Books have been written about Tun Daim Zainuddin, but not many people know who the real Daim is. He is famous
for being taciturn. Everyone knows that Daim is the silent type; so
silent, in fact, that the victims of his scheming and conniving have
fallen like ten pins without ever knowing what hit them.
He has, on the quiet, made a career of shooting poison darts, laying
booby traps. and knifing friend or foe in the back. His hand is never
seen, but his mark is everywhere. Truth to tell, he has been at the root
of many national crises, but his name has never been smudged, thanks to
the wealth he wields and his bond of friendship with Dr. Mahathir.
Silent cancer
Most members of Umno's new generation are aware that Daim is an acquisitive millionaire and a macho man
with a taste of young women, but they concede him these weaknesses bec
au se they see in him a clean and competent Economic Adviser to the
Government. But the generation of Harun Idris, Musa Hitam and Manan
Othman to name just a few of the old hands - they are the ones to ask in
order to discover who the real Daim is.
It was Datuk Harun who plucked Daim up from the depths of failure in the salt business. Daim's wife,
Mahani and Harun's wife, Salmah were good friends and an influential
pair in the early 1970s. It was wife power that moved Harun to give Daim
160 acres of prime Kampung Pandan land. And thus Syarikat Maluri was
born.
There is no use speculating over how much Daim paid Harun. After all, the two were fast friends.
For the gory details, just ask Low Kiok Bow or Thamby Chik. They can
relate how Daim cheated a land broker and greased Selangor state
executive councillor and Mahathir's brother-in-law, Ahmad Razali for
that piece of land.
Of course, Daim still had to pay for the land. In those days, it was not easy to borrow from a bank. Hence, he was forced
to corrupt Bank Bumiputra. Lorraine Osman and Rais Saniman know how
much he spent. Manan Othman can no doubt confirm the figure, he was so
close to Daim that they tried to share a girl friend, with Manan often borrowing the bedroom at Daim's office in Taman Maluri.
Mahathir's choice
Daim's elevation as Senator and, subsequently, Minister of Finance,
was part of Mahathir's strategic plan. Mahathir's choice should
surprise no one, after all the two were intimate friends from the same
kampung in Seberang Perak, Alor Setar. Upon becoming Prime Minister on
16 July, 1981, the first thing on Mahathir's mind was how to sideline
his archenemy, Tengku Razaleigh Hamzah.
Daim told everyone he had no interest in politics, but all the while he
was confident of getting the Finance Minister's job after a stint with
the Senate. A few months after joining the Senate, Daim became Chairman
of Fleet, which owned the New Straits Times. In 1984, he finally got his
dream job and became the third most important man in the Federal
Cabinet, after the Prime Minister and his deputy.
Musa squeezed out
Musa Hitam, the Deputy Prime Minister, was at first oblivious of the closet ties between Mahathir and Daim. Innocently, he expressed to Mahathir his disquiet over Daim's wheeling and dealing, particularly his award of projects and contracts to his own associates and cronies. It must have baffled him when his complaints
fell on deaf ears although he was Deputy Prime Minister, he has no say
when it came to economic matters, particularly privatisation and the
assignment (to supporters) of economic projects.
How disappointed Musa must have been to find that Daim could not care less about his effort to help his supporters secure some projects or contracts. Daim succeeded in making millionaires
of such cronies of Wan Azmi, Halim Saad, Tajuddin Ramli, Samsuddin
Hassan, Razali Rahman and Tan Sri Basir, but Musa in the end was cast
off as a poor ex-DPM.
Musa once complained to Mahathir that Daim had stolen a number of
supporters' project proposals, but again Mahathir ignored him. These
were the first acts in the eventual breakup of the Mahathir-Musa
partnership. As the interests of Mahathir and Daim bloated, Musa got
squeezed out.
Pushing Musa to tie up with Razaleigh
Many Umno members assume that Razaleigh is Musa's number one enemy. In
fact, the reason for the 1986 split in Umno must fall on Daim. It was he
who drove Musa to the edge until he had no choice but to resign. Again,
Daim's man of few words demeanour to his advantage. Few knew of his
behind-the-scenes role in that Umno rupture not many more know it today.
One really should not wonder why Musa called a truce Razaleigh and the
two decided to collaborate in the 1987 fight, the one that eventually c
au sed Umno to be outlawed. At that time, Daim was almost invincible,
what support coming from such strongmen as Sanusi Junid and Anwar
Ibrahim. The comradeship of the three was rock solid, and the
Musa-Razaleigh camp could do nothing except to make a joke of it by
giving them the nicknames AIDS.
Getting rid of Tun Salleh Abas
The formation of the new Umno,
Daim and Mahathir had first to get rid of the Lord President, Tun Salleh
Abas. Again, Daim was the chief plotter in the sacking of the pious and
respected Tun Salleh, and his replacement with Tun Hamid Omar, a
playboy and chronic gambler, but Mahathir's and Daim's schoolmate. The
appointment of Tun Hamid Omar triggered the collapse of the integrity
and the independence of the judiciary.
Finance Minister, Daim persuaded Mahathir to give the Economic
Planning Unit and Treasury full power in implementing the privatisation
policy. Hence, it was no longer necessary to call for tenders for
government projects. Instead, the projects were awarded directly to favoured companies. And so began the era of wealth accumulation by him and his cohorts.
The United Engineers Company, bought for RM2, changed into a
multi-million- ringgit corporation. As Finance Minister, Daim
practically ordered banks to lend to companies that he himself owned.
And no Daim crony every complained of difficulty in securing bank
credit. Indeed, bankers lived in
fear of Daim. Having appointed Wan Azmi and Basir to head Malayan
Banking and Bank Bumiputra, he would give any project to any of his
cronies bec au se funding was not an issue.
If those physical projects were not enough, Daim also took every opportunity to take wealth from the share market
as well. Every time the Treasury approved a company for listing on the
stock exchange, Daim cronies received their lion's shares. That was how
Southern Bank, Resort World, Sports Toto, Berjaya, Tanjong and scores of
other blue chip firms landed with Daim and Company.
Once, when share values were high, Daim boasted among friends that his
visible wealth alone totalled RM65 billion. To shut the mouth of Barisan
Nasional leaders, Daim gave lucrative projects (CRUMBS) to Samy Vellu
and Ling Liong Sik so that their children could be big-shots in batches.
Free to plunder
Daim managed to fool Umno members into believing that Mahathir would not
let him go although he had asked to be relieved of his Cabinet post on a
number of occasions. With Musa and Razaleigh out of the picture, Daim
could grab as much wealth as he wanted without even Mahathir stopping
him. Besides, he was Umno's treasurer and he could make it look as if
the companies he controlled were those in which the party had a stake.
Daim's avarice damaged not only his own image as finance minister, but
also Mahathir's and Malaysia 's reputation with the international
community. It is said that he used to demand exorbitant fees for himself
in negotiating contracts involving foreign suppliers. The chairmen of
Japan 's two biggest banks - the Bank of Tokyo and Sanwa Bank - once
complained to Mahathir that his Finance Minister demanded commissions
that were too high when negotiating yen loans.
Margaret Thatcher, too, has complained about Daim's role as a
commissioned agent. He had - or still has - accounts in Zurich , London ,
Hong Kong, Tokyo , Singapore , Caymen Island , Channel Island and
Virgin Island. Indeed, instead of keeping his billions in Malaysia , he
has stashed them overseas.
Even conspiring to snatch KTM land in S'pore
With his immense wealth and far-reaching influence, Daim eventually
became a burden that Mahathir could no longer bear. In every deal he
made, there was something in it for himself. It was not beneath him even
to conspire with Lee Kuan Yew to snatch KTM land in Singapore . The
Malaysian Cabinet had no knowledge of this. But this issue of Malaysia
being cheated by Lee Kuan Yew and Daim is far from over.
Mahathir eventually realised that he had to end Daim's lordship over the Finance Ministry. And so he told him to quit.
Mahathir worried that if Daim continued as Finance Minister, complaints
would come not only from Vincent Tan, Ananda Krishnan, Arumugam (M's
DIRECT CRONIES) and other members of the Malaysian business elite, but
also from foreign leaders.
Signs of a Daim-related scandal were ominous and it could break anytime in Japan or Britain , therefore, Daim had to go.
Daim had to go
Daim's resignation was planned such that it would not appear as if he
had been sacked. Indeed, it does not make sense why a powerful Finance
Minister, rich and in control of so many public companies, would
suddenly quit simply because he had lost interest in the job. The truth
is that he was ordered to resign.
Observers will recall that Mahathir's first comment on the so-called
reaction was, 'He has asked several times for permission to resign, and I
have finally allowed it. I hope Daim would not leave the country after
resigning'. That statement was pregnant with meaning. Mahathir knew Daim
was sulking. So did Anwar and Sanusi. Mahathir retained Daim as Umno
Treasurer for a good reason, he wanted to ensure the safety of Umno
money, a lot of which was under Daim's control.
But Daim who holds so many of Mahathir's secrets, is only a sly one.
After resigning, he ran off to live in his San Francisco residence. He
told the Malaysian public he wanted to study at Harvard, but in fact he
wanted to leave Malaysia . Mahathir, who was familiar with Daim's
antics, pleaded with him to come back, saying he need him to advise on
economic matters.
Daim returned and announced that Mahathir had named him Economic Adviser
to the Government. Rafidah asked Mahathir to confirm this, but all she
got was silence. Daim was never formally appointed as Economic Adviser, a
post which Tun Raja Mohar once held. The appointment is the prerogative
of the Public Services Department. Daim gave himself the job. To keep
Daim happy, Mahathir allowed him to open an office at the Economic
Planning Unit, and this strengthened the public perception that he was
still in control as far as economic affairs were concerned.
Rafidah more honest than Anwar?
When he was to told to resign as Finance Minister, Daim asked Mahathir
to appoint Anwar Ibrahim to the job. Obviously, he thought this would
help to ensure that his skeletons would remain closeted. He warned
Mahathir of the peril that Rafidah would be to both of them: the secrets
they shared would be uncovered.
Daim also persuaded Mahathir to appoint Mustapha Mohammad as Anwar's
deputy because these two could be depended on to fill up the holes he
had left gaping. Anwar is nobody's fool, but he sacrificed his idealism
to protect his towkay.
As far as we know, no Finance Minster in this world has retired a
billionaire, except Daim. In the book Daim yang Diam: Sebuah Biographi
(Daim the Silent: A Biography), Daim explains his retirement: 'I am
happy in retirement. It was too heavy a responsibility. In truth, I love
the business world. Business is in my blood. I love to make money. I
know how to do it. I can do it just by sitting in this chair. On a lucky
day, I can make millions.'
Friend of Soros
According to an internal bank analysis, collaborated by the corporate
community, and from Daim crony Amin Shah, Daim's wealth, in ringgit and
foreign currencies kept overseas currently amounts to RM20 billion.
With so much money at his disposal, Daim can manipulate the Kuala Lumpur
Stock Exchange. He showed his hand in 1991, just to prove how much
influence he wielded. After selling off his stocks, he made a statement
to the effect that the market would crash. And crash it did.
As we can all recall, even Mahathir could not help but make a wry remark
when Daim boasted that he invested in KLSE only for pocket money. But
to his good friend, Daim said he could turn in profit on RM90 million a
day when the market was up. When the market plummeted in October 1991
Daim bought back his share on the cheap. When the market turned bullish
again 1995 and 1996, Daim made billions of ringgit from it. This, then,
is what the work of an economic adviser amounts to.
So it turns out that Soros is not the only big time market manipulator
and currency dealer. Daim met Soros twice in London when the ringgit was
being hotly traded. Anyway, when the ringgit fell below RM4 to the US
dollar, Mahathir asked Daim for help and, according to a source in
Singapore, he lost RM1 billion trying to prop up the Malaysian currency.
To lose that much in currency trading, imagine how much money he had at
his disposal.
Mahathir panicked
The falls in currency and share values put Mahathir in a feverish panic.
He knew his policies and his own belligerent attitude were partly to
blame. Seeing Mahathir in such a frenzied state, Daim recommended that
he declare a state of emergency to enable him to restore the economy and
at the same time, bury the corpses that were beginning to stink.
We hail the Chief Secretary to the Government and the Solicitor-General
for opposing the move. If Daim's plan had been followed, Mahathir would
turn dictator and the Malaysian economy would be utterly ruined. Having
failed to declare an emergency, Mahathir set up the National Economic
Action Council, headed by Daim, with the Economic Planning Unit as its
Secretariat.
The original plan was to give the NEAC complete autonomy, but the
Cabinet ministers opposed this for fear that they would lose any vestige
of power they had left. Eventually, the council became merely an
advisory body, with the Cabinet having final say on its recommendations.
Daim finally found a road-block in Anwar
The establishment of the council was a wedge between Anwar and Daim.
Thus, two old friends who had together stood behind Mahathir against
Musa were now turned against each other.
All of the council's recommendations were rejected by the Cabinet and
Bank Negara. Daim openly assailed Bank Negara for dismissing his
proposals, such as those relating to interest rates and credit control.
We salute the Bank Negara Governor for maintaining a prudent monetary
policy in the face of Daim's bullying and insults. Unlike Daim and his
cohorts, Bank Negara's officials are not self-serving.
Daim's appointment to the NEAC was a major national mistake. Going by
press reports of its deliberations so far, the NEAC's sole preoccupation
is with saving mega corporations from bankruptcy. No doubt, these are
Daim-related companies.
Daim has yet to show any concern over the rise in the price of chillies,
or the leaps in fish prices or how the price of rice has boiled over.
Neither has he talked about small businesses in their death throes.
Class F contractors going bankrupt or kampung road projects being
abandoned. In his dictionary, there are no entries for the small man's
worries, nothing about low-cost houses, water cuts or study funds for
the children of poor Malays. In fact, it contains only billion size
figures.
Jet-setting with his new wife while others fall
While the Malaysian economy is close to ruin, Daim remains a
billionaire, living a life of glamour, jet setting with his new wife
Naimah and the attractive Josephine, an Indian lass who helps him run
one of his firms, the International Malaysian Bank.
We have merely given a sketch of who the real Daim is. A thorough
account will soon be available in book form. We recommend the book to
Umno members, especially those with big ambitions, bec au se they will
learn much from its fantastic but true tales of economic and political
intrigues.
We denounce the likes of Vincent Tan and Tan Phek Khiing for
land-grabbing, but perhaps we should ask the Menteri Besar of Johor and
the Menteri Besar of Kedah how much land Daim has taken.
Ask Sanusi how much Daim paid to the Kedah government for 12,000 acres
in Sungai Petani and how much profit he made from them. For 12,000
acres, Osman Arof had to be sacrificed. The true story of the
Daim-Sanusi conspiracy in Kedah will be exposed in the book.
Crossroad
Umno is at a crossroads and has to decide wisely where it is going. One
road heads to glory, where stability and democratic practice will abide.
The other leads to division, autocracy and ultimately, utter
destruction.
The call for reform, which used to be made only in whispers at small,
secretive gatherings, is becoming louder. Umno members, showing that
they can no longer contain their restiveness and frustration, have begun
to openly debate the need for change, even at party conventions.
Can there be a clearer indication that they have reached their tether's
end, that they can no longer stomach the leadership's undemocratic
attitude and the prevalence - whether in the party or the government -
of favouritism, cronyism, nepotism, graft and other misdeeds? Malay
nationalism is dead and materialism and egoism are running amok.
We cannot depend on the Umno Supreme Council to initiate reform because
few of the members have the guts to speak up. In fact, the council has
lately been transformed into a monologue theatre. But of course even a
monologue can flop without good supporting players - fools, clowns,
jesters, attendants and the oh-so- important flatterers.
As far as these bit players are concerned, Umno's ideals and principles
are not as important as their jobs. This keep-your-mouth- shut syndrome
serves only to embolden the party leadership in its conceit, arrogance
and h au ghtiness. A president has become a dictator. Woe are the Malays
and Umno. What is to become of them? That is a question only Umno
members can answer.
Professor Mohamed Zain
Professor of Technology & Strategic Management
College of Business & Economics
University of Qatar
- MAILBAG
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