The Shahrizat-NFC Story: Sticky as the Plot thickens


December 10, 2011

The Shahrizat-NFC Story: Sticky as the Plot thickens

12-09-11

Written by  Nawawi Mohamad, Wong Choon Mei, Malaysia Chronicle

UMNO Minister Senator Shahrizat Jalil must have known that her family-managed National Feedlot Corporation was on the wrong track but somehow, she managed to keep it under wraps until it was inevitably exposed by rival party PKR. That soon after, PKR’s claims of misconduct were confirmed by the Auditor-General’s report that NFC was indeed a “mess” was a double whammy for her.

Questions are now buzzing around the UMNO circuit over the issue. Didn’t her UMNO bosses and seniors know about NFC or did they keep their hands off because this was her project and she should be given the space to handle it?

Perhaps initially this was so, but when it became apparent that PKR was on a roll, having managed to source concrete details of the abuse of power, why didn’t Najib put his foot down?

Oversight or Deliberate Act

Was this an oversight by the UMNO supreme council? Or was it purposely downplayed so that it could be further stirred up until there was no other way out for Shahrizat but the door! Given UMNO’s penchant of bending the institutions to its bidding, why didn’t the elite ‘influence’ the Auditor-General (A-G)?

Yet, so what if they had managed to ‘zip up’ the A-G. PKR still had in its hand the paper trail needed to nail Shahrizat’s family. This argument doesn’t quite work either. Whichever the real reasons for the mishandling by the UMNO elite – whether the confusion was deliberately caused or if they were genuinely taken by surprise by the PKR’s access to such detailed information – UMNO members seem to prefer to believe Shahrizat had been targeted.

Not that they don’t think she deserved the worst punishment for the gross greed allegedly displayed by her family, but in the typical fashion of UMNO intrigue, the various stories spun by the different factions have thrilled many a coffee group at the PWTC during the UMNO assembly last week.

Public Confidence in UMNO, Najib at its lowest

According to the UMNO sources, Najib was very disappointed with the never-ending scandals befalling UMNO leaders one after another, not to mention his own misdeeds, the most recent of which include allegations of having misused public funds to fly to Kazakhstan and Perth on largely personal matters.

Indeed, with the general election just around the corner, the situation has never been so bad for UMNO-BN. Public confidence in him and UMNO are possibly at its lowest ebb. Najib also has to face the dilemma of what to do with Shahrizat since he appointed her to her present post of Women Affairs Minister because he believed she could perform. Party insiders say to help dampen the impact on UMNO and at the same time to distance himself from it – although it turned out to be unsuccessful – Najib tried to comment as little as possible on the scandal. Instead, he ordered those he saw as responsible for the problem to solve it.

And this is how  UMNO Youth chief Khairy Jamaluddin found himself being made the lead ‘spokesman’ for Shahrizat. But since he was also the one who selected her for the project in 2006, it is perhaps fitting that he picks up the pieces now.

This is the ruthlessness and selfishness of politics and for seasoned survivors like Najib and his deputy, Muhyiddin Yassin, one can be sure they won’t hesitate to sacrifice anyone who becomes a threat to them.

Whatever the behind-the-scenes brouhaha, the fact remains – someone is taking advantage of this fiasco apart from PKR. Some are riding on the PKR juggernaut against Shahrizat and benefiting from it. Who can it be now?

Who would benefit from this debacle?

Actually, there are quite a number of players who would love for Shahrizat to step down. One of these could be her predecessor Rafidah Aziz, the Kuala Kangsar MP and former Trade Minister. Rafidah Aziz or Mrs AP (authorised permit for vehicles) was humiliated by Shahrizat in the 2010 party polls, despite her holding a parliamentary seat.

For a woman of her calibre and pride, even if Rafidah does not attack Shahrizat to directly gain for herself, she might do so for her proteges. Now 68, Rafidah had spent 32 years in government service, of which 20 were in a ministerial role. She felt that she had done a very good job both for the country and UMNO and there was no need for anybody else to challenge her. Indeed she did enhance Malaysia’s trade abroad to a certain extent and also boosted Malaysia’s external image, albeit to a certain and limited degree.

But like all UMNO politicians, she was motivated not only by power but also by money – big, huge amounts of money. By virtue of her Trade portfolio, she later became entangled with the system of granting Approved Permits (APs)for imported vehicles. Who were the importers she favored and why she favored them were the factors that later brought her down, wiping away the good that she did and leaving only a memory of greed and graft.

One scandal that Malaysians are bound to remember is the award of share allocations amounting to several million ringgit to her son-in-law in 1993. She did try to distance herself from the decision because she knew there would be conflict of interest, but it did not stop the tongues from wagging that she had exerted undue influence behind the scenes to benefit her son-in-law. To make matters worse for UMNO, Rafidah retaliated by exposing other officials and naming their relatives who had similarly benefited.

The Badawi Al-Ghazali Factor

To quell public unhappiness over the APs, the then Prime Minister Abdullah Badawi forced Rafidah to face Parliament and explain her role. The APs, which were handed out by her ministry for free were not used by those who received them, but instead sold to third parties for windfall profits of as much as RM50,000 per permit.

Badawi finally dropped Rafidah from the Cabinet in 2008 despite her retaining her Kuala Kangsar seat, which she has held since 1986. At that time, Shahrizat was already her deputy in the Wanita wing, and waiting to be appointed as a Special Advisor with the status of a minister.

Could Rafidah be seeking retribution against Shahrizat in the NFC case? Probably not since Shahrizat won the Wanita presidency fairly ‘fair and square’.But one thing is certain, Rafidah was not happy with Badawi dropping her from the Cabinet. She saw it as a “sacking” and was very offended. To her, losing the Wanita presidency was one thing, but she was still entitled to the respect due to a senior leader who every election year brought home a parliamentary seat for the party without fail. How could Badawi “sack” her from the Cabinet?

It must be noted that ‘everyone’ in UMNO knows it was Badawi who gave the green light for the NFC project to be handed over to Shahrizat’s husband in 2006. Badawi was the PM then. If Rafidah is targeting anyone with NFC, it would be Badawi rather than Shahrizat!

What about Raja Nong Chik?

UMNO Senator and FT Minister Raja Nong Chik had worked in FELCRA and was a businessman and also the president of the Malaysian Bumiputra Manufacturers and Services Industry Association. He sat on the board of directors of several companies including Pharmaniaga. His appointment to the Cabinet by Najib came as a surprise to many in 2009.

The 58-year-old was born in Perak, but considers himself as a ‘local boy’ in Kuala Lumpur. He is a member of the Lembah Pantai UMNO division and claims the constituency is his ‘natural territory’. He has also boasted that he has done a lot to improve Bangsar. But Lembah Pantai – before it fell to PKR Vice President Nurul Izzah Anwar in the 2008 election – belonged to Shahrizat.

In fact, it was Shahrizat’s stronghold since 1995 and when she lost it in 2008, there were gasps of shock. Yet, Nong Chik is alleged to have been obstinate about contesting Lembah Pantai in GE-13, arguing that it was now a ‘free’ seat since Shahrizat had already lost it. Although, he has been asked by UMNO elders to look at Titiwangsa, won by the late PAS MP Lo Lo Ghazali in 2008, he is insistent that Lembah Pantai is where it ‘all began for him’.

So regardless of the fact that it would be extremely tough to beat Nurul, Nong Chik had already set himself on a collision course with Shahrizat as the UMNO candidate for this constituency. Maybe Nong Chik and Shahrizat know something that Nurul doesn’t, but they sure seem confident of being able to beat her despite her immense popularity with the electorate there.

Could Raja Nong Chik have found an opportunity in the NFC debacle to bring down Shahrizat? It sure would seem tempting since it cannot be traced directly back to him because the debacle had already been confirmed by the Auditor-General as being in a “mess”. Any comment from Nong Chik would therefore be merely a response and if he called for action, such as a probe, he would be seen to be taking the moral high ground.

There is indeed growing speculation that Raja Nong Chik was the one behind the continuous revelations against Shahrizat and according to UMNO insiders, Najib has called on all the parties involved to come down hard on Nong Chik to prevent the situation from getting out of control. However, this could be a sly decoy from the Najib camp itself, since Nong Chik is close to Najib. It may well be that Najib wants Shahrizat out too.

It is interesting to note that Shahrizat’s family have accused a disgruntled former staff of feeding PKR the NFC tips. It is even more interesting to note that just a couple of days ago, Raja Nong Chik called on the UMNO top leadership to decide on Shahrizat’s fate.

Was Nong Chik hurrying to get Shahrizat out of the picture, leaving him the sole UMNO claimant to the Lembah Pantai seat?

Other possibilities

Rosnah Abdul Rashid Shirlin, the Puteri UMNO chief, is a new face with much to learn. Her name too has been tossed around. But Rosnah is in no position to make a challenge for the top Wanita post and why should she do so anyway?

Speculation is already growing Rosnah may not even get to keep her Puteri UMNO post. Her performance so far has been less than satisfactory, and this was implied by none other than Muhyiddin Yassin just days before the main UMNO meeting began

If Shahrizat is forced to step down, then Pakatan may have to face Raja Nong Chik and he is the ‘local boy’ there, whose FT portfolio gives him jurisdiction over the whole of Wilayah Persekutuan, not only Lembah Pantai. UMNO would also have the benefit of the postal voters there as there are many government officials staying in the area.

UMNO watchers say it would be a neck-to-neck challenge for Pakatan against UMNO if Nong Chik contests there, but the reasons they cited were also why Nurul wasn’t given the chance of a snowball in hell to win in 2008. But she did.

For PKR, which launched the NFC offensive with a string of startling revelations, they are already bracing for some form or other of backlash from the Police, who instead of grilling the Shahrizats, might pull up the PKR leaders in charge of the NFC file, so as to show ‘solidarity’ with the UMNO elite.

Only One Road to travel

However Najib plays it and no matter whether there are UMNO leaders jumping onto the PKR’s NFC bandwagon, there is basically only one decision the PM can make, which is to ask Shahrizat to give up her Cabinet and UMNO posts.

Any dilemma is of his own making. Like Alexander the Great, all eyes will be watching to see if he has the courage to cut the Gordian knot or if he will continue to waffle and defend corruption.

The longer Najib delays, the longer the ‘Shahrizat cows and condos’ scandal will remain in the people’s memory. After all, as PKR strategy director Rafizi Ramli has promised, they have enough information on the Shahrizats and the NFC to last 2 years!

Malaysia Chronicle

37 thoughts on “The Shahrizat-NFC Story: Sticky as the Plot thickens

  1. If this scandal does not go away–and it will not– and affects Najib’s image, then it is a matter of time that Shahrizat will step down or will be forced to quit. There is wide speculation that GE-13 will be held in March 2012. That being the case, Shahrizat will have to go soon. Once a decision is made by UMNO President, the Wanita Wing will obey orders and the support for her which she received from her members during the recent UMNO General Assembly will just dissipate.–Din Merican

  2. Shahrizat missed the boat out of sheer arrogance. She could have resign immediately after the Auditor General’s report was published and apologise to the nation and in 6 months time all will be forgotten. Malaysians are known to be forgiving.

    As a former auditor, I can say that the phrase “in a mess” is a actually a diplomatic term meaning the project has gone to the dogs (in this case to the cows). Why the “elite” did not “request” the Auditor General to tone down the conclusion could be the real key to this whole episode.

    In every audit, a final meeting will be held between the auditor and auditee and here contentious issues are discussed. The auditee will be given every opportunity to explain themselves before the report is finalised.

    Though we are not privy to the proceeding of the audit we can take it that the Auditor General would have given NFC this opportunity as well. As such we can only arrive at two conclusions: either NFC wasn’t able to explain themselves or they waive that golden opportunity.

    My bet is that NFC was in such a terrible situation that they were simply unable to explain themselves leaving the Auditor General no other choice but to conclude that the project was in a mess as supported by the audit evidence.

    We must also remember that an audit of this nature does not involve checking 100% of the transactions. It is the Directors responsibility to ensure that the company’s records are kept in accordance with the Companies Act 1965. The Auditor General’s team merely assess the big picture risk and sample some of the transactions to confirm the numbers in the financial statements reflect the transactions throughout the audit period as prepared ny the management.

    To really know the truth send in a forensic accounting team. But just be prepared when the entire ugly truth is unearthed.

  3. Thanks, ARMS728, for this input.

    From my experience in Sime Darby, I know the same approach is applied by company internal auditors to enable management to explain themselves and state what remedial actions management would take before their report which will include management’s responses is submitted to the Board. No cover-up whatsoever.

    In the case of NFC, the mess is too big to explain. Who can one explain the use of NFC funds to buy expensive condos and cars, or justify paying high salaries to executive directors or use company funds for an expensive family holiday? What Shahrizat had to do was to keep the whole matter hidden from public view. How naive for her to think that this debacle will escape our attention.

    It is mismanagement, pure and simple, and if one were to look at it more closely and deeply, there will be evidence of CBT and other violations of the Companies Act 1965. And yet the sycophantic Deputy IGP can say that the Police can find no evidence of wrongdoing. Sheer incompetence.

    The Government should now appoint a reputable audit firm and ask it to produce a long form report. In the interim, a receiver should be appointed to oversee NFC operations and the current management led by Shahrizat’s husband, Dato Salleh, should be suspended.If there is evidence of criminality, the full brunt of the law must applied to those responsible for this debacle.–Din Merican

  4. Kamilia or Kak Noraesah (Datuk Noraesah) should take over from Kak Ijat.They are better qualified than her.
    ________
    That is for UMNO Leadership and Wanita UMNO to decide. Read my comments and maybe you will learn about management.–Din Merican

  5. You’re most welcome Dato’. A pleasure to share.

    I think its incumbent on every right thinking Malaysian to continue pressing for accountability on this issue. Politics, though intertwined, is another matter if we are to progress.

    Nobody should be above the law. We should have zero tolerance for incompetence in enforcement agencies as it is with them that the simple rakyat depends that the law is justly applied.

    Above all I still believe that leadership is pivotal. Malaysia has not had the privilege of effective leadership for the past three decades and let’s hope and pray the next GE will produce the much needed stewardship otherwise the fate of Titanic will hit us.

  6. It is no longer “mismanagement, pure and simple,” it’s an outright attempt to cheat, mislead and misuse of public funds by the family. They should be charged accordingly. A project that is still being set up and paying all that atrociously extravagant high wages to family members is a collusion and an attempt to enrich family members. They should show a salary history before paying the family members those wages. Were they earning same or higher wages before becoming managers at NFC? Were they recruited for their talents and qualifications? How do they justify paying such wages? I for one would be willing to return home with that kind of wages. Talent corporation, can you get NFC to recruit me and pay me RM 100,000 per month? I know as much about cows and beef as the family.

  7. You are in good ol’ California. Hold on to your horses Semper !

    ‘Lembu’ is not Sharizat’s forte to begin with. Is her hubby not an architect by training? Perhaps that of her late uncle Hussein whose labor of love was not limited to lembus and had a ranch in Oz where Kathy is today. As a businessman he nurtured his relationship with the Pahang palace, cultivated his ties to bankers and was highly leveraged. He was made a bankrupt in the ’80s and was one of those who traveled First and Business Class whilst a declared bankrupt.

  8. Sharizat should have limited herself to horning her lawyering skills at her firm where the last CJ and UMNO lawyer came from and earned for herself a reputation as a corporate lawyer and make politics her part time job after being booted out by her own constituents. But this Ponzi scheme (an opportunity mooted by her mentors in UMNO) proved too much for her to give a pass.

  9. makcik

    you should tell meatworks to send the bill to her family for contra against abuse of our tax payments.

    enjoy the malaysian-fed aussie beef chap UMNOputra.

  10. Sorry, Makcik. I can afford to pay for my meals.

    Can’t you see this is part of the entitlement culture that has proved to be the bane of the Malays and first generation wannabe businessmen. There is no need for the rest of us to piggyback on those who succeed especially when proceeds involved are really the spoils of public office they hold. Have we no shame?

  11. Hubby ought be prosecuted for embezzlement… Sayalazat lady minister dropped for abusing her authority… Badawi and son in law , for their role in hand picking Mr. sayalazat & kiddos to operate this ludicrous project , being the main culprits , get em to walk the plank … and for the cows in dispute.. wait a sec.. What cows? Where the hell are the cows?

  12. It is mismanagement, pure and simple, and if one were to look at it more closely and deeply, there will be evidence of CBT and other violations of the Companies Act 1965. And yet the sycophantic Deputy IGP can say that the Police can no evidence of wrongdoing. Sheer incompetence. — Dato Din Merican

    Managed incompetence if you will. It pays to be incompetent in Malaysia when you have political masters guaranteeing unsurpassed rewards and a life time of security.

    Again the mention of CBT. Is Sharizat its board director, its executive director and an officer of any of the companies involved? Is she in a position of trust? For her to be charged with criminal breach of trust she has to be in a position of trust, has to be under a duty and has breached that duty.

  13. And yet the sycophantic Deputy IGP can say that the Police can find no evidence of wrongdoing. Sheer incompetence. — Dato Din Merican

    It is never his job description. It is not for the deputy to the chief of police or the chief of police to declare that a crime or crimes have been committed and what they are. That is the work of the country’s attorney general. The duty of the police is to investigate into allegations of crime, to provide the evidence needed so the attorney general could proceed to prosecution.

  14. To parade Sharizat prematurely through court corridors to answer the wrong crimes would be the wrong thing to do. To make a case of sorts out of the mess and see the case negotiate the complex labyrinth of the court system is a waste of taxpayer money. No doubt it will satiate the appetite of her political adversaries for poetic justice of sorts from her own ranks within her own party. Their motive would then not be conviction but punishment. Ring a bell??

  15. Shahrizat has given Umno on a platter the reason to be seen as “just”. So they talk about getting rid off her. That serves their purpose to be seen as a Government that is doing the “right thing” and covers them for any election coming. In reality, they are much the same arent they, only the amount differs and most are not caught red handed in that the Auditor has “no choice but to report it”? That having “no choice but to report it “is poor pracitces in itself dont you think?

  16. Yes I suppose it isnt. Your reasoning is correct and much needed in our country. However if one in public offcie is connected to someone in private busness,do you not then Mr Bean think it is prudent to err on the side of caution and conduct yourself in a manner appropriate even though there is no crime. Everything is perception isnt it? The more honorable your conduct is the higher is the regard and public perception. Who knows when the right thing is done, then the people will reelect you to stand for another position becasue you are seen as prudent adn you have cleared any misconception.

  17. Service in public Office is inextricably tied to public conduct and thus public perception is foremost. To lead others one must lead oneself in a manner prudent, selfless, upstanding and brutally honest. If one cannot self reflect between perceived right and wrong expectations of conduct in public office then one cannot / must not hold public office .

    Every one who decides to go into service of the public and the community is a leader in their own right. Exemplary conduct is required and demanded no matter our personal agenda or desires. One has to give up those immediately upon taking the oath to serve the public.

  18. However if one in public offcie is connected to someone in private busness,do you not then Mr Bean think it is prudent to err on the side of caution and conduct yourself in a manner appropriate even though there is no crime. — Kathy

    Even though “there is no crime”. You said so yourself.

    But the only issue here is: has a crime or crimes been committed? What law if any has been broken and by whom?

  19. Mr Bean, so am I. Seems that nothing will happen till the cows come home.

    Technically you are right. Shahrizat hasn’t committed anything that could legally implicate her but as a leader her character must not only be impeccable but seen to be impeccable. I call this “moral credibility”. It might not stand up in court but this is what I feel is at the core of every leadership. Without it, the herd will be led astray and the consequences dire. History is replete with examples of this.

    Here’s another laundry list that will put this “lembugate” to shame.
    http://steadyaku-steadyaku-husseinhamid.blogspot.com/2011/12/umno-list-work-in-progress.html

  20. Technically you are right. Shahrizat hasn’t committed anything that could legally implicate her …” ARMS728

    I don’t know. Has she done anything that could incriminate her in a court of law? Never mind the court of public opinion and her moral fitness to hold public office. That is an entirely different ball game.

  21. Do you guys see that pic of Sharizat provided by our bloghost doing something with her fingers — like as if she’s signalling that Tok Cik has gone short of her expectations??

  22. Accountability does not exist in UMNO’s vocabulary. Keep on practicing these kind of things, soon Malays will not have accountability.

  23. I disagree Mr bean that the only issue if is there a crime committed. Once in public office, connection in private industry is perceived as not kosher. A declaration should be made ( in a normal country) to be above board in fact must be made. But in M’sia it is given because you have someone in public office.

  24. Kathy,

    When I said the “only issue” I meant legal issue. You tend to make ‘rojak’ out of everything. What has ‘not kosher’ gotta do with crimes committed?

    I did touch on the moral and character fitness to hold public office. If that test is applied few would qualify to hold public office. It will not be just Sharizat Abdul Jalil.

    As for Sharizat Abdul Jalil, this is an opportunity to pin her with crime or crimes that may have been committed — crimes like fraud, cheating, money laundering etc. But CBT? You will need to put her in a position of trust – legally speaking, With it comes the duty. No duty no criminal breach (of trust). Where is the evidence? It is easier I believe to pin her with conspiracy to commit fraud naming the husband as the main and primary perpetrator and defendant.

    You could subpoena her to give evidence in the husband’s trial for whatever crimes alleged and charged. If she lies under oath, you can then get her for perjury. As it is I have grave doubts that this case will see the inside of a court room.

  25. I would strongly advise UMNO not to expel Sharizat from her post.Let time kill the pain…..people will foreget sooner or later.But come PRU 13 PKR must refresh this dirty episode of UMNO to all raayat so that the BN government can take the back seat comes next PR Parliament.Hidup Raayat………

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