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Sunday, October 9, 2016

Water corruption, an integrity crisis is disruptive, debilitating, damaging and hurting us

 
Water Corruption | SSWM http://www.sswm.info/content/water-corruption

The Star Says: A crisis of integrity and a lesson to be learnt


THE country’s gaze is fixed on the alleged corruption in the Sabah Water Department, following the arrest of two of its senior officers.

How can it not be when the Malaysian Anti-Corruption Commission (MACC) displayed at a press conference on Wednesday the cash, cars and luxury goods found in the duo’s homes and offices?

If a picture is worth a thousand words, imagine how much power there is in photographs of items worth tens of millions of ringgit.

And the numbers that the case has yielded so far are dizzying.

The MACC has seized about RM57mil in cash, nine cars (estimated value is RM3mil), 19.3kg of gold jewellery (RM3.6mil), almost 100 handbags (RM500,000) and 127 land title deeds.

The commission has also frozen bank accounts with balances totalling RM60mil.

It is certain that more assets will be uncovered as the probe deepens and widens.

There are additional figures to digest.

The MACC has discovered that the department had given contracts to 38 companies owned by family members and proxies of the two senior officers.

These contracts were awarded for projects funded by the Federal Government. In total, RM3.3bil was set aside for the projects.

The Star reported yesterday that 60 sen out of every ringgit thus allocated was pocketed by many individuals.

We marvel at the size of the MACC’s haul and we are outraged by the extent of the apparent theft of government funds, but we should also take note of another set of numbers.

According to 2015 statistics from the National Water Services Commission, which is better known as SPAN, 87.9% of Sabah’s population has treated water supply.

Only Kelantan has a lower water coverage (64%), although SPAN explained that many households in Kelantan relied on alternative water sources.

At the national level, 95.5% of the population has water coverage.

Sabah did just as poorly in the handling of non-revenue water (NRW), which is the difference between the water that comes out of the treatment plants and the water for which consumers are billed.

The gap is due to theft, leakage, burst pipes, faulty meters and maintenance works.

Last year, Malaysia’s NRW rate was 35.5%. Sabah’s rate was 55.1%, which again placed the state as second from the bottom.

Perlis was slightly worse, with 56.3%.

Yes, Sabah is large, and its rural communities are dispersed. But the same can be said about Sarawak, which has performed better in these areas of water supply management.

Whichever way you look at it, Sabah cannot claim to have a sparkling record in providing water to the people and in taking care of the water infrastructure. And now we can think of many million reasons why this is so.

The MACC investigations probably have some way to go, and if it leads to people being charged in court, a lot more will have to happen before the Sabah Water Department case can be put to rest.

Nevertheless, this is also a time for a compelling case study on how corruption directly hurts us.

Here is a great example of why we should all fight corruption. Underestimate its impact, and we may one day be left high and dry. Let us not waste this learning opportunity.

We have lately been fretting about being hit by a water crisis, but we should also understand that an integrity crisis is just as disruptive, debilitating and damaging. The Star Says

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Malaysia's jobless rate on the rise as economic expansion slows


Unemployment in Malaysia is rising, the latest data released by the Statistics Department show.

The obvious correlation to the rise in the jobless rate, which in Malaysia is counted as those who are unemployed but remain actively looking for a job, is the slower pace of economic growth.

The economy, up until the second quarter ended June 30, has slowed for five quarters in a row with weak exports the main drag on growth.

Although private consumption and investments supported the economy in the second quarter, economists are not very confident that this will drive growth in the coming quarters without supportive government policies and improvement in overseas consumer demand.

This will have implications for jobs and the economy.

There could be reason for short-term cheer with data exceeding expectations, as August trade data released yesterday show but there are indications that downside risks remain.

Positive sentiments as reflected in the Malaysian Institute of Economic Research’s (Mier) business conditions index, which is now above the 100-point threshold, indicating that businesses’ confidence levels are up, can just as easily dissipate.

Consumers do not share the same sentiments as businesses, as the Mier’s consumer sentiments index show.

Although rising steadily since the beginning of the year, the index is still below the 100-point threshold, largely reflecting benign inflation and the fading impact of the goods and services tax implemented last year.

Standard Chartered plc Asean economic research head Edward Lee says private consumption growth momentum will not be sustainable because of the weak labour-market conditions.

Besides the higher unemployment rate, weak wage- and job-growth together with the slowdown in the property market and financial-market volatility to also affect spending sentiment.

Lee, who expects the economy to grow 3.8% this year compared to the official estimates of 4% to 4.5%, adds that the weakening labour market will be a drag on economic growth.

“Private consumption will be key to achieving this target, and we think it may come in weaker than the central bank expects due to weaker labour-market conditions.

“We will therefore monitor consumption metrics closely over the next few months,” he says.

Cautious consumer sentiment largely reflects the state of the job market and high household debt.

 
Different views: Consumers do not share the same sentiments as businesses, as Mier’s consumer sentiments index shows.

Data from Bank Negara and the Nikkei Malaysia manufacturing purchasing managers index (PMI) compiled by IHS Markit Ltd paint a bleaker picture.

While the September Nikkei Malaysia manufacturing PMI, which was released at the end of last month saw an improvement from August, it is still below the 50-point threshold, indicating that the manufacturing sector is still contracting.

But what is interesting is the press statement following the release of the August data, in which IHS Markit economist Amy Brownbill says the Malaysian manufacturing sector saw a sharper deterioration in operating conditions underpinned by quicker declines in output, new orders and employment with the rate of job shedding the fastest in over three years.

The August PMI report noted that firms cut back on payroll numbers as part of efforts to make cost savings.

Bank Negara report

A Bank Negara report also showed that labour market conditions have become challenging, with the recent high unemployment rates coinciding with lower job vacancies available per active job seekers.

AllianceDBS Research chief economist Manokaran Mottain said in a report released last week that while the manufacturing sector was shedding jobs, selected services subsectors has added headcount and could be cushioning job losses in the manufacturing sector.

More than half of the workforce are employed in the services sector with the manufacturing sector employing about 16%.

Further evidence of the deteriorating conditions in the job market comes from the Employees’ Provident Fund (EPF).

Manokaran says the monthly contribution value growth rate from the EPF’s members have moderated, signalling weak wage growth in recent years.

This also mirrors the slowdown in the economy over the past few quarters as businesses will not give higher increments or pay out bonuses.

Manokaran says based on trend-growth estimates, seasonally and inflation adjusted monthly EPF contribution growth has tapered to 2.7% in February on a year-on-year basis before the voluntary employees contribution rate reduction effective in March, down from around 10% growth in 2011.

He noted that while average household income grew 9.6% per annum between 2012 and 2014 in inflation adjusted terms based on the Statistics Department’s household income survey, this was largely propped up by government cash transfers (Bantuan Rakyat 1Malaysia payments) to the bottom 40% of earners.

“On average, given that 65% of household income is from paid employment, signs of wages growth moderation could weigh on household income growth going forward,” Manokaran says.

He adds that the state of labour market and income growth are among the key underlying factors in assessing the state of economic growth outlook.

Earlier this week, the World Bank slashed its growth forecast for Malaysia from 2016 to 2018 on the weak exports and commodity-price outlook. Its chief economist for the East Asia and Pacific Region, Sudhir Shetty, says despite the region’s favourable prospects, growth is vulnerable to a sharp global financial tightening, a further slowdown in world growth or a faster-than-anticipated slowdown in China.

By Fintan Ng The Star/ANN

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Saturday, October 8, 2016

Water theft: 60% of RM3.3bil project allocation stolen by senior officers

 
Jabatan Air Negeri  - Customer Service


How the millions were stolen?


1. Contracts broken down to small packages of RM100,000 each. This is to ensure the director or the deputy can award the contract.

2. Department carries out a limited tender process whereby between eight and 10 companies registered as contractors with the department are invited to put in their bids.

3. All the companies invited tend to act in concert. The ‘limited tender’ process is ‘fixed’ and given to the lowest bidder.

4. The other companies are paid off for their participation.

5. The project is finally carried out at a fraction of the tendered price.

Senior official: Unprecedented scale of corruption going on since 2010


In a shocking revelation, a senior government official said some 60% – close to RM2bil – of the RM 3.3bil Federal Government allocation for water projects in Sabah was siphoned off into individual pockets.

The projects were broken up into awards of less than RM100,000 each and tendered out to companies owned by the families of two top civil servants.

60% of project allocation stolen

 
Under scrutiny: MACC sources said they had identified 40 witnesses, mainly state Water Department officials, to have their statements recorded.

KOTA KINABALU: It’s shocking. Sixty sen out of every ringgit allocated by the Federal Government for water projects was siphoned off into the pockets of many individuals.

A senior state government official said only 40% of the federal allocations for water reached the ground in Sabah, and the rest of the money seemed to have been pocketed by individuals.

The official, who has knowledge of developments in the investigations involving the two senior Sabah Water Department officers, said there seemed to be an unprecedented scale of corruption involving the siphoning of federal allocations amounting to RM3.3bil for water projects in Sabah since 2010.

The Malaysian Anti-Corruption Commission (MACC) has arrested Sabah Water Department director Ag Tahir Ag Talib, 54, and his deputy Teo Chee Kong, 52, and seized over RM115mil, including some RM57mil in cash, from their houses and office.

Two others, including Teo’s older brother – a 55-year-old businessman – and his accountant have been arrested since Tuesday for investigations into what is possibly the country’s biggest abuse of power, bribery and money laundering case.

It is believed the tender process was fixed so that proxy companies would get the project at inflated prices.

In many cases, the projects were broken up into smaller parcels of up to RM100,000 to avoid the tender process.

The director or his deputy can sign off projects below RM100,000.

MACC deputy chief commissioner (operations) Datuk Azam Baki has confirmed that there are 38 companies owned by family and friends of the two detained civil servants.

It is learnt that 17 of the companies were connected to the director while 21 were linked to his deputy.

These companies are said to have been used as fronts to take part in limited tenders to secure the projects.

This has been happening over the last five years with the amount adding up, sources explained, but declined to reveal the specific details of the projects.

MACC sources said they had identified 40 witnesses, mainly state Water Department officials involved in processing the contracts and contractors, to have their statements recorded.

A special team of 70 MACC officers are continuing to record statements, and scan through documents and the money trail.

They are also getting the director and his deputy to declare all their assets under Section 36 of the Malaysian Anti-Corruption Act 2009 as investigators want to obtain comprehensive details of their wealth.

So far, MACC has recovered some RM57mil in cash found from their offices, homes and safe boxes, frozen RM60mil in bank accounts of the duo including that of a company they were linked to.

They also seized 19.3kg of gold jewellery worth about RM3.64mil from the duo, and some 97 designer ladies handbags worth RM500,000 used by the director’s wife.

They also recovered some 127 land titles from Teo.

MACC is also working to repatriate funds banked into an account in a neighbouring country.

By Muguntan Vanar and Ruben Sario The Star/ANN

Pairin: State had nothing to do with stolen funds

 
Normal day: It’s business as usual at the Sabah Water Department despite the corruption issue surrounding the office.

KOTA KINABALU: The state government had nothing to do with the RM3.3bil Federal Government allocation to the Sabah Water Depart­ment, from which a large amount has been siphoned off.

Deputy Chief Minister Tan Sri Joseph Pairin Kitingan said the projects allocated since 2010 came under the Rural and Regional Development Ministry.

Sabahan Datuk Seri Mohd Shafie Apdal held the portfolio until 2015, when he was dropped from the Cabinet.

Pairin, who heads the state Industrial Development Ministry, said his ministry had no knowledge of the allocations as the water agency was the implementing agency for the federal funds.

Pairin said the procurement of the projects as well as the payments were handled by the federal ministry and the state water department.

“In light of this development, my ministry will study and propose an appropriate reporting system,” he said.

Investigators are looking into the possibility of some VIPS having links to the bribery and money laundering that have now been uncovered.

The sources, however, said it was still premature to speculate.

Foreign Minister Datuk Seri Anifah Aman had to step in to put an end to rumours linking the case to Kimanis Umno and also him.

Anifah, the Kimanis Umno division head, said MACC should be allowed to do its job.

He also threatened to take action if the defamatory statements continued to be published.

The Kimanis Umno link came as both the Sabah Water Department director Ag Tahir Ag Talib and his deputy Teo Chee Kong are from Beaufort and the Kimanis area.

There were claims on social media that Ag Tahir was the Kimanis Umno treasurer.

This has since been denied.

Sabah Chief Minister Datuk Seri Musa Aman has also ordered an immediate review of procurement procedures, and monitoring and financial management of all state departments and agencies, particularly those involving allocations and funds outside the state budget.

Musa, who is also state Finance Minister, gave an assurance that the review would not affect the ongoing MACC investigations. - The Star/ANN

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Internet addiction on the rise among Malaysian youths, Asians one of the most addicted to the Internet


Enough evidence to show links to anxiety, decreased job productivity, says expert.


CYBERJAYA: A 14-year-old boy loved gaming so much that he did not leave his home for half a year until his parents hauled him to therapy for Internet addiction.

This sounds like a story that happens in Japan, China or South Korea, where teenagers have died from binging on their computers. But this case happened right here in Kuala Lumpur.

At the International Society of Internet Addiction (Isia) Conference here, researchers said they were most worried that Malaysian youth were increasingly using the Internet in excess, with local studies revealing that 37% of Malaysian parents felt their children’s online life was interfering with their home and school obligations while 18% said their children were sacrificing basic social activities.

The research, led by child psychologist and Isia spokesperson Dr Norharlina Bahar, found that males under the age of 24, from the Klang Valley, Ipoh or Penang, were the most susceptible to Internet addiction in Malaysia.

“Most spend time on online games and browsing social media and there is enough evidence to show links to anxiety, depression, physical health problems, school disconnection, unemployment, decreased job productivity and social isolation,” she said.

Studies have also found frequent use of the Internet could translate to low self-esteem, depression, boredom and attention-deficit hyperactive disorder.

“There is no denying that Internet eases our life but when it affects your mental health capacity and interferes with your day-to-day work, then you need help,” she added.

In the case of the young boy, Dr Norharlina said he became irritable and angry when he was cut off from the digital world by his parents as part of the treatment.

“This is becoming a bigger problem now,” she said.

The challenge for the academic community is translating their data into tangible policies, as definitions of Internet addiction are still being worked out, she added.

That is something the Malaysian Communication and Multimedia Commission (MCMC) is seeking to address, by adapting research on Internet addiction into guidelines that can be used by school counsellors or pa­rents to identify addiction in adolescents, said MCMC advocacy and outreach senior director Eneng Faridah Iskandar.

“We want to know when is usage going to be a problem. When should I start regulating my child’s use of the Internet? We want to develop self-help tips that parents can use,” she said.

The conference was attended by 200 researchers and psychologists from 10 countries to present their findings on Internet wellness and discuss policies to address the effects of the digital world on users’ health.

Asians one of the most addicted to the Internet


CYBERJAYA: The Middle East, North America and Asia have the highest number of people addicted to the Internet, said Hong Kong University (HKU) Psychology. Department Associate Dean Prof. Dr Cecelia Cheng.

Dr. Cheng, who presented the findings of a HKU study on Thursday said that findings suggest that the more a country experiences traffic jams, air pollution and low life satisfaction, the more likely its citizens will be addicted to the Internet.

She added that out of 31 countries surveyed, European and South American nations had the smallest number of people addicted to the Internet. “Basically if the life satisfaction of a country is low, the people in that country are more likely to be addicted to the Internet, particularly gaming,” she said.

Speaking at the International Society of Internet Addiction (ISIA) conference here, Dr Cheng added that there was a link between countries that have high levels of air pollution and Internet addiction.

“The study suggests that the problem of Internet addiction could be linked with the external environment that drives people indoors. Low life satisfaction also suggests that people look to the Internet for escapism when they are dissatisfied with the outside world,” she said.

Dr Cheng pointed out that less people are addicted to the Internet in Europe because pollution and crime rates are generally lower.

“In Europe, and people there can afford to engage in more outdoor activities than those in the Middle East and Asia,” she said.

She added that improving the quality of environmental conditions might encourage residents to engage more in outdoor activities rather than relying solely on browsing the Internet at home for stress relief.

Malaysia was not surveyed in the HKU study, but local authorities suggested that Internet addiction was a rising trend here too. According to the Malaysian Communication and Multimedia Commission (MCMC), 50.4% of children already have a smartphone by the age of 12 and Malaysians have a 100.4% penetration rate for Internet connectivity and a 143% penetration rate for cellular use.

An ISIA study led by Dr Norharlina Bahar also found that the prevalence of problematic Internet users in Malaysia could be as high as 49.2%, with people spending at least five-hours in front of screens daily.

In last year’s World Happiness Index which measures a country’s general wellbeing, Malaysia ranked 61 out of 161 countries, behind Singapore, Indonesia, Thailand and the Philippines.

By Nicholas Cheng The Star/ANN

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Friday, October 7, 2016

No water but officials flush with funds: abuse of power, nepotism, cronyism, bribery and money laundering

 
Logo Jabatan Air Negeri Sabah - http://malaysianlogo.blogspot.my/2014/06/jabatan-air-negeri-sabah-sabah.html

KOTA KINABALU: Everywhere in Sabah, there was only one topic – the huge stash of cash found in the homes of Sabah Water Department director Ag Tahir Ag Talip and his deputy Teoh Chee Kong.

Sitting in the lap of luxury: There’s more to Ag Tahir (left) and Teoh than meets the eye.

And what made Sabahans even more upset was the fact that there are many areas in Sabah still without proper piped water and disruptions are common. The usual excuse is: there are insufficient funds to carry out projects.

One resident from Sabah’s northern Kota Marudu said many villagers have been asking the state Water Department to get piped water and meters for their houses.

But the officials often said there were no funds although the main water pipe ran past their village.

“We suffer without water especially during the dry season. They have never entertained us because we can’t pay for the deposit,” said a Kota Marudu resident.

“It is not a question of envy. It is theft of public funds to me,” said restaurant owner Cheah Kok Lo.

A Beaufort resident, Rosita Ismail, 35, said: “I hope their arrest will serve as a lesson to future leaders.

“Don’t keep telling us the government has no money and to be patient,” she added.

Giant treasure trove - 38 companies got million-ringgit deals while public left without water


They lived like ordinary people, with only the luxury cars giving a hint of the wealth they have amassed. But even MACC investigators are shocked at the amount of money two top officers of the Sabah Water Department skimmed from projects in a state where many areas do not have piped water. The treasure just got bigger, too – another RM870,000 in cash and more jewellery have been recovered and the total could hit RM300mil.

 
Proof is in the mansion: Teoh’s house in Luyang near Kota Kinabalu.

KOTA KINABALU: Thirty-eight companies owned by family members and proxies of Sabah Water Department director Ag Tahir Ag Talib and his deputy Teoh Chee Keong were given water contracts worth millions for RM3.3bil worth of federal projects since 2010.

Malaysian Anti-Corruption Commission (MACC) sources said that 17 of the companies were held by siblings and family members of Ag Tahir and another 21 companies were owned by Teoh’s relatives.

The sources said the 54-year-old director and his 52-year-old deputy will be made to declare all their assets under Section 36 of the Malay­sian Anti-Corruption Act 2009 as the MACC wants comprehensive details of their wealth.

“We want to know what they own in a comprehensive way,” MACC deputy chief commissioner Datuk Azam Baki said yesterday.

He said they needed the two to give full details of their property and wealth. The sources said 40 witnesses have been identified, mainly Water Department officials and contractors.

Asked about talk that a few witnesses had left the country, Azam said all witnesses wanted by MACC were in Sabah.

He said they were gathering more documents and information in their investigations into the case, which involves abuse of power, nepotism, cronyism, bribery and money laundering.

Azam said they would be using Asean’s Mutual Legal Assistance Agreement (MLA) to get cooperation from a neighbouring country to get back money stashed in a bank account linked to the duo.

He said a special MACC team of investigators involving 70 personnel has been working on the case since last year.

Another RM870,000 and gems recovered as safes are opened


KOTA KINABALU: Graft investigators are still amazed at why two top officials of the Sabah Water Department kept a whopping RM53.7mil cash with them as the wealth continued to pour out of bank safe deposit boxes.

An additional RM870,000 in cash and a large amount of jewellery were recovered yesterday after Malaysian Anti-Corruption Com­mis­sion (MACC) investigators opened the last of the boxes.

The MACC is expected to call jewellers to assist in estimating the value of the jewellery recovered.

The investigators, who have been questioning the director Ag Tahir Ag Talip and his deputy Teoh Chee Kong for the past 72 hours, have yet to get answers on the source of cash found in both their houses and offices.

“We don’t know yet. We are recording their statements but we still have not established how and why they had such a large of amount of money,” an MACC investigator said on condition of anonymity.

Sources said the designer watches seized have also yet to be valued.

The 127 property and land titles found at the deputy director’s house might easily be worth over RM60mil in conservative estimates, the sources said.

“At the end of the investigations, we might be looking at between RM200mil and RM300mil in total,” the source added.

The two are under investigations for alleged abuse of power, kickbacks and money laundering in connection with RM3.3bil worth of contracts for federal-funded pro­jects given out by the Water Department in Sabah since 2010.

By Muguntan Vanar and Stephanie Lee The Star/ANN

Modest cover for a pile of treasure


KOTA KINABALU: On the outside, they were well-paid civil servants who were living modest lives and not known to flash their wealth.

But behind closed doors, they were sitting on a mind-boggling amount of cash, jewellery, watches and cars.

 
Sitting in the lap of luxury: There’s more to Ag Tahir (left) and Teoh than meets the eye.


Sabah Water Department director Ag Tahir Ag Talip and his deputy Teoh Chee Kong were quite well-known in their neighbourhoods but no one had the faintest idea of the pile of treasure they were sitting on.

The 54-year-old Ag Tahir did have a penchant for luxury cars.

“He keeps to himself and he does not socialise much although he is well known,’’ said a person who knows him.

He said he had seen the director use most of the luxury cars which were seized by the MACC on Wednesday.

“I’ve seen him in the Range Rover. I believe all the cars in the media pictures are his. I’ve seen him driving those vehicles,” he said.

However, it is not known if the vehicles were registered under under Ag Tahir’s name.

It is learned the cars were seized from the house of one of his family members.

The nine luxury vehicles seized included a Range Rover V8 (worth RM1.1mil), Mercedes Benz C300 (RM308,000), Audi A1 (RM180,000) and Lexus ES (RM260,000).

Others familiar with Ag Tahir said he is from Sabah’s south-western Bongowan in Papar district. He was not known to be a show-off although he did take overseas holidays. He is a father of three – two daughters and one son – with the older daughter married with her own family.

The 52-year-old Teoh, from whose house and office graft investigators seized some RM7.5mil cash and 127 land titles and grants, was described as a very low-profile officer who moved around in an old Toyota Vios.

He lives in a bungalow in Luyang here, was from Sabah’s south-western Beaufort district. However, he had made many trips to Australia and might have been planning to migrate.

An engineer by training, he was from a well-to-do Sabah family involved in construction, development and hotel businesses. Friends and associates describe him as a very helpful person who never flashed his wealth.

“He does not even wear a watch,’’ a friend said.

Teoh had been in the post for about four years and was also in charge of the department’s west coast water operations.

Both have been remanded for a week since Wednesday.

MACC officers have also arrested a contractor with the title of Datuk and his company accountant.

More arrests are expected as they also try to trace money banked into a neighbouring country.

Jewellery seized from Sabah Water Dept duo valued at over RM3mil

 

 
Some of the watches, rings and necklace seized from the homes of the civil servants in Kota Kinabalu.

KOTA KINABALU: Jewelleries that were seized from the two senior officers of the Sabah Water Department following corruption investigations have been valued at more than RM3.6mil.

It is learnt that the valuables seized from department director Awang Tahir Awang Talip (pic) weighed some 14.5kgs, with a bank valuing them at about RM2.74mil.

The ones recovered from the deputy director, Teoh Chee Kong, have been valued at around RM900,000.

Sources said the valuation process of the jewelleries, including watches, gold rings, bracelets and necklaces, was carried out from 10.30am to about 12.15pm on Friday.

Tahir and Teoh have been remanded following their arrest on Tuesday by Malaysian Anti-Corruption Commission officers who discovered over RM114mil, including RM53mil cash, and valuables in their homes and offices.

PWD director claims trial to two charges


KUALA LUMPUR: Malacca’s Public Works Department director Datuk Khalid Omar was charged in a Sessions Court here with two counts of money laundering involving more than RM4mil.

Khalid, 56, was accused of money laundering activities totalling RM2,135,634.13 in his Amanah Saham Didik account on July 1, last year. He also faced a second charge of having RM1,984,797.08 in his Amanah Saham Wawasan 2020 account which was the proceeds from illegal activities, on Sept 1, the same year.

The offences were alleged to have been committed at Amanah Saham Nasional Berhad, Menara PNB, Jalan Tun Razak here.

He was charged under Section 4(1)(b) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Act 613).

Khalid claimed trial before Judge Azura Alwi yesterday.

Judge Azura then granted deputy public prosecutor Ahmad Akram Gharib’s request to transfer the case to the Sessions Court in Malacca.

On Sept 29, Khalid claimed trial in a Sessions Court in Malacca to 16 counts of corruption and money laundering, involving more than RM1.28mil.

He pleaded not guilty to all charges – 13 for corruption and three for money laundering. Judge Meor Sulaiman had set bail at RM100,000 for the corruption charges and RM150,000 for the money laundering charges with one surety. Khalid posted the bail.

The court set Nov 4 for mention.


TI Malaysia: Set cap on civil servants’ tenure


KUALA LUMPUR: Transparency International Malaysia is calling for a maximum tenure of three years for senior civil servants, following the biggest ever seizure by the Malaysian Anti-Corruption Agency (MACC) in Sabah.

Its president Datuk Akhbar Satar said putting a cap on the tenure could prevent the officials from getting too close to their clients and being influenced by those with money.

However, those with corrupt intent would surely find a way to cheat, he added.

“Therefore, the most important thing is, the handlers must have integrity,” he said, adding that a crisis of integrity is looming in the country.

On Wednesday, the MACC seized RM114mil worth of cash from the homes and offices of the Sabah Water Department’s director and his deputy, besides also recovering luxury vehicles, watches, jewellery and handbags.

Akhbar said he was surprised the officers could, and dared to, amass the amount of cash and luxury products.

“It’s a red flag if the officers are living beyond their means,” he said.

Citing statistics from the Association of Certified Fraud Examiners, Akhbar said 5% of a company’s revenue is lost to fraud each year.

He said the prevention unit of the MACC and the Malaysian Institute of Integrity should be roped in to train staff members.

“Don’t just train them on how to improve productivity or get promoted. Make them sit for anti-fraud courses from time to time, too.”

For checks and balances, Akhbar suggested that huge projects by government departments must be approved by an oversight committee, a common practice in Britain and many European countries.

Centre to Combat Corruption and Cronyism (C4) founder Cynthia Gabriel said besides limiting the tenure of top government officers, declaration of assets once every few years should also be made compulsory.

She added that annual reports of government departments must be published for the public to keep track of their activities, expenditure and projects.

By Tho Xin Yi The Star/ANN

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