PERKASA MUST BE BANNED BEFORE SOMEONE DIES !!!!

Umno linked PERKASA must be banned as it has turned out to be a threat to society. It is also rather disturbing that the BN/Umno subservient Police are turning a blind eye to the gangster like actions of PERKASA.

With the 13th General Elections around the corner, people are afraid to attend opposition talks for fear of their own safety even though it is their democratic right to do so. The Scribe hold the ruling BN/Umno Regime solely responsible for the undemocratic and barbaric actions of PERKASA and their thugs.

PERKASA is now a threat to civil society and as such,the onus is upon the Registrar of Societies to strike out PERKASA. In a latest incident, PERKASA Thugs gatecrashed SUARAM's rally in Penang to mark Bersih 3.0’s one month anniversary. In this incident, the Umno linked PERKASA Thugs tried to attack a participant Dalbinder Singh. And when a DAP member came to his aid, he was instead arrested by the Umno subservient Police.

The following report is Courtesy of Malaysiakini
Chaos erupted at Suaram’s rally in Penang to mark Bersih 3.0’s one month anniversary, after a group of men started shouting at a state assemblyperson.

Trouble started when the unidentified group started heckling the gathering at the Esplanade today, challenging Pantai Jerejak assemblyperson Sim Tze Tzin to a debate.
Despite the provocation, no one responded and participants of the rally who were already dispersing, tried to distance themselves from the venue at the Speaker’s Square.

The noisy group however persisted, shouting at a participant Dalbinger Singh who was speaking at another corner, challenging him to debate with them.

The rowdy group approached him at 7.30pm, and a fracas broke out.
Several plainclothes policemen intervened and tried to separate the group from the participants.
Several people, however, continued to chase Dalbinder around the field despite some senior citizens trying to protect the latter.
Later, Georgetown OCPD Gan Kon Meng confirmed that two men have been arrested for being involved in a fight, and are being investigated under section 160 of the Penal Code.

One is Perkasa Penang exco member, a 32-year-old factory technician from Pantai Jerejak who was amongst the hecklers.
The other is a 51-year-old DAP member who had tried to protect Dalbinder from being physically abused.

The Scorpene scandal and the long arm of the law

byAndrew Khoo

 (Andrew Khoo is a practising advocate and solicitor)

Read here for more

 

WHEN it comes to an issue like corruption, nations have long since accepted that it cannot be combated single-handedly.  A significant milestone in cooperation was when the General Assembly of the United Nations (UNGA) in New York passed the United Nations Convention against Corruption (UNCAC) on 31 Oct 2003.

Shortly after, Malaysia signed the UNCAC on 9 Dec 2003.  The UNCAC came into force on 14 Dec 2005. We then ratified it on 24 Sept 2008.

As a party to the UNCAC, how well do our government ministers understand Malaysia’s obligations under this international treaty and local laws on international cooperation on criminal matters?

 Defence Minister Datuk Seri Ahmad Zahid Hamidi’s recent snubbing of the inquiry by a French court into the Scorpene submarines scandal suggest ignorance, at the very least.

Scorpène Class Malaysian Navy submarine "Tun Razak" in the shipyard of Navantia-Cartagena (Spain) few days prior to its delivery.

How UNCAC works

Under the UNCAC, state parties agree to cooperate with one another in every aspect of the fight against corruption, including prevention, investigation, and the prosecution of offenders. State parties are bound to render specific forms of mutual legal assistance in gathering and transferring evidence for use in court and to extradite offenders. 

There is a provision whereby state parties that do not have extradition treaties with each other may use their common membership of the UNCAC as the basis for any extradition request. They are also required to undertake measures which will support the tracing, freezing, seizure and confiscation of the proceeds of corruption.

Another over-arching trend in the international fight against transboundary issues is universal jurisdiction. A country can bring to trial and prosecute in that country, those accused of having committed a crime in another country. 

An area relatively new to Malaysia, we are only beginning to adopt universal jurisdiction through recent amendments to Section 4 of the Penal Code. This expands the scope of extraterritorial offences to include damage to property belonging to, or operated, or controlled, not just by a Malaysian federal or state government, but also to a Malaysian company or individual located outside Malaysia.

 This addresses our lack of laws to prosecute offences such as the hijacking of a Malaysian privately-owned (but foreign-flagged) ship by Somali pirates in international waters.

Ignorance or lack of political will?

Zahid Hamidi 

Bearing this in mind, Ahmad Zahid’s response to the possibility of being subpoenaed to appear in a French court to answer questions about the Scorpene affair is surprising for a number of reasons. France is also a signatory to the UNCAC, having signed it on 9 Dec 2003, and ratifying it on 11 July 2005.

The investigation by the French courts into allegations of transboundary corruption in the purchase of two Scorpene submarines by Malaysia would be precisely the kind of issue that UNCAC and universal jurisdiction are intended to address. By ratifying the treaty, Malaysia has signified to the world our willingness to submit to an international framework of cooperation in this regard. 

The Defence Minister’s comments, then, seem totally out of line with our international obligations.

Ahmad Zahid reportedly said, “Why should I appear?  I am not a witness!  If I appear, who will pay for my expenses?  I don’t want to use my money and the government’s money.”

In so doing, he clearly revealed his lack of familiarity with the Mutual Assistance in Criminal Matters Act 2002.  Part II of this Act deals with requests to Malaysia by foreign governments. In particular, Section 27 of the Act deals with requests for attendance of a particular person in another country to give evidence or assist in a criminal matter there.  

Malaysia’s Attorney-General can be requested by foreign authorities to arrange for the person to attend such proceedings. Section 19 specifically requires the Attorney-General to confirm that “allowances” and “arrangements for security and accommodation for the person” are to be made by the requesting foreign authorities.

So really, Ahmad Zahid need not worry about spending his own money or that of the Malaysian Government. France would pick up the bill, merci beaucoup.

Ahmad Zahid’s own ignorance aside, Malaysia’s attitude towards the Scorpene probe is also an issue of political will. 

Even though France is not a “prescribed foreign State” pursuant to Section 17 of the Act, Section 18 of the Act allows the Attorney-General to give special direction in writing for the Act to apply to that state. There is room for ad-hoc cooperation with France, if the Attorney-General recommends it and if the minister in charge of law agrees.

International perception

Malaysia could still refuse to entertain a request from France and would have grounds to do so in Section 20 of the Act.  These include:

• Section 20(1)(g): the facts constituting the offence to which the request relates does not indicate an offence of sufficient gravity;
• Section 20(1)(h): the thing requested for is of insufficient importance to the investigation or could reasonably be obtained by other means;
• Section 20(1)(i): the provision of the assistance would affect the sovereignty, security, public order or other essential public interest of Malaysia.

However, Malaysia should be cautious of how a refusal would be perceived by the international community in such a high-profile case. Care must be taken not to give a wrong impression.

No doubt, the Act contains complex provisions which include the voluntariness of a witness to travel to another country to assist in a criminal probe. The details of the Act’s provisions are beyond the scope of this article but suffice to say, the Minister of Defence should not have been so quick and glib in his reaction. 

Provisions do exist in Malaysian law to send him for an all-expenses-paid trip to Paris.  He should seek legal advice. 

Had he done so, he might have not been so glib again with his latest reaction — “Who are they to issue a warrant of arrest? We are not subjected to French laws.”

‘Red notice’ option

 

There is still the possibility that France could request countries, with which it has a mutual assistance in criminal matters agreement, to detain Ahmad Zahid and deliver him to Paris. 

This could happen should Ahmad Zahid travel to any such country or to any country which is a member of the European Convention on Mutual Assistance in Criminal Matters. No doubt he would then have to fight it, just as, under different circumstances, Julian Assange is currently fighting his extradition from the United Kingdom to Sweden.

It is open for the French courts, if Ahmad Zahid refuses to answer a subpoena, to upgrade that subpoena to an international warrant of arrest, and to seek the assistance of Interpol to effect it.  

This is known as a “red notice”.  Whether the French would actually do that is a tale for another time.

French 'bought' top secret document from M'sian Navy

A highly-classified document - an evaluation by the Malaysian Navy of the Scorpene-class submarines to be purchased by the government - had been allegedly "bought" by a French defence company.

French lawyer Joseph Breham, who is acting on behalf of human rights NGO Suaram, revealed that the company had allegedly paid 36 million euro (RM142 million) to Terasasi (Hong Kong) Ltd, ostensibly for "commercial engineering" works.

Breham (right) said French investigative judges probing the case lodged by Suaram against Paris-owned shipmaker DCNS for alleged corruption have inquired what those payments were and demanded reports of financial transactions from the company.

"They (the inquiry judges) were given information which are already available in the Internet and newspapers, except for this one document," revealed Breham at a press conference in Bangkok yesterday.

"It was a secret document by the Malaysian Navy - an evaluation for the order of the submarines, which is a highly confidential report," he told journalists at the Foreign Correspondence Club of Thailand.

Breham, who based his expose on the French prosecution papers, said the act of "selling" top secret papers to a foreign country such as this was considered a treasonous act.

In France, he stressed, it would be absolutely illegal to sell such reports as it could either be considered a breach of defence secrets or high treason.

"It's treason because you are selling a competitor or a foreign country what you think about a specific weapon, and your plan on how to use this specific weapon," replied Breham, when asked by a journalist if it was legal for an individual to sell such reports.

"In France, if you release them (the secret documents), you can be punished up to 10 years jail," said Breham, who is with Sherpa, a non-profit legal and human rights Paris-based NGO representing Suaram in the legal action.

Najib can be arrested by Interpol

Hong Kong-based Terasasi had been accused of funneling money through its accounts to Malaysian Prime Minister Najib Razak as "commissions" on the sale of the submarines.

The submarines was purchased from the French company Thales International, also known as Thint Asia, in a deal inked in 2002 when Najib was defence minister and deputy prime minister.

Thales is an off-shoot of French defence giant DCN, which later changed its name to DCNS, a company facing legal charges filed by Suaram in 2010. The case has recently opened in the French court.

Two Terasasi directors are Najib's close ally Abdul Razak Baginda and the latter's father Abdul Malim Baginda.

In 2006, Razak, together with two of Najib's former bodyguards were charged for the murder of Mongolian national, Altantuya Shaariibuu, but the political analyst was acquited without his defence being called.

Najib (left), who has refused to comment on the matter, has also denied ever being involved in the scandal, but Breham has reiterated that the PM cannot avoid testifying in a French court if he is either subpoenaed or issued a warrant of arrest by Interpol.

Breham said that it was possible that Thales decided to pay the money to obtain the classified document so that it could better bid for the project, and this meant "paying someone to commit an offence".

The other possibility, he added, is that the French company had paid the commission to channel money to ruling party Umno or to high-ranking individuals in Malaysia, as already revealed in French prosecution papers.

Breham said that this "demonstrated beyond a shadow of doubt" that the French counterpart knew the money was illegal and should not be paid, and that it would go to top Malaysian officials.

He added that the money, whether legal or illegal, was paid to individuals "for no forseeable reasons" when it could have been put to better use.

"To put it blunt and clearly - if the money had not been paid to high-ranking officials, it could have been used to allow Malaysians to pay less taxes for the same services or to have much more services for the same amount of taxes," suggested Breham.

"The Malaysian taxpayers are the first casualties in this case," he added.

Selling nation's secrets a crime

Meanwhile, Subang parliamentarian R Sivarasa, who was at the Bangkok press conference, said that the expose of the top secret document being sold to a foreign country could land a person in jail.

Sivarasa (right), who is also a lawyer, said anyone familiar with the Malaysian legal system know that the country has the toughest official secrets legislation.
In terms of the broad scope of the law, he added, the breach of all official secret documents and publications are punishable by a mandatory jail sentence.

"These documents - as mentioned by Breham - falls into the highest category of official secret documents as it has implications for the security of the country," said the PKR leader.

"Without any question, this is a criminal offence (to allegedly sell the documents to a foreign company). There have been people who went to jail for revealing far less innocous documents," he added.

Sivarasa was in Bangkok together with Suaram director Cynthia Gabriel, lawyer Fadiah Nadwa Fikri and Breham to reveal 'damning details' surrounding the alleged Scorpene scandal.

The press conference was held in Bangkok as Breham was unable to get a proper visa to enter Malaysia.
His law partner, William Bourdon, was deported from Malaysia after he attended a fundraiser in Penang last year.
The Bangkok event, attended by foreign journalists and Malaysian embassy officials (left) - who left immediately after the function - was hosted by regional human rights NGO Forum-Asia

Scorpene scandal: Najib looking at red notice

FMT Staff | May 30, 2012

Suaram's privileged access to confidential documents also reveals roles played by a person said to be close to Daim Zainuddin.

 

PETALING JAYA: There is a possibility of Prime Minister Najib Tun Razak and Defence Minister Ahmad Zahid Hamidi being issued an international warrant of arrest if they fail to adhere to French subpoenas to assist in the Scorpene submarine corruption inquiry.

Suaram’s French lawyer Joseph Breham told a press conference in Bangkok today that the French judges hearing the inquiry have discretionary powers to ask the Interpol to issue a red notice (an international warrant of arrest) against witnesses who failed to submit to the French court.

However this would be the last resort to be undertaken to compel witnesses to testify in Paris.

Breham explained that the French court is able to take on several courses of action, in compelling the Malaysian witnesses.

He said that the judges will first issue a subpoena in writing on a witness, and once a subpoena has been issued, the witness is obliged to appear before the courts and to assist the courts in its works.

“If the witness refuses to abide by the subpoena, the court can issue a notice ‘mandate d ‘amener’, compelling the witness to appear before it.

“If the witness fails to oblige, a warrant of arrest may be issued. The warrant of arrest is applicable within the boundaries of the French territory, and may be internationalised, if the judge deems necessary.

“Based on the judges’ discretionary power, they can ask Interpol to issue a red notice i.e an international warrant of arrest,” he added.

He also said that judge Roger Le Loire, one of the two Instruction Judges assigned to oversee the case, had principally accepted Suaram’s list of seven proposed witnesses, including Najib, Zahid Hamidi and Abdul Razak Baginda.

“Judge Le Loire after hearing an elaborate testimony from Suaram, accepted our statement, and promised to proceed with the inquiry with no stone unturned,” said Breham.

He added that on the acceptance of the seven witnesses proposed by Suaram, the French judge had asked for the full details of the persons involved, in order to begin issuing subpoenas as he saw fit.

Legal obligations
In a statement issued by Suaram after the press conference in Bangkok, the human rights NGO said that Malaysia has legal obligations under the UN Convention Against Corruption (UNCAC) to cooperate with other nation states in preventing, investigating and prosecuting offenders of corruption.

It added that state parties are bound to render specific forms of mutual legal assistance in gathering and transferring evidence for use in court and to extradite offenders.

Suaram also said that it has gained full privileged access to the 153 investigation papers from the French Public Prosecutor’s office.

“This is a huge step forward, as many of the details kept confidential are now made accessible to Suaram as the civil plaintiff in the criminal case against the DCNS (French shipbuilding company),” it said.

It said that in one document – named Document 97 – was a note for the French Minister of Defense dated June 2, 1999 related to an interview with the Malaysian Defence Minister and the French-Malaysian diplomatic relationships as far as defense is concerned.

“The note states that pursuant to the major defence contracts between France and Malaysia, there is a requirement that substantial transfer of money has to be channeled to individuals and/or political organisations.

“The note specifically states that apart from individuals, the ruling party (Umno) is the biggest beneficiary. Consultants (company agents) are often used as political network agents to facilitate these monetary transfers and to receive commissions from their mandators,” said Suaram’s statement.

Wives’ network
It further said that the note mentioned about Mohd Ibrahim Mohd Noor and Razak Baginda as points of reference for political network, while adding that Mohd Ibrahim Mohd Noor was close to the then Finance Minister Daim Zainuddin and Razak Baginda to the then Defence Minister Najib.

“The note also explains that by early 2001, Mohd Ibrahim Mohd Noor’s influence began to decline following the fall from power of the Minister of Finance, Daim Zainuddin which resulted in the disappearance of Mohd Ibrahim Mohd Noor’s name from Perimekar both as shareholder and director which was later replaced by people of Razak Baginda’s network.

“Razak Baginda eventually becomes the main point of reference for political network to facilitate the money transfer,” added Suaram.

Suaram said the note also pointed out that Razak’s wife was a close friend of Najib’s wife Rosmah Mansor.

Suaram also said that it was holding its press conference in Bangkok – and not in Kuala Lumpur – following the forced deportation of one of Suaram’s lawyers, William Bourdon, last July when he visited Malaysia to speak about the case.

Suaram’s complaint with the French courts for a judicial review of the Scorpene contract in November 2009 has resulted in the commencement of a judicial inquiry at the Tribunal De Grande Instance in Paris.

The inquiry will probe alleged corruption crimes and illegal bribes involving top officials from both Malaysia and France in the sale of two Scorpene submarines by French shipbuilding company DCNS to the Malaysian Defence Ministry, then helmed by Najib.

Hello EC, do listen to the rakyat!

Selena Tay | May 30, 2012

By conveniently choosing to ignore the shenanigans that are still going on, it is thumbing its nose at the rakyat.

The Election Commission (EC) is at it again. Despite citizens’ calls for free and fair elections via the Bersih movement, PAS has discovered more irregularities in the voter rolls.

In the parliamentary seat of Pandan in Selangor, currently held by MCA’s Ong Tee Keat, phantom voters have been “residing” in houses in Lorong Kemajuan 1, 2 and 3 of Kampung Pandan.

Several examples are: No 5 has 43 phantom voters; No 29 has 13; No 31 has 11; No 33 has 18; and No 39 has four.

Credit has to be given to PAS for diligently going from house to house to verify the information on the voter rolls. That these shenanigans are still going on show that the EC is thumbing its nose at the rakyat.

In the aftermath of Bersih 3.0 rally on April 28, all attention has been diverted from the voter rolls to the so-called rioting, police brutality, attacks on journalists and Bersih participants tearing down the barriers put up at Dataran Merdeka.

All these incidents served as a diversion from Bersih’s demands and this worked perfectly well for BN. Even the protests in front of S Ambiga’s house were meant to divert the focus away from Bersih’s eight-point demands for free and fair elections.

That the BN-friendly protesters sought to victimise Ambiga is a clear indication that the nation has descended to hooligan politics, courtesy of Umno-BN. The mission of the crony-protesters is to intimidate Ambiga but instead it gave more prominence to Bersih’s cause.

Machiavellian ploy?

Yet amidst all this victimisation suffered by Ambiga, the EC still refuses to clean up the voter rolls and reform the postal ballot. The EC has chosen to remain strangely silent in regard to Bersih’s demands. The BN government has also kept quiet on this issue.

There were ridiculous accusations by some parties that certain quarters were hijacking Bersih’s cause to topple the government through street protests. All this nonsense are attempts to divert attention from Bersih’s core issues.

And yet the top two EC officials continue in their job as if nothing had happened. For them it is business as usual.

They can only come up with silly statements without solid explanations when they proclaim that the voter roll is clean or that the people do not know anything about the electoral process.

The mainstream media is also playing a devilish role by sidelining the role of National Laureate A Samad Said, fondly known as Pak Samad as the Bersih co-chairperson. The racial card is at play here by making it seem that Bersih is an Indian lady’s initiative and the hidden agenda is to discourage Malays from supporting Bersih.

Is this a Machiavellian ploy to deny Bersih Malay support?

However, civil society should see through this evil intention in using the race card to divide society and we should not be diverted from Bersih’s cause.

Civil society should see that the current government is trampling on our rights when we demand for free and fair elections.

Selective amnesia

Still, the most deafening silence comes from none other than Prime Minister Najib Tun Razak himself. It was only last year that he had mentioned that he is all for fair and clean elections because BN wants to be seen winning in a clean and fair manner.

He must have forgotten his own words due to selective amnesia or a convenient lapse of memory.

Be that as it may, what happened to his Government Transformation Programme (GTP)? Are free and fair elections omitted from the GTP? And what about 1Malaysia’s People First, Performance Now? The people want clean elections, so what does he have to say to that?

That the top two EC officials have been exposed as Umno members elicited no response from the prime minister is an obvious indicator that BN just does not care about cleaning up the electoral process.

The only people who want electoral fraud are those who know that they cannot win without cheating.

Therefore those who win via electoral fraud are cheaters, liars and thieves as the rightful election result was stolen from the rakyat.

These rogues can form the government but they will fail to command the citizens’ respect nor the respect of the international community as they will be known worldwide as a rogue regime.

Back to the EC, it looks like there is no way to make them accede to our requests. There are those who say that then there should be Bersih 4.0, Bersih 5.0, Bersih 6.0 and so on. But will having a few more Bersih rallies solve the problem?

The best way is still to come out in full force to vote and take pictures of electoral fraud going on.

These pictures should be posted on YouTube or Facebook to let the whole world know so that we will not be the world’s laughing stock for having voted in a bunch of rogues.

And it looks like the EC is powerful enough to destroy our future by manipulating our votes to ensure that only the corrupt stay in power. Is there any solution to this predicament?

Daim's ally named in Scorpene probe papers

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Human rights NGO Suaram has revealed that the name of an individual closely linked to former finance minister Daim Zainuddin is mentioned in the French prosecution papers on alleged corruption in Malaysia’s RM7.3 billion purchase of two Scorpene-class submarines in 2002.

At a press conference in Bangkok today, Suaram director Cynthia Gabriel said French police had seized documents including a note for the French defence minister dated July 2, 1999.
This related to an interview with then Malaysian defence minister Najib Abdul Razak and French-Malaysian diplomacy on defence matters.
"The note mentions one Mohd Ibrahim Mohd Noor and Abdul Razak Baginda as points of reference for political network," she said.

"It further states that both have strong political connections as Mohd Ibrahim is close to Daim, and Abdul Razak to Najib.”

She said another note explains that, by early 2001, Mohd Ibrahim's influence had begun to decline in tandem with Daim’s waning power.

Mohd Ibrahim's name then ‘disappeared’ from Perimekar Sdn Bhd - said to have served as intermediary in the Scorpene purchase - both as shareholder and director. He was replaced later by those in Abdul Razak's network.

Gabriel said consultants (company agents) are used as "political network" agents to facilitate monetary transfers and to receive commissions from their mandators.
Abdul Razak (left) eventually became the main point of reference for political network to facilitate the money transfer, she claimed.

"The note stated that ... Abdul Razak maintained excellent ties with the defence minister and the prime minister.
"Furthermore, his wife is a close friend of the defence minister’s wife. Therefore, Abdul Razak became the centre of the network."

In a document tagged ‘Malaysia’, there is a confidential report on Perimekar and Terasasi Sdn Bhd - owned by Abdul Razak and his father - as well as a report that includes a note on ‘retracing the background of negotiations’, said Gabriel.

The note states that, pursuant to the major defence contracts between France and Malaysia, there was a requirement that substantial transfer of money had to be channelled to individuals and political organisations like Umno.

Lawyers R Sivarasa and Fadiah Nadwa Fikri were at the press conference - hosted by Forum-Asia executive director Yap Swee Seng - alongside Suaram’s French lawyer Joseph Breham and Malaysian embassy officials.

M’sia staring at recession with Greek euro exit

Syed Jaymal Zahiid | May 30, 2012

Investors are predicting a Greek departure by early 2013 that may trigger a global financial crisis, and Malaysia cannot escape from the repercussions.

KUALA LUMPUR: Malaysia is facing the threat of a second recession in just four years should troubled Greece leave the euro zone, which economists and analysts now say is likely.

Bloomberg quoted economists as saying that a Greek exit could reduce China’s growth to 6.4% this year from 9.2% in 2011 and Malaysia will be among those affected by slow demands from the world’s second biggest economy.

In recent years, Malaysia and the rest of Asia have increased their trade with China, betting on the Asian giant’s continued growth to offset weak exports to the West.

This meant China could no longer fill in the gap left from the US and EU economic crisis and Greece’s departure would trigger fresh market panic.

Prior-Wandesforde, a Singapore-based director of Asian economics at Credit Suisse, said the ongoing euro zone crisis “would also mean a renewed, deep recession would be highly likely in Hong Kong, Singapore, Malaysia, Taiwan and South Korea”.

Exports to the euro zone from these countries account for more than 5% of total gross domestic product (GDP), according to the Prior-Wandersforde’s calculation.

Malaysia had recorded a third consecutive quarterly drop since it posted a 7.2% increase in the second quarter of last year after it announced a mere 4.7% GDP growth, and analysts are predicting a sharper dip for the rest of 2012.

Collateral damage

Many of the reasons contributing to the projected slowdown had to do with the increased reliance on China, which economists say is headed for a sixth consecutive quarterly drop in growth. Analysts are saying the worse is yet to come.

Economists at China International Capital Corp (CICC) said Chinese exports slowed unexpectedly in April and may dip by 3.9% if Greece exits the euro compared with a 10% gain without an exit. About 19% of the country’s export goes to the EU.

Bloomberg reported Citigroup economists as saying that the probability of the Mediterranean country leaving the euro is higher than their earlier forecast of 75% and now are making a “base case” that Greece will leave at the beginning of 2013.

Bank of America Merrill Lynch strategists estimate the euro-region’s GDP would contract at least 4% should Greece depart, a scenario similar to the Lehman’s 2008 collapse that resulted in the global financial meltdown.

“A Greek departure from the currency would inflict ‘collateral damage’,” says Pacific Investment Management Co’s Richard Clarida, a view echoed by economists from Bank of America Merrill Lynch and JPMorgan Chase & Co, according to a Bloomberg report today.

Although Greece is only responsible for 0.4% of the world economy, anxiety over the June 17 Greek election has already helped wipe almost US$3 trillion (RM9.5 trillion) from global equities this month.

Malaysia had recorded a sharp drop in foreign direct investments in the wake of the eurozone crisis and despite slower growth predictions, Prime Minister Najib Tun Razak maintained that the country is on target to meet its 5% GDP target for 2012.

Anwar to Najib: Re-table budget 2012

K Pragalath | May 30, 2012

The opposition leader says the budget has failed to achieve its targets.

PETALING JAYA: Opposition Leader Anwar Ibrahim wants Prime Minister Najib Tun Razak to re-table Budget 2012 in view of the slower economic growth of 4.7% in the first quarter of this year.

He said this was important because the Najib administration failed to achieve its target since 2011.

“It is the second time that Najib’s administration failed to achieve important economic targets which were the basis for Budget 2012.

“The first economic target missed was the economic growth for 2011, which at 5.1% was lower than the projected growth used by BN in the budget,” he said in a press statement.

The economic growth forecast for 2011 was 5.0% – 5.5% and for 2012, 5% – 6%.

To re-address the problem, Anwar wanted Budget 2012 to be re-tabled during Parliament session next month.

“I reiterate my call made in Dewan Rakyat previously that the Budget be re-tabled for a debate in the June session of the Parliament because the growth assumptions were wrong,” he said.

Yesterday, Najib announced that Budget 2013 would be tabled on Sept 28.

The prime minister, who also oversees the finance portfolio, said the new budget was themed “Driving Transformation Towards A Developed Nation.”

Bumi equity ‘hijacked’

Meanwhile, Anwar also criticised BN’s mishandling of the economy in achieving the 30% equity for the bumiputera and highlighted Pakatan Rakyat’s proposal to bolster the economic power of Malaysians.

“One of the most radical economic realignments proposed is to shift the policy focus from the much abused 30% equity target for the bumiputera currently pursued by BN towards an income-based economic target of RM4,000 minimum household income for each family within five years of Pakatan’s administration.

“The 30% equity target has been hijacked by cronies to enrich themselves at the expense of the general public,” he said.

“The disparity between the rich and poor widens significantly as a result of the abuses done in the name of achieving the 30% equity target.

“A fairer management of the country’s wealth should rightly focus on ensuring every family can prosper economically under the Malaysian sun.

“Every family’s income must rise in tandem with the rise in cost of living.

“Every family must earn above the poverty level so as to be able to invest in the future of their children,” he added.

‘Debate with me’

Anwar said the economic target set by Pakatan that the combined income of each Malaysian family should be at least RM4,000 a month was not only morally right but achievable through a combination of pro-people economic policies proposed.

He also reiterated his call for a debate with Najib on economic issues if the latter felt that the current economic policies were on the right track.

“If he is confident that Pakatan will not be able to deliver our economic promises, he must be bold enough to defend his conviction in a public debate.

“His refusal to debate with me on economic policies can only confirm the assertion that he is leading a weak government – economically, morally and intellectually,” he added.

Proton is the price we pay for brainless patriotism

Koon Yew Yin , CPIAsia

The founding of Proton National Bhd in 1983 was a big expensive mistake to begin with. Billions of ringgit from taxpayers have been lost in the process.

The haemorrhage could not be stanched until only recently when Khazanah Nasional Berhad sold off its 43 percent stake in Proton to DRB-Hicom a few months ago. Malaysians have been wondering – is this finally an end to the unhappy saga of the government’s foray into the production of a so-called ‘national car’ or will the burden on taxpayers and car owners be continued in other new ways?

A revisit of this white elephant project is necessary to generate a larger public discourse especially amongst taxpayers who should be more concerned as to where all the tax money they’ve been paying has gone to.

One simplistic assumption which appears to have been made by the initiator of the national car project Dr Mahathir Mohamad is that an industry that is growing yearly should be profitable. It is not. In fact, industry data shows that the total profits of all the car companies over the last decades amount to only a modest return, and that only for the fittest in the industry.

The British experience

Consider the case of British Leyland, a vehicle-manufacturing company formed in the United Kingdom in 1968. It was partly nationalised in 1975 with the government creating a new holding company. The company incorporated much of the British- owned motor vehicle industry, and held 40% of the UK car market.

Despite containing profitable marques such as Jaguar, Rover and Land Rover, as well as the best-selling Mini, British Leyland had a troubled history. In 1986 it was renamed as the Rover Group, later to become MG Rover Group, which went into administration in 2005. This ended mass car production by British-owned manufacturers.

Today, many British car marques have transferred their ownership to foreign companies. For example MG and the Austin, Morris and Wolseley marques have all become part of China’s SAIC Motor Corporation Ltd.

Mistake avoidable

Why Dr Mahathir failed to learn anything from the disastrous British car industry experience is something that completely escapes many Malaysians. Surely any good leader would have gotten his officers to do due diligence.

If they had done so, they would have found that the industry even with year-on-year rises in sales is not guaranteed to generate good returns to shareholders. Notwithstanding its long tradition of successful car manufacture and the country’s highly developed economy, the industry in the UK still failed to make profits.

The reason for this situation is because one of the forces that limit profitability is the intensity of rivalry between car companies from around the world. This leads to oversupply and pressure on prices, further exacerbated by a high degree of freedom for new competitors to enter the industry.

Unless there is an enormous internal market such as China’s or the United States, and we can take advantage of the economy of scale, small producers such as Malaysia are forever doomed to a minor placing, or bankruptcy, in the marketplace.

Played out by Mitsubishi

As far as Proton is concerned, Mahathir’s mistake in ignoring the economic fundamentals of the industry was compounded by our lack of expertise or comparative advantage to produce cars. The anticipated technology transfer from Mitsubishi did not take place.

This should have been anticipated. Why should Mitsubishi transfer their know-how to Malaysia when it can control the pace of transfer to maximize its profits? In fact, the top management of Proton should ask Mitsubishi to open their books to see how much profit they have made from Proton since it began operation.

Mitsubishi knew that Proton could not do without them and they were quite happy to continue making money from Proton while the company here continued to bleed to death.

Equally important was the poor quality of management. Just before the privatization exercise, Proton had accumulated RM4 billion during Tengku Mahaleel Ariff’s tenure as chief executive officer but its cash reserves had dropped to RM600 million during his successor Mohammed Azlan Hashim’s stewardship, according to Mahathir.

To encourage people to buy Proton, the government increased the import duty for other cars and car parts. As a result, the consumers have suffered. For over 30 years we have had to pay higher prices for all cars including Proton. Even this has not been sufficient to save Proton which has been sold five times already.

Another question to ask is why few car manufacturers, until recently, seem to get into bankruptcy? If so, then prices can rise relative to cost and shareholders can get a fair return.

There are two main reasons. In some countries there is always the perennial optimism of managers and shareholders. In Malaysia, the reason is different. Here, our government has been changing rules and regulations to obstruct other cars from entering our market whilst providing special favours including an ever ready supply of financial assistance to keep Proton afloat.

The end result is that some Malaysians have ended up with more expensive cars of other brands whilst most Malaysians have had little choice but to buy Proton – a poor substitute.

This is the price we have to pay for brainless patriotism.

Proton’s and our never-ending problems

Ours is a sorry saga which is a classic case study on how not to set up a car industry. As with the national airline, I propose that a special course on our experience with Proton be offered in the Institute of Tun Dr Mahathir Mohamad’s Thoughts.

What better way to honour the ex-premier than a post-graduate course on his pet project – the National Car – and inviting him to be a guest lecturer. I am sure he will have lots to share and many people to blame as to why the project has failed.

Earlier this year tycoon Syed Mokhtar Al-Bukhary was allowed to take full control of Proton. Since the sale, Proton’s problems have continued through its loss-making subsidiary, Lotus. In March, the conglomerate was forced to put in place a team of consultants to conduct an audit on the Lotus group of companies.

The need for this review was pertinent in light of the financial obligation of Lotus in the form of a £270 million (RM1.3 billion) syndicated loan taken at the end of 2010, for which Proton had given its corporate guarantee.

In March, Proton, in its third quarter results, noted that its subsidiary was in a technical breach of certain post-drawdown covenants on its long-term loan. For now, the loan amounting to RM1.01billion has been re-classified as a short-term loan as at Dec 31 until the receipt of approval for the extension of time.

Although the new owner of Proton undoubtedly has deep pockets (he is the 7th richest man in Malaysia) and owns a business empire that covers ports, the postal service, power, defence and financial services, besides automobiles, we can expect him to recoup his losses by raising the prices further on Proton thus burdening our car buyers, and by charging higher prices for the other goods and services that he is involved with.

Any which way, the Malaysian consumer will continue to be suckered by the national car debacle.

1MPad cost RM999 in Malaysia BUT sold in Thailand for only RM256 per unit!!!!!

The 1MPad cost RM999 in Malaysia while it is sold in Thailand for RM 256 a unit.

An investigation at the Registrar of Companies reveal MalTechPro was incorporated on 5 April 2012 with a paid-up capital of RM1,000. Thirty-five (35) percent of the shares are held by Selayang UMNO Youth leader, who is also a National UMNO Youth Exco, Sohaimi Shahadan.

DO YOU BELIEF THIS COMPANY OWNED BY UMNO CRONY IS RIPPING-OFF THE MALAYSIAN CONSUMERS as reported....

source of news: Anak Sungai Derhaka

Scorpene: Orang 'rapat' Daim turut dinamakan

Susan Loone 6:39PM Mei 30 2012

Badan hak asasi manusia, Suaram, mendedahkan bahawa nama seorang individu yang didakwa rapat dengan bekas Menteri Kewangan, Tun Daim Zainuddin disebut dalam kertas pendakwaan Perancis berhubung dakwaan rasuah dalam pembelian Malaysia dua kapal selam kelas Scorpene berharga RM7.3 bilion pada tahun 2002.

Dalam satu sidang akhbar di Bangkok hari ini, Pengarah Suaram, Cynthia Gabriel berkata polis Perancis telah merampas dokumen termasuk nota untuk menteri pertahanan Perancis bertarikh 2 Julai 1999.

Ini berkaitan kepada satu temubual dengan menteri pertahanan Malaysia ketika itu, Datuk Seri Najib Tun Razak dan diplomasi Perancis-Malaysia mengenai perkara-perkara berkaitan pertahanan.

"Nota tersebut menyebut nama Mohd Ibrahim Mohd Noor dan Abdul Razak Baginda sebagai tempat rujukan untuk rangkaian politik," katanya.

"Ia seterusnya menyatakan bahawa kedua-duanya mempunyai hubungan politik yang kuat kerana Mohd Ibrahim rapat dengan Daim, dan Abdul Razak rapat dengan Najib."

Menurut Cynthia, satu lagi nota menjelaskan bahawa menjelang awal tahun 2001, pengaruh Mohd Ibrahim telah mula menurun sejajar dengan kuasa Daim yang semakin susut.

Nama Mohd Ibrahim kemudian 'hilang' dari syarikat Perimekar Sdn Bhd - yang dikatakan menjadi perantara dalam pembelian Scorpene - sebagai pemegang saham dan pengarah. Beliau digantikan kemudiannya oleh mereka dalam rangkaian Abdul Razak.

Dr M worried sick: Now the 'de-facto PM', he's calling the shots again as Najib flounders

Former prime minister Mahathir Mohamad has been praised by many, especially UMNO members and other apple polishers. He has been praised for the privatization of Malaysia, his Vision 2020, his political maneuvers and economic policies, but none of these have made Malaysia a great nation.

Instead, as a result of Mahathir’s ham-fisted policies, Malaysia has been downgraded and perceived to be trolling at the lowest levels with other rogue regimes such as Zimbabwe and Myanmar. Even Vietnam has caught up, while Indonesia has left us far behind.

No wonder the 86-year-old Mahathir is trying to salvage his legacy, but even his best-seller biography A Doctor in the House won't make him popular again. In the eyes of his countrymen, whatever that Mahathir has done, planned, implemented and envisioned, has failed miserably.

Not tough enough! More clampdowns needed!

To Mahathir, it may well seem that his plans have suddenly gone into disarray right in front of his own eyes. He can't accept that it could be him at fault and instead is blaming his successors for not clamping down harder on the people.

And this is why the political temperature in the country has shot up of late with police brutality becoming the norm in policing techniques and everyday life. Mahathir is still very powerful, bolstered by the enormous wealth accumulated by his sons, cronies and family during his 22-year rule from 1981 to 2003. He knows he has made many mistakes but won’t admit it and this is why current premier Najib Razak is scrambling to please him.

Without Mahathir, Najib would be kicked out as the Umno president and thereby the country's PM almost immediately. Without an electoral  mandate of his own and facing serious infighting from within his own UMNO party, Najib knows his limitations.

This is why the 58-year-old has U-turned on all his earlier grandiose promises of reform, although critics may also be right in their view that Najib was never really serious about bringing much-need change to Malaysia either.

Wants to be THE BOSS once again

As every facet of Malaysia goes down one by one, Mahathir remains in a state of denial. Publicly, he says he can’t bear to see Malaysia sliding within his own life time and he can’t do anything about it. But don’t rush to empathize, one might be mistaken.

Critics say he does not care that much about Malaysia at all. Mahathir is only interested in his own legacy, which has crumbled, and of course to see his son Mukhriz made the Mentri Besar or chief minister of Kedah before being catapulted into the PM's chair when it is time for Najib to step down.

Najib may have taken over from Abdullah Badawi but there is no doubt he indirectly inherited the mountain of socio-economic problems dogging Malaysia from Mahathir. It is Mahathir who led Malaysia into huge debt as the great majority of his mega projects were implemented on borrowed money.

National oil firm Petronas was milked dry to bail out the firms controlled by his cronies and sons whenever these projects turned sour as they invariably did. With such rampant corruption and mismanagement, plus a policy priority to enrich the elite leaders in Umno, the privatization of Malaysia became dysfunctional without any proper business management practices. This in effect made Malaysia incompetent and uncompetitive.

Now, Mahathir wants to wear his 'economic top dog' hat again. It is clear he still wants to call the shots. Just days ago, he told a foreign news interview that a Greek pullout from the Euro Zone, plus even a China economic slowdown, could not affect Malaysia.

But who is he kidding? Central Bank Negara chief Zeti Aziz has admitted that it would be "unimaginable" if Greece failed to stay on the Euro course for financial reform. Trade-dependent Malaysia would surely be hit one way or another by the ensuing global ripple and the more so when its National Debt is now at RM560 billion and growing.

So why did Mahathir try to gloss over the possibility of financial catastrophe but minced no words when he talked about Najib's "weak" position. The older man readily said that despite being able to escape the effects of an external economic meltdown, Najib should defer holding the 13th general election till later this year.

“Being weak, he has to respond to the criticisms. But when you are faced with this problem anything you do is not enough... maybe sometime in the next five months before the end of the year,” Mahathir told Bloomberg, referring to the best timing for the GE-13.

Personal stake in GE-13

Indeed, in GE-13, Opposition Leader Anwar Ibrahim and his Pakatan Rakyat coalition are rated to have an even chance of wresting the federal government - the first-ever regime change in Malaysia since the British colonizers left in 1957.

It certainly did not go unnoticed when Mahathir came out strongly to back Najib for ordering the most violent police crackdown on civilians ever during the April 28, 2012, Bersih 3.0 rally for free and fair elections.

Not only did Mahathir stoutly defend the use of brute force on peaceful marchers, he also accused the Bersih organizers of conspiring with Anwar and Pakatan to topple the BN government with a Tahrir Square or Arab Spring-type of people's uprising. No one was surprised when Najib promptly echoed Mahathir's words.

The older man then followed up by warning that if Pakatan won GE-13, there would be "unceasing violence".  His political posturing and maneuvering was roundly condemned and his motives slammed as being evil and "dangerous".

"What is evident is that Mahathir has a personal stake in the outcome in the next general elections as to cause him to do his utmost, including concocting lies and falsehoods that Bersih 3.0 was a 'warm-up' by Pakatan Rakyat for violent demonstrations to reject the results of the next elections if the Opposition should fail it or that the Malays will lose political power in their own country if UMNO is defeated," said DAP adviser Lim Kit Siang.

"Could it be that it has sunk in on him after the Bersih 3.0 rally that UMNO and Barisan Nasional can be voted out of power in Putrajaya in the next general election, and this meant that the long list of financial scandals and abuses of power in his 22 years as Prime Minister could finally be the subject of a full inquiry and he is doing his utmost to prevent the full story of his 22-year premiership from being told?

Mahathir now the de-facto PM

For sure, Mahathir is worried sick for himself and his family. A look as to how Indonesia resolved the corruption of former president Suharto and the fabulous wealth accumulated by his family would indeed spark the chills for Mahathir. Not only would wealth be impounded, jail terms, lengthy court trials and total disgrace are on the cards.

But Mahathir is either made of sterner stuff or believes that his luck has far from run out. Instead of planning or negotiating for the best exit, he is now trying hard to promote his son Mukhriz as the next Kedah chief minister, while making statement and offering unsolicited advice as if he were still the PM.

The drama and Mahathir's outspoken comments of the past few days have not been lost on other Umno leaders, nor on their Pakatan rivals.

"There is obviously a huge split in Umno and they are not able to come to terms. Otherwise there is no reason for Mahathir to publicly advise Najib to delay GE-13. He could have just made a phone call. Mahathir wants UMNO to know that if Najib delays GE-13 to September or even to 2013, Najib still has his support," PKR vice president Tian Chua told Malaysia Chronicle.

"Yes, Dr M is terrified of losing GE-13 but before that is the Umno party elections. He and Najib will go all out to ensure their men win and the rest will be sidelined. The Badawi faction, the Tengku Razaleigh faction and even Muhyiddin Yassin (the current Deputy Prime Minister) will find themselves marginalized. This looks like the deal Dr M has struck with Najib. Mahathir will be the de-facto PM, Najib will just provide the facade. He and Rosmah will go on official overseas functions and walkabouts. But the serious social and economic policies will go back to the Mahathir table. Yes, Mahathirism is back and we have to be very careful and on guard."

Not enough to stop the exodus into Pakatan

The Umno party polls is slated for October 2012, while speculation is rife that GE-13 will now be in September or even next year and not mid-June or July as previously touted.

A grand BN rally due to take place on June 17 had been expected to provide Najib the platform to declare a July ballot but after the massive fallout from his mishandling of Bersih 3.0 and Mahathir's inability to regain public popularity and respect, chances are higher for GE-13 to take place later this year or early next year. BN's mandate to rule expires in March 2013.

Meanwhile, the expected exodus of Umno-BN members and civil servants to the Pakatan has moved into higher gear, with the latest snare being the former Solicitor-General Yusof Zainal Abiden, UIA professor Aziz Bari and Brigadier-General Abdul Hadi Abdul Khattab, who all joined Anwar's PKR, while former Bukit Aman CID chief Fauzi Shaari joined PAS.

Malaysia Chronicle