{"id":40016,"date":"2020-07-13T03:32:20","date_gmt":"2020-07-12T19:32:20","guid":{"rendered":"https:\/\/dapmalaysia.org\/en\/?p=40016"},"modified":"2022-08-31T20:42:50","modified_gmt":"2022-08-31T12:42:50","slug":"5-infamous-corruption-scandals-in-malaysia","status":"publish","type":"post","link":"https:\/\/dapmalaysia.org\/en\/5-infamous-corruption-scandals-in-malaysia\/","title":{"rendered":"5 Infamous Corruption Scandals in Malaysia"},"content":{"rendered":"\n<p>By Deidre Shannon Nair<\/p>\n\n\n\n<figure class=\"wp-block-gallery columns-1 is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\"><ul class=\"blocks-gallery-grid\"><li class=\"blocks-gallery-item\"><figure><img decoding=\"async\" src=\"https:\/\/dapmalaysia.org\/en\/wordpress\/wp-content\/uploads\/2022\/08\/Money.jpg\" alt=\"\" data-id=\"13749\" data-link=\"https:\/\/www.therocket.com.my\/en\/?attachment_id=13749\" class=\"wp-image-13749\"\/><\/figure><\/li><\/ul><\/figure>\n\n\n\n<p>Before the Pakatan\nHarapan government was toppled, they seemed to be making good on their\ncommitment towards building a corrupt-free Malaysia.&nbsp; In an effort to combat corruption, PH had set\nup the National Centre for Governance, Integrity and Anti-Corruption to uphold\nthe honor of the country. <\/p>\n\n\n\n<p>Their efforts paid off.\nMalaysia has gone up 10 places to 51 out of 180 countries in Transparency\nInternational&#8217;s (TI) annual Corruption Perception Index (CPI). <\/p>\n\n\n\n<p>While we are certainly\nproud of our progress, it\u2019s important to learn from the past and look back at\nsome of the most infamous corruption scandals that rocked the nation. &nbsp;<\/p>\n\n\n\n<p><strong>5.&nbsp; Tabung Haji\u2019s RM9 Billion Shortfall (2017)<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/dapmalaysia.org\/en\/wordpress\/wp-content\/uploads\/2022\/08\/Tabung-Haji.jpg\" alt=\"\" class=\"wp-image-14702\"\/><figcaption>Tabung Haji media conference at Kuala Lumpur<\/figcaption><\/figure>\n\n\n\n<p>Tabung\nHaji (TH), the Islamic pilgrims fund board that overlooked the hajj for 30,000\nMalaysians each year was widely respected in the country for its management of\nthe savings and efficient organization. <\/p>\n\n\n\n<p>So when\nrumors of corruption within TH broke, it left many deeply saddened as it concerned\nthe hard-earned savings of nine million Malaysian Muslims.<\/p>\n\n\n\n<p>The de facto Islamic Affairs Minister at the time, Mujahid Yusof Rawa provided scathing remarks on the entire scandal. He confirmed that TH was &#8220;illegally&#8221; paying dividends and clearly falsified accounts to hide the losses it suffered, which was estimated to be at RM9 bil. What\u2019s more, it was alleged that Barisan Nasional channeled money from the fund for political activities. <\/p>\n\n\n\n<p>Pakatan Harapan absorbed the losses suffered by TH by injecting RM10 billion to the fund. As a result of a change in management and aid from Pakatan, TH is now thriving. The fund is even able to absorb new costs from the Saudi government meaning Malaysians will not need to pay the cost of the haj visa. <\/p>\n\n\n\n<p><strong>4. Immigration\nDepartment Migrant Scandal (2016)<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/dapmalaysia.org\/en\/wordpress\/wp-content\/uploads\/2022\/08\/Imigresen.jpg\" alt=\"\" class=\"wp-image-14704\"\/><\/figure>\n\n\n\n<p>The Malaysian Immigration department has long\nbeen rumored to be rife with small scale corruption i.e bribery, but things\ntook a dramatic turn when the department was accused of compromising migration\nsystems at two major airports and allowing human trafficking syndicates and\nterrorists in and out of the country. <\/p>\n\n\n\n<p>An internal probe found that the online system\nused by Malaysian immigration was believed to have been tampered with and\nforced to crash, so that passports would need to be stamped manually. <\/p>\n\n\n\n<p>Additionally, the department&#8217;s internal probe\nfound that the tampering had begun in 2010 and involved a network masterminded\nby syndicates from abroad that made use of Malaysians, including immigration\nofficers.<\/p>\n\n\n\n<p>The fallout from the four week operation was\nhuge. Besides the arrest of several individuals including immigration officers,\nthere was a massive rescheduling of personnel which included the sacking,\nsuspensions and transfers of 60 immigration employees. <\/p>\n\n\n\n<p>Most of the officers arrested have been charged\nor detained under the Anti-Trafficking in Persons and Smuggling of Migrants Act\n2007 or the Prevention of Crime Act 1959. Some are still in custody, while the\nrest have been released on bail.<\/p>\n\n\n\n<p><strong>3. Port Klang Free Zone (PKFZ)\n(2008)<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/dapmalaysia.org\/en\/wordpress\/wp-content\/uploads\/2022\/08\/pkfz.jpg\" alt=\"\" class=\"wp-image-14705\"\/><\/figure>\n\n\n\n<p>PKFZ was created to become a regional integrated cargo distribution in&nbsp;Port\nKlang by&nbsp;then-Transport Minister Ling Liong Sik. It was a hub for\nbusinesses to connect to over 120 countries and 500 ports, with highly\nefficient logistics due to its location neighboring KLIA. <\/p>\n\n\n\n<p>So what went wrong in the development of such a monumental industrial\nzone? Perhaps an easier question would be <strong><em>what didn\u2019t go wrong<\/em><\/strong>?<\/p>\n\n\n\n<p>Skyrocketing development costs, double billing of contractors, and\nbuying land for exaggerated prices, were just some of the problems. To make\nmatters worse, when an audit was conducted by PricewaterhouseCoopers Advisory\nServices (PwC), it was found that through mismanagement and bad decisions,\nincluding deferred payments of interests, the total cost of PKFZ had gone up\nfrom RM1.9B to RM12.5B. <\/p>\n\n\n\n<p>The final report released by PwC indicated a wide range of critique,\neverything from disregard to governmental procedure, excessive costs, lack of master\nplanning, governance, to open tenders without competition.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/dapmalaysia.org\/en\/wordpress\/wp-content\/uploads\/2022\/08\/Ling.png\" alt=\"\" class=\"wp-image-14709\" width=\"536\" height=\"489\"\/><figcaption> Ling Liong Sik taken into questioning for his involvement with the scandal<\/figcaption><\/figure>\n\n\n\n<p>Even though ex-PM Najib Razak and MCA had promised a thorough\ninvestigation with full transparency into PKFZ, the case was eventually dubbed\n\u201cthe scandal with no culprits\u201d by the media as no parties were found guilty. <\/p>\n\n\n\n<p><strong>2. Sabah Water Department (2015)<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/dapmalaysia.org\/en\/wordpress\/wp-content\/uploads\/2022\/08\/Sabah-water.jpg\" alt=\"\" class=\"wp-image-14706\"\/><\/figure>\n\n\n\n<p>Before 1MDB, the Sabah state water corruption\nprobe was considered to be the largest corruption scandal in Malaysia with an\nestimated RM 114.5M confiscated by the Malaysian Anti Corruption Commission\n(MACC). This comprised cash, <a href=\"https:\/\/en.wikipedia.org\/wiki\/Jewellery\">jewellery<\/a>,\nwatches, branded handbags, and luxury cars. <\/p>\n\n\n\n<p>MACC investigations were to have implicated top\ndepartment officials in connection with the scandal, alleging that money was\nsiphoned from RM3.3B worth of federal allocations for state rural water\nprojects since 2010. <\/p>\n\n\n\n<p>&nbsp;It is\nbelieved that certain individuals in the department might have been collecting\nas much as 30 per cent&nbsp;in kickbacks. Further investigation by MACC also\nindicated money laundering with a trail that lead to Singapore, Australia and\nNew Zealand.&nbsp;<\/p>\n\n\n\n<p>It was reported that Water Department officials\nwere alleged to have abused their power by awarding contracts to 38 companies\nowned by their families or cronies. <\/p>\n\n\n\n<p>The\nshocking revelation led the MACC deputy chief commissioner to characterize the\nscandal by saying \u201cIn the 49 years since the commission was set up, we have\nnever seen this amount of money. The thought that this involves government\nservants is very bad.\u201d <\/p>\n\n\n\n<p>Perhaps he spoke too soon.<\/p>\n\n\n\n<p><strong>1. 1MDB (2015)<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/dapmalaysia.org\/en\/wordpress\/wp-content\/uploads\/2022\/08\/Jho-Low.jpg\" alt=\"\" class=\"wp-image-14707\"\/><\/figure>\n\n\n\n<p>Labeled \u201cThe World\u2019s Biggest Theft\u201d by Al-Jazeera, the\n1MDB scandal is indeed a shocking tale of corruption, abuse of power, and gross\nexcesses.<\/p>\n\n\n\n<p>&nbsp;1MDB was\ninitially set up as sovereign wealth fund to help the country develop through\nforeign partnerships and investments. However, leaked financial documents by an\nanonymous source seemingly exposed a network of fraudulent activity implicating\nex-PM Najib Razak and businessman Jho Low amongst many others. <\/p>\n\n\n\n<p>Using the financial expertise of Goldman Sachs, large\namounts of money were borrowed via government bonds and transferred into bank\naccounts all over the world. Almost US$800M was sent to Najib\u2019s personal Ambank\naccount. <\/p>\n\n\n\n<p>Najib allegedly used the money to maintain political power, and fund a lavish lifestyle for his family including  spending over US$800,000 in one day at a luxury jeweller in Italy .<\/p>\n\n\n\n<p>Jho Low on the other\nhand, played the part of a billionaire Hollywood socialite. He produced movies\nwith Najib\u2019s stepson Riza Aziz, bought property in Los Angeles, and a US$250M\nyacht for himself. He even spent millions of dollars on gifts for his celebrity\nfriends, including artwork for actor Leonardo Dicaprio and a glass piano for\nmodel Miranda Kerr. His \u201cgenerosity\u201d knew no limits. <\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/dapmalaysia.org\/en\/wordpress\/wp-content\/uploads\/2022\/08\/Riza.jpg\" alt=\"\" class=\"wp-image-14708\"\/><\/figure>\n\n\n\n<p>Despite many attempts to silence critics and interfere in investigations, detractors of 1MDB, like DAP\u2019S Tony Pua and former Bar Council president Datuk Ambiga&nbsp;were getting increasingly vocal on the scandal. The heat was on and the public was catching on to the magnitude of corruption that was going on under their noses. <\/p>\n\n\n\n<p>The weight of 1MDB finally came crashing down on Najib\u2019s political party in the 2017 general election. More than 76% of the 14.3 million eligible voters in the country turned out, with&nbsp;<a rel=\"noopener\" href=\"https:\/\/www.cnn.com\/2018\/05\/09\/asia\/malaysia-elections-results\/index.html\" target=\"_blank\">Mahathir&#8217;s opposition coalition taking 121 of 222 seats.<\/a> Barisan Nasional won just 79.<\/p>\n\n\n\n<p>Najib and Rosmah are\ncurrently in the midst of their criminal hearings while Jho Low remains on the\nrun. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Deidre Shannon Nair Before the Pakatan Harapan government was toppled, they seemed to be making good on their commitment towards building a corrupt-free Malaysia.&nbsp; In an effort to combat corruption, PH had set up the National Centre for Governance, Integrity and Anti-Corruption to uphold the honor of the country. Their efforts paid off. Malaysia [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":40475,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-40016","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-uncategorized"},"acf":[],"_links":{"self":[{"href":"https:\/\/dapmalaysia.org\/en\/wp-json\/wp\/v2\/posts\/40016","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dapmalaysia.org\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dapmalaysia.org\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dapmalaysia.org\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dapmalaysia.org\/en\/wp-json\/wp\/v2\/comments?post=40016"}],"version-history":[{"count":1,"href":"https:\/\/dapmalaysia.org\/en\/wp-json\/wp\/v2\/posts\/40016\/revisions"}],"predecessor-version":[{"id":40474,"href":"https:\/\/dapmalaysia.org\/en\/wp-json\/wp\/v2\/posts\/40016\/revisions\/40474"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dapmalaysia.org\/en\/wp-json\/wp\/v2\/media\/40475"}],"wp:attachment":[{"href":"https:\/\/dapmalaysia.org\/en\/wp-json\/wp\/v2\/media?parent=40016"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dapmalaysia.org\/en\/wp-json\/wp\/v2\/categories?post=40016"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dapmalaysia.org\/en\/wp-json\/wp\/v2\/tags?post=40016"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}