Datuk Seri Rafidah Aziz Should Be Sacked As Minister Of International Trade & Industry If She Can Not Restore Public Confidence That There Is No Wrongdoing Or Abuse Of Power In The Granting Of 12,600 APs to 82 Companies But 54,600 APs To Only 20 “Selected” Companies

Press Statement
by Lim Guan Eng  

(Petaling Jaya, Friday): Prime Minister Datuk Seri Abdullah Ahmad Badawi is correct to direct Minister of International Trade & Industry Datuk Rafidah Aziz to respond to former Prime Minister Tun Dr Mahathir Mohamad as the issue of Approved Permits (APs) is under the purview of her Ministry. APs are required before any foreign cars can be imported and 67,000 APs were issued by Rafidah last year. However she should be sacked if she can not restore public confidence that there is no wrongdoing or abuse of power in the granting of 12,600 Approved Permits(APs) to 82 companies but 54,600 APs to only 20 “selected” companies.

Dr Mahathir in exposing this irregularity, questioned why a small number of companies get so many APs. Dr Mahathir remarked that this is not in the spirit of nurturing bumi entrepreneurship whereby the APs should benefit a big number of people rather than concentrate on the few. He added the 20 companies with 54,600 APs must have netted millions of ringgit.

These are serious allegations coming from a former Prime Minister. To prove that there is no abuse of power and wrongdoing, the government has to make public the list of AP holders. If the the government has the courage to give and the companies the courage to take APs, the government and AP holders should also have the courage to disclose the names.

DAP also supports the call by Barisan Backbenchers Club(BBC) Chair Datuk Shahrir Samad that the Anti-Corruption Agency(ACA) investigate allegations that Datuk Rafidah was not transparent in issuing APs. If Datuk Rafidah is innocent, then she has nothing to fear or hide but should welcome such investigation.

As Advisor of Proton Holdings Bhd, Mahathir had cited too many APs issued by Rafidah Aziz as one of the 5 reasons affecting Proton’s sales. The other four reasons are

1. the perception that Proton cars were inferior;
2. under declaration of duty on imported cars, such as those from South Korea and China at only RM 11,000, allowing these foreign cars to sell at lower prices;
3. Proton is required to have 80-90% local content to qualify as a national car whilst other automakers only required 40% local content putting Proton at a disadvantage as auto parts locally were more expensive than foreign parts; and
4. government protection in the form of 50% excise tax rebate subject to the condition of Proton buying expensive parts from local suppliers/vendors.

It is reasonably clear that Mahathir is blaming Rafidah’s wrong and misguided policies for affecting Proton’s sales. Whether it is Rafidah or Mahathir’s failed policies that prevented Proton as the national car from being competitive, achieve international recognition or increase sales are for economists and policy analysts to argue. What is important is the question of credibility, integrity and even trustworthiness of Rafidah and her Ministry.

Unless Rafidah can clear herself or her Ministry from any wrongdoing in granting 12,600 APs to 82 companies but 54,600 APs to only 20 “selected” companies, she might as well be sacked as she would not have the moral authority as Minister to decide on Proton and Malaysia’s auto policy. Instead whatever policies made will be coloured by the perception of self-interest that benefits or enrich the few at expense of national interest.

(08/07/2005)