07 November, 2006

The 2006 Corruption Perceptions Index

The 2006 Corruption Perceptions Index (CPI), launched today by Transparency International (TI), Malaysia slips to 44th place on graft index.

Despite concerted efforts to check graft, Malaysia has fallen five places on the corruption ladder.

It now ranks 44th from the 39th position it occupied last year among 163 countries in the Transparency International Corruption Perceptions Index 2006.

It occupies the 10th spot among 25 economies in the Asia Pacific region, where the least corrupt are Singapore, Hong Kong and Japan in that order, with Myanmar as the worst. Malaysia, however, scores better than China, India, Indonesia, Thailand and Pakistan.

The survey ranked Finland as the least corrupt nation among the 163 countries surveyed this year while Haiti stayed at the bottom of the list.

1. Finland
2. Iceland
3. New Zealand
4. Denmark
5. Singapore
6. Sweden
7. Switzerland
8. Norway
9. Australia
10. Netherlands
11.UK

15.Hong Kong
17.Japan
18.France
20.USA
34.Taiwan

44.Malaysia

45.Italy
66.Cuba
70.India
160.Myanmar
160.Iraq
163.Haiti.

Click HERE for an extensive list of the CPI table.
Read the full transparancy international report HERE

Meanwhile Lim Kit Siang wrote :

[I had warned in my speech before lunch that Malaysia risked plummetting in the Transparency International (TI) Corruption Perception Index (CPI) 2006, which had not been released at the time. My warning had unfortunately proved to be correct some four hours later when it was announced that Malaysia had slipped to an unprecedented 44th place in the TI CPI 2006, falling another five places from 39th position last year.]

How else explain the following catalogue of scandals:

•The Zakaria Mat Deros scandal – showing utter contempt for the Sultan of Selangor, public opinion and the Prime Minister’s reform and integrity agenda, where the most important issues are not even the illegal building of a palatial mansion on dubiously acquired land, the operating of an illegally built restaurant squatting illegally on state reserve land, three members of the family as Klang Municipal Councillors but how Zakaria had acquired his riches to become a multi-millionaire and the complete inaction and disinterest by both the Anti-Corruption Act and the Inland Revenue Department as to how Zakaria has got his millions..

•The sweeping under the carpet of the APs scandal, arousing the ire of even the former Prime Minister, Tun Dr. Mahathir Mohamad who had “turned the table” alleging the corruption had come above the table under the Abdullah premiership – when one of the Prime Minister’s greatest vote-getting qualities in the last general election was his promise to make a total break from the corruption, cronyism and nepotism of the previous administration so that he could be a modern-day “Justice Bao”!

•Abdullah’s failure to give satisfactory responses to integrity allegations whether involving himself on the Iraq Food For Oil scam involving billions of ringgit, his son, Kamaluddin over Scomi government contracts or his son-in-law, Khairy Jamaluddin over ECM Libra share acquisitions – which should all have been referred to an independent public inquiry.

•Abdullah’s shocking riposte to Tun Mahathir in their “four eyes only” meeting before the Hari Raya holidays that the children of the former Prime Minister had more government contracts that his son, Kamaluddin, as if the Prime Minister had lost the sense between right and wrong on the question of integrity, which is to be his legacy to the country as the fifth Prime Minister of Malaysia.

•The poor and dismal record in the last three years in the battle against corruption. In the recently-released World Bank’s Worldwide Governance Indicators (WGI) 2006 report, Malaysia fared worse as compared to 10 years ago in five of the six good governance indicators – voice and accountability, political stability and absence of violence, government effectiveness, regulatory quality, rule of law and control of corruption. Malaysia’s ranking in the Transparency International’s Corruption Perception Index (CPI) had plunged from No. 23 in 1995 to No. 37 in 2003 when Datuk Seri Dr. Mahathir Mohamad stepped down as Prime Minister, but the decline continued in 2004 and 2005, falling to No. 39 in both years.If the World Bank’s WGI findings on “control of corruption” reflect the latest position, then Malaysia’s ranking in the Transparency International (TI) Corruption Perception Index (CPI) 2006 may even fall from 39 to 52, as World Bank has found Malaysia to be in an even worse position than 12 countries which had been behind Malaysia in the TI CPI 2005, including Thailand!

•The shocking assertion by the Minister in the Prime Minister’s Department, Datuk Seri Nazri Aziz last Thursday claiming that Umno members are immune from the Anti-Corruption Act 1997 for money politics and that the Anti- Corruption Agency (ACA) cannot investigate cases of political corruption or money politics because these offences are confined to political parties and not public transgressions. The failure of the Prime Minister to dissociate himself from the Nazri doctrine, the silence from the ACA and the Attorney-General’s Chambers on this pernicious doctrine seem to mark the end and full retreat of Abdullah’s lacklustre and fruitless three-year anti-corruption campaign.

In his three years as Prime Minister, Abdullah has failed to “walked the talk” of his reform pledges and agenda, as well as his many beautifully-crafted calls and admonitions.

Although the Prime Minister is the most powerful office in the country, his words are now being treated like “water off a duck’s back” by all and sundry in the country – whether Ministers, bureaucrats, party apparatchiks and the members of the public.



**********


In Malaysia, nostalgia grows for the days of Mahathir
By Thomas Fuller / International Herald Tribune
Published: November 6, 2006


The annual meeting of Malaysia's governing party is known for fiery talk and dramatic gestures, like the time during last year's conference when a high-ranking member brandished a sword to make a point from the podium.

But when the doors to the conference open next week, the party's most outspoken member will not be speaking. In fact, he may not even be attending.

Mahathir bin Mohamad, who stepped down as prime minister three years ago but now is the biggest critic of his handpicked successor, Abdullah Ahmad Badawi, says he has not yet made up his mind.

"I may even be expelled from the party," Mahathir said in an interview.

Mahathir's attacks on the government - in the interview he lashed out at everything from its economic policies to what he calls the prime minister's short attention span - are seen by many as a self-serving and inelegant coda to a long, visionary career.

Yet many Malaysians say they wish Mahathir would be allowed to stir things up at the party congress. The former prime minister's campaign against the government is eliciting increasing levels of sympathy and support here from investment bankers, lawyers and other Malaysians dismayed that the government lacks a coherent long-term plan for the economy and has not delivered on its promises to clean up corruption.

Even Anwar Ibrahim, the former deputy prime minister who was fired, jailed and beaten in prison during Mahathir's rule, said the government was not paying enough attention to Mahathir's criticisms.

"He has brought up some very key substantive issues that include allegations of a police state, rampant corruption, cronyism, abuse of power and a media that is not free," Anwar said in a telephone interview.

"People ridicule this and say all these things were his policies, too. But notwithstanding that, you have to reply," Anwar said. "There is a failure on the part of Abdullah and the present administration to address the substantive criticisms by Mahathir, which I think to an extent are legitimate criticisms."

After he dominated politics here for 22 years and shaped the destiny of modern Malaysia, Mahathir's voice cannot be ignored, analysts said.

During an interview at his 86th-floor office in the Petronas Towers, Mahathir gestures toward the vertiginous vista of the modern city that he helped build: skyscrapers and an elegantly landscaped park rimmed by luxury hotels.

He complains that the government is not spending enough on infrastructure and is letting the economy sag. "All these new buildings that you see were actually approved during my time," Mahathir said without a trace of self-effacement.

Abdullah is handing out contracts to friends and family, Mahathir complained. And he is abdicating Malaysia's role as a spokesman for the Third World. He should either change course or step down, Mahathir said.

"He need not go if he is willing to do what is right," Mahathir said. "Of course if he is not willing then I think he should not stand in the way of the country's continued development."

A government official who works with Abdullah said the prime minister was traveling in Pakistan and unable to respond. But the official dismissed Mahathir's comments as a "distraction."

"The prime minister was elected by the people," said the official, who requested anonymity because he is not authorized to speak on behalf of the government. "Ultimately his future should be determined by the people who put him in office rather than the wants of one man."

After Abdullah's three years in power, Malaysians admire him for allowing more debates about sensitive issues such as race and religion. "He

loosened up control," said Sankara Nair, an activist lawyer. "People feel more free to express their views."

Abdullah is also credited with making some basic government services like passport issuance more efficient and easing the reins on the judiciary.

But there is also frustration among everyone from bankers to taxi drivers that Abdullah does not have the same vision for the future that Mahathir did.

'The man on the street is saying, 'Where is the economy heading?'" Sankara said.

In his quest to challenge or ultimately unseat Abdullah, some of Mahathir's difficulties are of his own making: Abdullah remains relatively secure as president of the party partly because Mahathir made it more difficult to oust the party leadership during his own reign.

"None of the cabinet ministers are willing to abandon Abdullah - they

know the consequences," said P. Ramasamy, a political science professor based in Singapore. Siding with Mahathir would mean dismissal and cutting themselves off from lucrative contracts, he said.

What may be troubling for Abdullah, Ramasamy said, is that some of Mahathir's criticisms are sticking. In a sign that he may fear a challenge to his position, Abdullah recently postponed party

elections that were to be held next year.

"Mahathir may not have the power to remove him but he has done a lot of damage to Abdullah Badawi. The prime minister's credibility is at stake," Ramasamy said.

Mahathir holds no post in the United Malays National Organization, the party that leads the country's coalition government, and he failed in a recent attempt to win election as a delegate to the general assembly next week. He can attend in his capacity as a former president of the party, but that does not give him the right to speak.

At 81 years old, Mahathir walks more slowly than he used to. He travels frequently, but he enters the back seat of his chauffeured cars carefully and deliberately; doctors told him recently that he has three blockages in his heart.

Yet Mahathir retains his feisty, acerbic style. He complains that he is being blocked by the police from meeting with supporters, repeating his claim that Malaysia is a "police state."

"Muzzled," he said. "I can't talk to anybody. If I talk to the mainstream press it is either not published or it is spun in a way that makes me look bad."

After an hourlong interview it is difficult to know what exactly spurred this former medical doctor to jump back into politics. He said he was bothered most by the sway that Abdullah's son- in-law, Khairy Jamaluddin, has over policy and the awarding of contracts. But he was also worried about preserving his legacy and continuing his aggressive building program of highways, bridges and ports.

But Mahathir does not seem prepared to abandon the fight. Asked whether the idea of a quiet retirement - John Grisham novels on the beach and quality time with grandchildren - tempts him, he responded without hesitation.

"No, I think I have an obligation to the country and to the people," he said. "I don't care much about what happens to me."


**********

Q&A with Mahathir bin Mohamad

For 22 years Mahathir bin Mohamad dominated Malaysia's ruling party, the United Malays National Organization, and set a course for the country that helped upgrade its infrastructure and diversify its economy. Mahathir was praised for the modernization of Malaysia but criticized for eroding the independence of many institutions, the courts and the media among them. When Mahathir retired in 2003 he vowed not to interfere with the government of his hand-picked successor, Abdullah Ahmad Badawi, who had replaced Anwar Ibrahim, the former finance minister dismissed by Mahathir. Now Mahathir, 81, is battling back into the political spotlight, calling for Abdullah to either change course or step down. His critique resonates among Malaysians who are frustrated by the slow pace of promised reforms and worried that Abdullah's program of "Islam Hadari," or civilizational Islam, is blurring the lines between government and religion. Mahathir says he is being shut out of the press and stymied by police from holding meetings with supporters. He spoke with Thomas Fuller of the International Herald Tribune about the reasons for his return to politics at his 86th floor office in the Petronas Towers. Excerpts:


QUESTION: Eight years ago we met in your old office. It was two days after Anwar had been arrested and a month after he'd been fired. I asked you what you would look for in a successor to Anwar. This is what you said: "An honest man who is capable. Not a genius. I am not expecting a fair copy of myself." In the end we know the outcome: You chose Abdullah. What went wrong?

ANSWER: Before I proceed with this there is of course this label against me that I [ran] a very authoritarian government -- I censored the papers, I undermined the independence of the judiciary. No matter how I explain that this was not so, the press, especially the foreign press, keeps on repeating this... What I did was under the laws of the country. The laws may be draconian like the ISA [Internal Security Act, which calls for detention without trial] but the same laws were used by my predecessors, from the first prime minister to the third prime minister...What is happening now is different. There is no law which provides for the police to call up people and basically threaten them to call off the meetings that they proposed to hold and to invite me.

QUESTION: You feel muzzled?

ANSWER: Muzzled. I can't talk to anybody. If I talk to the mainstream press it is either not published or it is spun in a way that makes me look bad. In the meantime anybody's statement against me gets full publicity. But I cannot reply to them. And if I meet the press, what they report is usually not what I said.

QUESTION: In the Anwar days if I read the newspapers - during 1998 in the days after he was fired - Anwar's statements were not carried. His actions were also spun.

ANSWER: That may be true but papers tend to self-censor. They censor themselves. They think that this might not please the leadership. So they don't publish. But here we have people actually ringing up the papers telling them you print this, you don't print this. That has never been done during my time.

QUESTION: You never did that?

ANSWER: I never did that. At the same time of course Anwar was free to go around the country. He had gatherings of 10,000 and 15,000 people. He was never stopped.

QUESTION: Let's get to the substance of your return to politics. What do you think Abdullah's biggest blunders have been?

ANSWER: I promised not to interfere with the government. For two years I did not interfere with his government. But what I noticed is that from the very beginning his family members became involved in government process. They actually attended government meetings although they had no status whatsoever. There is clear evidence that the son in law [Khairy Jamaluddin] has very big say even in the appointment of ministers, even in the choice of candidates for the election. I have been told by the very people who have experienced this that he rings up chief ministers to give certain projects to certain people, including to his mother. This is something that I believe is absolutely true because the person who lost the project was very unhappy and he told me...

QUESTION: What state was this in and what project was it?

ANSWER: Prawn culture in the state of Perlis and a contract I believe in the state of Negri Sembilan.

QUESTION: But in the larger scheme of things -- you were in power for 2 decades and you set a course for the country -- these types of projects allocated to friends they happen in every country and they might not put Malaysia off of the tracks. Is there a bigger picture?

ANSWER: No. During my time, my children were not given any role at all. You don't hear of my children directing people or influencing people or selling influence or getting paid. They were not supposed to have business with the government unless of course they tender out in the usual way. If their tender is good, I suppose they win but very very little. I kept my children even from becoming candidates. They could become candidates for the elections they could not become candidates for the party also.

QUESTION: One of your children was in UMNO Youth and another one had a large shipping business...

ANSWER: Yeah, but the shipping business was his own. He bought the shipping business in Hong Kong. He bought shares in the local shipping business. He was doing quite well excepting that during the financial crisis he couldn't meet the demands for him to pay. So he had to sell off... Within the country the only people who could buy was Petronas and Petronas bought it cheap. It relieved him somewhat I suppose but he was still having financial trouble.

QUESTION: What's your view on Islam Hadari?

ANSWER: In the first place there is no call to introduce any other kind of Islam, whether it is modern Islam or Islam Hadari. I have always maintained that Islam is a religion for all ages... I believe that the teachings of the religion as found in the Koran [are] very mild, very reasonable and should make for a good Muslim community. There is no need to go to any other branch, just stick to the fundamental teachings of Islam.

QUESTION: What about Abdullah's economic management?

ANSWER: Basically he does not understand how to move the economy. In order to prove that I was wrong in spending government money on what he calls mega projects he cuts back on that. If government does not spend money it doesn't generate wealth in the community...

QUESTION: Some have criticized Abdullah for being, for lack of a better word, sleepy... Do you feel that he lacks the energy that you had?

ANSWER: His attention span is very short and everybody tells me... that he goes to sleep, even while cases are being presented to him... He tends to let his advisors tell him what to do.

QUESTION: When you were prime minister your comments, whether people liked them or not, raised the profile of Malaysia within Asean [the Association of Southeast Asian Nations] and the different organizations of developing countries, within the OIC [Organization of the Islamic Conference]. Do you think that Abdullah has lowered Malaysia's profile?

ANSWER: He seems to have caused Malaysia to abdicate its role as a spokesman especially for the Third World, OIC, NAM [Non-Aligned Movement]. He seems to be much more inclined to go along with those powerful countries like America, Britain, Australia. And of course he's extra friendly toward Singapore to the point where three years after his being in the seat there has been no substantial agreements reached on numerous issues. The bridge is one of them. The water problem has not been resolved...

QUESTION: Let's talk political strategy. You have made your move, re- entered the political area. What's the end game?

ANSWER: To get the government to correct itself. Not to do things which are not acceptable, like getting your family involved, like getting your family's companies involved.

QUESTION: Does this mean that Abdullah has to go?

ANSWER: He need not go if he is willing to do what is right, not by me but what is right for the country. Of course if he is not willing then I think he should not stand in the way of the country's continued development. Suddenly the development of the country came to a halt. All these new buildings that you see were actually approved during my time. If you travel by MAS [Malaysia Airlines] they will show you Malaysia with tall towers and all that. At the end of it, it shows his picture as if he was responsible but he was not. All those things were built before his time.

QUESTION: You mentioned as a possible successor to him [former finance minister] Tengku Razaleigh Hamzah?

ANSWER: Whether it is Tengku Razaleigh or Najib [Tun Razak, the current deputy prime minister] or whoever, they are all entitled... When I was asked this question, Tengku Razaleigh's name cropped up. I said, 'Well of course, he is just as eligible as anybody else.' I could not say, 'he cannot be.' It is up to the party to make a choice.

QUESTION: What about Najib?

ANSWER: Najib is just as good... Either one. There are others who are also in the running.

QUESTION: Such as...

ANSWER: Muhyiddin Yasin [industry minister] has been mentioned and he has ambition...

QUESTION: Will you attend the UMNO general assembly [beginning Nov. 13]?

ANSWER: I have not yet decided because I have to see because certain actions are going to be taken. I may even be expelled from the party.

QUESTION: You are hearing this or you are fearing this?

ANSWER: There is talk about it.

QUESTION: If you were to go you would be there in the capacity as a former president but you wouldn't have the right to speak. What good would it do?

ANSWER: Past presidents have always attended so I have just as much right to attend.

QUESTION: In the larger political sense you are up against Abdullah who got a significant mandate the year after he took over.... People like his personality, his style. What do you think it will take for people to come around to your side? Have you not enunciated the argument yet?

ANSWER: His strategy is to stop me from communicating with anybody, that way his popularity will be sustained or retained.

QUESTION: He is unlikely according to the current rules to be removed from UMNO office in large part because during your rule it was made more difficult to remove the top UMNO officers. Is this karma?

ANSWER: No, not quite. During that time we may have made it difficult to remove the leader but we did not stop people from criticizing the leader. I was very strongly criticized by the previous prime ministers and even by the candidates who went against me, Razaleigh, Musa Hitam, Abdullah himself.

QUESTION: Some would say your dispute with Abdullah is personal. They say you have friends who benefited, contractors or other businessmen. They are no longer getting the contracts.

ANSWER: That is the old accusation against me, that I favored my friends. But I did not favor friends - these are people who are capable of doing things so they had opportunities. I can't possibly give the development of a port to a rickshaw puller. It must be somebody who has the capacity.... I am not interested in personal things... It's not because of pet projects either. What projects I carried out was for the national good.

QUESTION: Mahathir versus Abdullah is something that has caught the attention of the region. Do you ever wonder if it is worth it?

ANSWER: I tried my best to say that it is not a personal thing between the two of us. It's a question of how things are done in this country. I pointed out that things are wrong not because of the person but because they are done wrongly.

QUESTION: But is there the risk that the rift damages Malaysia more than Abdullah could damage Malaysia?

ANSWER: No, I think Abdullah could damage Malaysia more...

QUESTION: Do you still rule out [former deputy prime minister Anwar Ibrahim] as a possible prime minister in the future?

ANSWER: I have my opinion about him, about his suitability, but of course others may have other opinions. As far as I am concerned he has lost his opportunity...

QUESTION: And Malaysia would be worse off if he were prime minister?

ANSWER: Probably.

QUESTION: Let's talk about the longer term... What is your biggest fear for Malaysia?

ANSWER: I think Malaysia has good opportunities if it is properly managed, if you understand that opportunities come even with problems. Yes, we have China. We have to compete with China but China can become a big market for Malaysia, China can become a very big investor in Malaysia.

QUESTION: The Sutlan of Johor asked why you don't settle down like a pensioner. Are you tempted by that? Reading John Grisham novels on the beach, playing with your grandchildren? The medical community talks about three blockages in your heart. You are getting along. Isn't this a time to slow down?

ANSWER: No I think I have an obligation to the country and to the people. I don't care much about what happens to me. I have worked hard all this while, even after I had my heart attack, I did not slow down. I think life would not be worthwhile if you are thinking about having a good time after you retire.

QUESTION: Do regret having stepped down?

ANSWER: No, I would have stepped down. There is no way I can know what is going to happen.

QUESTION: You have the tape of the meeting of the so-called peace talks with Abdullah. Are you going to release that?

ANSWER: Maybe one day.

QUESTION: You have a copy of it in your closet?

ANSWER: Somewhere.


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