YB Dominique Ng Kim Ho

The Corrupt Deed
Accusations of deep corruption and nepotism have surrounded Taib on several occasions and the dominance of Sarawak’s political elite including Taib’s family in the logging industry is well documented.

In the latest expose, Taib is alleged to have established a real estate empire in Canada worth a few hundred million dollars, under the name of his son-in-law. Taib’s son-in and daughter is also alleged to have used political contribution to further their real estate business in Canada.

A doctoral thesis written by UNIMAS lecturer, Dr Neilson Mersat, alleged that Taib’s family wealth comes mostly from Sarawak state government contracts without tender, and profits were sent overseas to hide them.

Logging industry
The excessive logging in Sarawak and Sarawak’s forest policies has gained international attention and criticism since 1987 where various foreign governments and international organisations protested against the dramatic rise in timber production from Sarawak.

In 1988 and 1989, the European Community banned the hardwood imports from Sarawak. Other countries such as Germany, Netherlands, and Austria also restricted the import of tropical hardwoods. In 1989, a staff mission was sent to Sarawak by U.S. House of Representatives and a report was published which criticized the state logging policies and the treatment of natives in Sarawak. However, former Primary Industries Minister, Tun Dr. Lim Keng Yaik, warned the Austrian government in 1992 that Malaysian government could also do the same for the chocolate products from Austria for environmental reasons.

The involvement of Taib and his family in logging industry is specifically mentioned in a report published by Forests Monitor. According to the report, the chief minister reserves his right to revoke timber licenses while no legal challenge is possible against the chief minister. This is to ensure that the anyone with logging interest is loyal to the chief minister. The report also notes that in general, mutually beneficial relationship between political elites and logging companies often results in corruption, bribery, and transfer pricing, where the financial details of transnational logging companies, including Malaysian ones, are difficult to track. The ultimate owners of timber concessions is surrounded with secrecy because the only information available is only a list of the local concession holders.

In 2007, The Japan Times reported that nine Japanese shipping companies, which transported timber from Sarawak, had allegedly failed to report some 1.1 billion yen in income over a period of up to seven years. The report claimed the money was paid as kickbacks to Sarawak officials via a Hong Kong agent linked to Taib’s family.

Taib, however, denied totally the Japan Times allegations by presenting a 10-page clarification in the state assembly. He said that he had no knowledge about the bribes given to Sarawak officials and the evading of the income from timber production.

In 2009, the 2008 annual auditor-general’s report labelled the forest management in Sarawak by state government as unsatisfactory. However, Sarawak’s Second Minister of Planning and Resource Management, Datuk Amar Awang Tengah Ali Hassan questioned the validity of the report as he claimed that the auditor-general’s department did not have the expertise in forest management.

The results of the logging industry under Taib is that less than 10% of Sarawak’s primary forests remain, logging many of the ancestral lands of many of Sarawak’s indigenous communities, despite their continued petitions and road blockades, where forceful dismantling has led to several deaths and regular violent coercion by the Malaysian army, police and logging industry enforcers.

Nepotism
Taib’s son, Dato Sri Mahmud Abu Bekir Taib, was appointed as Group Executive Director of Cahya Mata Sarawak Berhad (CMSB) on 23 January 1995. He is currently the Deputy Group Chairman of CMSB.

Abu Bekir Taib’s siblings, Datuk Seri Sulaiman Abdul Rahman Taib, Jamilah Hamidah Taib, Hanifah Hajar Taib and his late mother Laila Taib are substantial shareholders in the company.

Sulaiman Abdul Rahman Taib joined the board of CMSB when his brother Abu Bekir Taib, first became the Group Executive Director of CMSB. Sulaiman Abdul Rahman Taib was the Group Chairman of CMSB from May 2002 until June 2006, the former Non-Executive Director of CMSB, and the former RHB Bank chairman

In the 2008 general election, Taib’s son Datuk Seri Sulaiman Abdul Rahman Taib won the Kota Samarahan seat in the Malaysian parliament previously held by his father and became Deputy Tourism Minister in the new cabinet.

Prior to this, he did not have any political experience.

On 14 December 2009, he submitted his resignation letter to the Prime Minister, Datuk Seri Najib Tun Razak, due to personal reasons. His position was later taken over by Datuk Dr. James Dawos Mamit.

Taib’s sister Roziah Mahmud is one of the most powerful businesswomen in Sarawak with extensive holdings in property and timber business. Besides than that, she is also appointed as the Hononary Consul of the Republic of Poland to Sarawak (as Taib’s late wife Laila Taib was a Polish descendent).

Taib’s brother, Mohd Tufail bin Mahmud is the co-owner of Sanyan Group, one of the Sarawak’s biggest timber companies. In 2001, the Sanyan Group completed its construction of the 28-storey Wisma Sanyan in Sibu where the state government took up 8 office floors. Taib’s brother-in-law, Tan Sri Datuk Amar Haji Abdul Aziz Bin Dato Haji Husain, was appointed state secretary by Mahmud in 2000 and when he retired in 2006, he was appointed as the group managing director of Sarawak Energy Berhad since 2007. He also holds directorships for Eksons Corporation Berhad, Mlabs Systems Berhad, Syarikat SESCO Berhad and other companies.

Economic domination
Cahya Mata Sarawak Berhad (CMSB), the company controlled by Taib’s family, was awarded various governmental contracts including the maintenance of Sarawak’s roads over 15 years, constructions of roads, supplying roofing materials for low-cost housing units, building hospitals, and upgrading airports.

It also has a near monopoly of the supplies of concrete in Sarawak.

In 2001, the Malaysian federal government allowed the CMS Group’s banking unit Bank Utama to acquire RHB Bank to become one of Malaysia’s 10 core banks.

The company, PPES Works (Sarawak) Sdn Bhd, which is 51% owned by CMSB, recently completed the construction of the New Sarawak State Legislative Assembly Building in 2009. CMSB is currently under the joint venture with leading aluminum producer, Rio Tinto Alcan (RTA) to develop aluminum smelter in Similajau as part of the Sarawak Corridor of Renewable Energy (SCORE).

In 2008, the Sarawak government planned to build 12 dams in Sarawak in order to meet the future energy demand of industrialisation. These dams are scheduled to be completed in 2020 although they need to be approved by environmental impact assessment. A memorandum of understanding was already signed between the Sarawak Energy Berhad and China Three Gorges Project Corporation on Murum Dam project.

A total of 51 dams may be constructed by the year 2037. This controversial hydroelectric project is receiving fierce criticism because of catastrophic disasters that they may cause and the possible displacements of native communities. The opponents of the plans cited this project as corruption and capital cronyism because CMSB is expected to be benefited indirectly by supplying concrete material for the construction of dams and building of aluminum smelter that consume much of the generated electricity.

In March 2009, Al Jazeera’s ’101 East’ English programme was aired where the Sarawak’s 12 dams issue and economic domination by Taib’s family was discussed in great detail. Minister of Land Development, Dato Sri Dr. James Masing accepted the interview on this issue but the Chief Minister Pehin Sri Taib Mahmud declined the interview invitation.

received via email. this article have appeared at Sarawak Talk

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