The suspicious sale of Dudley House may have slipped public attention had not a project window making contractor, John Bond, raised the alarm. Fearing non-payment from the developer who had appointed an administrator to liquidated their assets, Bond blew the proverbial whistle. The vendors eventually admitted the crooked deal and payments to Malaysian officials and front businessmen. CLICK HERE.
However, Annuar sounded stupid when he announced that MARA's internal audit had been looking into the scandal since March 2015. Internal audit's function ceases BEFORE the external auditors step in. So, why would internal audit be busy on this contract two years after it had been signed, sealed and delivered? More than likely, MARA was stunned into paralysis by a Fairfax request for comment on its expose, before publication. Annuar is also plying the usual government official's card when caught with his pants down - the 'Tak Mahu Kalah' (safe face) Ketuanan card - which can never admit a weakness or fault less their imbecilic, fake and false Ketuanan (Malay Supremacist) philosophy and image take a severe battering.
Everyone and his uncle Mat in government seems to have known about this fraud and yet all were sitting on it, afraid to make the decent and right move to investigate and bring to book the thieves.
In the mean time, Melbourne police had raided the homes and offices of Dudley House vendors and developer. They were leaving no stone unturned, especially since, there is grave suspicion that more corruption, CBT, bribery could be involved in MARA's other acquisitions in Australia. CLICK HERE.
1. 5-storey apartment, Dudley International House at Caulfield near Monash Uni - $67 million.
2. 12-storey apartment block at 746 Swanton St. (281 apartments) - $67 million.
3. Office Tower at 333 Exhibition St. - $66 million.
4. Property at 51 Queen St. property - $60 million.
CLICK HERE for more on allegations of fraud on the Dudley House deal, involving UMNO politicians and MARA officials.
PM Najib did not waste a second in coming out in defence of MARA, pleading on TV about the rule of law and that a person is innocent until proven guilty.
It confirmed the hollow space that exists between the ears of this group of Malaysian politicians. How on earth could Justo, a senior director at Petro Saudi, have blackmailed his employer for $15 million with false and altered documents and emails? Are the Arab owners, Chairman and CEO of Petro Saudi green children, rank amateurs?
A sure sign that a crooked deal took place is the fact that no one, particularly the Malaysians named in the Australian press, have sued 'The Age' for defamation and slander.
The top cop and his cop out is yet another marker of a massive crime and CBT. When the top cop washes his hands off a corruption scandal in less than 4 days, it can only be because the trail leads to some unpalatable end, possibly a door or desk in Putrajaya. The top cop, who is busy feathering his nest for sweet post-retirement rewards, does not have the cojones to go after a Malay and Bumiputra institution like MARA, an icon to government forced affirmation action.
In the end, a government of thieves continues to prosper because we have allowed a near-police state to develop and thrive. It's time to reverse the trend. We must eliminate the most perverse and destructive of regimes to bring to book the brazen murderers, fraudtrepreneurs, thieves, swindlers, looters, economic plunderers, thieves and con artistes who are running riot in our land.
OFF-SHORE COMPANIES, TRUSTS AND SET-UPS
Let me also clear up one matter which constantly irritates me. The utter lack of understanding of off-shore companies and their necessity, even by veteran politicians like Lim Kit Siang, Tony Pua, Ibrahim Ali and Lim Guan Eng and many Opposition and BUMNO/SCUMNO politicians, is astounding. The issue of investing abroad through off-shore companies is a huge red herring, especially in the 1MDB case. It is totally irrelevant.
Many reputable companies all over the world use off-shore set-ups and tax shelters for very sound reasons:
1. When investing overseas, it is usually advisable to do so through an off-shore company. Should any serious troubles and problems arise, the fall out -fraud, law suits, bankruptcy etc. - can be isolated to protect the holding company at home and its share values from being too adversely affected.
2. Dividends and repatriated profits are often subject to Witholding Tax. This can often be safely and legally avoided or minimised by incorporating a company in an off-shore tax shelter - Caymans, Bahamas, Virgin Islands, Mauritius, Guernsey, Jersey etc, - which has the benefit of a tax treaty with the country in which one's investments are situated. The tax savings can often run into millions of dollars.
3. Depending on the location, off-shore financing may often be more flexible, economical and less onerous. Also, when exchange rates go haywire, parking funds off-shore helps buy time to ride out the financial maelstrom from forex losses.
4. Tax on many types of income like royalies and copy rights, can be as little as 5%-10% when the company is domiciled off-shore. Many MNC's like Starbucks, MacDonalds, AIG, Apple etc., and our own Petronas, Felda, Sime Darby, Maybank, Tenaga, CIMB, Scomi, Genting, Tanjung, YTL, Public bank, Berjaya Group and a host of local public listed companies, have all taken advantage of these of-shore vehicles!
5. Our own off-shore finacial shelter, Labuan, generates quite a lot of money and business for us.
So, the real issue is NOT whether an investment is made directly in a foreign country by a Malaysian GLC, or indirectly through wholly owned off-shore set-ups and companies. After all, it's not the tiny, neutral atom, but those who create atom bombs and misuse them, who are at fault. The issue is that the GLCs should be forced by legislation to be transparent and accountable for their structure and performance. The management of GLCs, on pain of stiff and long jail sentences for miscreants, should not allow any person or party to use the device of an off-shore company to launder money and pay bribes, illegal commissions and kick-backs, and promote or condone any kind of criminal or shady activity.
Chairmen of bodies like MARA and 1MDB should not be allowed to hide behind the Official Secrets Act. Cops should be gainfully employed nabbing thieves, and not protecting and making excuses for them, or else, how could you distinguish between a cop and a thief?