Hornbill Unleashed

March 4, 2014

How Taib’s family could have hidden their wealth

Filed under: Kleptocracy — Hornbill Unleashed @ 12:00 AM
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The Edge

The family of Sarawak governor Abdul Taib Mahmud may have used a number of exempt private companies (EPCs) to hide their wealth from public scrutiny, according to the financial weekly The Edge Malaysia.

This is because EPCs are exempted from submitting its balance sheet when filing its annual returns to the Companies Commission of Malaysia (CCM).

Typically, according to the report, these EPCs linked to Taib’s family would invest in other companies, numbering at over 400 involving a wide range of industries.

“When the EPC receives dividends from its subsidiaries… the money trail disappears because EPCs are not required to file their financials.

“While there is nothing illegal in turning private companies into EPCs, a colony of them in Taib’s family empire indicates a downward shift in the financial transparency of directly owned companies,” according to the report.

The report is part of the weekly’s 11-page pull-out documenting Taib’s family businesses for its March 3 issue. A copy had been made available to subscribers in advance.

Taib was the chief minister of Sarawak for 33 years until his recent appointment as the state’s governor.

He had been accused of corruption and abuse of power, including leveraging on his position to enrich his family. Taib has consistently denied any wrongdoing.

Easy loans

In addition to not needing to submit the financial information to the CCM, the report notes that EPCs have another benefit – It can issue loans to its directors and people connected to them.

“Under Sections 133 and 133A of the Malaysian Companies Act (Act 125), an EPC is not prohibited from providing loans to its directors or persons connected to the directors, such as the directors’ spouses, parents, children, siblings and spouses of the children or siblings, making it easier for the family empire to source finance from the EPCs,” it said.

 An example of such an EPC, the report says, is Daya Syukra Sdn Bhd, which is equally owned by each of Taib’s four children, Hanifah Taib-Alsree, Jamilah Hamidah Taib, Mahmud Abu Bekir Taib, and Sulaiman Abdul Rahman Abdul Taib.

In turn, Daya Syukra has a 60 percent stake in KBE (Malaysia) Sdn Bhd, which issued RM34 million in dividends for the 2013 financial year. That means Taib’s children would have received RM20.4 million of that sum via Daya Syukra.

The weekly also notes that some of these companies were incorporated as far back as the 1990’s but acquired EPC status only recently, between 2012 and 2013.

 

“So was this a step to cover up some of the financial records published in the Sarawak Report in relation to Taib’s business empire?” The Edge queried, referring to an online news portal that has published several reports implicating Taib and his family.

Separately, the weekly estimates that Taib’s family collectively hold more than a RM2.1 billion stake in Malaysian public-listed companies.
The Taib family’s business activities run a full gamut of different economic sectors, including fisheries, real estate, telecommunications, Islamic travel, environmental consulting, energy, food and beverage, and non-profit groups.
What now?
Overseas, The Edge says there are over 40 companies linked to Taib’s family, but it had only been able to obtain financial information of four of these companies.
Nevertheless, the assets of these four companies alone amount to over RM800 million.
As for Taib himself, The Edge notes that the Sarawak state constitution bars both the governor and the chief minister from holding “any office of profit” and from “actively engage in any commercial enterprise”.

The weekly claims that Taib is a shareholder or director in at least five Malaysian companies.

These are: Demak Jaya Holdings Sdn Bhd (50 percent stake), Hamamorial Sdn Bhd (37.08 percent), Mesti Bersatu Sdn Bhd (17.39 percent), Pehin Sri Heritage Sdn Bhd (55 percent), and Ramah Jelita Sdn Bhd (stake not stated).

All of these except Ramah Jelita are also made EPCs just last year, the report says.

“Although Taib is now the Yang di-Pertua Negeri, a ceremonial role in the state, it does not mean he can now do business openly. This is because the governor is similarly barred from engaging in business.

“The question is, will his extended family slow down from now or will they continue to have a huge presence in the state economy?”The Edge queried.

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5 Comments »

  1. “The question is, will his extended family slow down from now or will they continue to have a huge presence in the state economy?”

    What kind of question is that? After all the information established and numbers ascertained and sources verified, thats just saying …go ahead Taib, you and all can go ahead and steal from rakyat!

    These crony capitalists are all the same. Call themselve The Edge, but their cronies wont allow anyone else to do bizness!!!:shock:

    Comment by Lobert — March 5, 2014 @ 2:18 PM | Reply

  2. although this Pehmoh had been labelled a corrupted politician, i still have my respect to him, cause he never talk like that keling kacang lupa kulit, blogging his keling way of telling Ketuanan Majority directly that Chinese are almost robbing them in order to be rich. He had been keeping so QUIET over HOW his sons are getting into BILLIONAIRe Club. he always emphasize nation’s wealth are to be FAIRLYshared, now see, who Shared the MOST, & jadi BILLIONAIRE, PhD keling ?

    Comment by tiuniamah — March 4, 2014 @ 5:29 PM | Reply

    • This keling mamak has been robbing Sarawak and Sabah’s oil money from petronas to enrich his entire family. In return, they give us 5% kacang putih and furthermore treat us like shit, reducing us to be poorest states in Malaysia. Bloody Hell, ungrateful mamak! The states of Sarawak and Sabah have been cash cows for Malaya and racist mamak in the guise of ketuanan Melayu. Fake Malay become super rich while genuine ones remain poor because ketuanan benefits hijacked by opportunist mamak. So sad for these two Borneon states. Singapore and Brunei are a lot smarter and wiser than both Sarawak and Sabah. So stupid! Bodoh! No wonder they treat the people here like fools, and fixed deposit, to add salt to injury.

      Comment by Sharpshooter — March 4, 2014 @ 9:07 PM | Reply

    • Being labelled as corrupted is the result of exactly what the label means..CORRUPTED! He sold our oil to Malaya for a measly 5% royalty, made a few Chinese mega rich by handing them the timbers from Native forests for funds to win elections, took lands from the natives and gave to his giggly cousins to be sold to rich Chinese for huge profit and remember the videos of some people confessing and admitting their sins.

      We can point fingers across the oceans but the real culprit in closer to home,right under our noses?

      TAHINAH to him again!!

      Comment by brian — March 5, 2014 @ 3:17 PM | Reply

  3. With billions you can utilize the best minds in the world to create a net works of invisible accounts. Are you guys not blinded enough not to see that many of the corporations in Sarawak are managed by foreigners? Anyone with billions can have the best brains to hide his ill gotten wealth. Only foreigners can the works of David Copperfield.

    Comment by loyarburok — March 4, 2014 @ 12:15 PM | Reply


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