Lest We forget–1MDB Scandal


October 7, 2016

Lest we forget–1MDB Scandal

by Din Merican

I do not envy our diplomats overseas for having to defend Malaysian Prime Minister Najib Razak who siphoned off millions of Malaysian ringgits of public funds for his own use. There is enough evidence to prosecute him. Yet our Attorney-General had decreed that the openly corrupt Prime Minister has no case to answer.

Something is horribly decadent in the state of Malaysia. Our system of governance sucks while politics stinks so much that even all the perfumes of Arabia cannot eliminate the stench (with apologies to Bill Shakespeare of Elizabethan England) .

Image result for najib and rosmah

BTW, this quote from Lady Macbeth is dedicated to Prime Minister Najib Razak and Malaysia’s First Lady, Rosmah Mansor:

Lady Macbeth in this quote:

“Here’s the smell of blood still.  All perfumes of Arabia will not sweeten this little hand.” (V.i.48-50)

furthers the THEME of guilt and unchecked ambition as she sinks deeper into paranoid delusions, sleepwalking and almost talking in riddles. Having told Macbeth “a little water clears us of this deed”(II.ii.67), it is clear that, despite her attempts “Out damned spot!”(V.i.33) she cannot “wash” away her guilt. Lady Macbeth thought she had prepared herself sufficiently by “unsexing” herself but, even she, had no idea that Macbeth would go to such lengths to satisfy his ambition.

Lady Macbeth knows that she is partially responsible for Macbeth’s actions  and “the smell of blood” still lingers as she is as guilty as he is. Lady Macbeth, for all her madness, does recognize that she cannot fix this as “All the perfumes of Arabia will not sweeten this little hand.”

Hence the theme of guilt intensifies and Lady Macbeth “needs more the divine than the physician.”(72)

11 thoughts on “Lest We forget–1MDB Scandal

  1. From the website “Outsyed the Box” :

    Since Abdullah Badawi’s government did not have an economic team both he and MO1 relied on NMY. Since the government relied on economic growth (for the sake of showing some growth figures) he gave them growth. And as revenues were insufficient he just borrowed money. When Badawi left, the debt had increased to RM250 billion. Now under Najib debt is actually RM800 billion and not RM600 billion. (They have removed RM200 billion of housing loans to achieve this figure). They are just playing with figures.

    The World Bank said that we can rely on consumption. What happened? Our household debt is now among the highest in the world. It is definitely the highest in Asia. Malaysia hutang No.1 !! 1Malaysia Hutang !! And with retrenchment, unemployment and prices of essentials going up and banks now not lending to people and instead banks recalling loans, how are the people going to consume? Then they have implemented the GST which has stressed the peoples’ purchasing capacity further. So the “consumption driven” growth model is failing even more.
    The only way to help the people and stimulate growth now is to reduce taxes all across the board which have a direct impact on the consumers purchasing power ie reduce income taxes, abolish or reduce the GST, reduce car import duties and reduce other direct and indirect taxes on motor vehicles and reduce workers’ EPF contributions until the economy improves.

    But the govt’s finances are just rotting to hell. They are cutting allocations all across the board. The tax boys have been instructed to “arbitrarily” assess companies’ taxes. The govt is desperate for money.

    The best solution now is for MOF and also MO1 to resign as he has no idea how to manage the economy. Calling NMY again for advise will not make any better those things which they have already made so worse over these past years. The economy and the country did not become so bad overnite. It takes years of incompetence and mismanagement to create so much havoc in the economy.

  2. Din:
    From the outside looking in, I am afraid many Malaysians are now politically fatigued by the lack of action over the 1MDB scandal. Keep the flame on, bro.

  3. Y = C + I + G + NX

    G (government expenditure) — not a solution because of the massive corruption and wastage of hard-earned tax payer money in 1Malaysia.
    Also, as the author of the piece from Outsyed the Box says – the government is running out of money.

    NX (net exports) — can our exports be increased significantly? (in light of
    continued ringgit depreciation)

    I (investment) — try to attract more investment from China and other countries? (But only good quality investment. And not Lynas-type investments that will cost us a lot later on — to clean up the toxic wastes spewed into the environment and to treat the increased number of cancer victims etc).

  4. Latest from Sarawak Report (edited):

    SWISS BOMB – Stolen! SRC’s US$800m From Public Pension In ‘Ponzi Fraud’

    … (The) hand-picked Attorney General was today publicly shamed by his Swiss counterpart, who was driven to make yet another announcement requesting mutual legal assistance over 1MDB, which has till now been notably unforthcoming.

    The Swiss AG, Michael Lauber, rubbed in the message by pointing out that by contrast Singapore has acceded to such requests in all respects and provided full cooperation.

    The Swiss press release reminded that a criminal investigation had been opened since August of last year and added devastating new information from the case, revealing that no less than US$800 million is believed to have also been stolen from the former 1MDB subsidiary SRC.

    SRC was originally funded by a huge RM3.81 billion loan (US$900 million at today’s conversion rates) awarded in 2011 by the KWAP public pension fund, which is entrusted to look after the retirement savings of Malaysia’s civil servants.

    For years critics have been asking for transparency over where that money was invested, only to be faced with evasive answers and a failure to produce its audits. Eventually, in 2012 SRC was transferred directly under the Ministry of Finance (thereby removing its highly suspect transactions from 1MDB’s books).
    After five years, still no disclosure …

    Today’s revelations by the Swiss represent possibly the most damning single piece of evidence produced ….. They come on top of the United States’ separate findings in July that US$681 million were channelled from 1MDB ……

    The damage owes to the fact that this was government servants’ pension money, some of which had never even left Malaysia to supposedly be invested. Extensive tracking by Malaysia’s own anti-corruption investigators had already traced millions of ringgit last year, which were funnelled straight from SRC into a network of private bank accounts ……

    Now it is learnt that $800 million of the total $900 million was also thieved abroad.

  5. The most recent case of ALLEGED CORRUPTION COMMITTED BY THE DIRECTOR AND DY SABAH WATER AUTHORITY INVOLVING MORE THAN RM114.0M AND IS UNDER INVESTIGATIONS BY MACC COULD BE ANOTHER CASE OF ‘FOLLOW THE LEADERSHIP” AS CORRUPTION IS PERCEIVED TO BE COMMON CULTURE IN MANY COUNTRIES ESPECIALLY WHERE IT INVOLVES TRUST FUNDS SUCH AS PUBLIC FUNDS.
    Earlier case involving over RM107.0M was where YOUTH & SPORTS MINISTRY OFFICIALS WERE ALLEGED TO BE INVOLVED AND WAS REPORTED IN March 2016.
    NOW WHAT IS REQUIRED IS MAXIMUM PENALTIES ON THOSE INVOLVED IF AND WHEN PROVEN TO HAVE BEEN INVOLVED IN THESE CRIMES AND WITH EQUALLY EFFECTIVE ENFORCEMENT ON OTHERS WHO MAY BE LIVING BEYOND THEIR MEANS AND HAVING UNEXPLAINED WEALTH AND ASSETS.

    EQUALLY IMPORTANT IS THE NAMING AND SHAMING THEM BY MAKING THEIR NAMES PUBLIC.

    Above cases may just be the tip of the iceberg as CORRUPTION AND FRAUD ARE ACCEPTED as COMMON CULTURE IN MANY COUNTRIES INCLUDING DEVELOPED COUNTRIES SUCH AS USA as is evidenced by the many cases involving billions of US$ said to be sent for development of Iraq which are reported on the internet and ACFE/PWC/KROLL/E&Y/OTHER surveys also available on internet.

    MAY BE HAVING SUCH LARGE CORRUPTION AND FRAUD CASES INVOLVING ELECTED POLITICIANS-VVIPS-PROFESSIONALS RESPONSIBLE FOR MANAGEMENT OF TRUST FUNDS SUCH AS PUBLIC-SHAREHOLDERS-DONATIONS-OFFERINGS TO RELIGIOUS ORGANIZATIONS-WELFARE FUNDS WITH NGOs-etc is another SYMBOL OF BEING DEVELOPED COUNTRY.

  6. The most recent case of ALLEGED CORRUPTION COMMITTED BY THE DIRECTOR AND DY SABAH WATER AUTHORITY INVOLVING MORE THAN RM114.0M AND IS UNDER INVESTIGATIONS BY MACC COULD BE ANOTHER CASE OF ‘FOLLOW THE LEADERSHIP” AS CORRUPTION IS PERCEIVED TO BE COMMON CULTURE IN MANY COUNTRIES ESPECIALLY WHERE IT INVOLVES TRUST FUNDS SUCH AS PUBLIC FUNDS.
    Earlier case involving over RM107.0M was where YOUTH & SPORTS MINISTRY OFFICIALS WERE ALLEGED TO BE INVOLVED AND WAS REPORTED IN March 2016.
    NOW WHAT IS REQUIRED IS MAXIMUM PENALTIES ON THOSE INVOLVED IF AND WHEN PROVEN TO HAVE BEEN INVOLVED IN THESE CRIMES AND WITH EQUALLY EFFECTIVE ENFORCEMENT ON OTHERS WHO MAY BE LIVING BEYOND THEIR MEANS AND HAVING UNEXPLAINED WEALTH AND ASSETS.

    EQUALLY IMPORTANT IS THE NAMING AND SHAMING THEM BY MAKING THEIR NAMES PUBLIC.

    Above cases may just be the tip of the iceberg as CORRUPTION AND FRAUD ARE ACCEPTED as COMMON CULTURE IN MANY COUNTRIES INCLUDING DEVELOPED COUNTRIES SUCH AS USA as is evidenced by the many cases involving billions of US$ said to be sent for development of Iraq which are reported on the internet and ACFE/PWC/KROLL/E&Y/OTHER surveys also available on internet.

    MAY BE HAVING SUCH LARGE CORRUPTION AND FRAUD CASES INVOLVING ELECTED POLITICIANS-VVIPS-PROFESSIONALS RESPONSIBLE FOR MANAGEMENT OF TRUST FUNDS SUCH AS PUBLIC-SHAREHOLDERS-DONATIONS-OFFERINGS TO RELIGIOUS ORGANIZATIONS-WELFARE FUNDS WITH NGOs-etc is another SYMBOL OF BEING DEVELOPED COUNTRY.

    KSN IS SUGGESTING THAT AUD-GEN BE REPRESENTED IN PROJECTS EXCEEDING RM500.0M IN VALUE. EARLIER MACC OFFICERS WERE REPORTED TO OVERSEA REVENUE DEPARTMENTS. WILL THESE MEASURES NOT COMPROMISE THE INDEPENDENT STATUS OF THE AUD-GEN AND MACC?

  7. Najib believes he can justify and mute his corruption and wrong(s) with money and force so long as he tough it out. Even though he knows he is dictatorial, he does that realise his reasoning is no different than all dictators that have failed in the past and caused historical misery.

    There is no such thing as doing wrong and no one paying for it. If you will not pay someone else will pay. If the wrong is big enough, you will pay even if everybody else’s also pay and he does not get, his wrong is big enough. It’s not just about $50b lost, it’s about systematic destruction and making Jamal Yunoses, Red Shirts, Ali Tinju and Pandora box of Hadi and his PAS.

  8. Dr Phua,

    On this Balance of Payments model (Y = C + I + G + NX), I must suggest what I don’t know, in consideration, as realize, as 1 humanity, we have been having difficulty in understanding that formula.

    It is getting very confusing when all of the top economy has been turning on their printing press, making their economy fly as if it defies gravity. Fundamentally, it is back to the question Fisher Black raised in his 1987 book “Business Cycle and Equilibrium” on what is money.
    For the above to work, say for US, China, Japan, and EU, something else has to be taking place beyond the usual of measurement in terms of M1-M2 currency.

    Much brain power has been poured into that since a decade ago suggesting the term “dark matter”. I am still learning what it means to living responsibly financially today. In terms of what I know I didn’t do well the past few years financially … I should have leveraged, which is exactly what was done correctly by Malaysian economy. But, morally, sukuk bond should be a curse. I could not imagine an intelligent being would be pleased with what Malaysia is doing with all of the sukuk bond. But, say, what do I know?

    On hindsight, Malaysia made a ton of money being the biggest foreign entity investing in London real estate for a few years. Is it morally right? Will the nation be able to account for all of those money? After 1MDB’s fiasco, I guess we could only say… we hope so. But, it does seem to be a smart move.

    Confusing times.

  9. How can we forget about the 1MDB Scandal, because its one of Malaysia’s Diabolical Funds…….shrouded in mystery, operating under dubious Circumstances, by ingenious people who claim to be ‘experts ‘ , Wooosh ! billions disappear into thin air , and they still go round showing their Thick faces as if nothing untoward has happened , and broad smiles ….merely to impress the populace that the ” Investments ” made will be bringing in Huge ‘ profits ‘ – And, people are still waiting with ” Gaping mouths ‘ because they are impressed……

  10. With SABAH WATER BOARD alleged CORRUPTION CASE BEING HIGHLIGHTED DAILY BY THE MEDIA it appears that all will SOON FORGET 1MDB-RM107.0M ad other cases allegedly involving other senior civil servants which were reported to be under MACC action.
    Past cases such as UMBC-BBMB-Sime Darby have long been forgotten by the media and the rakyat.
    The hundreds of annually reported cases by the Audi-Gen highlighting cases of suspected INVOLVING SOME OR ALL THE CASES OF MISMANAGEMENT-FRAUD-CORRUPTION-COLLUSION-CRONYISM-BRIBERY-KICKBACKS-NEPOTISM in his reports and highlighted by the media are good example of short memories of all concerned as nothing is known of any progress if any, of the status of the past reported cases even by the Aud-Gen who also may have ‘forgotten’ as little is reported even by him on his own findings of past cases for over thirty years.
    The media also does not provide any status reports on the past findings and thus may have failed in its role as an ‘internal control’ on public interest.

    ANY WAY THIS CULTURE MAY BE COMMON SINCE TIME IMMEMORIAL AND WORLDWIDE INCLUDING IN DEVELOPED COUNTRIES AS NO STATUS REPORTS MAY HAVE BEEN PROVIDED OR AVAILABLE TO THE CITIZENS IN THEIR OWN LOCAL MEDIA.

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