Watchdog wants end to secret defence deals

By Shannon Teoh

September 09, 2011

KUALA LUMPUR, Sept 9 — Transparency International-Malaysia (TI-M) wants the government to put a stop to using national security as an excuse for the secrecy that ends up hiding graft involving defence contracts, and consider appointing independent monitors for such deals.

Datuk Paul Low, the president of the independent watchdog, told The Malaysian Insider that secrecy in the name of national security has led to such deals being riddled with corruption due to the practice of political funding and patronage.

Low said the government could not ask for money while suffering leakages. — File pic

“As the government is trying to cut the budget deficit while introducing goods and service tax, it cannot ask for money while suffering leakages,” he said.

The seedy and allegedly corrupt side of Malaysia’s defence procurement was laid bare in a US embassy cable, with startling revelations on how Umno politicians, agents, civil servants and military officials receive 30 per cent “commission” on deals.

In a note on the opaque procurement system here revealed by whistleblower site Wikileaks, the US embassy noted that American companies operating here had three main complaints about the system: the lack of transparency, outright corruption, and Bumiputera requirements.

The undated cable sent during the Abdullah administration between 2004 and 2009 also noted that many government tenders do not follow procurement rules.

A US aerospace executive told the US embassy here defence deals were done through shadowy agreements with no tendering process. For example, the then-Prime Minister Tun Abdullah Ahmad Badawi’s sister-in-law arranged a US$400 million (RM1.2 billion) contract to buy military cargo aircraft from Airbus.

The deal was announced following Abdullah’s return from a trip to France.

“The US executive asserted that PM Abdullah’s brother told him this deal was ‘done for political and other reasons, such as commission’,” noted the US embassy cable madepublicthrough Wikileaks.

Similar scenarios were described for the procurement of T91 Polish tanks and SU-30 Russian aircraft, noted the executive, who also said that once someone purporting to work for then-Deputy Prime Minister Datuk Seri Najib Razak approached him about a deal and suggested “you will get a part of it.”

The US embassy noted that Malaysian political parties including Umno rely on “money politics” for much of their operating funds.

“Projects or tenders often are awarded as political patronage with a cut of funds circulating back to the party through different channels,” noted the embassy.

These revelations come at a time when there has been some scrutiny surrounding the deal to buy Scorpene submarine. More than RM500 million was allegedly paid to a local consulting company Perimekar and the opposition has pointed fingers at Najib who was the defence minister when the deal was inked.

Pakatan Rakyat (PR) politicians have also questioned the inflated costs of several new defence deals announced by current Defence Minister Datuk Zahid Hamidi.

The US embassy noted that lack of transparency was also evident when it came to awarding contracts in the information communication technology (ICT) sector. A manager at a US ICT firm pointed out that it was shortlisted for a tender with Telekom Malaysia Bhd but lost to another company that did not even bid for the contract.

Though the cable was sent during the Abdullah administration, there is little evidence that the procurement system has improved.

In response the the revelations, TI-M’s Low noted that the Malaysian Anti-Corruption Commission (MACC) and the Auditor-General’s office were monitoring the RM50 billion Mass Rapid Transit project and such a mechanism could also be used on defence deals without laying bare details considered sensitive to national security.

Taken fom Malaysian Insider Online

Pakatan: Set up small panels to scrutinise budget allocations

PETALING JAYA, Sept 9 — The federal opposition has demanded at least seven committees to debate budget allocations in Parliament, a move it says will end the current practice where “billions of ringgit are approved with a brush stroke.”

Pakatan Rakyat (PR) lawmakers told reporters today that allocating MPs to committees would allow each ministry’s allocation to be debated for about four days instead of the two hours some portfolios received in Dewan Rakyat now.

“At the committee stage, only three MPs from each side speak for a few minutes before the ministry’s budget of several billion ringgit is rushed through with a swift brush stroke,” DAP international secretary Liew Chin Tong (picture) said of some smaller portfolios.

The PR alternative budget committee said that in other Westminster systems, each ministry would have its own committee of MPs from all parties to discuss the allocation over the entire committee stage.

It proposed a compromise for the upcoming budget session beginning on October 7, with MPs being divided into seven committees of 20 lawmakers each to discuss allocations simultaneously over the entire 18 days set aside for the committee stage instead of the current practice where the entire House becomes a committee.

Liew, who is Bukit Bendera MP, said that it would ensure that MPs could sit in serious discussion instead of merely “crossing swords” as members of the government or opposition.

PAS research chief Dzulkefly Ahmad said this would allow parties to make fuller use of the expertise of their lawmakers.

“Each committee member will be able to develop specialist expertise and experience over the long term,” the Kuala Selangor MP said, adding that each member should be given a RM10,000 allocation per month to hire a research team.

The Najib administration’s proposed budget for 2012 is seen as crucial in charting the country’s economic amid fears of a global double-dip recession due to the current debt crises in the United States and Europe.

Malaysia’s economy growth has also lost its momentum after rebounding to a 7.2 per cent jump last year, slowing to 4.9 and four per cent in the first two quarters of 2011 respectively.

Putrajaya is also grappling with surging inflation that has remained at a two-year high of over three per cent since March while having to slash a subsidy bill that would otherwise double to RM21 billion this year, severely jeopardising its commitment to reducing the budget deficit.

After it hit a two-decade high of seven per cent in 2009, Prime Minister Datuk Seri Najib Razak pledged to reduce the deficit and has targeted a reduction to 5.6 per cent this year.

PKR vice-president Nurul Izzah Anwar said today that given the economic climate and the need to rein in the deficit, ruling Barisan Nasional lawmakers should also support the call for more stringent monitoring of ministerial allocations.

“Instead of being preoccupied with the political dictation of leaders of the day, we should focus on what is an 

important budget given the economic setbacks the country is facing,” the Lembah Pantai MP said

Taken from Malaysian Insider Online

MANCHESTER: Football/ Premier League - Tricky Swans

City boss Mancini not taking things for granted against Welsh delight

Monday, August 15th, 2011 12:31:00

Mancini: Difficult to play against a newly-promoted side

MANCHESTER CITY manager Roberto Mancini is anticipating a tough time when his side host newly-promoted Swansea at Etihad Stadium tomorrow (3am).

On paper, a home fixture against a team who have come up from the Championship would appear to many to be an ideal assignment for City in their Premier League opener.

But last season's promoted trio Newcastle, West Brom and Blackpool — who memorably got their campaign started with a 4-0 thumping of Wigan at DW Stadium — all fared well in their initial round of league matches and were each positioned in the top half after 10 games.

With that in mind, there is no danger of Mancini underestimating the task that awaits his players.

"When you start the season and you play against a team who come from the Championship, it is really  difficult," said the Italian.

"Last season, with all the teams that came from the Championship, it was very hard to play against them in the first 10 games and it will be the same this time around. But this is why the Premier League is difficult. Every game is hard."

Swansea will be the first Welsh team to compete in the Premier League.

They have become renowned for their dynamic brand of football over the last few years and Mancini is well aware of the kind of challenge the Swans are likely to pose.

"I have watched many of their games," said Mancini.

"Swansea play good football.

They don't play long ball and they have good players.

"Their manager Brendan Rodgers is good — last season, he played really good football and got promoted."
Although Mancini's expensively assembled squad are being widely tipped to mount a serious title challenge this season, he has been keen to stress the difficulties of the early part of a season, both in terms of player recruitment and condition.

He is currently being forced to operate short of what he had hoped, with any talks over Samir Nasri's expected move from Arsenal too late to give the Frenchman a chance of being involved against Swansea.

Record signing Sergio "Kun" Aguero is still some way short of full fitness as well, while controversial Carlos Tevez only came back to training last Monday.

"I think the first 10 games are very difficult — the squad is not 100 per cent ready," said Mancini.

"It needs four or five games to find good form for the players."

Tevez will sit out the game tomorrow, while Aguero may feature for the first time since his £38m (RM185.7m) move from Atletico Madrid, but Mancini reckons the 23-year-old can contribute only 45 minutes at best.

Taken from Malay Mail Online

Malaysian joins two protocols on rights of child

KUALA LUMPUR: Malaysia will join two optional protocols of the Convention on Rights of the Child introduced by United Nations (UN), said Women, Family and Community Development Minister Datuk Seri Shahrizat Jalil.

She said the protocols approved at the Cabinet meeting Wednesday cover the sale, prostitution and child pornography and to protect children from being involved in armed conflict.

Malaysia's participation in the two protocols was to contain problems that often affect children in the country, especially abuse and trafficking in children for sexual exploitation.

"The Cabinet agreed that Malaysia join the two optional protocols in addition to protecting children's rights," she said at a press conference after launching State of the World's Children Report 2011, here Thursday.

The ministry will plan several programmes to educate and raise awareness to guardians of youths and teenagers on issues with cooperation of the Home, Health and Education Ministry.

"The government is serious in planning strategies to curb this problem. Children have been know to spread their naked pictures on the internet without knowing the danger."

Earlier, Shahrizat who participated in a panel talk with six teenagers about their hopes and dreams discussed opportunities provided by the government.

Also in the panel was Unicef Children's Fund representative Hans Olsen.

She said teenagers are the country's important asset and must be approached and understood and their ideas used in implementing policies.

"They are too old to be treated like a child and yet young to be treated like an adult. At this young age, they can assess the mood to be more accountable to self, family and country," she said at the one hour talk.

Teenager Alayna Rani Sreenivas said "I feel more responsible for all my action. It is our right to participate towards a better country and world.

"There are 1.2bil youths in the world with so many ideas that should not be ignored," she added.

Taken from Malay Mail Online

Massa eyeing big effort for Ferrari

MONZA (Italy): Two weeks after watching a seemingly-formidable Sebastian Vettel drive to yet another victory for Red Bull, Felipe Massa and his Ferrari teammate Fernando Alonso want to finally give Italian fans something to shout about.
In the last European race of the season, this weekend's Italian Grand Prix, Brazilian Massa and the Spanish two-time champion will also be hoping for some hot weather at the old Autodromo Nazionale Monza.

They know that high temperatures will favour not only the conditions for the 'Tifosi', but also for their tyres' performance in what is expected to be another close fought contest between the champions Red Bull and their nearest rivals McLaren and Ferrari.

"This is, of course, a very important weekend for us," admitted Massa.
"But not in the sense of it being a last chance for us this year -- or anything like that.

But because we really want to produce a great result for ourselves, for the team and most of all for the fans.

"Spa was not fantastic for us and the cold weather accentuated our tyre problems, but this weekend, we have the same tyre compounds but hopefully much hotter weather.

"We will need a car with good top speed."

Massa, without a win this year, added: "Monza is our last weekend of racing in Europe this year and, because this season has not gone so well for us, it will be even more important to do our job perfectly and try and get the result that we and all the Tifosi want and deserve.

"Like all the teams, we will have a low down-force set-up unique to Monza, with small wings -- and in free practice you need to make sure the car is well balanced with good traction to pull out of the slow chicanes and that it is able to deal with jumping the kerbs, which is vital for a quick lap time, especially in qualifying."

Massa forecast a weekend of excitement for the spectators.

He said: "I think we will see a lot of overtaking, because of the high speed nature of the track and the fact we will have two zones where we can use the DRS (Drag Reduction system).

"I'm not saying it will be an advantage to be second coming into Parabolica on the last lap to overtake the car in front.

"Obviously, if you have a good car, it's probably a better strategy to pass before then and pull out a gap that is bigger than one second.

"However, if you are fighting right down to the last lap, well, that could be the case, which would make for a very exciting race." -- AFP


Read more: Massa eyeing big effort for Ferrari http://www.nst.com.my/nst/articles/40orf/Article/#ixzz1XPyY3Uqi


Taken from New Straits Times Online

ETP plans will continue

Slowing global economy won’t affect projects, says Pemandu chief
KUALA LUMPUR: The slowing global economy won’t affect projects planned under the Economic Transformation Programme (ETP), said Datuk Seri Idris Jala.

“There is no doubt in my mind that these will continue,” said Idris, who is chief executive officer of Pemandu, the unit under the Prime Minister’s Department that oversees the ETP’s implementation.

Idris’ assurance comes amid growing concern among analysts that a global economic downturn could lead to several projects under the ETP being delayed or shelved.

These projects are key to the country’s plan to transform itself from a middle-income nation into a high-income one by 2020.

Speaking at an ETP progress update here yesterday, also attended by Prime Minister Datuk Seri Najib Razak, Idris allayed these concerns. He said it was important for Malaysia to continue to be more competitive.

“It’s clear the winners (in an economic downturn) will be those countries or companies that are more competitive than others.” To date, 84 per cent of the 87 initiatives announced under the ETP — unveiled in October last year — are being implemented. Of these initiatives, 23 are operational, 50 have commenced and 14 are in progress.

Najib yesterday announced eight more initiatives expected to produce RM1.4 billion in investments.

These span eight sectors such as manufacturing, retail, education, agriculture and aerospace.

The biggest of these initiatives is the RM706 million investment by plantation firm Kuala Lumpur Kepong Bhd in developing the downstream sector of the palm oil industry. It plans to build three plants and a research and development centre.


Read more: ETP plans will continue http://www.nst.com.my/nst/articles/ETPplanswillcontinue/Article/#ixzz1XPxltthD


Taken from New Straits Times Online

Prepaid mobile users to pay 6pc service tax Read more: Prepaid mobile users to pay 6pc service tax

KUALA LUMPUR: Come Sept 15, prepaid mobile users will need to pay a six per cent service tax whenever they buy a starter pack or reloads.
This means, a customer will need to pay RM10.60 for a RM10 prepaid reload.

"Service tax is a consumption tax and chargeable to the customer, as provided for in the service tax laws.

"The Service Tax Act 1975 requires telecommunication companies to levy service tax at the prevailing rate on telecommunication services, including mobile prepaid services.
"This is similar to the service tax levied on food and beverage purchases from restaurants and hotels," said mobile service providers in a joint statement yesterday.

Since the launch of mobile prepaid services in 1998, mobile operators have been absorbing the service tax.

According to mobile operators, the move was to ensure mobile prepaid services remained competitive compared with postpaid.

"With prepaid rates progressively reduced over the years, it is currently offered at very competitive rates," they said.

Telecommunications analysts view the news as "generally positive" for mobile operators, with DiGi.Com Bhd seen as the biggest beneficiary and Maxis Bhd benefiting the least.

As at June 30 this year, 83 per cent of DiGi's customer base comprised prepaid users. In contrast, about 75 per cent of Maxis' customers were prepaid users.

Today, prepaid users are spending about RM36 to RM51 a month.

Analysts believe the implementation of the service tax is unlikely to reduce prepaid users spending significantly.


Taken from New Straits Times Online