The ultimate truth about Malaysia Inc.

Wednesday, July 26, 2006

Who is really running Malaysia anyway?

Raja Petra Kamarudin

Tun Dr Mahathir Mohamad is a man of contradictions of sorts. For
example, he stands firmly behind certain principles, but, at the same
time, he believes in the principle of the ends justify the means. That
in itself would be regarded as unprincipled by certain quarters. To
Mahathir, however, that is a principle and a principle he holds dear.
The legendary Robin Hood too had principles if you want to go by that
'philosophy'. He robbed from the rich and gave to the poor. Robbing
would be an unprincipled act to most. But, to Robin Hood, the
principle of robbing would only be unprincipled if one robs from the
poor, or robs from the rich and keeps the loot all to oneself. But
robbing from the rich to help the poor is not wrong if the objective
is to help the poor. And keeping a small 'service fee' in the process
to pay for the overheads of running your operation is also allowed --
or else how would you be able to continue helping the poor? Yes, the
ends justify the means. And that is why Robin Hood is the 'goodie',
the hero of the story, and not the villain.

I remember the first public function I attended soon after Mahathir
became Prime Minister where he was not only the guest of honour but
the host as well. In fact, it was he who invited us to dinner at the
Equatorial Hotel and the purpose was to impart his philosophy to
members of the Malay and Chinese Chambers of Commerce. Basically, it
was a 'to get rich is glorious' speech and Mahathir made this speech
even before China's Premier did. And Mahathir also spoke about how it
is not important whether it is a white cat or a black cat as long as
it can catch a mouse. Later, China's Premier too said the same thing.
Of course, Mahathir did not put it exactly the way China's Premier did
but the implication of what he said was the same.

Mahathir is and always was against the New Economic Policy (NEP). But
he realised that the Malays are so dependent on this 'crutch' that if
you were to abolish it they would go into a panic and revolt. Like it
or not, Umno's fortunes depend on the perception that this party is
the saviour of the Malays and the defender of Malay 'rights', which is
an absolute fallacy of course and Mahathir knew that. In that sense
Mahathir was ashamed of the Malays and he wanted to change their
mindset. He wanted to drag the Malays screaming and kicking into the
'real world', the world where the strong survive and the weak die. But
he discovered, to his horror, that the Malays enjoy being weak so that
they can continue getting government 'protection'. They do not want to
be strong. If they were then the government need no longer continue
protecting them and the NEP can be abolished.

Mahathir knew that the Malays were not ready for shock treatment. They
needed to be slowly weaned away from the NEP. You cannot suddenly
abolish the NEP and declare that Malaysia is now a free-for-all
society and may the strongest survive and the weak die. That would be
the end of Umno and Barisan Nasional. MCA, MIC, Gerakan and the 10
other Barisan Nasional component members do not want this as well. The
non-Malay and non-Umno candidates in Barisan Nasional also depend on
Malay votes to retain power. The death of Umno would mean the death of
Barisan Nasional and the end of non-Malay political power as well. The
thing closest to the hearts of the Malays is their 'rights'. Next is
their religion (yes, in that order). If Umno and Barisan Nasional no
longer guarantee the Malays their 'rights' then they might as well
turn to religion. If Umno goes out the door, then PAS would benefit.
The Malays would turn to PAS in the absence of Umno.

So what can replace the NEP? This Mahathir spelt out clearly to the
gathering of Malay and Chinese Chambers of Commerce members at the
Equatorial Hotel dinner. The Chinese can get rich. Maybe even some
Malays can become tycoons as well, just like their Chinese
counterparts. But these rich Chinese and Malays must in turn help the
struggling small-time Malay businessmen. This is the umbrella concept.
The government will provide the umbrellas for these big players in the
corporate world. And these big players would then assist the others.
The small-time businessmen can seek shelter under these umbrellas of
the tycoons.

Mahathir then started identifying all those tycoons and potential
tycoons who have either already made it big on their own or have
proven that they possess the business acumen to make it big with a
little help from the government. Basically, Mahathir went hunting for
millionaires and those who have shown their acumen managing government
corporations. These millionaires would be turned into billionaires.
But this comes with a price. They would have to repay this government
help by spawning other businessmen. They would be the trustees of the
umbrella. But they must give birth to thousands of other small-time
businessmen.

There was one flaw to this marvellous plan though. And that flaw is
human nature, basically greed. While they got rich with government
help, they reneged on their promise to help others in return. The rich
got richer but the poor did not share these riches. Many umbrellas
were created, but the umbrella concept did not materialise as planned.
Not many were prepared to redistribute their wealth to others. And
Malaysia Inc. failed to meet its objective. This was Mahathir's
greatest regret.

In 1990, at the end of the NEP, Mahathir tried to get it officially
declared ended. But there was strong resistance from the Malay
grassroots. They did not want it ended. They wanted it to continue
indefinitely. Mahathir was flabbergasted. He knew that the Malays
could not continue depending on the NEP. For one, it is unfair to the
non-Malays who had agreed to the NEP soon after the 13 May 1969 race
riots because it had been promised it would go on for only 20 years.
Secondly, if the Malays continue depending on the NEP, then there
would never come a time when the Malays would be able to stand on
their own two feet. And there would certainly come a time when the
Malays would need to compete once the trade borders are torn down.

Today, those who became rich under Mahathir's grand design of the
umbrella concept or Malaysia Inc. are still rich. But the poor have
not shared this newly-created wealth. And Mahathir has to now live
with the allegation that he created and nurtured cronies. Sure, he
created and nurtured cronies. But he did so for a purpose. The ends
justify the means. But he did not see the ends bearing fruit. And that
is because he overlooked one basic characteristic of human nature,
greed, and the reluctance of those who got rich with government help
to share their wealth.

That, Mahathir has to live with and accept as his failure. His
intentions may have been noble, but is not the road to Hell paved with
noble intentions? And maybe the ends should never justify the means as
Mahathir's experiment in social re-engineering has proven.

Anyway, on Friday, 28 July 2006, Mahathir will be speaking to a crowd
of Umno members in Kota Bharu, Kelantan. Much has happened since he
last spoke at the Kelab Century Paradise in Taman Melawati on 24 June.
It would be most interesting to hear what he has got to say this time
around. Since 24 June, Ani Arope has raised the issue of how the IPPs
were badly handled. Malaysia Today has addressed this issue in two
previous episodes of The Corridors of Power. Then there is Anwar
Ibrahim's allegation that Mahathir lost RM30 billion of our money on
the Forex fiasco. I believe this too needs clarification. But we shall
not put words into Mahathir's mouth as that is a most impossible thing
to do when dealing with the Grand Old Man. We shall allow him to do
the explaining himself.

One thing that Malaysia Today would like to raise is the matter of
Terengganu's oil royalty which we hope Mahathir will address on 28
July. Since the mid-1970s, Terengganu had been enjoying a 5% royalty
on all the oil and gas extracted in the state. That is what is
provided for under the Petroleum Development Act. In fact, not only
Terengganu, but any state in Malaysia where oil and gas is extracted
they would enjoy the same. However, in 2000, this royalty was
withdrawn and converted to Wang Ehsan (goodwill money). Suddenly, the
RM800 million or so a year that Terengganu was supposed to get as its
5% share of the oil and gas revenue was transferred out of the state
and into the hands of one man, Idris Jusoh.

Malaysia was then already suffering from an outbreak of JE. But in
Terengganu it was JE of another kind, Jusoh Enterprise, Idris Jusoh's
family business. Jusoh Enterprise or JE was suddenly flush with funds,
RM800 million a year to be exact. Then, in 2004, Umno, under the
stewardship of Abdullah Ahmad Badawi, won back the state from the
opposition. But the state did not win back its 5% oil royalty. The
Wang Ehsan continued and Idris Jusoh, who now became the Chief
Minister, continued to single-handedly manage the fund. Even the State
Economic Development Corporation (SEDC) and the Terengganu State
Economic Planning Unit (UPENT) were left totally in the dark. One man,
Idris Jusoh, decided how the money was spent, and it is a lot of
money.

But the new Prime Minister, Abdullah Ahmad Badawi, would not tolerate
one man managing the state's coffers. He wanted Idris Jusoh's hands
out of the RM800 million a year cash box. However, to revert to the 5%
royalty only meant that the money would come directly under state
control. That would not serve their purpose. They wanted direct
control of the RM800 million. Now it was under the control of the
Prime Minister's Department but passed down to Idris Jusoh's hands.
What they needed to do was to get Idris Jusoh's hands out of the
equation.

Then Khairy Jamaluddin, Abdullah's son-in-law cum adviser, came out
with a fantastic new 'umbrella concept', better than even Mahathir's.
They wanted control of the RM800 million a year. But they did not want
to get it out of Idris Jusoh's hands by putting it into the hands of
the state. That would merely be a case of out of the frying pan, into
the fire. They wanted direct control of the money without Idris Jusoh
deciding on how the money is spent.

And this is how they did it.

First they appointed Wan Farid, Khairy's 'running dog', as Abdullah's
Political Secretary. Then they appointed Wan Hisham, Wan Farid's
brother, as the State Exco Member in-charge of tourism. Then they gave
Patrick Lim, Khairy's business partner, the sole monopoly of all state
tourism projects. Now the network is intact and Idris Jusoh has been
cut off.

Patrick Lim's job is to create all sorts of state tourism projects at
hugely inflated prices. He would then propose these projects to Wan
Hisham, the man in-charge of tourism. Wan Hisham would then pass them
on to his brother, Wan Farid. Wan Farid would then pass them on to
Khairy. Idris Jusoh would of course be left out of the loop and he
would only know about them when it was a fait accompli -- as the
Malays would say, "Nasi sudah jadi bubur."

They built 30 houses at RM1 million each on an island in the
Terengganu River. They launched a RM300 million a year yacht race
called the Monsoon Cup. Hundreds of millions a year is being spent to
'attract tourists to Terengganu'. It seems this year the amount of
Wang Ehsan has shot up from RM800 million to RM1 billion -- so there
is even more money to play around with.

To ensure that Idris Jusoh keeps his hands out of the cash box,
Abdullah himself chairs the state meetings though he is the Prime
Minister and not the Terengganu Chief Minister. Of course, Idris
Jusoh, being the Chief Minister, is allowed to sit in on these
meetings though he has no say on what they propose. Patrick Lim,
though he is not in the government, is also allowed to attend these
meetings.

Abdullah would then propose all sorts of tourism projects conjured by
Wan Hisham, Wan Farid and Khairy. Details are of course not discussed;
only the gist of things and the amounts involved. Whenever Idris Jusoh
raises any questions, he would be told to 'leave it all to Patrick Lim
who knows what to do'. Idris Jusoh is not to involve himself in the
details.

After awhile Idris Jusoh got quite pissed and tried to resist. One
project that he knew nothing about was placed before him and he was
told by Patrick Lim to sign the papers. But how could he sign the
papers when he knew nothing about it and would eventually have to bear
responsibility for it?

Patrick Lim walked out of Idris Jusoh's office and phoned Wan Farid
who complained to Khairy. Within an hour Idris Jusoh received a phone
call from Abdullah who ordered him to sign the papers, which he of
course did straight away.

Patrick Lim's hold on Abdullah was apparent to all but somehow not to
Idris Jusoh. One day Abdullah visited Terengganu to chair the regular
meetings on how to spend Terengganu's RM800 million (which is now RM1
billion because of the increase in oil prices). Idris Jusoh fetched
Abdullah from the airport but before his car could move Patrick Lim's
car cut in front of Idris Jusoh's car and Abdullah got out of Idris
Jusoh's car and got into Patrick Lim's car. Idris Jusoh should have
realised then who really runs Terengganu.

Yes, RM1 billion a year is a lot of money. This money, which should
belong to Terengganu, is not going to the state. It is going to Wan
Hisham, Wan Farid, Patrick Lim and Khairy. And Abdullah chairs the
state meetings to decide how the money is spent. And Wan Hisham, Wan
Farid, Patrick Lim and Khairy help spend the money. And they spend it
all. And Idris Jusoh has no say in how it is spent. And if he refuses
to sign the papers he will get a phone call from Abdullah.

Now do you know who runs this country? Abdullah says he and not his
son-in-law runs this country. Idris Jusoh however will tell you that
Khairy runs this country. And Khairy also runs Terengganu and manages
its RM1 billion a year through Wan Hisham, Wan Farid and Patrick Lim.
And Abdullah chairs the Terengganu State meetings on behalf of Khairy
and according to the plan on how Patrick Lim wishes to spend the RM1
billion a year.

And now do you know why Mahathir is so pissed? And he has every reason
to be pissed. In fact, I too am pissed. And that is why I agree that
Mahathir stays pissed with Abdullah and his son-in-law. The Terengganu
issue alone is enough for me to get pissed. And rest assured that
Terengganu is but the tip of the iceberg.

Yes, it is nice being able to walk in the corridors of power. And much
can you do when you walk in the corridors of power. And RM1 billion a
year is nice to manage if you have that power to do so. And when you
walk in the corridors of power you would of course have that power.


Perdana Menteri tinjau Pulau Duyong sebelum Piala Monsun

Utusan Online - 25 Julai 2006

Datuk Seri Abdullah Ahmad Badawi akan meninjau persiapan untuk
penganjuran kejohanan kapal layar dunia, Piala Monsun di Pulau Duyong
di sini, sempena lawatan dua harinya ke Terengganu mulai 31 Julai ini.

Setiausaha Badan Perhubungan UMNO Terengganu, Datuk Rosol Wahid
berkata, Perdana Menteri memberi perhatian besar kepada pulau itu dan
mahu memastikan penganjuran kejohanan itu pada tahun ini lebih meriah
dan hebat.

Selain meninjau projek berkaitan kejohanan itu, kata beliau, Abdullah
akan turut menyerahkan kunci kepada sebahagian bakal pemilik projek
Rumah Mampu Milik yang dibina oleh kerajaan di pulau tersebut.

''Projek rumah itu dan satu lagi projek jeti baru nelayan dijangka
dapat disiapkan apabila Perdana Menteri tiba di pulau itu," katanya
ketika dihubungi di sini, hari ini.

Menurut Rosol, Perdana Menteri pada hari pertama lawatannya akan turut
menghadap Sultan Mizan Zainal Abidin di Istana Badariah dan pada pukul
3 petang akan merasmikan majlis pecah tanah projek pembinaan
Universiti Darul Iman di Dendong, Besut.

Pada pukul 8.30 malam pula, Abdullah akan menghadiri majlis jamuan
bersama rakyat di Kampung Rhu 10, Penarik, Setiu.

Pada hari kedua lawatannya, kata Rosol, Perdana Menteri masih
mempunyai atur cara padat termasuk pada sebelah pagi mendengar
taklimat pembangunan aplikasi sistem tanah di Pejabat Daerah dan Tanah
Kuala Terengganu.

Abdullah kemudiannya akan melawat Pusat Pengumpulan dan Pemproses Nira
Nipah di Kelulut, Marang.

''Dari Marang, Perdana Menteri akan berehat sebentar di calet Pulau
Duyong sebelum melakukan tinjauan di projek pembinaan Taman Tamadun
Islam di Pulau Wan Man.

''Di pulau itu, Perdana Menteri akan turut menyaksikan beberapa majlis
menandatangani MoU termasuk perjanjian tempahan pembinaan perahu
tradisional," kata Rosol.

Pada sebelah malam sebelum berlepas pulang ke Kuala Lumpur kira-kira
pukul 10.30 malam, Abdullah dijadualkan mengadakan perjumpaan dengan
para pemimpin UMNO dan Barisan Nasional (BN) di Kediaman Seri Iman di
sini.

Menurut Rosol, pihaknya percaya Perdana Menteri mengambil kesempatan
dari lawatan dua harinya itu untuk melihat sendiri perkembangan
terbaru projek- projek mega yang sedang dan akan dilaksanakan di
Terengganu.

Kata beliau, antara projek mega untuk Terengganu yang sebelum ini
diumumkan sendiri oleh Abdullah adalah projek UDM, Taman Ilmu, Taman
Tamadun Islam dan pembangunan semula Pulau Duyong - yang setiap satu
projek membabitkan kos bernilai ratusan juta ringgit.