It was reported in the Singapore papers today that the heads of the Singapore Civil Defence Force (Peter Lim) and the Central Narcotics Bureau (Ng Choo Chay) have both been suspended and replaced, both of whom will be subject to investigations into their alleged corrupt practices ……. involving money and women!

I then recalled what former Singaporean PM, Lee Kuan Yew warned about a few years ago when asked to comment about the indifferent attitude and the lack of diligence and vigilance in today’s global society :-

“THE MOMENT KEY LEADERS ARE LESS THAN INCORRUPTIBLE, LESS THAN STERN IN DEMANDING HIGH STANDARDS, FROM THAT MOMENT THE STRUCTURE OF ADMINISTRATIVE INTEGRITY WILL WEAKEN AND EVENTUALLY CRUMBLE”

It was therefore a relief to know that the current crop of politicial leadership in Singapore still maintain that level of vigilance against something that can easily cause the ‘fall of a nation’.

I also recall vaguely reading about an incident when Lee Kuan Yew was PM ……. a Singaporean Minister ‘caught with his hands in the till’, committing suicide rather than face the wrath of the PM.

Besides Singapore, one could also find examples of leading political or corporate individuals being cast to the way-side once exposed for leading a life of duality ……. the darker side, being greedy for unjust monetary and materialistic gains!

Bernard Madoff comes immediately to mind …… and whose financial charade exposed the regulatory frailties of the Securities & Exchange Commission of the United States.

There was also former New York Attorney General, Elliot Spitzer, who exposed many fraudsters during his time …… but who was exposed himself for not being able to control his libido at the same time!

That’s the result of Spitzer taking the moral high ground with his own ‘excess baggage’!

There are many other examples to quote …. but what is of concern is that there are many who cling to their positions (of trust) in spite of damning revelations against those individuals.

The first that come to mind is of course, Shahrizat Jalil, a Malaysian (unelected) Minister in Najib’s Cabinet who was given the Women  & Family portfolio.

No doubt, Shahrizat has now taken a leave of absence, pending investigations by a body that unfortunately has had its fair share of controversy ….. hence casting a significant discount to whatever its findings may ultimately be!

The damage has already been done and any subsequent findings of an independent accounting firm, after a perceived ‘clean up of the books’, will not offer any respite to the UMNO led government.

There is no reason to elaborate further ……. suffice to say that so long as the big fish and their hangers-on are able to get away with ‘blue murder’ ….. a country’s standing or rating on whatever basis or scale will ….. as mentioned by that old man….. weaken and eventually crumble.

Many companies and countries have and will continue to bear testimony to this!

I had a call recently from a close friend of mine, employed as a CEO in a company owned by various shareholders, and who was complaining about being undermined by all and sundry in the company.

It was also around the same time that I found out that actress Meryl Streep had won the Golden Globe award for best actress in her portrayal as Margaret Thatcher in the film called ‘The Iron Lady’.

I was actually surprised about the film winning any award.

This was because there were much criticism about the film’s focus on her character as a person …. as opposed to the substance of her leadership.

The fact that Meryl Streep won the award vindicates the makers of the film in concentrating on Thatcher’s character …….. as it was precisely that character which led to her downfall in 1990.

And it was then that I decided to relate to my friend the background of the Thatcher story and how he could learn from her experience.

Possibly many in corporate Malaysia could learn from Thatcher’s experience bearing in mind the tumultuous experience expected in the latter part of 2012.

I related to my friend a British television documentary that focused on events leading to Mrs Thatcher’s downfall in 1990, where it was said that in her removal (as Prime Minister), “she discovered to her cost that  a British Prime Minister cannot govern without the consented support of colleagues and that her downfall was the inevitable result of her tragic sense of self sufficiency.”

This ‘self sufficiency’ emanated from the power that she obtained on being elected as leader of the Conservative Party in 1975. Many have had the experience of getting such power ….. but only those who have been intoxicated with such power that they will never willingly abandon it.

It is therefore crucial that ‘reality checks’ be carried out regularly and the need to obtain a wider group of advisers …… as a form of check and balance amongst the various interested groups of people.

Many have learnt, to their own detriment, that they get to hear what they want to hear ….. instead of what is actually happening on the ground!

And just like Mrs Thatcher, most will realise, albeit too late, that it was, as said by the woman herself, ”TREACHERY WITH A SMILING FACE”  that brought them down …… committed by the very people she trusted.

I also recall reading about one of Joan of Arc’s famous quote …..”I FEAR NOTHING BUT TREACHERY.”

The bottom line?

As the words ‘bottom line’ suggest, one has to know the real score prevailing …… a score that is fluid and constantly changing.

I hope my friend ….. and others ……. will be better prepared for the challenges ahead!

Watch this short report about Mrs Thatcher’s political assassination:-

In the same token, it was said that it was equally essential to know (read: to be mindful) what we are doing NOW as it would result in what we are going to be in the future!

I am quite certain that such thoughts did not go through the UMNO administration’s minds under Mahathir when they decided to change the language of instruction in schools from English to Malay.

Neither do I think serious thought was ever given for Mahathir’s declaration or ambition for the country to have a population of 70 million!

Such ambition …… or vision as many of Mahathir’s supporters call it, was not sustainable for reasons that would have been clear even then.

For example, the conversion of the medium of language in schools from English to Malay has now churned out students who do not have a firm grasp of any language ……. be it Malay or English ……. or even Chinese.

Not only that, their level of comprehension, analysis has fallen several knotches down compared to students prior to the change in policy.

The failure of that education policy ….. primarily due to its poor / short-sighted implementation …… was confirmed when Mahathir himself confessed to it in his book, “Mahathir – Doctor in the House.”

Mahathir even conceded that for a particular language to flourish, their people had to be successful ….. hence encouraging others to pick up the language. He then gave examples like Japan and France ……. whose languages were learnt the world over by different nationalities!

Well, unfortunately Malaysia has not been much of an example for others to emulate …… in language terms anyway!

As for Mahathir’s vision of Malaysia having a population of 70 million by the year 2020 ……. was like telling us having a large population is a panacea to all of the country’s economic challenges.

There were even those UMNO Ultras who took advantage of Mahathir’s population vision by encouraging their bretheren to have ’large’ families ……. in order to dilute the proportion of non-Malays in the country.

Comprising about 33% of the total population of 13 million when Mahathir came into power in 1981, the Chinese population has dwindled to 23% of a total current population of 28 million.

I recall data stating that the Chinese comprised 45% of the population back in 1957 prior to independence.

Thinking that this would entrench the supreme political power of the Malays ……. the original intention of ‘Ketuanan Melayu’ slowly gave way to greed, lust for power ……. and corruption!

At the same time, the economic cake was being cut up by the UMNO led government warlords that meant little in terms of crumbs left for the Rakyat.

And this Rakyat we are referring to are the large numbers of Malays that have increased multi-fold ….. thanks to Mahathir’s vision for a 70 million Malaysian population.

The Malays are dis-enchanted.

The Malays ….. together with the rest of other concerned non-Malays …… are witnessing corruption of the crudest nature committed by the most senior of UMNO warlords …… without these cretins batting an eye-lid.

And what was entrenched Malay political power has now become a nightmare for the UMNO political hierarchy!

The Malay vote is split.

The Malays (many of them decent & hardworking) now have the luxury to choose a credible alternative government in place of one deemed self-interested (read: corrupt). 

As I have said before, what was originally a ripple has turned into a wave …… possibly a tsunami of change for Malaysia …… a change for the better.

God willing.

And so much for the Mahathir legacy!

In the case of Malaysia, the country certainly needs to be ‘pointed’ in the right direction.

However, we don’t have a ‘Steve Jobs’ like Malaysian politician at the helm at this point in time.

It becomes more of a concern when the ‘captain’ of the ship (read: Najib) is beset with a near-mutiny amongst his ship-hands!!

And with every one of those ship-hand (read: UMNO Warlords) grabbing whatever they can …… in addition to the humongous wealth that they already possess ……. it will only spell MALAPETAKA (Malay for Calamity) for the country of Malaysia.

How much more evidence does a concerned citizen need to see the necessity to bring in a new government at this crucial point in time?

According to economists, our resources are draining alarmingly without them being adequately replenished. Does that also mean that the EPF and Petronas funds are also dissipating alarmingly? And are controls and checks & balances being subtly dismantled?

UMNO’s claim of being protector of the Malay race rings quite hollow ……… because it is only the elitist and corrupt (Malays, Chinese, Indians & others) that UMNO appear to be protectively covering.

What’s happened to the man on the street living hand to mouth?

Spare me the UMNO rhetoric that they do much charity.

In any case, true charity and integrity is doing something right …… without anyone knowing that you did it!

Click HERE to understand a wee bit about Malaysia’s borrowing status.

I was having my morning read when I logged into the political blogs and Anil Netto’s (anilnetto.com) live blogcast said that it was acquittal for Anwar!

Couldn’t believe my eyes …….. but it became evidently clear that the UMNO led government could not afford another big blunder by putting Anwar Ibrahim behind bars.

The timing and the rousing of the Rakyat’s sentiments was immaculate to the point that Najib absented himself domestically by attending an event at the southern tip of the African continent!

The three explosions at the Jalan Duta Courts area showed how high stakes were ……… fortunately good sense prevailed as both sides of the political divide would lose immensely from a free for all that could generate into something much worse!

The fact of the matter is that UMNO members must start to see the ridiculous and small-minded manner in which they attempt to prevail as political masters in a country where its citizens have evolved and moved on to a more liberal state of mind.

What is more important is that the rampant corruption and financial mismanagement must end without delay ……. and that the Little Napoleons put into those positions of responsibility have to be removed or rehabilitated for the betterment of society!

It’s so funny that they have so much trouble understanding the need to evolve with times.

Maybe its the monetary greed that blinds them to the hallucination that they have been under since the Mahathir administration.

May Malaysia have the opportunity to experience a change in government under the PKR-PAS-DAP alliance …… that would somehow ensure that any political wannabes will have to have to work their butt off to get re-elected the next time round!

Really isn’t it?

I mean …… having to hear the same old story again and again.

One of Malaysia’s earliest corporate scandals involved the  murder of this Bank Bumiputera auditor in Hongkong ……. purportedly for exposing the fraud in the infamous BMF scandal (Bumiputera Malaysia Finance, then a subsidiary of Bank Bumiputera).

And thirty years on, we hear the same old improper conduct story involving IIB, Iskandar Investment Berhad, a joint venture between Khazanah, EPF and the Johore state government tasked to spur development in the Iskandar region.

And what do we have instead?

God, what happened to those controls and transparency expected from companies with shareholders like Khazanah and EPF?

The husband of the then CEO of IIB has been charged for improperly obtaining  commissions of up to RM1.6 million (read: corruption money) ….. seemingly to gain favours from IIB.

Everyone seems to be jumping onto this lucrative bandwagon of untold riches ….. notwithstanding it being improper and illegal.

It’s like from budding young officers up to CEO wannabes …….. praying and hoping that they would be appointed to those ‘lucrative’ positions so that they could milk the agencies/companies dry for their own personal gains.

To be fair, not all are like that.

But there are certainly parasites that loiter around these individuals who hold ’influential’ positions ……. such that perceived collaboration between them becomes a very prickly and judgmental issue ….. more so if they are the spouses of these individuals!

But haven’t they heard of the saying, “You must not only be clean, but also seen to be clean”?

These characters seem totally oblivious to a very obvious aspect of corporate governance ….. transparency and integrity.

So far, the former IIB CEO, Arlida Arliff, has not been charged by the authorities.

Even if we are to assume that she is innocent, she has failed miserably in managing the situation with respect to her husband.

Absolute failure in that respect!

It’s come to a stage where derogatory jokes are being made about the government and its agencies.

Click HERE about the charge against Arlida’s husband.

In an immediate response to the situation created by Raja Petra Kamaruddin’s jumping ship, Haris Ibrahim (former key ally to RPK), has resigned as President of the Malaysian Civil Liberties Movement in which RPK is Chairman.

Don’t think the movement itself will be decimated ……. instead it will operate from another entity ……. one that is clearly NOT associated with RPK.

I recall a saying that goes like this …..

• Talent is God given, be humble,

• Fame is people given, be thankful,

• Conceit is self given, be careful

RPK seems to have lost it all.

But the struggle continues.

Click HERE for Haris Ibrahim’s clarification and explanation about RPK cowardly about-turn.

It’s not so much the content of Raja Petra Kamaruddin’s spite against Anwar Ibrahim that is the issue.

It has more to do with the timing of it (about one week before the verdict on Anwar’s sodomy trial) ……. and the mainstream media which he gave his interview to (i.e. UMNO controlled newspapers).

It was rather ironic that RPK could talk of the importance of the bigger picture and that Anwar Ibrahim is not relevant in the computation.

Such cheap assertion from someone who had a great following amongst the Malaysians!

If one was really talking about the big picture, Anwar Ibrahim was and is indeed a major part of the computation.

Let’s not forget Anwar’s contribution during the 2008 General Elections!

Or does RPK feel that he can fill the void once Anwar Ibrahim is removed from the scene …… just as Zaid Ibrahim is hoping to do so?

Not only that, RPK is also attempting to attack the Selangor state government for their apparent lack of proper governance!

Why now, RPK?

My reading of all this is that Raja Petra Kamaruddin has sold his soul!

Every one has a price and RPK sold it cheaply ……. without taste, nor finesse!

It is better that we just ignore this RPK has-been and let him enjoy on his ‘personal gains’ from stabbing Anwar in the back!

Let him join the clutter of turn-coats like Ahirudin Attan (aka Rocky), Wee Choo Keong, Hassan Ali and the likes. They never really had any love for the country.

In any case ……… the race is not to the swift but to those who keep on running!

Click HERE for a summary report about his interview with the UMNO owned papers.

When I read last Saturday’s Star Bizweek section ‘Your 10 Questions’ for current Auditor General, Amrin Buang, it made me recall the time of then Auditor General, Ahmad Nordin ……. who was treated like a pariah by the Mahathir led government and the mainstream media.

I don’t believe that there has been a change in heart by the government or mainstream media policies.

It’s just that the level of awareness of these improprieties cannot be hidden from the masses any longer ….. thanks to a large measure to technology and education.

The measure and intensity of the questions put forward by the  ‘people on the street’ to the current Auditor General highlight the frustration and amazement how something that had been highlighted since the time of Mahathir’s administration (when it started getting out of hand) could have been literally swept under the carpet by individuals who were then espousing ‘Efficient, Clean & Trustworthy’ form of government!

I don’t believe that any concrete attempt is being made to address this frustration as the greed (and hence, rot) has permeated into the core of the administration and appear irreversible notwithstanding the apparent sincere intention of the current PM to ‘reverse gear’.

It has come to this stage whereby the Rakyat is quite insistent on a ‘two party’ parliamentary system whereby one can be kicked out of power in favour of the other ……. and that a third party could be brought in if the rot permeated the other two parties!

This process is already a work-in-progress!!

Click HERE to read the questions put to the Auditor General and his responses …… which clearly point to the INDIFFERENCE of the relevant parties.

It was with the thought of the Olympus accounting scandal in mind when I read the newspaper report about Malaysia’s Employees’ Provident Fund making a stupefying profit of RM6.8 billion for the 3rd quarter in 2011.

Of course, assuming from a wage earner’s point of view, many would hope and pray that those figures to be true.

But are they?

It becomes a further concern when you note the way EPF’s RM452 billion of funds have been utilised as follows:

a) Malaysian Govt Securities  – RM123.5 billion (27.3%)

b) Loans & Bonds  – RM150.8 billion (33.9%)

c) Equities  – RM153.3 billion (33.9%)

d) Money Market Instruments  – RM22.5 billion (4.99%)

e) Properties  – RM1.9 billion (0.4%)

Let’s not forget that EPF has already been reported to be the largest player in the Malaysian equity and debt markets.

A Bank of America Merrill Lynch report said that EPF has literally become the market in its research paper: ‘Malaysia: The EPF’s Omnipresence’.

What is more worrying is that 67% of its RM452 billion is invested in equity and debts.

It becomes more revealing when EPF has an equity holding of about 19% of the market capitalisation of the companies listed in Bursa Malaysia.

This may not sound big in relative terms but this holding is the ‘liquid’ portion of shares held by EPF – i.e. they are shares that are constantly traded by EPF ….. in order to support its price.

The non-traded portion of these big cap companies (read: GLC) are held by the likes of Khazanah, PNB etc.

In the bond market, its dominating presence has hindered development of a vibrant secondary market. The EPF owns some 45% of the outstanding Malaysian Government Securities.

Therefore if you add the MGS to those invested in equity and debt, that would come to a whopping 94% of the funds of EPF!

One can clearly see why the government cannot afford to have a collapse in the capital and debt markets ……. hence the active buying and selling of shares in Bursa Malaysia by EPF …… in possible ‘cooperation’ with  other agencies like PNB, KWAP (govt pension fund) and the likes ….. on a ’I scratch your back, you scratch mine’ arrangement.

Is that how EPF got the RM6.8 billion return for the 3Q 2011?

And with the government debt at a level that puts in on  track with countries like Greece, I shudder to think of the repercussions.

Repercussions …… if the nonsense is allowed to continue.

What nonsense?

The illicit outflows, corruption and financial mis-management …… especially the kind where individuals think that they are entitled to unfettered riches just because they have served the government one way or the other.

That, by the way, is called cronyism!!

Coming back to the EPF, one would really wonder if it would have the ability to redeem the claims of its members when they reach retirement age.

This is when I recall then Finance Minister, Tun Daim Zainuddin, proposing (which was thrown out due to political pressure) that EPF members be paid an annuity on retirement ….. as opposed to a lump sum payment.

Of course, the excuse he gave then was that many pensioners finish their retirement funds shortly after withdrawal.

But is that the truth …… or a red herring to cover the inability of the EPF to fund these withdrawals since they have been used to fund government spending on operational matters, buying shares from out-going foreign investors in order to support the local cronies and to provide long term funding to entities to buy cows and condominiums?!!

With EPF as it is now …….. who’s next?

Petronas?

Has it got something to do with former Petronas head honcho, Hassan Merican plying his profession overseas?