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13 June 2005.
Y.B. Dato' Seri
Rafidah Aziz
Menteri Perdagangan
Antarabangsa dan Industri
Kementerian
Perdagangan Antarabangsa dan Industri
Blok 10, Kompleks
Pejabat Kerajaan
Jalan Duta, 50622
Kuala Lumpur
Yang Berhormat Datuk Seri,
Who Is The King Of APs? Making
Public AP Holders In The National Interest
I refer to recent statements made by
former Prime Minister Tun Dr Mahathir Mohamed calling for the full and
public disclosure of those who have been granted Approved Permits(AP)
to import completely built-up(CBU) vehicles from the principal
manufacturer. Tun Mahathir had alleged that the issuance of APs was so
large and excessive that it had gone out of control affecting not only
the sale of the national car Proton but is also a source of abuse of
power and even corruption.
Mahathir’s unhappiness with APs and the
King of APs is related to the large number of APs issued to the extent
of negatively affecting the sales of the national car Proton in
Malaysia. Minister of International Trade and Industry(MITI) Datuk
Rafidah Aziz revealed that in the year 2004, 66,277 APs were issued
but only 55,713 vehicles were imported. APs can not exceed 10% of
locally produced and sold cars but yet it appears that more APs were
issued than the number of national cars sold.
With the proliferation of APs, Mahathir
as the Advisor of Proton, is understandably concerned that the
national car’s sales in Malaysia will be affected. After all Proton
would get a significant share of the 66,277 imported cars if the
number of APs were reduced. However the problem with APs is not merely
its impact on Proton and other national cars. For far too long, Proton
has sacrificed efficiency, high tariffs on other imported cars and
taxpayers funds to boost production and sales. This has resulted in
Malaysians overpaying for a car that is not value for money as
compared to other car models.
The real problem with the issuance AP is
that it is a form of patronage, easily tradable and exchanged for cash
without any need to work for it. In other words, an AP can be sold to
another at a price hundreds of times the cost it was obtained from the
government. There is no productive capacity or benefit to the country,
it is a mere rent-seeking exercise for cronies of the government.
Tun Mahathir has asked for full and
public disclosure because the arbitrary and uncontrolled issuance of
APs is not in the national interest, or rather Proton’s interests, but
also adversely affected BN’s image and undermining its efforts to
overcome corruption. As a single AP can be sold up to RM 30,000/-,
issuing 66,277 APs is a valuable exercise that can create tens of
multi-millionaires.
Utusan Malaysia in its recent front-page
report highlighted that the nation lost at least RM 1 billion annually
as a result of the abuses inherent in the issuance of APs. National
interest demands that the public has a right to know who is the King
of APs. There is no single valid reason why the list of AP holders,
especially the King of AP be known. If these AP holders are not
ashamed to reap huge profits from being granted APs why should they be
ashamed to be publicly known?
In the past Tan Sri S M Nasimuddin S M
Amin had been identified as the largest holders of franchise APs,
which is non-transferrable, as well as open APs which is
non-restrictive and can be used to import any brand of car. However
latest reports point to Datuk Syed Azman Syed Ibrahim, who had
previously served in the army, and Datuk Mohd Haniff Abdul Aziz, a
former senior MITI official, as having significant numbers of such
APs.
Thers is a need for the criteria for the
issuance of AP to be made known so that the public can understand why
certain individuals were granted AP and the benefits accrued by the
nation from such granting of AP. So far Datuk Seri Rafidah has refused
to disclose the list of AP holders, even in Parliament. The time for
such cover-up has to stop.
If a former Prime Minister, whose own
son has also benefited from the granting of APs, is concerned about
this King of APs until he calls for the list to be made known, the
time has come for the government to act by releasing their names
publicly. Any failure to do so would only reinforce Mahathir’s recent
remarks that corruption now is worse than before; when previously it
was “under the table” now it is “above the table”.
We can understand Datuk Seri Rafidah’s
frustration and puzzlement at Tun Mahathir’s call for full public
disclosure when he had refused to do so as Prime Minister. Clearly Tun
Mahathir has no credibility, authority nor integrity to ask for it to
be public when he is now out of power.
But for Datuk Seri Rafidah to hit back
at Tun Mahathir by revealing that his son enjoyed holding a AP without
revealing other sons or son-in-laws of other top politicians holding
these APs, is failing to address the real issues. Further such a cheap
attempt at trying to distract attention would put Datuk Seri Rafidah
in unfavourable light of showing political ingratitude to Tun Dr
Mahathir now that he is out of power when she had had enjoyed his
protection when he was Prime Minister.
By repeating calls made by opposition
parties such as the DAP, Mahathir has finally found common ground with
the DAP in acknowledging the importance of open disclosure and public
declaration of assets and benefits to prevent abuses of power. Despite
political differences and serious doubts about the sincerity of former
Prime Minister Tun Dr Mahathir Mohamed, DAP fully supports his attempt
to check rampant abuses and deviations in the granting approved
permits to import vehicles (AP) by making public the AP list.
Whatever the reasons or motives behind
his new-found zeal in exposing the King of APs, DAP is willing to put
aside our past differences by fully supporting Mahathir’s call for
fully publicizing the list of APs. DAP hopes that the government can
also do so as disclosing the names of AP holders will put the
government in good light, especially in promoting transparency and
accountability.
Yours faithfully,
LIM GUAN ENG
SECRETARY-GENERAL
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