Guest Editorial: A RELEVANT PAGE FROM THE PAST: FROM TIMBER TO LAND TO PIGS

Lim Teck Ghee

The following was a case study Dr Lim Teck Ghee was involved in around a decade ago. What is of interest here is that the same Malay-Kongsi system is working here. The Malay-Kongsi is not the so-called ‘deep state’. The Malay-Kongsi uses connections within the ‘deep state’ and abuses the system without the need to be accountable.

I will post more examples of the Malay-Kongsi at work over the next few days.

On 5 March 2013, the NGO, Centre for Political Initiatives or CPI posted an article on ‘NEM at ground level: same old model, no paradigm shift’. The article revealed how pork importation has degenerated from a free market to a semi-monopoly controlled by a UMNO-BN linked business-political mafia involving the highest level of political leadership in the Ministry responsible.

On 13 March, the Malaysian Association of Pork Importers (MAOPI) issued a press statement – apparently available only to the Chinese mainstream media – in which it denied the charges in the CPI article and alleged that the contents of the article were untrue and aimed at smearing the good name of MAOPI.

Since then, we have received further damaging disclosure from both members and non-members of MAOPI on the subject.

We are reproducing below unedited excerpts from another informant.

We hope that the new information can be the basis of an open inquiry into the monopolistic and cartel practices emanating from and justified by those manning the higher levels of politics and the civil service.

These market control practices aimed at extracting undeserved or exorbitant rent returns are found not only for the pork importation trade. All sectors of the economy in which licences are required are vulnerable to corruption and manipulation by the public officials responsible for licensing and by UMNO-BN linked individuals or groups favoured with unfair advantage in the licensing process.

Fingers need to be pointed and guilty parties exposed when dubious licensing and quota systems proliferate or are permitted to run amok as is happening with the New Economic Model.

Another major area of concern raised by our latest informant’s letter is that the Malaysian Anti-Corruption Commission (MACC) has been acting in support of the corrupt parties and complicit in preventing the issue from being publicly exposed or fairly investigated. This – if shown to be correct – confirms the widespread belief that the MACC is not an independent body and is simply functioning as a political tool of the ruling party (UMNO-BN).

Finally, we note that the officials of MAOPI present at the press conference stated that the CPI article was written with bad intentions by someone with political motives and belonging to the opposition party.

We would like to place it on record that the Centre for Policy Initiatives does not have any association with any political party and that I am not – and have never been – a member of any political party.

Our mission is to provide the public and other key stakeholders with accurate information, data and analysis on national issues, and the best way of doing this is by ensuring our independence and integrity.

Dr Lim Teck Ghee

CPI director

Letter received by the CPI (below)

Dear Dr Lim Teck Ghee,

Thank you so much for your article titled ‘NEM: Old Model in New Packaging" dated 4 March 2013 where you had candidly highlighted half of the very true insights and challenges faced by current Malaysian pork importers.

In fact, the 50 cent per kilogram surcharge were pocketed by the two Datuks’ (President and Vice president of MAOPI)'s personally owned companies since early 2012 until end 2012.

Both of these Datuks are UMNO-BN linked cronies.

The consortium mentioned in your article was approved to collect 50 cents per kilogram only via MAOPI’s second AGM meeting in March 2013, that is, only AFTER the release of your article.

Another main part of the truth is, since year 2012, all pork importers were "threatened" and forced to "share" 50% of the quota allocated with the two Datuks' owned companies. In short, the two Datuks' owned companies will actually hold more than 50% of total import quota allocated and become majority of the market holders instantly.

For any importers who refused to contribute 50 cents and refused to "share" 50% of the quota with the 2 Datuks, MAOPI will blacklist or "mark" those "uncooperative and disobedient" importers. Eventually, those blacklisted will have their importers’ quotas withheld and labelled as “cut throat” suppliers (meaning they are uncooperative and disobedient) by none other than the Director General of the Department of Veterinary Services and further excluded in any future quota allocation and they will be unable to import as their name is blacklisted.

The unfair practices and policies of MAOPI are fully supported by Director General of Department of Veterinary Services. During many occasions, for those who were unhappy with MAOPI policies were approached by Director General of Department of Veterinary Services personally, and it was made very clear verbally that the import quota will be given only if they cooperate with MAOPI (even though it is not the official policy of the Ministry of Agriculture to allocate quota to MAOPI and it is never a mandate to join MAOPI in order to be eligible to import). Thus MAOPI is actually a UMNO-BN mechanism to control the supply and distribution of pork in the country.

Another problem is none of the importers and distributors "dare" to question or challenge the validity and legality of Konsortium MAOPI Sdn Bhd (a two-ringgit company registered under Co. no. 1017113-D) to collect the 50 cents per kg surcharge. In fact, many letters were written to the Ministry of Agriculture and even Malaysian Anti-Corruption Commission (MACC) to complain and highlight on the corruption and collaboration between MAOPI and Director General of Department of Veterinary Services.

However, most of the complaints letters were looped back to MAOPI due to its strong "networks" of connections. MAOPI questioned those importers where their letterheads were used and advised them to lodge police report to proof [prove] that those complaint letters were forged by someone else. A copy of the police report to be given to MAOPI and MAOPI will further clarify with the reported authority to "cancel" the complaints. In short, there is no chance for the true independent party to initiate corruption investigate.

Attached are 2 MAOPI’s official letter dated 8/8/2011 sent to many importers and letter dated 1/8/2011 was sent to many foreign embassies / trade commission / importer members.

These letters are a clear proof of monopolization, power politics, cartelization, foreign discrimination, and against free trade act. For a true NEM, quota implementation in many industries especially small industry such as pork importation should be ceased immediately.

Quota implementation in pork importation is just a legalized excuse and powerful tool to encourage and further boost corruption at the expense of the importers and final consumers.

The attached letter given to President of MAOPI dated 8 July 2011 by Director General of Department of Veterinary Services is another proof of power abuse, as quota allocation is given to the individual importer instead of the association.

Although the quota of 15,000 metric tonne given to MAOPI for 6 months stated in the letter was eventually abolished, the manipulation of quota allocation cannot be avoided. This is because, as at today, the quota allocation proposal including the importer name lists are still vetted and filtered by the Director General of Department of Veterinary Services. He wields tremendous power over the fate of the importers.

Another attachment is the list of committee members of MAOPI as at 2013. The companies mentioned are all controlled and owned by either the President or Vice President of MAOPI. Again, this is a clear proof of monopolization of import quota. Based on SSM search, the first five companies were allocated quota since implementation in 2011.

Below findings are worth investigating.

1. ABC Sdn Bhd

2. DEF Sdn Bhd

3. GHI Sdn Bhd

4. JKL Sdn Bhd

5. MNO Import & Export Trading

6. PQR Sdn. Bhd

7. STL Sdn. Bhd

The above companies are all UMNO-BN linked cronies. Dr Lim, our unhappy importers really hope that you can help, such as posting the attachments to foreign trade commissions in various countries such as Canada, Australia, USA, European Union, embassies of Germany, Spain, Belgium, Sweden, The Netherlands and Denmark, as these are the main countries that are exporting to us.

Importers urge the intervention from exporting countries to demand that Malaysia cease the quota implementation malpractices since it is a main barrier to free trade and free market; and to request the Director General of Department of Veterinary Services to step down because of unfair trade practices and favouritism, and to dissolve MAOPI - a monopoly and trust organisation and strangle and stifle free trade.

Importers will also appreciate if you could lodge a report to the top people and the right person of MACC with the attachments given. Let the MACC investigate by interrogating all importers individually. Importers will be more than happy to tell the truth to MACC directly.

Importers apologize for not being able to disclose their names as they really need to protect themselves from being "marked" by MAOPI and labelled as “cut throat” by the Director General of Department of Veterinary Services. MAOPI and the Director General are in cahoots to monolpolise the import of pork and pig products.

CPI note

We have not included the attachments in this article for now and have blanked out the names and i/c numbers of various individuals listed as heading the companies.

LIM TECK GHEE

Lim Teck Ghee, ANU PhD graduate, is a Malaysian economic historian and policy analyst. He has a regular column, Another Take, in The Sun, a Malaysian daily and Oriental Daily; and is the author of Challenging the Status Quo in Malaysia, and Dark Forces Changing Malaysia (with Murray Hunter).

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