Phang: Unusual precedent being set over RM40mil affair

Prime Minister Najib Abdul Razak and his government are setting an unusual precedent if there were no transparency over the RM40 million channeled to Sabah Umno, says former Malaysian Anti-Corruption Commission (MACC) adviser Robert Phang, adding that such a pitfall, if not stopped, will be perceived as the PM condoning such an act.

“It would mean that if the person is caught (channeling) the funds it would be deemed a political contribution, and if he is not caught then it would be considered as ‘sendirian berhad’ (your own),” he mocked.

“This would put a damper on the government’s fight against corruption and bring the Government Transformation Programme to naught if this is not done transparently. It would set a bad precedent and would be dangerous for BN to allow this.”

During the International Association of Anti-Corruption Authorities (IAACA) conference, the issue of political contributions was raised and the panel agreed that if it was not done in a transparent manner, it can be considered as corruption.

Yesterday, former Umno supreme council member and present Independent MP Lajim Ukin said he never knew Sabah Umno had so much money.

‘Nobody gives free political donations’

PETALING JAYA: The government has been urged to draft a new law to address the issue of political donations, which according to former MACC advisory panelist Robert Phang, is tantamount to bribery.

“Nobody would give you free things or free money. And in Malaysia it must be in exchange for certain favours. Either they expect you to give them something or it has already been granted,” he said.

He said that the law must include sections that requires those who intend to give such donations to declare their objectives. The donor, he added, must also have “no interests whatsoever” in dealing with the government.

Phang said that the government’s reply on the issue so far has been shocking, and is akin to giving all political parties a “license to collect”.

“If this area is not carefully and seriously addressed, it will condone very bad practices to have political parties just simply collect [money] from anyone. The gates are left wide open and sets a dangerous precedent,” he warned.

Phang said that during the 6th International Association Of Anti-Corruption Authorities (IAAC) conference recently, he posed this question about political donations in a workshop chaired by IAAC general counsellor Bulelani Ngcuka and attended by eight international rapporteurs.

DAP: MACC hasn't ruled out RM40mil was smuggled

Flying in the face of Prime Minister Najib Abdul Razak's denial that the RM40 million donation to Sabah Umno was not smuggled money, the Malaysian Anti Corruption Commission (MACC) , DAP supremo Lim Kit Siang pointed out ,as yet to verify this.

Lim (left) said thus far, the MACC has not addressed the question of whether the money was laundered or not.

He added the only explanation in parliament was that Sabah Chief Minister Musa Aman had been cleared of corruption as the RM40 million was a contribution to Sabah Umno and not to the former

"Nothing has been explained in parliament as to whether the RM40 million cash in Singapore currency which Sabah timber trader Michael Chia had in his luggage before boarding a flight to Kuala Lumpur at the Hong Kong International airport on August 14, 2008 and was arrested for currency trafficking and laundering was 'smuggled or laundered money'," he said in a statement today.

Lim questioned how either the premier or de facto law minister Nazri Abdul Aziz, who is in charge of responding to this matter, could possible know if the money was or was not laundered.

"There are two separate questions here: firstly, whether the RM40 million cash was a transaction in an offence of corruption, whether involving Musa or Umno Sabah.

"And secondly, whether the RM40 million cash was dirty money derived from corruption or illegal activities which had to be smuggled or laundered into the country," he said.

As such, Lim said the MACC should come clean on the circumstances of the multi-million ringgit political contribution.

"Did MACC also clear Michael Chia's RM40 million cash in Singapore currency as clean money and not dirty or laundered money and If so, MACC should explain how it arrived at this finding..." he said.

Source: http://www.malaysiakini.com/news/212240