Malaysia's Mahathir Defends Sarawak Chieftain

Charges of looting Sarawak could just be electioneering, he says
Malaysia’s former Prime Minister, Mahathir Mohamad, has defended Sarawak’s embattled chief minister, Abdul Taib Mahmud, questioning calls by international NGOs for investigations of Taib’s vast fortune.

"When an election is near, you get funny things like this coming out," Mahathir told reporters at a press conference Tuesday. "If it is just a political game to try and undermine somebody's political image then I think it is not right."

If the allegations are true, the 86-year-old Mahathir said, the authorities could be expected to take action. In May, Swiss authorities announced they were investigating accounts held in Swiss banks by the Taib family for evidence of corruption. Shortly after that, the Malaysian Anti-Corruption Commission announced it would also investigate Taib’s holdings, although observers in Kuala Lumpur said it was unlikely that the MACC would follow through, Indeed, one source told Asia Sentinel recently that the investigation had “gone cold.” A Taib spokesman said the funds had been legitimately deposited and that there was no evidence of criminality.

Many political observers expect Prime Minister Najib Tun Razak to call national elections in the early part of 2012, possibly in March. Sarawak, the country’s largest state, is key to efforts by the Barisan Nasional, the country’s ruling national coalition, to maintain a healthy majority in parliament. Both Najib and Mahathir earlier this year reportedly tried to dissuade the scandal-ridden chief minister to quit before state elections.

When Taib refused to step down, both had to criss-cross the state, campaigning for Taib’s coalition. However, the coalition produced a two-thirds majority in the state assembly. Although he had publicly offered to step down, the magnitude of the victory impelled him to stay in power.

Mahathir’s defense of Taib was generated by the fact that on Tuesday, NGOs from six different countries issued a joint letter demanding that Malaysia’s sultan appoint a royal commission of inquiry and that authorities arrest and prosecute Taib and 13 members of his family for massive fraud, theft, corruption, illegal appropriation of land and abuse of public office. They allege that the looting of Sarawak’s rich timber and other natural resources has earned Taib’s family billions of US dollars through investment in as many as 400 companies in 25 countries.

They also demanded that a multi-agency task force be appointed to attempt to repatriate the vast sums from other countries to the people of Sarawak.

Research released earlier this month by the Switzerland-based Bruno Manser Fund said official documents show the Taib family stake in 14 Malaysian companies alone is worth US$1.46 billion. The fund has uploaded all of the documents onto the Internet. They can be found here. Billions more are believed to be held in other countries.

The fund said its research only covers publicly available information from Malaysia’s Registry of Companies and other official documents and the total of all of the Taib family’s holdings could run well in excess of that amount.

“Not counting their more hidden wealth, this puts the Taib family firmly into the category of one of the richest families in the world and makes them far richer than the Queen of England (whose assets are a mere half billion pounds),” the fund said.

In all, according to the fund, named for a Swiss environmentalist who disappeared in Sarawak in 2000 while trying to aid the Penan tribe, the family also has stakes in companies in Australia (22 companies), Bermuda (1), the British Virgin Islands (7), Brunei (1), Cambodia (1), Canada (9), the Cayman Islands (1), Fiji (3), Hong Kong (7), India (2), Indonesia (3), Jersey (1), the Kingdom of Saudi Arabia (1), Labuan (1), New Zealand (5), the People’s Republic of China (2), the Philippines (1), Singapore (2), Sri Lanka (1), Thailand (2), the United Arab Emirates (1), the United Kingdom (4), the United States of America (6) and Vietnam (1).

Allegations are that as chief minister, Taib granted timber access permits to a plethora of companies, most of them owned by ethnic Chinese, that denuded much of the state of its tropical rainforest. The two NGOs previously reported that Taib's children are the shareholders and directors of numerous companies controlling residential and commercial buildings in Canada, Australia, Britain and the United States together worth hundreds of millions of US dollars. Many of the assets came into their possession when they were in their early 20s and were still college students with no visible access to legitimate resources to invest.

Taib has been chief minister, finance minister and planning and resources management minister of since 1981 and he hardly conceals his vast wealth, riding around the capital of Kuching in a cream-colored Rolls-Royce sedan.

Taib, his four children, eight siblings and his first cousin Hamed bin Sepawi have stakes in 332 companies worth several billion US dollars in Malaysia, the report says. “The Taib family’s share in 14 large companies’ net assets alone has been calculated at US$1.46 billion (RM4.6 billion). The three largest Taib family-linked companies are the 84 percent Taib-owned Cahya Mata Sarawak (net assets RM2.4 billion), the 25 percent Taib-owned Custodev Sdn Bhd (net assets RM1.6 billion) and the at least 35 percent Taib-owned Ta Ann Holdings Bhd (net assets: RM1.4 billion).

Cahya Mata Sarawak is a construction conglomerate listed on the Kuala Lumpur stock exchange (KLSE 2852) that allegedly has benefited enormously from a cement monopoly and from untendered public contracts awarded by the Taib-led Sarawak state government. Ta Ann Holdings Bhd (KLSE 5012), which is chaired by Hamed Sepawi, is an internationally active logging company. Since its foundation in the 1980s, Ta Ann has been granted more than 675,000 hectares of logging and plantation concessions by the Taib government. Privately-held Custodev Sdn Bhd is a Sarawak-based property development company. Achi Jaya Holdings (net assets RM550 million), which is wholly owned by the Taib family, holds a monopoly over log exports from the timber-rich state.

“We consider these corporate interests of the Taib family to be illicit assets”, said Bruno Manser Fund director Lukas Straumann in the prepared release. “There are many clear indications that Taib has abused his public office to build a corruption and fraud-based billion-dollar empire.”

“We are shocked to see that the Taib family has so shamelessly enriched itself while the people of Sarawak have to struggle with widespread poverty and an appalling lack of infrastructure and government services.”
The Bruno Manser Fund called on anti-corruption and anti-money-laundering authorities worldwide to investigate the Taib family’s business activities and freeze Taib family assets in their countries.





Asia Sentinel.com

Sarawak Chief Minister's Vast Holdings Revealed

A Swiss NGO says Abdul Taib Mahmud’s holdings span the globe and then some...


The looting of the riches of the Malaysian state of Sarawak has earned the family of Chief Minister Abdul Taib Mahmud billions of US dollars through investment in as many as 400 companies in 25 countries, according to allegations by an NGO that has been stalking him for months.

Research by the Switzerland-based Bruno Manser Fund said official documents show the Taib family stake in 14 Malaysian companies alone is worth US$1.46 billion. The fund has uploaded all of the documents onto the Internet. They can be found here: http://stop-timber-corruption.org/resources.

However, the fund said, its research only covers publicly available information from Malaysia’s Registry of Companies and other official documents and the total of all of the Taib family’s holdings could run well in excess of that amount.

“Not counting their more hidden wealth, this puts the Taib family firmly into the category of one of the richest families in the world and makes them far richer than the Queen of England (whose assets are a mere half billion pounds),” the fund said.

In all, according to the fund, named for a Swiss environmentalist who disappeared in Sarawak in 2000 while trying to aid the Penan tribe, the family also has stakes in companies in Australia (22 companies), Bermuda (1), the British Virgin Islands (7), Brunei Darussalam (1), Cambodia (1), Canada (9), the Cayman Islands (1), Fiji (3), Hong Kong (7), India (2), Indonesia (3), Jersey (1), the Kingdom of Saudi Arabia (1), Labuan (1), New Zealand (5), the People’s Republic of China (2), the Philippines (1), Singapore (2), Sri Lanka (1), Thailand (2), the United Arab Emirates (1), the United Kingdom (4), the United States of America (6) and Vietnam (1).

On May 12, in the wake of previous revelations by the Bruno Manser Fund and another reform NGO, the Sarawak Report, Swiss President Micheline Calmy-Ray announced that she was asking Swiss financial authorities to investigate the chief minister's assets held in Swiss financial institutions. In a letter to the Bruno Manser Fund, Calmy-Ray indicated that if the probe finds evidence of corruption from timber sales, Taib's Swiss assets could be frozen. There has been no indication of the progress of that probe.

At the time, a Taib spokesman said the funds had been legitimately deposited and that there was no evidence of criminality.

Allegations are that as chief minister, Taib granted timber access permits to a plethora of companies, most of them owned by ethnic Chinese, that have denuded much of the state, Malaysia’s largest, of much of its tropical rainforest. The two NGOs previously reported that Taib's children are the shareholders and directors of numerous companies controlling residential and commercial buildings in Canada, Australia, Britain and the United States together worth hundreds of millions of US dollars. Many of the assets came into their possession when they were in their early 20s and were still college students with no visible access to legitimate resources to invest.

Although the two NGOs have filed numerous complaints with the Malaysian Anti-Corruption Commission, the anti-graft agency only reluctantly agreed to investigate Taib’s holdings after the Swiss decision. A well-placed source told Asia Sentinel at the time that the MACC had no choice but to do so in the face of an international probe or face embarrassment. But, the source said after the new allegations, “that investigation has gone cold.”

Taib is the linchpin to control of Sarawak by the Barisan Nasional, the national coalition that controls the government in Kuala Lumpur. Despite widespread and embarrassing publication of Taib’s holdings by the Sarawak Report, both Prime Minister Najib Tun Razak and former Prime Minister Mahathir Mohamad campaigned energetically for Taib in April state elections, which the Barisan won, although with a sharply diminished ethnic Chinese vote. Although news media in Malaysia carried stories saying Taib had agreed to step down as chief minister after the election had concluded, he has not done so and there is little sign that he will.

Taib has been chief minister, finance minister and planning and resources management minister of since 1981. “He has been long criticized for corrupt practices and abuse of office but the Malaysian authorities have failed to take action against him, despite an ongoing investigation by the Malaysian Anti Corruption Commission,” a fund spokesman said in a prepared release. “Taib is a key supporter of Malaysian Prime Minister Najib run Razak’s ruling Barisan Nasional coalition.”

Taib, his four children, eight siblings and his first cousin Hamed bin Sepawi have stakes in 332 companies worth several billion US dollars in Malaysia, the report says. “The Taib family’s share in 14 large companies’ net assets alone has been calculated at 1.46 billion US dollars (RM4.6 billion). The three largest Taib family-linked companies are the 84 percent Taib-owned Cahya Mata Sarawak (net assets RM2.4 billion), the 25 percent Taib-owned Custodev Sdn Bhd (net assets RM1.6 billion) and the at least 35 percent Taib-owned Ta Ann Holdings Bhd (net assets: RM1.4 billion).

Cahya Mata Sarawak is a construction conglomerate listed on the Kuala Lumpur stock exchange (KLSE 2852) that has benefited massively from a cement monopoly and from untendered public contracts awarded by the Taib-led Sarawak state government. Ta Ann Holdings Bhd (KLSE 5012), which is chaired by Hamed Sepawi, is an internationally active logging company. Since its foundation in the 1980s, Ta Ann has been granted more than 675,000 hectares of logging and plantation concessions by the Taib government. Privately-held Custodev Sdn Bhd is a Sarawak-based property development company. Achi Jaya Holdings (net assets 550 million Ringgits), which is wholly owned by the Taib family, holds a monopoly over log exports from the timber-rich state.

“We consider these corporate interests of the Taib family to be illicit assets”, said Bruno Manser Fund director Lukas Straumann in the prepared release. “There are many clear indications that Taib has abused his public office to build a corruption and fraud-based billion-dollar empire.”

“We are shocked to see that the Taib family has so shamelessly enriched itself while the people of Sarawak have to struggle with widespread poverty and an appalling lack of infrastructure and government services.”

The Bruno Manser Fund called on anti-corruption and anti-money-laundering authorities worldwide to investigate the Taib family’s business activities and freeze Taib family assets in their countries.






Asia Sentinel.com

Bakun Dam, bigger scandal then PKFZ

Nearly 50 years after independence for Sarawak, we see a comparison with the ‘Highland Clearances’ in Scotland during the 18th century when the highlanders were driven off their lands for capitalistic sheep farming.

The English did it with brutality and thoroughness through “butcher” Lord Cumberland and even obliterated the ‘wild’ Celtic mode of life. What we have seen in Sarawak recently has the same capitalist logic, namely, to drive the indigenous peoples out of their native customary lands so that these lands can be exploited for their commercial value and the indigenous people can be “freed” to become wage labourers.

Thus, even though the accursed Bakun dam had been suspended in 1997 due to the financial crisis, the government still went ahead to displace 10,000 indigenous peoples to the Sungai Asap resettlement camp in 1998.Well, there is a reason for this - the contract for the Sungai Asap camp had already been given out to a multinational company.

After all, the whole Bakun area, which is the size of the island of Singapore and home to the indigenous peoples, had already been thoroughly logged... All this happened while Dr Mahathir Mahathir was the prime minister.

Wasn’t he a liability to the BN government then?I was part of the fact-finding mission to Sungai Asap in 1999 and even then we could see the destruction of so many unique indigenous communities and their cultures, including the Ukit tribe.There was only one word to describe what had been done to these indigenous peoples and their centuries-old cultures... wicked!

Banned from my own countryAs a result of my concern for the indigenous peoples and the natural resources of Sarawak, I was told at Kuching airport in August 2007 that I could not enter Sarawak. So much for 1Malaysia! So much for national integration! So much for nearly 50 years of independence! I was not even welcome in my own country.

But the contracts for the resettlement scheme and the logging are chicken feed compared to the mega-bucks to be reaped from the mega-dams. Even before the Bakun dam ever got started, Malaysian taxpayers had to compensate dam builder Ekran Bhd and the other “stakeholders” close to RM1 billion in 1997.

How much does it cost to pay our ‘mata-mata’ (police) to investigate the alleged scandalous rape of our Penan women? The contracts from building the Bakun dam and the undersea cable run in excess of RM20 billion.

Malaysian taxpayers won’t know the final cost until they are told the cost overruns when the projects have been completed. But if the Port Klang Free Zone (PKFZ) scandal is anything to go by, the leaks and non-accountability all along the line will result in Malaysian taxpayers paying billions for the same kind of daylight robbery.

In the early 90s, when the government was trying to assure us that there would be no irresponsible logging in Sarawak, I pointed out in Parliament that if the government could not monitor the Bukit Sungai Putih permanent forest and wildlife reserve just 10 minutes from Kuala Lumpur, how did they expect us to believe they could monitor the forests in Bakun?

Likewise today, if the government cannot monitor a project in Port Klang just half an hour from Kuala Lumpur, how can they assure us that they can monitor a project deep in upriver Sarawak and through 650km of the South China Sea?

How can we be assured that we will get to the bottom of politically-linked scandals when the Sarawak police tell us they don’t have the resources to investigate the rape of Penan women and girls?

How can we be assured that the Sarawak state government cares about its indigenous peoples and its natural resources when NGO activists are banned from entering Sarawak to investigate a part of their own country? It makes no economic senseIn 1980, the Bakun dam was proposed with a power generating capacity of 2,400MW even though the projected energy needs for the whole of Sarawak was only 200MW for 1990.The project was thus coupled with the proposal to build the world’s longest (650km) undersea cable to transmit electricity to the peninsula.

An aluminum smelter at Sarawak’s coastal town of Bintulu was also proposed to take up the surplus energy. In 1986, the project was abandoned because of the economic recession although the then PM Mahathir announced just before the UN Conference on Environment and Development (Earth Summit) in Rio de Janeiro, Brazil that this was “proof of Malaysia’s commitment to the environment”.

So what happened to that commitment, Mahathir? In 1993, with the upturn in the Malaysian economy, the government once again announced the revival of the Bakun dam project. To cushion the expected protests, then Energy Minister S Samy Vellu gave Parliament a poetic description of a “series of cascading dams” and not one large dam as had been originally proposed.

Before long, it was announced that the Bakun dam would be a massive 205-metre high concrete face rockfill dam - one of the highest dams of its kind in the world - and it would flood an area the size of Singapore island.

The undersea cable was again part of the project. There was also a plan for an aluminum plant, a pulp and paper plant, the world’s biggest steel plant and a high-tension and high-voltage wire industry.

Have feasibility studies been done to see if there will be adequate local, regional and international demand for all these products? Six years later, after the economy was battered by the Asian Financial Crisis, the government again announced that the project would be resumed albeit on a smaller scale of 500MW capacity.

Before long in 2001, the 2,400MW scale was once again proposed although the submarine cable had been shelved. Today we read reports about the government and companies still contemplating this hare-brained undersea scheme which is now estimated to cost a whopping RM21 billion!

More mega-dams to be built
The recent announcement that the Sarawak government intends to build two more mega-dams in Sarawak apart from the ill-fated Bakun dam is cause for grave concern.Malaysian taxpayers, Malaysian forests and Malaysian indigenous peoples will again be the main victims of this misconceived plan.

We have been told that some 1,000 more indigenous peoples will have to be displaced from their ancestral lands to make way for these two dams.

Apart from the human cost, ultimately it will be the Malaysian consumers who pay for this expensive figment of Sarawak Chief Minister Abdul Taib Mahmud’s wild imagination. Indeed, enough taxpayers’ money has been wasted - Sarawak Hidro has already spent some RM1.5 billion on the Bakun dam project.

Right now, the country is being fed conflicting reports about energy demand.

There is supposed to be a 43 percent oversupply of electricity capacity in peninsula Malaysia. Experienced Bakun dam watchers will tell you such conflicting and mutually contradictory assertions have been used by the dam proponents to justify every flip flop of this misconceived project.

Apart from the economic cost and the wastage, how are investors supposed to plan for the long-term and medium term? What is the long-term plan for Bakun? Can Bakun compete with the rest of the world or for that matter, Indonesia? The suggestion for aluminum smelters to take up the bulk of Bakun electricity have been mentioned ever since the conception of the Bakun dam project because they are such a voracious consumer of energy.

Even so, has there ever been any proper assessment of the market viability of such a project with the cheaper operating costs in China? Does it matter that the co-owner of one of the smelters is none other than Cahaya Mata Sarawak (CMS) Bhd Group, a conglomerate controlled by Taib’s family business interest?

Sarawak’s tin-pot government
Clearly, Bakun energy and Sarawak’s tin-pot governance do not give confidence to investors. First it was Alcoa, and then Rio Tinto - both giant mining multinationals - had expressed second thoughts about investing in Sarawak.Concerned NGOs have all along called for the abandonment of this monstrous Bakun dam project because it is economically ill-conceived, socially disruptive and environmentally disastrous.

The environmental destruction is evident many miles downstream since the whole Bakun area has been logged by those who have already been paid by Sarawak Hidro. The social atrophy among the 10,000 displaced indigenous peoples at Sungai Asap resettlement scheme remains the wicked testimony of the Mahathir/Taib era.

The empty promises and damned lives of the displaced peoples as forewarned by NGOs in 1999 have now been borne out.The economic viability of the Bakun dam project has been in doubt from the beginning and the announcement to build two more dams merely reflects a cavalier disregard for the indigenous peoples, more desecration of Sarawak’s natural resources and a blatant affront to sustainable development.

When will Malaysians ever learn?






Dr KUA KIA SOONG is director of Suaram. He was member of parliament for Petaling Jaya from 1990 to 1995.
Posted by Abun Sui Anyit