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How Rich Are Malaysian Cabinet Ministers?

The New Straits Times (New Straits Times, 13 April 01) had a prominent story on its front page detailing the riches of Thai cabinet ministers. What interested me is the Bangkok Post report, from which this report was culled, said how wealthy they were. Like in Malaysia, Thai cabinet ministers and senior civil servants must declare their wealth; but unlike here, they are made public. And newspapers discuss it.

The Thai Prime Minister, Mr Thaksin Shinawatra, who is as rich as he is as a successful entrepreneur, transferred most of his wealth to his son, who is now Thailand's richest man. But the declared wealth of the cabinet of RM24 billion (about RM2 billion) is a fraction of one Malaysian cabinet minister's reputed wealth, another's estimated wealth, and of several ministerial pairs.

The average wealth of the Malaysian cabinet minister is acquired in office; how that is done without being corrupt is one reason why they cannot be caught. Ask the Anti-Corruption Agency. Almost all cabinet ministers have been investigated for acquiring wealth beyond their means, but the Attorney-Geneal's Chambers, which must prosecute would not. Besides the odd office boy, clerk, postman, policeman, no one is officially corrupt, in the eyes of the Attorney-General.

In fact, it is a badge of honour to be investigated by the ACA. Ministers crow about how honest they are. It means nothing. Almost always it says the ACA has found them to be less than honest in how they acquired their wealth, but the A.-G.'s Chambers for reasons it does not reveal refuses to prosecute. The ACA lost its independent powers to prosecute as corruption in officialdom rose sharply.

The ACA investigated the more blatant acquisition of wealth of senior civil servants. The Prime Minister must have been shocked to learn that the 50 most senior ones, in the civil service, police and military, had combined assets of what the Thai cabinet has.

One had his assets of RM22 million raised to RM27 million after the ACA had a friendly chat with him. He is not the only one. Those in the ACA belief their chief did not have his contract extended, and a police man brought in to head it for the first time in decades, because the police were unhappy at how some of their law-and-order leaders were asked to explain their wealth. They got it all from shrewd investments in the stock market, property deals, brilliant investment advice. But the man had to be replaced for he pokes his nose where he should not.

When the late Tun Sardon Jubir, the UMNO stalwart who became governor of Penang, once told me why he resigned when he did. He was a shrewd political animal, but an indifferent cabinet minister and even worse administrator. It was he who launched both Tan Sri Musa Hitam, later the first deputy prime minister to self-destruct, and Dato' Mohamed Rahmat, the National Front secretary-general, by taking them on as his political secretary, in succession, in the 1960s. He had withstood pressure from the party to step down, but when his division members asked him to step aside "because you have had enough time to make money, and it is now our time", he got so disgusted and resigned.

Today, cabinet ministers hold on to office for the wealth they can accumulate. One cabinet minister told the ACA he is worth US$200 million, which he raises to US$250 million after two interviews with the ACA. Another earned so much wealth in politics that his son could get a loan of RM1.2 billion to further his business interests. One former minister owned 17 cars worth RM6 million; two still in office own Porsches worth nearly RM2 million. As if this is not enough, two ministers have gone into the food business: one in Brickfields and the other in Subang Jaya.

To this must be mentioned mentris besar and chief minister. Several have more than the declared assets of Thai cabinet ministers. Two reputedly made RM500 million in office. One is worth five times that. Most National Front mentris besar and chief ministers could not justify their wealth if a serious official crackdown is ordered. But there is no worry about that. When the jailed former deputy prime minister, Anwar Ibrahim, lodged police reports with evidence of ministerial corruption, no action is taken.

How do these people acquire so much wealth? Because they hold office for too long, often in the same ministries. People are not shifted around as often as they must to reduce corruption. When the National Front party leaders insist on staying on for ten years and more, they become prime candidates for corruption. The most principled man would succumb when temptation is put in their way day in and day out. Indeed, I would argue that corruption is acceptable if that is compensated by an efficient government.

That is not so. People will not complain of corruption and misuse of office if what is promised is delivered expeditiously and promptly. It is not. Corruption dictates every request for service. So, all it needs is for an anger that gets out of hand. However much the government might deny it, Dato' Seri Anwar's humiliation provided the spark. It galvanised the myriads of petty corruption, bureaucratic indifference, political arrogance into one counterwailing force. Suddenly how rich our elected representatives are is relevant.

The richest of all politicians has more more than RM50 billion, or as much as Malaysian foreign exchange reserves. He is arguably Malaysia's richest man. He controls 40 per cent of the stocks on the KLSE when one of his associates acquired the Malaysian shares locked in the Singapore CLOB market, and as much as 75 per cent through holdings in government agencies he controls. The KLSE is in the doldrums because many begin to see the manipulations and unfair wealth building that they do not want to be party to it anymore. The prices continue to decline.

Out of nowhere, he acquired a business empire, with much official help, that now threatens the Malaysian economy. The PAS MP, Mr Mohamed Sabu, mercilessly caricatured him in parliament as a Napolean-with-moustache. He was, like the Prime Minister, rich when he joined the Cabinet, but acquired his Croessus-like wealth in office. But he works through nominees. So little is pinned on to him as can be of the others.

But his presence in the cabinet is one more reason why the Prime Minister is so severely criticised. He commits the government without even the Prime Minister knowing about it. To set wagging tongues at rest, the wealth list of Malaysian cabinet ministers and senior cabinet ministers must be released, like in Thailand. But it is one the Prime Minister would rather not talk about.

M.G.G. Pillai
pillai@mgg.pc.my