Najib Cash-for-votes scam Your savings leak from everywhere

we are forever being taken for granted, if not being taken out to the cleaners,  by our Banks and other financial services providers like insurance companies.Now it is not my intention to scare you off from any interactions with your banks and fund managers.  But the reality is that you simply have to be more vigilant about your money, if you have to protect your hard earned money from the slick banks and other financial companies.The message is clear. Your savings leak from everywhere. Much of this leak makes for the profit for the many intermediaries between you and the ultimate avenue of investments for doing relatively very little.  Broadly, this is how it works. Your investment is handled by your bank, who charge you a commission for the “service”; these guys invest your money in various mutual funds who charge the bank a commission who in turn pass it on to you; these mutual funds in turn trade via brokers, who charge these mutual funds a commission, who pass it on to the banks who in turn pass them on to you!  Now all the leaks in your investments go to feed these intermediaries. You may make money or lose money; but the banks and the intermediaries always make their commissions; mostly upfront.

THIS MAN WAS A “JUDGE” OF MAN, SOME KIND OF JUDGE? NOW HE FACES GOD, THE CREATOR, THE GREATEST EQUALISER, THE ALMIGHTY AND THE SUPREME DIVINE JUDGE OF ALL MEN AND THE UNIVERSE, WHO WILL CONSIDER HIS “CREDENTIALS” (IF ANY) IRRELEVANT! WHAT IS RELEVANT IS HOW HE JUDGED OTHERS. DID HE UPHOLD HIS OATH OF OFFICE WITH IMPARTIALITY, PURE CONSCIENCE, PRUDENCE AND GOOD FAITH? ONLY GOD KNOWS.

 Malaysian Prime Minister Najib Razak will likely press ahead with snap polls by early 2012, banking on government handouts and moderating inflation to soothe worries about the economy but a possible global recession could jeopardise his chances.

Europe's debt crisis and an anaemic US economy have reined in price pressures, the biggest worry among Malaysian voters, but also triggered fears about job security and the general outlook for the trade-reliant economy.

The government's coffers have been bolstered by a strong run in commodity prices, enabling Najib to dole out cash payouts to farmers and civil servants and provide affordable housing and healthcare to the poor to tackle the rising cost of living.

"The government has started to address inflation concerns of the electorate but the measures taken so far are spread too thin to have an impact on swaying support," said Ibrahim Suffian, director of the independent opinion outfit Merdeka Centre.

"For the key constituents and undecided voters in the lower to middle income groups, a broader improvement of the national economic climate will still be needed for the government to feel a positive impact," said Ibrahim.

The next general election is only due in 2013 but the recent handouts coupled with moves to reform an unpopular security law have fuelled talk that Najib is gearing up for early polls to pre-empt any further fallout from the deteriorating economic outlook.

Najib needs to reverse his ruling coalition's poor showing in a 2008 general election but his approval ratings have fallen over the past year amid rising prices, widening religious discontent and anger over the slow pace of promised reforms.

The government is also expected to unveil further measures in the federal budget on Oct. 7 to boost spending, including a civil service salary hike, food stamps, cash vouchers for utilities and personal income tax cuts.

An increase in spending would be possible as government revenues are expected to total US$65 billion (S$85 billion) this year, about a quarter more than earlier projected thanks to higher energy prices and better tax collection, Citigroup said.

Since taking office in April 2009, Najib has steered economic growth to a 10-year high in 2010 but annual inflation touched a 27-month high of 3.5 per cent in June this year, hitting consumers' pockets.

Price pressures have since moderated although a survey by the Merdeka Center in August showed that inflation and the growth outlook remained the chief concerns of Malaysians.

Still, it could get worse for Najib if he were to wait further before calling for polls, some analysts said.

Malaysia's economic growth has been slowing slightly though it remains healthy, but some analysts expect growth to brake sharply this year as difficult global conditions erode demand for its exports.

Exports accounted for 89 per cent of Malaysian gross domestic product last year.

Malaysia's economic growth is officially expected to moderate this year to at least 5 per cent from a 10-year high of 7.2 per cent in 2010, as global demand softens.

Some economists have cut their 2011 growth projections on concern that the global financial market turmoil would hit Malaysia's economy.

The most direct impact of a sudden and sharp global downturn on Malaysia's economy would be through a weakening of domestic consumption and investment, said Kun Lung Wu, economist at Credit Suisse in Singapore.

A global downturn could also lead to a prolonged fall in global oil prices that would reduce the government's revenues, of which nearly half comes from state oil firm Petronas, affecting the government's own investment plans.

In the first episode of Meltdown, we hear about four men who brought down the global economy: a billionaire mortgage-seller who fooled millions; a high-rolling banker with a fatal weakness; a ferocious Wall Street predator; and the power behind the throne.

The crash of September 2008 brought the largest bankruptcies in world history, pushing more than 30 million people into unemployment and bringing many countries to the edge of insolvency. Wall Street turned back the clock to 1929.
But how did it all go so wrong?
Lack of government regulation; easy lending in the US housing market meant anyone could qualify for a home loan with no government regulations in place.
Also, London was competing with New York as the banking capital of the world. Gordon Brown, the British finance minister at the time, introduced 'light touch regulation' - giving bankers a free hand in the marketplace.
All this, and with key players making the wrong financial decisions, saw the world's biggest financial collapse.

Petronas is one of those mighty companies that are destined to turn in a profit every other year. It has total monopoly over all petroleum activities in Malaysia and suffice to say, Malaysia has benefitted since its incorporation via the Petroleum Development Act 1974.

Yet it is also a company shrouded in mystery. It is 100% state-owned and there is no intention, as yet, to privatise it. Thus, all profits are retained by the state, which in this case is Malaysia. But is that really the case?

"Since 1974 to 2010, Petronas reports show it has made profits totalling RM700 billion. Now, this is a joke. For Petronas to make so little money over such a long period of 36 years, it is an insult to the intelligence. Then when you compare against the WikiLeaks disclosure that Petronas is the 13th most profitable company in the world, it becomes even more impossible and you realize how mind-boggling the corruption really is," PKR vice president Chua Jui Meng told Malaysia Chronicle.

So, have all of Petronas' profits been duly channelled back to the state? If not, who has hijacked the money halfway, so to speak? The answer to the questions sparked by Jui Meng’s statement rests with the Prime Minister. No, Najib Razak cannot shirk this responsibility.

Section 3(2) of the Petroleum Development Act 1974 states : (2) The Corporation shall be subject to the control and direction of the Prime Minister who from time to time issue such direction as he may deem fit.

Key questions that Najib must address

What Section 32(2) means is that the CEO of Petronas is effectively the Prime Minister and in this day and age, that means Najib Razak. Being the vested power of the executive, the Prime Minister is assured of control over Petronas by this Act. Thus, both in truth and in effect, he is the person who decides or is responsible for decisions on all petroleum dealings and he certainly has a lot to answer for.

The first and most important question of all for Najib to answer and for the whole of Malaysia to get a reply on - is it true that 80% of the oil produced by Petronas is not sold directly to the world market but is channelled through six 'option holders' who obtain the supply from Petronas at below market prices?

If it is true, then these option holders are the ones reaping the benefits, especially from the oil price hikes. And this brings us to the second question, who are these option holders, are they the same coterie of cronies that fawn over ex-premier Mahathir Mohamad?

Third question: why was such a system set up when it clearly disadvantages the country and Petronas? Who proposed it and who approved it?

Fourth question and immediate action. What is Najib going to do about it? How is he going to stop the daylight robbery and re-direct the gravy train back to our shores?

Royal Commission of Inquiry

There are no two ways around this. Najib must answer these questions because it involves the llivelihood and welfare of all citizens especially the poor and disadvantaged. He cannot pretend that there is no basis for such suspicion, hence there is no need for him to answer. The figures just don't jive and the Pakatan Rakyat opposition must push for a Royal Commission of Inquiry into the books of Petronas if Najib refuses to lift the veil.

The global recession is due to hit our shores and Malaysians will suffer tremendously. Long and medium terms plans are not swift enough to yield the solutions needed to transform the economy. Stopping the diversion of Petronas' profits is not only one quick-fix but something that must be done before national wealth is plundered to the bone and future generations deprived of their rightful propserity.

If appropriate action is taken swiftly, billions of ringgit can flow back into the Malaysian system, alleviating pressure on the government and enabling it to farm out more aid to the lower-income groups who are suffering from crushing inflation and incomprehensible price hikes.

Time to lift the veil

Section 6(1) of the Petroleum Development Act 1974 gives the Prime Minister full authority in determining downstream operations.

Section 6(1) states: Notwithstanding the provisions of any other written law, no business of processing or refining of petroleum or manufacturing of petro-chemical products from petroleum, may be carried out by any person other than PETRONAS unless there is in respect of any such business a permission given by the Prime Minister.

And the nail in the coffin comes from Section 7 - The Prime Minister may make regulations for the purpose of carrying into effect the provisions of this Act and, without prejudice to the generality of the foregoing, such regulations may, in particular, provide for— (a) the conduct of or the carrying on of— (i) any business or service relating to the exploration, exploitation, winning or obtaining of petroleum; (ii) any business involving the manufacture and supply of equipment used in the petroleum industry; (iii) downstream activities and development relating to petroleum; (b) the marketing and distribution of petroleum and its products; (c) penalties in the form of a fine not exceeding one hundred thousand ringgit or imprisonment not exceeding five years or both for breach of any of the regulations and for noncompliance with any term or condition of any licence, permission or approval issued or granted under the regulations; (d) the forfeiture of anything used or intended to be used in the commission of any such breach or non-compliance.

It is crystal clear that through the Petroleum Development Act 1974, the prime minister is in full control of ALL petroleum-based business operations in Malaysia. From the extraction and all the way down to the selling of petroleum based products.

Yet, almost everything about Petronas is deemed a ‘state secret’. Due to the Act, it is a simple matter for the government to classify anything directly related to Petronas as 'secret' even-though as a state owned corporation, Petronas owes the people of Malaysia a full account of its profits and dealings.

Noose is closing in, there is no escape

It is telling that BN parliamentarians from MCA's Chua Soi Lek to Gerakan's Koh Tsu Koon have never dared to raise issues pertaining to this -  why? Is it because the head of Petronas is the Prime Minister and the Prime Minister is the leader of the BN parliamentarians? Would the BN parliamentarians dare question their boss?

There is no reason for Petronas to be secretive with its profits nor to hide its annual reports under a veil of secrecy. Unless, someone with power is deliberately hiding something from the public eye. Whoever that person and his cohorts may be, the Prime Minister of the day still has full authority to disclose all.

Najib cannot escape giving the nation these crucially needed answers.

Indeed, as a petroleum producing country, Malaysia could have provided free petroleum to its people or at least cheap petrol like Venezuala or Brunei. With such a wealth of a resource, Malaysia could have achieved a ‘high-income nation’ status much earlier in its history. With more than 30 over years of oil production under its belt, Malaysia is more than able to qualify as a developed nation, which is mostly quantified by income per capita considerations.

If only the money had not been hijacked!

The choice is now with the current Prime Minister. Come clean, seek forgiveness from the people and help to rebuild the country before it is too late. Or continue to participate in the Umno old-boys-club and enjoy a huge slice of the corruption pie, whilst the people sweat and toil for basic necessities.