Hornbill Unleashed

October 17, 2012

Ali Baba contractors ‘killing-off’ Dayak business

Filed under: Human rights,Politics — Hornbill Unleashed @ 12:00 AM
Tags: , , , , ,

Joseph Tawie

‘Ali Baba’ contractors are squeezing Dayak contractors out of busienss in Pakan, Sarikei, Bintagor, Selangau, Kanowit and Sri Aman constituencies.

Discontent Dayak contractors in Pakan may cost Julau MP Joseph Salang to lose substantial votes in the coming general election.

Salang, who is also Deputy Minister of Information, Communications and Culture, seems to be unable to help his genuine Dayak contractors.

According to the contractors, they are shabbily treated and are victims of the famed ‘Ali Baba contractors’ disease which surfaced during the era of Prime Minister Tun Dr Mahathir Mohamad.

According to a local contractor Joseph Allen, in Pakan the Ali Baba contractor has been active for the past three years.

“This contractor is aligned to certain government officers. He ‘sapu’ (clean-sweeps) all big projects with high profit prospects meant for Pakan because of his connection with certain government officers,” said Allen.

The ‘Ali Baba’ system in Pakan works through three bumiputera companies which are under the control of a non-bumiputera contractor. The practice has been going on for three years.

These projects which include village road projects, public infrastructure and basic infrastructure projects were passed through the Public Works Department (JKR) to this Ali-Baba contractor.

Last week several frustrated bumiputera contractors met with the Resident of Sarikei division to voice their complaints only to be told that there was nothing he could do to help them.

Dissatisfied with the answer, the group led by Hereward Gramong approached Salang last Saturday in Sibu because most of the federal-funded projects in Julau were channeled through Salang.

Salang instead advised them to discuss with the officers handling the projects or tenders.

But instead of meeting the officers handling the projects, the Pakan district Bumiputera Contractors Association met on Sunday to discuss their next move.

Malpractices and abuse of power

They agreed to write a petition letter to Salang with copies extended to the Pakan assemblyman and Minister of Social Development William Mawan Ikom, Meluan assemblyman Wong Judat, Sarikei Division Resident, Divisional Engineer and Pakan and Julau district officers.

In the letter, they demanded that the authorities concerned bar the three Ali-Baba contractors who they identified, from vying for tenders offered through Pakan District Office.

They demanded that officers sitting in the tender board be changed as they suspected there were some elements of malpractices and abuse of power.

The bumiputera contractors also suggested that in order to ensure fair distribution of projects among the genuine bumiputra contractors, there should be a casting of lots (cabut undi) or on rotation system especially for projects though JKR for Class F, Class EX and Class E contractors rather than by open tender.

Besides Pakan, this practice of Ali-Baba (bumiputera-non-bumiputera partnership) is also very prevalent in Sarikei, Bintangor, Selangau, Kanowit and Sri Aman, claimed Allen.

“Salang must do something to help the Dayak contractors otherwise he may lose substantial number of votes in the coming election.

“He is going to face Judat, of Sarawak Workers Party and they are using this issue to gain support from voters in the Pakan state constituency,” advised Allen who is a member of Parti Rakyat Sarawak (PRS).

The problems have been haunting them after three contractors set up an Ali-Baba partnership in Pakan three years ago.

“Genuine Dayak contractors could not compete with him as he (Ali-Baba businessman) is given favorable treatment by the government officers,” he alleged, pointing out that the Dayak contractors would not take part in next tender exercises as long as the practice is still there.

“What is the point of taking part in bidding for tenders when we know the tenders will be given to the three companies which are owned by the same man?” he asked.

Before the appearance of the Ali-Baba contractor, the bumiputera contractors enjoyed a fair share of government projects for Julau and Pakan.

“I fully agree with Celestine Ujang of Dayak Chamber of Commerce and Industry that the Dayak contractors have been overlooked by the government when it failed to award them any contract work.

“What has happened to Prime Minister Najib Tun Razak’s 1Malaysia slogan and his ‘Janji Ditetapi’ when government officers did not follow what the Prime Minister has been preaching?” he asked, alleging that these officers were undermining the leadership of the Prime Minister.



  1. Ali Baba Issue
    Referring to Phillip”s Comment on the 17/10/12

    DCCI is a Dayak Business Organization and like any other Business Chamber in the country DCCI’s role is to function as an umbrella body to assist by seeking business opportunities for its members in particular for Dayak Community in general.

    DCCI’s intention to assist its members is genuine and our objective is to ensure that its members strictly adhere to the rules, philosophy and discipline of a good business practices and proper management culture if our people are to be successful in business.

    Therefore, for anyone to suggest that DCCI are grooming and condoning Ali Baba business practice is the biggest insult of its kind to the Chamber.

    May I also suggest that Phillip should write to Sarawak Chamber of Commerce and Industry (SCCI) since Ali Baba issue involves all communites viz Chinese, Malays and Dayaks and others requesting Sarawak Chamber to hold such seminar. You should also attend to express your view instead of just commenting on the blog under nom de plume.

    Comment by Terence Temengong Jayang executive secretary dcci — October 24, 2012 @ 10:53 AM | Reply

  2. He is a member of the same gang … robbing the country.

    Comment by tigeryk — October 18, 2012 @ 1:04 PM | Reply

    • He is also known as Judas … betraying his people and religion.

      Comment by Luke — October 18, 2012 @ 4:30 PM | Reply

  3. Even the rubber planting financed by RISDA is into Ali-Baba too. All the farmers need to do is get the MP, Penghulu and KK of his/her area to confirm the land, and he clears the land first, then rubber seedling is given free to the farmer while the producer of the seedling collect money for those seedlings from the RISDA. As it is expensive to have seedlings in a nursery before could be despatched for planting by farmers, most nursery are operated by non-bumi who are however using the names of bui big shots in the government. The so-called oilpalm planting in ncr land is facing a similar problem. MPOB financed it up to RM9,000/- per hectare but money is released only upon land is cleared after MP, Penghulu and KK have signed the “borang MPOB” to indicate the land belongs to the applicant concerned. Every farmer intending to participate can only plant 4 acres or less than 2 hectares. Firstly there is no economies of scale in 4 acres of oilpalm, and secondly it is not even attractive: one needs to spend money in land clearing, and obtain seedlings and put these in the ground, only then he will be able to get the subsidy. This impossible state of affairs drive farmers away to getting themselves entangled with non-bumi farmers who can manipulat it and get as many native farmers in their book as possible. Then land is opened up and planted and the developer concerned will, using the names of those he gathered, to collect money fro MPOB. But as the money is insufficient to buy fertiliser with and for maintain the farm until production, somehow or other the non bumi will remain as owning the plantation. And over time will even “own” the land as well. The non bumi will too scared of his some debts or other obligations already committed to the non bumi will not be able to chase the non bumi away. Overtime he will be the tawkay in the neighbourhood.

    So when Joseph Salang talks about ali-baba businesses are driving the local entrepreneur away, to a large extent he is correct? . The question that begged for answers is what can Joseph Salang in Barisan Government can do about it? Or is the BN Government encouraging this state of affairs fearing rejection by voters of non bumi in the GE13?

    The problemof ali-baba is nothing new and it develops very fiercely among the ministers and top civil servants. Ali-baba thrives in timber, shipping, miningand oilpalm industries.if BN Government is concerned about this unhealthy practice including huge trcks of ncr land have gone to non bumi by this means, they should tackle it. And Joseph Salang is perhaps better advised to not to just talk about it but get BN Government to address this menace sooner before the Dayak Community perish and end up beggars in this their homeland.

    Comment by Anek — October 18, 2012 @ 7:35 AM | Reply

  4. Ali Baba was encouraged (still is) by the present government since the implementation of affirmation action program. The objective is to help Malays in Malaya rich. The restructuring of society.

    Comment by edward, m — October 17, 2012 @ 11:15 PM | Reply

  5. Dayak Contractors? Since when does the Dayak has any contract? Jadi kuli ada la…… All the mega contractors are all under MALAYA people.

    Sarawakian are all kuli…..

    Comment by 3HHH — October 17, 2012 @ 12:30 PM | Reply

  6. This Ali baby contractors issue has been there since Marathir time. Now the issue become a problem and difficult to handle. Why ? Because everybody turn to became opportunist an that include the people in authority. Even the current MP was not interested to solve the problem before but only realized that he will this coming GE 13, so pretending to work for the people but in actual fact was just a camouflage to win the Kayak hearts. Are we going to just sit and watch this drama keep repeatingitself ????? Or are we going to see a new show??? SARAWAK PEOPLE please makeup your mind and vote wisely come GE 13 for the future of our children.

    Comment by philip — October 17, 2012 @ 9:37 AM | Reply

  7. This is unfair…only Dayak Ministers, YBs, Kronies enjoy all those Ali Baba lootings…

    It’s time the Dayak BN Goons to share this tricks (not keep it for themselves)…

    Dayak Ministers, YBs, Kronies should teach the Dayaks how to become Ali Baba instead

    This is what DCCI should teach, share the secret tricks how Ali Baba works and how easy money transfered…

    Next seminar course by DCCI should be: “How To Become Ali Baba Kronies”

    Dayak leaders, DCCI must stop telling Dayak to become Farmer Tanam Getah lah…useless…bila mau kaya???

    Better become Ali Baba Dayak…Easy Money Big Projek…

    Ali Baba Kroni – Instant Millionaire Jutawan Segera

    Tanam Getah – Bila mau jadi kaya????

    Simple formula lah:

    (Know-How)+ (Know-Who) = Get Ali Baba Projek!

    (Brilliant Sub-Contractors) + (Highly-connected Korrupt BN Goons) = Success ALI BABA Big Projeks!

    Yes simple yet effective formula, that’s what DCCI should tell to Dayak businessmen and become rich millionaires!

    Tanam Getah? Sori lah kaban enda ulih nyak kaya raya

    Ali Baba Bumis ‘typically’ sold government contracts for cars, houses, leaked study reveals
    Malaysian Insider, September 20, 2011

    KUALA LUMPUR, Sept 20 — An unpublished Works Ministry study found that Bumiputera contractors as a rule sold their government contracts to buy luxury cars and houses apart from misusing payments received from the Treasury, according to a leaked US diplomatic cable.

    The cable, revealed by whistleblower website WikiLeaks, comes just after Putrajaya agreed to allocate RM8 billion worth of contracts in the country’s most expensive infrastructure project, the Klang Valley Mass Rapid Transit (MRT), which initially set strict rules for its contractors.

    The US diplomatic cable quoted a Works Ministry source as saying the “Study on Bumiputera Contractor Leakage” was the result of feedback from various industry sources on failed and successful projects. The report was used by then-Prime Minister Tun Abdullah Ahmad Badawi (picture) to castigate failing Bumiputera businessmen in February 2007.

    “The current system of awarding lucrative government contracts to Bumis provides them with a strong economic incentive to simply act as agents, turning over as many projects as possible and taking a cut before handing each one off to a competent non-Bumi implementer.

    “This ‘Bumi agent’ system is firmly entrenched in Malaysia. Any effort to make reforms is likely to be resisted not only by well-established Bumis, but also by the non-Bumi implementers who have built up a network of well-oiled agent partnership,” the US Embassy concluded in the report published by the Malaysia-Today news portal.

    The US and European Union have called for more transparency and equality in government procurement by Malaysia as part of the free trade agreement talks which have yet to be concluded.

    In the leaked cable, the US embassy reported: “The source said the study, which has not been released to the public, revealed that many Bumi contractors typically sold off their tenders for quick money, often to finance expensive cars and houses. The report also found Bumiputera contractors had misused payments received from the government to pay off creditors and that they often sought additional government tenders prior to completing the ones already awarded to them.”

    “The official said contractors were irresponsible and had abused the trust given to them by the government which was meant to help Bumiputeras progress,” it added.

    The US cable noted that then-Finance Ministry secretary-general Tan Sri Izzudin Dali had disclosed new regulations that Bumiputera contractors seeking government tenders will soon be required to sign an official declaration promising not to sell or subcontract their tender to other races.

    “Violators will have their contracts and registrations terminated. Izzudin added that under the new rules contractors undertaking public infrastructure contracts will now be awarded only one project at a time and that projects will be distributed evenly among contractors in the same area or district,” the cable said, quoting Izzudin’s speech on February 16, 2007.

    Incidentally, Izzudin recently completed one term as chairman of Syarikat Prasarana Negara Bhd (Prasarana), the original project owners of the MRT which is now owned by a new Finance Ministry unit called MRT Co. Sources said his strictness in selecting successful contractors had delayed the massive infrastructure project.

    The cable also quoted then-executive chairman Datuk Moehamad Izat Emir of the Malay Entrepreneurs and Merchants Association as saying payment was the main issue facing the contractors.

    “He said that while Abdullah had directed the disbursing agency to pay the contractors within two weeks after completing the work, this often does not happen,” the cable reported, saying Moehamad suggested Bumiputera contractors be trained to upgrade their skills and suggested government-linked companies (GLCs) be required to support these contractors.

    It noted that Roslan Awang Chik, of the Malay Contractors Association, shared Moehamad’s view that “competency comes from exposure”.

    “He is puzzled why many well-known and qualified Bumiputera contractors were not being awarded government contracts while several unknown ones were. He suggested the government blacklist any contractors found to be selling their tenders,” the cable said, quoting Roslan as saying “they can be considered traitors.”

    The US cable was sent to Washington after Abdullah had publicly expressed frustration and disappointment over findings from a recently released Works Ministry report showing 85 per cent of government contracts awarded to Bumiputera contractors.

    “They (Bumiputera) do not want to work, do not want to learn, and give little importance to the opportunities provided by the government…

    “This approach will only make us hope and wait for aid and subsidies. Such a mentality thrives among the people, including Bumiputera petty traders and contractors,” the report quoted Abdullah as making the comments at a dinner speech on February 13, 2007.

    Taib keeps his YBs wealthy
    by FMT Staff, March 7, 2012

    Taib Mahmud’s 30-year tenure as Chief Minister and Sarawak Barisan Nasional chairman has spawned many millionaires within its circle of Ybs, says Sarawak Report.

    KUCHING: Sarawak Chief Minister Taib Mahmud’s secret to staying in power is bribery, at least that’s what the ‘political insiders’ here are saying.

    According to them, Taib has allegedly “bribed” MPs and assemblymen with timber concessions, plantations, contracts and whatnots in return for their absolute loyalty over the past 30 years.

    Taib has been in power since 1981 and whilst he has himself amassed an unexplainable amount of wealth which runs into billions in US dollars, here and abroad, he has also ensured that his ‘immediate’ circle of political allies have also become as wealthy.

    Take for instance his loyal deputy Alfred Jabu Numpang. Jabu has been Layar assemblyman for over 35 years, but the constituency is reportedly in a pitiful state. The man and his family however have reaped millions simply for keeping the native Ibans there convinced that Taib is ‘god-sent’.

    Jabu has allegedly received contracts, concessions and kickbacks each time Taib awarded himself some goodies.

    Jabu’s wealth is now sizzling the internet with disclosures of contracts awarded to him in the last decade.

    Jabu – who may very well be yet another billionaire – and his politically connected cronies have allegedly received over RM500 million in contracts through KACC construction in the last 10 years.

    The company is listed in the Construction Industry Development Board (CIDB) website.

    The website also offers names of the projects and contract worth. All except two of the contracts awarded to KACC Construction by the Taib government are in Bintulu.

    Shares in KACC Construction are reportedly held, jointly, by Jabu’s family and the families of state secretary Mohd Morshidi Abdul Ghani and Fadillah Yusof.

    Fadillah is the MP for Petra Jaya. She is also the Deputy Minister for Science, Technology and Innovation.

    KACC’s shareholders are Jabu’s daughter Jennifer and his cousin Robert Lawson Chuat (a PBB assemblymen). Other shareholders are Abdul Ghani’s brother Mohd Taufik and Fadillah’s niece and nephew.

    Millions for Sagan’s loyalty

    These details were part of a series of revelations on Taib’s ‘wealthy YBs’ by online investigative portal Sarawak Report (SR).

    According to the portal, KACC Construction is not the only source of Jabu’s wealth.

    Over the years Jabu and Taib have worked hand-in-glove in persuading natives to release their lands to them and their cronies, Jabu and his family run Herba Aromatics Sdn Bhd.

    The state government had awarded this company lucrative concessions which include rights to oil palm plantation, said the portal.

    Early last year it was widely rumoured that Jabu had ‘scored’ when he allegedly sold these lands to Felcra for RM7 million

    Then there is Sarawak Land Consolidation and Rehabilitation Authority Malaysia (Salcra). Jabu is the chairman of the controversial Salcra which involved the mass conversion of tens of thousands of hectares of native customary lands into oil palm plantation.

    Salcra was promoted as a way of providing the poor landowners with Sarawak with a living from the profits. But the portal said Jabu and his cronies however have happily reaped the benefits of the palm oil boom.

    Meanwhile other juicy bits on Sarawak Report include how federal minister Jacob Sagan, who is the Baram MP, allegedly sold his allegiance to Taib for hundreds of millions of ringgit in timber concessions and construction contracts.

    Sagan gave his support to Taib’s proposal to construct the monstrous Baram dam which will dislocate thousands of natives and destroy their livelihoods.

    Naroden, another beneficiary

    The Sarawak Report also mentioned Sarawak Entreprenuer Development Assistant Minister Naroden Majais who has made himself richer by allegedly awarding himself RM100 million worth of government contracts, with Taib’s permission.

    Details and value of the contracts were posted on the CIDB website. The contracts were awarded to Embun Pelangi Sdn Bhd, whose board of directors include Naroden’s wife, Massenah Ahmad and son Kamaruzaman.

    Since 2002 Embun Pelangi received no less than RM100 million in contracts from Taib.

    Naroden, who is allegedly ‘very close’ to Taib, is also one of the biggest timber concessionaires in Sarawak. Much of these concessions areas are in the region of the Baram Dam.

    DCCI: Potential entrepreneurs motivated by talk on loans, rubber seedlings
    Borneo Post, July 26, 2011, Tuesday

    GOOD RESPONSE: A section of the participants listening attentively to the speakers.

    KUCHING: More than 100 people, mainly native customary rights (NCR) landowners from Arip, Kemena, Belaga and Sebauh, participated in the Entrepreneurial Development Seminar organised by Dayak Chamber of Commerce and Industry (DCCI) in Bintulu last Saturday.

    DCCI executive secretary Terence Temenggong Jayang said the participants were exposed to new knowledge on high quality rubber tree planting and credit facilities.

    He also said the invited speakers for the seminar were from the Credit Guarantee Cooperation (CGC) and the Rubber Industry Smallholders Development Authority (RISDA).

    “The seminar covered facilities provided by CGC to finance secured contract works, and grants provided by RISDA to assist NCR owners to plant high quality clone rubber trees in order to produce more latex.

    Better rubber yield would help upgrade the economic livelihood of the Dayak community, especially with the high prices of rubber sheets presently,” he stated in a press statement issued here yesterday.

    The seminar was lively with many questions raised by the participants to the speakers namely CGC Miri branch head Mohd. Sufri Mohamed Yusop and RISDA Miri station head Baharuddin Amran.

    “They were curious, particularly on issues related to the grants provided by RISDA, the quality and availability of seedlings, the latest and proper management of rubber smallholding plantation and how landowners could qualify and apply for the grants,” he said.

    DCCI deputy president Dato Sri Celestine Ujang, who is also Bintulu Development Authority deputy general manager, officially opened the seminar.

    In his speech, Celestine said DCCI would continue to provide workshops and training for the Dayak community.

    He also requested the federal government to set up a special laboratory to look into the percentage of business opportunities provided to the Dayak community in the past and to d etermine future percentage of Dayak’s participation in business and industries.

    DCCI Bintulu Region regional coordinator Paul Raja closed the seminar. Also present were committee members Yusof Abdullah, Ungkuk Entili, Lamai Chawong and Terence.

    Comment by Teddy Gumbang — October 17, 2012 @ 8:39 AM | Reply

  8. This Judas Salang is also the nominee of Leo Moggie.

    Check his business dealings in his son’s and wife’s name will reveal that he is one of the “Ali” and his “Baba” are the Foochows in Sibu, led by Yong…

    Never believe in a traitor of soul or a betrayer of his religion.

    Judas Salang, aka, Joseph Salang a betrayer of his race and Christianity!

    Comment by Apai — October 17, 2012 @ 2:36 AM | Reply

    • 100% agree with you there

      Comment by philip — October 17, 2012 @ 9:38 AM | Reply

    • Haha baru tahu kah? Lama sudah basi!

      Comment by edward, m — October 17, 2012 @ 11:17 PM | Reply

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