorities.

Anwar is preoccupied with his legal problems and without him the opposition has no unifying focus. So the issue is whether people will just vote against the Barisan rather than for the opposition. An election two years before one is due would be a risk for Najib, but even modest success would strengthen his position in Umno and in particular make it less difficult to translate the One Malaysia slogan into policies.

However, reading the results of the by-elections will not be easy given the Razaleigh factor in Galas and that politics in ethnically diverse Sabah, as in Sarawak, are not necessarily a guide to what happens in Peninsular Malaysia. So whatever the result, the significance of a by-election involving just 11,553 voters may be debated long after Thursday.

Asia Sentinel.com

Closing the Books on Murder in Malaysia

The episode of a sensational killing of a Mongolian translator appears to be about finished

The closing of a case earlier this week by Malaysia's attorney general over allegedly false statements by a private investigator that tied Prime Minister Najib Tun Razak to the 2006 murder of Mongolian translator Altantuya Shaariibuu literally lets unknown persons close to the prime minister get away with murder.

The closure of the case appears to write the final chapter in one of Malaysia's most sensational murder cases, one involving a gruesome death, intrigue in high places, more than 100 million euros in alleged bribes and a trial that appeared to be rigged to keep prosecutors as far as possible away from Najib, then the deputy prime minister, and his wife, Rosmah Mansor.

The private investigator, P Balasubramaniam, was hired in 2006 by Abdul Razak Baginda, one of Najib's best friends and a defense analyst from the Malaysian Strategic Research Centre think-tank, to attempt to keep Altantuya away from Baginda because he had jilted her. She was demanding revenge and US$500,000 for her role as a translator in the sale of French submarines to Malaysia. A French prosecutorial team continues to probe the sale of the subs to Malaysia and whether kickbacks were paid to top French and Malaysian politicians.

In July of 2008, as the trial droned on, Balasubramaniam issued a statutory declaration alleging that Najib, then the deputy prime minister, was involved in the murder, only to retract the entire contents of the declaration a day later and issue a second saying he had made the first under duress (Note: Both declarations can be found here).

Balasubramaniam's lawyer, Americk Sidhu, denounced the closing of the case, saying that if the supposedly false statements were investigated thoroughly by police, they would have led to the conclusion that people close to Najib were involved in the murder.

De facto Law Minister Nazri Aziz, in a written statement to parliament, said the case was closed because Balasubramaniam had given conflicting statutory declarations, and that anyway, they didn't affect the trial of two of Najib's personal bodyguards and Abdul Razak Baginda, which ended in April of 2009 after a 159-day trial in which the bodyguards were sentenced to death. They are appealing the verdict, with suspicions running high that they will somehow be given their freedom in exchange for their silence on whoever ordered them to kill the woman.

"Although there are contradictions between the two statutory declarations, the contradictions do not affect the outcome of the trial of Altantuya," Nazri said. "Moreover, the individual (Balasubramaniam) is still believed to be abroad." Nazri added that the decision to close the case was made after "careful consideration" of the results of the police probe and witness statements.

Although the two bodyguards were convicted of the crime, Baginda was acquitted under controversial circumstances without having to put on a defense. He then hurriedly left the country for England, where he has remained ever since. One of the two bodyguards said in a cautioned statement that they had been hired to commit the killing and were to be paid RM100,000 to do it. But the statement was never introduced into the marathon trial and never was anybody asked who had done the hiring or made the payment offer.

The 27-year-old Altantuya, the translator in some phases of the billion-dollar purchase of French Scorpene submarines that netted Baginda's company €114 million in consulting fees, was shot in the head and her body was blown up with explosives in a patch of jungle near the suburban city of Shah Alam. Before she died, she told Balasubramaniam she had been promised US$500,000 for assisting in the submarine transaction.

In the bodyguard's cautioned statement, it emerged that Altantuya, almost with her last words, told her two assailants that she was pregnant and begged them not to kill her. That has led to speculation that her body was blown up with C4 explosives to hide any DNA evidence of who the father might be.

Balasubramaniam, who remains somewhere in Chennai, has continued to insist loudly that Razak Baginda, who is married, had told him that the translator had been Najib's sexual companion before the then-deputy prime minister passed her on to Baginda because it wouldn't look good for a prospective prime minister to have a girlfriend.

After making the first declaration, Balasubramaniam was hauled into a Kuala Lumpur police station, where he was forced to recant it in a second under threat to his family, he later testified. After that, according to statements he made under oath, he was taken to meet with Mohamad Nizam Razak, Najib's brother, and Deepak Jaikishan, described as a "business associate" of Najib's wife, Rosmah Mansor, where he was promised RM5 million to leave the country and shut up. He later displayed cancelled checks showing he had been paid RM750,000 out of an account maintained by Jaikishan. According to his sworn statement, Balasubramaniam said Rosmah was "very pleased" that he had agreed to retract the statutory declaration and wanted to have breakfast with him.

Nazri told the parliament that Balasubramaniam was initially investigated for providing false statements, which would make him liable to three years in jail and a fine. That makes it a mystery why the case was dropped against him, since one of the statutory declarations was demonstrably false – either the one implicating Najib and describing the murder, or the one recanting it.

A team from the Malaysian Anti-Corruption Commission first made an appointment to interview Balasubramaniam in the UK, where he was staying out of fear for his safety, but cancelled the appointment without an explanation.

"The evidence is staring you in the face," Sidhu said in a telephone interview from Australia. "A whole pile of witnesses can confirm the first statement and who have been investigated by the police have said the original statement was made of his own free will. If they had investigated, they would have had to interview Rosmah, Nizam and Jaikashan over the checks to Bala.They can't afford to charge him. If they do that, they would hang themselves. They had no alternative but to close the file to save Najib and his entourage."

To say Balasubramaniam's first statement was explosive is an understatement. In addition to saying Najib had been Altantuya's lover before he turned her over to Razak Baginda, Balasubramaniam wrote that Najib had a sexual relationship with the Mongolian woman and that she liked anal sex. Before she was killed, according to the statement, she told Balasubramaniam that she, Baginda and Najib had been together at a dinner in Paris during the transaction over the submarines.

Najib has repeatedly denied he had ever met the woman, swearing to Allah that no meeting had taken place. During the trial of the two elite bodyguards, a friend of Altantuya who had accompanied the woman to Malaysia said there was no record in immigration that she had ever been in the country. 

Asia Sentinel.com