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Sakmongkol ak 47

Thursday 14 May 2015

Regulatory Capture and the sin of Corruption.

I am surprised when people cannot believe what is happening to Tabung Haji. God fearing people don’t do this they insist.  By ‘this’, they mean suspicious transactions between TH and the deservedly much maligned 1MDB.

Let’s face it. 1MDB is a bloody crook. Pious and god fearing people don’t do business with a crook.  The general feeling is, it’s unconscionable for TH to touch 1MDB.

You can come up with the gobbledygook jargon such as that given by TH’s deputy CEO about the investments made by TH being in line with the appetite of TH haji’s willingness to take on risks; TH can say all that and can even show that the transaction fulfilled all the shariah compliance criteria and done with all the legal propriety- but still you can’t get rid of the unconscionability part of the whole transaction. You just don’t touch something that can classified as unclean. Not by Tabung Haji anyway.

The world is full of saints and sinners. Robbery and rape all have been done by invoking god’s name and done in God’s name. Bribery and embezzlement are mere sins. The money, if it can talk, will say it doesn’t know it’s in the hands of the saint or sinner.

The horny ustazs too. The pecker or the todger as it’s called in the UK, doesn’t know to whose body it’s attached to- again on a saint or sinner. When it sees the target its gets aroused.

So religiosity is an overrated virtue. Saint and sinner are two sides of the same coin. Visible piousness does not guarantee the hands are kept away from the till.

Can we find one general theory as to why people in businesses owned, controlled and supported by politics and politicians embezzle money? It has also spread to the private sector. Those in executive positions, when doing business transactions, will write in rules and regulations, so that their interests are protected.

Let us take one thing as a given. Men and women in position if confronted and presented with an opportunity to make money, to earn commission, baksheesh will use their positions to exploit the opportunity to make money. Money and women attract the pious and the unvirtuous.

The money is given at the completion of the transaction. It can be immediately given or assured sometime in the future.

Once accepted as given, I can be spared from delving into the psychological constitution of the perpetrators. There are others qualified to do that.  Plus, because I am too lazy to read the literature.Not sure I can understand too.

Example: those who drafted the so called JV agreement between not so clever 1MDB led at that time by one shahrol helmi with Petro Saudi Limited got placements to work with PSI later. They got a lot of money too. 
Patrick Mahoney got USD85 million and percentage of management fee or something. Tarek Obaid got paid USD85 million in commission. Many others got paid by the philanthropist Jho Low- philanthropy is cool bradah man.

We must investigate whether Shahrol Helmi received any kickbacks or not for recklessly agreeing to transfer USD700 million into an account belonging to Jho Low- the chinaman who is a close buddy to the first couple of Malaysia.

In simpler words, thieves look out for their interests and the interests of fellow thieves.

Economists, especially those specialising in public choice theory, have a special name for this conduct. It’s called regulatory capture. The businesses carrying out these acts are called regulatory agencies. They act as agent which procures the interests of the thieves.

Because of regulatory capture, seemingly men and women with good intentions steal money when presented with opportunities to do so and whey they have position.

So, there is no mystery behind all those sordid stories. Real god fearing people ought not to despair when they realised all those men with good intentions managing Tabung Haji can and actually take money because of regulatory capture. 
By way of imputing regulations and setting the rules of the game, they contrived the means to gain benefits immediately or which are promised later.

It’s not enough to put men and women of good character in positions of power where they can and will do regulatory capture. Honesty and integrity must be institutionalised.

If I have my way, I will do the reverse of OSA. I will put in place a law that says that if anyone knows of some misconduct and dishonesty in some business transaction they must come forward and tell the authorities. Otherwise if discovered later that they knew but kept quiet, it is a strong assumption they are complicit in the wrongdoing. If found guilty, they get sent to jail.

Get ready to hear of horror stories from Tabung Haji. Since its Tabung Haji, the citadel of the pious and the god fearing persons, I would like to leave with reminders from the Holy Quran:

Quran 2:42- and cover not truth with falsehood nor conceal the Truth when ye know (what it is).

And at the end of Quran 5:2- help ye one another in righteousness and piety, but help ye not one another in sin and malice…..


Anonymous,  14 May 2015 at 08:37  

With due respect, there is no God. If there is God, at least God will have given at least the brains to those who are so dumb as to continue to vote for the thieves and robbers who masqueraded as BN politicians

Anonymous,  14 May 2015 at 09:46  

We need to send in Ghost busters into Tabung Haji's accounts to find out who the devil is doing all the devilish business. Never always trust a person even if he is the one with a big turban on his little scull.

Anonymous,  14 May 2015 at 10:06  

Don't Muslims know that everyone will be tested in this life?

Those who steal and those who "rush" to cover up such acts or other unjust acts (there are many such foolish people in Malaysia and we know who they are) will be accountable for their actions.

They are so brave to use the authority given to them by Allah to do such evil acts.

Soon,they will know their folly and will pay dearly in the Hereafter.

Anonymous,  14 May 2015 at 12:29  

PAS central committee member Dr Dzulkefly Ahmad has queried who made the decision to sell the land, originally earmarked for Bumiputera, to 1MDB.

He also asked what was the original price of the land in the Kuala Lumpur city centre, which was previously owned by Pelaburan Hartanah Berhad (PHBB).

The land along Jalan Tun Razak was earmarked for Bumiputeras to increase their property ownership during the administration of Prime Minister Datuk Seri Najib Razak's predecessor Tun Abdullah Ahmad Badawi.

"Who was the one who directed and ensured the agenda to sell PHBB trophy asset to 1MDB?" asked the former Kuala Selangor federal lawmaker in an interview with The Malaysian Insider.

"It was said the land was allocated to PHBB during Tun Abdullah's era with the aim of developing it so that Bumiputeras still have an opportunity to invest in prime real estate by way of shares, investments and shariah-compliant Real Estate Investment Trust," he said.

It was reported that 1MDB only paid RM64 psf when it bought the 30ha from Putrajaya four years ago.
- See more at:

Anonymous,  14 May 2015 at 19:11  

Dato, we know already that in Malaysia, new laws are enacted and old ones made more draconian specifically to protect the corrupt who walk the corridor of power. Their greatest fear is a people uprising that will bring them down and send them to prison. It's this constant fear that make them want to stay in power as long for as possible, until death and their money part I suppose.

Anonymous,  14 May 2015 at 19:53  

I wonder who among the Ulamak faction in PAS has the ability to go into details on economic analysis like what Dr. Dzul had done.

Pok Li

Anonymous,  14 May 2015 at 21:49  

Dato, your palDonplaypuks has written another scintillating article, the latest on the Tabung Haji land purchase.
Recommend this to be read, clearly establishes it was a bailout of 1MDB.

Firestone 14 May 2015 at 22:16  

Tabung Haji lost RM72 million in its investment into a listed commercial bakery SILVER BIRD GROUP BERHAD in 2012 when the company became insolvent due to fraud and CBT by its top 3 executives. The share price plummeted from an average RM0.60 down to RM0.08 per share.

Tabung Haji had a senior Finance Director nominated and sat on the BOD since 2008. It was believed he was even warned by a whistle-blower at the KLGCC in 2008 about the alleged fraud and CBT activities but he chose instead to continue to play badminton...

Up till today Dato Sak, there has been no accountability of this massive RM72 million loss suffered by Tabung Haji and the said director is still enjoying himself driving around an Audi Q7 and an Audi A6...

flyer168 16 May 2015 at 09:05  

"Regulatory Capture and the sin of Corruption."

To cheat their own muslim Pilgrim members' savings...!

Well organized criminal group we call mafia, the best organized mafia, we call the government...!

Jibby & his cahoots are running out of options to commit such a henious crime...!

clearwater 16 May 2015 at 11:13  

Thoroughly enjoyed this piece which encapsulated lifetime observations on human nature.

There are no saints and no devils among men; each of us is a composite. Rubbed up the right (or wrong) way, each can be an angel (or devil) for the occasion. Of course some are more angelic than others.

SolitaireHunter 17 May 2015 at 17:34  

Salam Dato'

Barangkali apabila disebut TRX (Tun Razak Xchange), Najib berfikir yang itu harta 'bapak dia'. lantas sesiapa pun tidak boleh mempersoalkan apa yang dibuatnya suami-isteri..

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