Najib’s disappointing start c4timebombset go off at Terengganu, the land of hang tuah and khairy's home state, any comment from main stream media– so

Najib’s disappointing start c4timebombset go off at Terengganu, the land of hang tuah and khairy's home state, any comment from main stream media– so b.n has a mega problem 

 Malaysia’s sixth prime minister, Najib Tun Abdul Razak took office earlier this month, replacing Abdullah Ahmad Badawi.

In Najib’s first week, he failed key tests that could have shown he can be his own man. He lost important by-elections, failed to address persistent scandals and selected a cabinet of lacklustre appointees that has not evoked confidence.

He ran away from the press, declining to address basic questions about his government.

This poor beginning raises serious questions about his leadership and calls into question his ability to deliver on the reforms that are critical for Malaysia’s future.

Before Najib took office he managed to win a strong mandate from within his own party’s polls last month, as loyalists in his cohort rose to party leadership positions.

Najib represents a third generation of leaders from the Umno party that governs Malaysia. The first generation assumed office in independence, the second after the racial riots of 1969.

Najib’s generation came into politics after 1969, and has matured under the shadow of Mahathir Mohamad, known for promoting economic progress while simultaneously closing political space and weakening political institutions.

Najib’s strong party showing was expected to set the stage for the new premier to introduce reforms and step out of the shadow of his predecessors.

Early signs were good, as Najib’s speeches highlighted reforms and the day after he took office he released 13 political prisoners held under the draconian Internal Security Act. Malaysians were pleasantly surprised with his first moves.

Scepticism reigned, however. After the five years of promise without delivery under Abdullah Badawi, Malaysians want results, not rhetoric.

Many are not willing to give Najib the benefit the doubt. Part of this is his association with Abdullah’s government, as deputy prime minister.

Another reason has to do with the heavy baggage of scandal that cloud Najib’s leadership; his alleged connections with corruption in defence contract deals and links to a Mongolian model who was murdered by staff assigned to his security detail have damaged his reputation.

Last week, the two officers charged with blowing up the model were convicted. The government’s response has been to ban the use of the model’s name – Altantuya Shariibuu – further raising speculation about the crime and suspicions about Najib’s involvement.

There is no evidence that Najib was involved in the murder, but the lack of credibility that Najib faces – which is only enhanced when he refuses to answer questions – has hurt him.

An even darker shadow is Dr Mahathir Mohamad. The former prime minister who governed Malaysia for 22 years systematically undermined Abdullah while he was in office. He has played a major role in mentoring the new generation of leaders, including Najib himself, and his values that have promoted Malay rights over those of other communities, undermined political institutions, deepened corruption and created a climate of insecurity among the elite that runs deep.

Najib is seen to be under the thumb of Mahathir. While this gives the former premier too much credit, the reality is that Mahathirism remains a force that must be addressed and Mahathir himself remains a political player in his agenda setting role.

These factors played out in three recent by-elections when more than 100,000 voters went to the polls. Najib’s coalition lost two of the three contests.

The contest it did win – Batang Ai in rural Sarawak – was the result of massive allocations of patronage (RM70 million in promises for 8,006 voters) and included allegations of ballot box tampering.

Voters in West Malaysia in two traditionally strong seats for Najib’s government, gave the Pakatan opposition coalition led by Anwar Ibrahim larger majorities.

These results were the product of greater opposition cooperation and the inability of the governing coalition to reach across races.

Non-Malays voted in large majorities for the opposition. They were joined by large numbers of Malays who rejected the use of Mahathir for Najib’s campaign and were tired of the endemic corruption in the system.

Najib stayed away from the campaigns, showing that he is not ready to face the public directly. He received a sharp rebuke.

Najib had the opportunity to stem the tide of negative perceptions through his cabinet selections. Here too, he disappointed. The majority appointees are recycled old faces and Najib loyalists. While many of them are among the cleaner alternatives and his choices in finance and trade show promise, the inclusion of Mahathir’s son, and reliance on his close allies who are seen to not make the grade do not build confidence.

This cabinet follows in the Mahathir mould, one that appears to focus on the economy and exclude the need for political reform.

It does not include individuals who appear willing to address the albatross on Malaysia’s economic competitiveness, the pro-Malay affirmative action policy, the New Economic Policy, that has become a vehicle for corruption.

After announcing his list, Najib refused to answer questions.

Najib is running away from addressing the factors that will hamper his government.

He lacks public support. He is trapped by the system he inherited, the shadows of Abdullah’s unmet reform promises and Mahathir’s hardline approach. He faces a stronger and more cohesive opposition.

Najib’s style is more measured, but in these challenging times and in the light of his public credibility issues, the tepid responses have disappointed.

With each passing day that the new prime minister fails key tests, his tenure is shortened. Najib cannot continue to avoid the fact that his political survival is based on winning over the Malaysian public and bolder measures that deliver reform are essential. – Guardian

 

A number of BN assemblyman are said to have met with deputy Umno president Tan Sri Muhyiddin Yassin to obtain “official sanction” for the revolt. 

The end is near for Terengganu Mentri Besar Datuk Seri Ahmad Said after 10 Barisan Nasional (BN) state lawmakers boycotted the state assembly today in a bid to force his resignation.

Terengganu rumblings: Battle over gravy train?

How to try and understand what’s going on in Terengganu now?

Follow the money trail, auditors and journalists are often told.

So let’s try that here. What is Terengganu’s main asset? Black Gold. Off shore oil.

And the state’s main revenue source is the oil royalty from Petronas, which the Federal Government used to hand over to the BN state government to spend as it so desired.

That is, until the Sultan of Terengganu, our present Agong, reportedly wanted a Terengganu Investment Authority (TIA) to manage the funds.

This was the same Sultan/Agong that backed the present MB, Ahmad Said, over Abdullah Badawi’s choice of Idris Jusoh. Ahmad Said, however, was not supported by most of Umno Terengganu, who then protested at his appointment in what appeared to be a most “derhaka” manner.

The TIA would have the MB on its board, but the fund itself was to be managed by professionals. The Sultan himself would be chairman of the board of advisers, reported The Star.

The performance of this fund would be closely monitored to ensure that the oil revenue is invested properly to ensure returns for future generations long after the oil dries up.

If the TIA goes ahead as planned, it could potentially become the new gravy train. No more projects with poor returns or wasteful projects that do not benefit the people - at least that’s the plan. (Despite receiving over RM1 billion in royalties annually, the state has one of the highest poverty rates in the country.)

The new TIA fund was supposed to seek RM10 billion from local and foreign capital markets, on the strength of the oil royalties that Terengganu receives. The federal government would provide a guarantee of RM5 billion.

In December, it was reported that the fund would be given a boost with the handing over of RM400 million in oil royalties to the state government. This was supposed to be the first part of RM3 billion in oil royalties promised by the federal government to the state government.

It was reported that the the TIA and the sovereign wealth fund, announced in December 2008, would be launched in the middle of this year.

Perhaps we should consider this backdrop - control of the the new gravy train - when looking at the latest rumblings in Terengganu.

Trengganu MB crisis: Follow the money trail

I spent a couple of years in Trengganu when I was a kid. I have fond memories of a tranquil and rustic state, wonderful childhood neighbours - whom I have recently been reacquainted with after all these years - and family picnics at Pantai Chendering.

So the high stakes battle in Trengganu over the choice of Mentri Besar is of special interest to me.

While much has been said about the constitutional position, there is more to it than just the letter and spirit of the law.

There is more to it than that - and it is essential that we consider this dimension in any discussion of the political situation in Trengganu.

Follow the money trail.

One of the key issues, I believe, is how the Petronas oil royalties due to the state amounting to some RM1 billion annually should be spent - for the benefit of the people or for vested interests. Despite its oil wealth, Trengganu is one of the poorest states in the federation.

The royalty payments are no small change. In the past, the money was paid directly to the state government and dispensed under its supervision.

But when Trengganu fell to opposition hands (Pas) in 1999, then prime minister Mahathir changed the rules. He couldn’t bear to see all that money going to an opposition-controlled state government.

Instead of the Petronas royalties (amounting to 5 per cent of oil extraction and sales) going directly to the Trengganu state government, they were now channelled to a federally administered Special Fund Financing Programme (the Fund), which was established in December 2000. The money in this new Fund was euphemistically renamed “goodwill money” (wang ihsan) and it was supposed to directly finance development programmes for the people of Terengganu, largely bypassing the state government.

Since then, there has been little accountability over how this money has been spent and whether the projects really benefit the ordinary people.

The missing Accounts Committee

Basically, the Treasury is supposed to make allocations out of the Fund to various ministries (and via these ministries to federal agencies), financial institutions, and federal and state-level offices.

According to the Auditor General’s Report 2005, in line with a directive, the Treasury was supposed to create an Accounts Committee, chaired by the Treasury’s Chief Secretary, to administer the Fund. The Committee was supposed to comprise representatives from the Prime Minister’s Department (including the Economic Planning Unit), the Treasury, and the Finance Ministry.

But the Auditor General (AG) said then that such a Committee had not been set up – surely this must be of serious concern.

Instead, a “Central-level Committee”, which appears less high-powered, was formed. This Committee, which includes representatives from ministries and implementation agencies, meets twice a year to discuss and approve allocations. It is not clear who exactly is in this Committee. PM Abdullah must reveal the composition of this committee.

This Central-level Committee is supposed to evaluate projects and recommend to the Cabinet financial allocations for the various states. But the AG said he found that allocations for the various states were not decided during the Committee’s meetings. Instead, the “allocations were based on the approval of the Finance Minister and they were forwarded straight to the relevant state Menteris Besar”. The Finance Minister is of course the Prime Minister.

Would that explain why Abdullah Badawi is so keen on retaining Idris as MB?

In an article for Aliran Monthly, ‘Buying goodwill - RM4 billion worth of it’, I wrote back then that although the AG had said that the people had benefited from the Fund, his finding was not backed up by empirical evidence. He conceded that, at the state level, “expenditure that should not have been financed from the Special Fund allocation had occurred and this had more or less jeopardised the objective of the programme”.

He also found that not all ministries, departments and agencies had submitted their quarterly expenditure statements as required (though he said their monitoring work was adequate). This meant the Treasury’s records related to the Fund were incomplete. More seriously, there was no evidence to show that the Treasury had taken follow-up action. He also stressed that all allocations should be approved by the Central-level Committee.

Reading between the lines, it seemed to me, that there was a lot of arbitrary discretion being exercised as to how the fund was being administered – most likely to serve the interests of the ruling party while benefiting certain vested interests.

The best solution is to return the royalties to the state governments. High-powered independent audit committees with opposition representation, reporting to the respective state assemblies, should be set up to ensure that such funds are used on projects that really empower the rural poor. This will dispel the perception that this ‘goodwill money’ is being used as a patronage tool to boost political ‘goodwill’ for the Barisan Nasional while also benefiting vested interests.

I would hazard a guess that the Agong, who is the Sultan of Trengganu, knows what is going on and is deeply concerned.

Here’s one intriguing question: If a new MB who is not the PM’s choice is sworn in, would the files of yet another state government disappear?

Right now, it’s a battle of wills.

Even though Abdullah’s choice of MB (supposedly) has the backing of all the BN assembly members, would the weakened PM ram him through and risk having to face another state election in Trengganu? This time, Pas and PKR, fresh from their successes on the west coast, could well pose a stronger challenge.