Resolving The AP Scandal With A New Minister

22 July 2005

YAB Datuk Seri Abdullah Ahmad Badawi,
Perdana Menteri Malaysia,
Jabatan Perdana Menteri Malaysia,
Blok Utama, Bangunan Perdana Putra,
Pusat Pentadbiran Kerajaan Persekutuan,
62502 Putrajaya.

Fax: 03-88883975

Yang Amat Berhormat Datuk Seri,

First Task To Reinforce Zero Tolerance To Corruption & Malpractices: Resolving The AP Scandal With A New Minister for International Trade & Industry, Full Transparency By Disclosing All AP Holdres And A New Public Auction System

Malaysians are generally encouraged by your opening speech at the UMNO General Assembly where you exhorted Malays to recognise that:-

a nation’s competitiveness and productivity are crucial to its success;
today’s economy provides opportunities only to those who are knowledgeable, industrious and value-added;
human capital must be developed with education and training based on the latest technology and knowledge;
their economic progress have been adversely affected by leakages such as rent-seeking, corruption and abuse of power and such practices must be eliminated.

This advice applies to equally to Malaysians as well. However such sincerity would remain mere rhetoric unless followed up with action. YAB can only convince Malaysians of your sincerity to wipe out corruption and abuse of power as well as move towards a knowledge-driven and results-based economy by taking firm action on the scandal of Approved Permits for imported vehicles (AP).

The disclosure of AP holders for the year 2005 and the revelation of AP Kings where the top 10 holders own nearly 50,000 APs have angered Malaysians from all walks of life. As pointed out by former Prime Minister Yg Bhgia Tun Dr Mahathir Mohamad, the Minister of International Trade & Industry Datuk Seri Rafidah Aziz has been unable to explain why 54,000 APs have been given to only 20 companies whilst the remainder 12,000 APs to 82 companies. As 67,000 APs relate only to the year 2005, the number of APs issued for the last 35 years since its inception in 1970 must run into hundreds of thousands and billions of ringgit.

Instead of giving out these APs at nominal cost, the government should adopt a public tender or auction system to obtain the highest price. As in Hong Kong, such public auction is also transparent and prevents abuses of power. However not only the procedure of granting APs must be changed, the Minister must also be replaced for three reasons.

One, for refusing to be transparent, make public the list APs and the basis for such awards. Two, for allowing irregularities in the procedures where not only UMNO leaders, but a company owned by the Minister for Tourism Datuk Dr Leo Michael Toyad, were also granted APs. And finally, for acting against the national economic interest of Malaysians by granting tens of thousands of APs to a few individuals.

There is a need to change the present system of awarding APs to prevent abuses of power. Datuk Seri Rafidah is clearly not the person to oversee such changes towards transparency and accountability. The attempts by her Ministry’s Secretary-General to protect her by claiming that he is fully responsible for deciding who gets the AP is contrary to the principle of Ministerial responsibility where the Minister is ultimately responsible for policy decisions.

Datuk Seri Rafidah talks about competitivenes, productivity, knowledge but yet allow practices of abuse of power and rent-seeking. With each AP valued at RM 30,000/-, ownership of tens of thousands of APs means instant wealth. Instead of towering Malays, instant millionaires are created amongst the few Malays.

YAB’s first task to reinforce zero tolerance towards corruption and malpractices is to resolve the AP scandal with a new person in charge, full transparency by disclosing all previous AP holders and a new public auction system of APs. Should YAB undertake this onerous task at hand, YAB can be assured of DAP’s full support.

Yours faithfully,

LIM GUAN ENG
SECRETARY-GENERAL