Najib Preparing for a More Aggressive corruption with Mahathir's blessing

Congratulations. You're about to prevent hundreds of hours of your life from going down the rat hole between now and Election Day.It's no mystery why we pay attention to campaign news. We're wired to love stories. Suspense, surprise, risk, noise, combat: the thrill of a pumping narrative literally turns us on. It causes our brains to squirt the same feel-good neurotransmitter implicated in addictions to sex, drugs, gambling, food and checking our e-mail twice a minute.No wonder media outlets maximize political drama. It holds audiences, and that's great for the bottom line. But there is zero civic virtue in paying attention to campaign coverage. The likelihood that a news story, blog, rant or shouting match will change someone's mind about health care reform, bank regulation, marginal tax rates, the deficit or any other campaign issue is nil. There may be sober speeches and position papers out there, but airtime goes to mayhem. Keeping up with the punching and counter-punching may feel like being informed, but it's more like being entertained. So unless you're hopelessly hooked on inane speculation and manufactured melodrama, you are now free to move about the cabin.

Several arm chair critics, who wouldn't bat an eyelid paying their way through to get their work done illegally, but still hold forth on how corrupt we are as long that lecture is applicable to others,  have started dismissing the anti-corruption movement as dead. For them, the novelty aspect of organising walks around their localities with candle lights or a family outing where they can give bites to the marauding TV channels is now over. Till they can find another topic that satiates their hunger for reality TV, it is take-it-easy policy. Corruption has been tackled.

True, the movements, two of them, one led by Anna Hazare and the other, led by Baba Ramdev, are beset with contradictions. They are led by individuals who are inherently different, so this was inevitable, in a way. And exploiting these differences and the attitude of the hoi-polloi who swore by the movement till just a few months ago, is the dirty-tricks department whose sole aim is for the status quo on corruption to remain.

However, as much as the doomsayers predict or wish, the truth is not what is being projected. If one were to genuinely gauge the pulse of the masses, the impatience against corruption in all places, especially at the top, is only growing. As I have often argued in the past, it is the issue of corruption that is important, NOT the individuals behind the movement. Sure, there are leaders to give direction but ultimately it is the people who make or break a movement and despite every attempt by the mighty and powerful, contrary to what is being spread, the common man is not giving up. At least not yet!

Of course, like in any movement, there are fence sitters who get swayed by what the dirty-tricks department projects. It is for them to see through the shenanigans, for ultimately, believing them is only playing into their hands. It is at times like these that those who genuinely want to see this nation free of the curse of corruption have to be even more resolute.

I am not saying all is hunky dory with the movement. As I said, they are beset with contradictions and I would be the first one to admit that there are individuals involved in the movement, at fairly active level, who have a history that they can't be too proud of. I personally know of instances of some of these people misusing their position and have even shared it with those who have the good of the movement at heart. But come on, even this is par for the course in any people's movement. And if these people have now reformed and actually bring their considerable strengths to the table now, it helps, not hinder the movement.

But there are certain complete no nos as far as the movement is concerned. How a movement or any action is perceived by the masses is extremely important in any nation. This perception game can make or break a movement. It is in this context that the anti-social elements and hoodlums need to be given the boot. These clearly are not those who are with the cause. Their sole aim is to exploit the situation to indulge in their unlawful activities. These could include looting and general stuff that is unlawful and leaves a poor taste in the mouth and weakens the cause. It is even possible these hoodlums are paid for by those who want the movement to die. Thankfully, Ana Hazare himself has criticised these actions in no uncertain terms and well-wishers should also ensure such people are kept away. It is not easy though. For, how do you control individuals or groups whose avowed purpose/intention is to cause trouble, even violence, especially when those who have to prevent its happening are sane, non-violent types? It is ultimately a law and order issue. The fence sitters, therefore, must understand that hoodlums and anti-social elements are not for the cause but are set up to derail the movement.

Also, I was rather amused that the government reacted to the demand that the Lokpal bill be passed immediately demand with a caustic: Such things don't happen in four days. Absolutely, such things don't happen so quickly. But dear worthies, the issue has been with you for years, and you have even given repeated assurances that it is being done before backing off.

Find it strange that after all this, they still have the gumption to accuse those who are hounded day in and day out by the powerful state machinery in one way or the other. But that too is par for the course. Which fight for any cause has been between equals?

PKR Strategy Director has been charged in the Shah Alam sessions court this morning for allegedly breaching the Banking and Financial Institution Act when he exposed some of the worst abuses by National Feedlot Corporation (NFC).

Rafizi has led the charge to expose a long list of wrong-doings by the company and its directors, who are the husband and children of Datuk Seri Shahrizat Jalil, the recently resigned Minister of Women, Family and Community Development. Datuk Seri Shahrizat is still the Chief of UMNO’s Women’s Wing.

Despite the overwhelming evidence exposed to date, only Datuk Seri Shahrizat’s husband, Datuk Seri Mohamad Salleh has been brought to court, and even then only on 2 key charges – for misappropriating RM40 million of NFC’s money, and for acquiring 2 units of luxury condominium in One Menerung, Bangsar, Kuala Lumpur for RM13.5 million.

This is despite the fact that based on NFC’s last audited accounts, more than RM110 million has been misappropriated by the directors to set up a global chain of companies under their individual names. In addition, Rafizi has also exposed the fact that Datuk Seri Shahrizat’s family has acquired 3 luxury condominiums in Singapore worth some RM45 million, as well as a villa in Kazakhstan.

However, none of these assets have been frozen by the Malaysian authorities and none of the other directors have been charged despite holding various key positions in NFC, including the son, Izran Salleh who is the Chief Executive Officer of NFC.

Instead of pursuing the culprits who have abused the RM250 million government soft loan extended to NFC, the Government has chosen to exact revenge on the whistle-blower Rafizi Ramli who play the integral role in uncovering the lid on the litany of gross abuses by Shahrizat’s family.

The act by the Malaysian authorities marks a serious blow to the purported anti-corruption campaign launched by the Prime Minister Datuk Seri Najib Razak himself, under the Anti-Corruption National Key Result Area (NKRA) in the Government Transformation Programme (GTP). The spirit of the Whistleblower Act which was passed in December 2010 to encourage more to expose corrupt activities is clearly undermined with the persecution of Rafizi.

Only a week ago under the GTP2.0 Open Day, only 7 persons have sought protection under the Whistleblower Act today after more than 18 months, clearly pointing towards a complete lack of confidence in the Barisan Nasional government. Rafizi’s persecution will mark the death knell for the Act as no whistleblower will have any trust in the system to protect their interest.

The complete lack of urgency to bring criminal charges against Datuk Seri Shahrizat’s family members, and the speed at which Rafizi is being charged for blowing the lid on the scandal proves that Datuk Seri Najib has no qualms in protecting the powerful in Barisan Nasional, and quashing his political enemies. Such blatant abuse of power will only confirm in the eyes of the world that Najib’s reform agenda is pure hogwash.

We in the DAP will stand firm and together with Rafizi to ensure that truth and justice will prevail. Our leaders may have been detained without trial, sent to jail on trumped up charges and sued for defamation but we are committed to remain steadfast to our principles and will continue to fearlessly expose all misdeeds and wrongdoings committed by the BN leaders, their associates and cronies.

Here's all you need to know about polls: With margins of error of plus-or-minus three-to-four points, the breathlessly reported gaps between candidates will be illusory. They're ratings bait. One day one poll will say Obama or Romney has opened a shocking lead in Ohio or Florida; another day, another poll will say the reverse. In most cases, add three to one candidate's numbers and subtract three from the other, and it's a dead heat. You already know that polls are just snapshots, and that trends are what matter. Now you also know what the trends will say: It's going to be a nail-biter. So it's OK to unplug, take a walk and get some fresh air.The conventional wisdom is that whatever story is dominating today's news cycle -- a gaffe, a lie, a trip, a Trump -- will be forgotten by tomorrow. It is universally acknowledged that only three things matter between now and Election Day: Romney's choice of a vice president, the acceptance speeches and the debates. But there are no cliffhangers about how any of those stories will play out.

In his latest blog posting, Mahathir once again reiterated the achievements of the ruling coalition over the decades and warned Malaysians about the perils of changing the status quo.

On that note, the former premier and Umno president, who helmed the nation and party for 22 years, however admitted that being in power for 56 years was a long time.

“But look at the progress,” he argued. “No other developing country has made such progress.”

Over the months, Mahathir had been vigorously campaigning for BN and criticising the opposition, prompting observers to wonder if the ruling coalition’s hold on power and Mahathir’s dream of his son Mukhriz continuing his political legacy were under threat.

Previously, DAP veteran Lim Kit Siang said perhaps Mahathir, who had been accused of a litany of misdeeds, feared that his skeletons might tumble out of the closet if Putrajaya fell in the next polls.

This then prompted the former premier to pen a lengthy blog posting on how he had not misappropriated a single sen during his tenure nor having abused his power.

Change can make matters worse

Meanwhile, the former premier warned, in his latest posting, that change was not always for the better but on the contrary, could make matters worse for the nation.

“Beware of Greeks bearing gifts. Beware of politicians who make promises,” he said, in reference to the numerous election promises dished out by Pakatan Rakyat.

Watching the BBC news, Mahathir had witnessed how the world was plagued by financial turmoil, natural disasters, unemployment, acts of violence and famine.

He also noted how global warming had resulted in the ice in the Arctic and Antarctic melting, threatening to raise sea levels and inundate low lying land.

“Some island nations may disappear into the sea,” he said, perhaps in relation to neighbouring Singapore with whose government Mahathir’s ties had always been on thin ice.

“In the face of all these disasters, Malaysians can consider themselves fortunate.

“We do have mild floods, slightly raised temperatures and haze but they are nothing compared to the disasters affecting so many parts of the world,” he added.

However, Mahathir acknowledged that the crime rate had somewhat increased in Malaysia but did not elaborate on this issue.

“Even financially and economically we are not too badly off. The cost of living has gone up a little but people are not starving the way the Africans and some Asians are starving.

“A generous government is ever ready to extend help,” he said.

“Business is good even though we think it can be better. Our exports are high and still growing. Unemployment rate is low. Economic growth is still possible,” he added.

Making the nation bankrupt

Mahathir also conceded that the escalating cost of living was a burden for the poor.

“Of course on this issue, comparing us with the rest of the world where inflation is even higher will not be acceptable. But the fact is in many countries not only is inflation higher but there is food shortage also.

“In addition, they have to accept reduced income amidst widespread unemployment as we are living in troubled times. Like it or not we will feel the effects and we have to endure,” he said.

Targeting his political rivals, Mahathir said these people would exploit even the smallest misfortune the nation experienced and promised overnight prosperity, free education and all sorts of goodies.

“But observe the contradictions. They promise the oil-producing states to increase the royalty from 5% to 20%. Obviously this will result in the federal government losing 15% of revenue from oil and that is a big sum. The states gets their royalty based on gross income.

“They will do away with road tolls, increase subsidies on fuel and reduce rates and taxes. Their proposals will reduce government revenue and at the same time increase government expenditure. This is exactly what the Greek government did, and the whole country went bankrupt,” he added.

Mahathir recalled how US President Barrack Obama had constructed his election campaign around the word “change” but after four years into his term, not a single change had been made.

 Malaysia’s public finances are weak relative to those of its ‘A’ range peers and the country is now on par with more heavily indebted ‘A’ range sovereigns such as Italy, said Fitch Ratings today.

This comes after some economists said that the federal government’s debt, which nearly doubled since 2007 to RM421 billion, poses a fiscal risk to the country if not managed carefully as it impairs Malaysia’s resilience to economic shocks, which appear to be occurring with increasing frequency.

Fitch said that despite strong GDP growth, the deterioration in public debt ratios is affecting Malaysia’s credit profile and a lack of progress on fiscal reforms could lead to a ratings downgrade.

Fitch said that the rise in the federal government debt-to-GDP ratio and the limited broadening of the fiscal revenue base have pushed Malaysia’s debt-to-revenue ratio to 246 per cent in 2011, which is well above the ‘A’ and ‘BBB’ range medians of 137 per cent and 119 per cent respectively and is now on par with more heavily indebted ‘A’ range sovereigns such as Italy at 261 per cent and Israel at 180 per
cent.

Italy is considered one of the countries at risk of a debt default and saw its borrowing costs soar to above seven per cent in November last year.

Other factors putting pressure on the country’s credit profile are low and energy-dependent revenues as well as structural weaknesses such as low average incomes.

“Fiscal slippage or a lack of progress on fiscal reforms to reverse the deterioration in public debt ratios, following the impending election, could prompt negative rating action,” said Fitch.

It added, however, that if the country demonstrated sustained political willingness to implement fiscal reforms that lead to a strengthening of the fiscal revenue base, improved budgetary flexibility and lower reliance on energy-linked revenues streams, it would be supportive of Malaysia’s ratings at their current level — which were affirmed at ‘A-’ and ‘A’ for Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) respectively.

The agency said that Malaysia’s public finances also exhibit structural weaknesses with general government revenues, which came up to 24 per cent of GDP in 2011, remaining well below the ‘A’ range median for general government revenues which was 33 per cent.

It also expressed concern that the share of petroleum-related revenues is high at 36 per cent of federal government revenues and that fiscal flexibility was crimped by fuel subsidies, which amounted to nine per cent of total expenditure last year.

Fitch said, however, that reforms were unlikely until after the general elections.

It also pointed out that a sharp increase in non-resident holdings of marketable domestically-issued medium- and long-term government debt grew to 41 per cent of foreign exchange reserves at end-June 2012 from 21 per cent at end-June 2008, which suggests that the capacity of the country’s external finances to absorb shocks may be weaker than in the past.

On the plus side, Fitch said that Malaysia’s stronger and less volatile growth, and slower and less volatile inflation compared with its ‘A’ category peers, supports its credit profile.

It also said that the government’s structural reform plan for the economy helped attract private-sector investment interest in 2011.

“However, given the political environment, Fitch believes implementation risk to the reform agenda remains material,” it said.

Other Malaysian strengths include strong foreign interest in Malaysian government securities and a large and liquid domestic debt capital market, which should be able to limit the impact on domestic financing costs in the event of a sharp reduction in foreign participation.

Fitch said that the broader public sector holds 33 per cent of marketable domestic government debt, further enhancing the stability of financing and funding flexibility.

Some economists earlier said that while Malaysia’s government debt — currently at about 54 per cent of gross domestic product (GDP), and the second highest in Asia — has not significantly impacted the country and its credit standing; yet, the volatile nature of global markets may manifest such a risk at any time, which could lead to higher borrowing costs for the country.

While the Najib administration has vowed not to let federal government obligations exceed 55 per cent of the country’s GDP, there is increasing worry that when government-backed loans or “contingent liabilities” are taken into account, the government’s total debt exposure rose to about 65 per cent of GDP last year.

The World Bank also said last November that Malaysia is too dependent on fossil fuel revenues, with its non-oil primary deficit having doubled in the last five years to almost 20 per cent of GDP.

It is very sad. It is even heart rending. But the TDM still seems adamant with his views and remains indifferent to the swelling grassroots’ disillusionment with his political battles as they now loudly suspect his political intentions.

The Tun who once had millions of rakyat backing him and waging war against not only the home ground political opponents but even with the Brits and Asuies is now left with rising wrath of the citizens.

But he is determined to ride the tsunami and only time will tell how his political coffin is to be nailed.

The horrifying Mahathir-logic

If you sit back and reflect you get a sick feeling in the belly. The more the Tun defends his actions of the past and the thoughts he harbours still for the future of this nation, the more you feel great pity for this man who once held the bastion of premiership for over two solid decades.

His latest long write up in his blog comparing Malaysia to African nations and dispensing his now infamous Mahathir-logic, is drawing so much of attack from the citizens. And that in itself is a horrible sense of loss to this comparably young and blessed nation.

For a man and leader who secured a hundred per cent support for four terms as prime minister, he now is hopelessly struggling to defend his failures.

For a leader who had a population of people who are generally not hostile but respectful, he now stands to be drowned in so much of hatred coming from the same people who gave him the unquestioned mandate to lead.

As an elder citizen and retired statesman today, he could have become the healing balm to a troubled nation. As a leader who was recognized and trusted for two decades to bring solutions and socio-political panacea to the nation and even in the region, he now stands exposed of all his erroneous political orientation.

None of our past prime ministers have been punished so harshly. None of our leaders were condemned as much as this man suffers today.

Repent, Dr M

Of course, TDM must take stock and ask himself in all humility why is this so today. He must admit upfront where he went wrong and instead of fighting saints using the company of shady devils, he must be a contrite elder.

If only the Tun Dr Mahathir can come around one full circle, this nation need not feel the threat of crushed bodies and broken bones. If only he can be humble, lay down his battle armour to have it his and only his way, this nation will be healed with a miracle.

TDM must know now that he must join the rakyat in their war against corruption; in the battle against corrupt giants; in the ardous efforts of returning to society what belongs to all Malaysians.

Maybe it is apt to state that he should have changed his favorite lyrics of “I did it my way” to that of “It’s now or never”, the favorite hit song of his nemesis Opposition Leader Anwar Ibrahim.

Despite a slew of negative pointers, Prime Minister Najib Razak is set to call for snap general elections in September. According to Umno watchers, Najib has not been able to convince his deputy Muhyiddin Yassin nor former premier Mahathir Mohamad that another delay was justified.

"No matter how the provocation, GE-13 is set for after Raya as the mood is right then," an Umno watcher told Malaysia Chronicle.

A host of Umno pundits including its newspapers and media have in the past week predicted that the 13th general election would be deferred to November at the earliest -  after the October pilgrimage season and with enough time elapsed for the 'goodies' Najib is widely expected to announce in Budget 2013 slated for Seprmber 28.

Among reasons given were the recent shock defections by two Sabah BN MPs and this morning's sudden arrest of PKR strategy director Rafizi Ramli for blowing the whistle on Umno leaders in the RM250mil NFC corruption debacle.

Warlords will wait no longer

But it looks like the demand fror speedy polls within Umno outweighed other considerations.

Division heads and chieftains - often referred to as warlords - are running short of funds to run party operations and need fresh injections that Najib has set aside for GE-13.

Hence, the clamoring for polls - the earliest date of which can only be in September after Najib wasted more opportune moments to dissolve Parliament in November 2011, March/April 2012 and June/July 2012.

When the 58-year-old Najib took over from his predecessor Abdullah Badawi in April 2009, he had four years left of the five-year mandate given by voters in the 2008 general election. Although Najib blew in on promises for reform and a 'corruption-free' government, he has failed to meet his set targets.

Instead things have worsened, including the economy, widening racial polarisation, rising crime, corruption and a visible return to an authoritarian government.

For example, his order to arrest Rafizi has hurt him more than the opposition leader, who has now gained 'hero' status for his courage in laying bare the misdeeds of the Umno leaders. The arrest also deepens public perception that Umno is corrupt beyond redemption and its leaders had all joined hands with Najib to stop Rafizi from exposing their secret deals.

The Sabah factor

Najib's popularity too has dipped again despite strong efforts to bolster his popularity with a host of nationwde 'get-to-meet-the-people' programs. In June it fell to 64% from 65% in May and 69% in April. The BN fared even worse, plummeting to a historic low of 42%, with Malay voters chalking the greatest erosion in support.

Last weekend, Najib took another direct hit when two senior BN MPs resigned to become Independent lawmakers aligned to the Pakatan Rakyat led by Opposition Leader Anwar Ibrahim.

Lajim Ukin and Wilfrid Bumburing, BN stalwarts in Sabah state, are expected to be joined by other senior colleagues by as early as next week.

"There's nothing that Najib can do anymore. It is too late, the people don't believe in what he says. Whatever threats that Najib and BN make in the coming elections won't deter the plan by other Sabah leaders to leave BN. Otherwise, their constituents will vote them out," Chua Jui Meng, the PKR vice president, told Malaysia Chronicle.

Stressed out over 'ultimate disaster'

Pundits point to the embattled Najib's quavering voice at the recent launch of his 1M4U, or 1Malaysia for You, program targeting young voters. The event had taken place as Anwar announced new political pacts in Sabah that are bound to destroy the BN's political stranglehold there.

"He must have sensed the ultimate disaster for BN," said Jui Meng.