The Money may be in Switzerland but the Crooks are Here

It is simply unbelievable to read about the Anti-Corruption Agency's huffing and puffing about how it has to seek the Swiss authorities' help to investigate a suspicious 76.4 million ringgit payment for "consultancy fees" made by ailing giant, Perwaja Steel.

ACA director Ahmad Zaki Husin reportedly said that the payment for the fees was made to two Japanese individuals working for a consultancy firm, via the account of a Hong Kong company. The money was then transferred to the account in Switzerland of a firm registered in the British Virgin Islands.

Zaki reportedly said, "We know the name of the company and the account number but do not know why the money was moved from Malaysia to Switzerland."

What absurdity! If the ACA really wants to know why the money was moved out from Malaysia, all it needs to do is to haul up the then Managing Director, General Manager and Financial Controller of Perwaja for questioning. In any firm, these are the people who are likely to authorise any unusual, large payments: they should know what such payments are meant for and who the ultimate beneficiaries are.

Such a huge payment would have needed perhaps a directors' resolution and at least two signatories for the transfer instructions to the local bank. Who were the two local signatories who signed the payment transfer instructions? Why was no action taken against those in Perwaja who initiated, approved and transmitted the payment?

It was known a long time ago that the 76.4 million ringgit was paid to a non-existent firm in Hong Kong. Isn't that alone proof of fraud?

The ACA head also reportedly said that former Perwaja chairman and managing director Eric Chia can give answers to these questions. First of all, hasn't the ACA already interviewed Chia? If it has, what kind of answers did he give then? If it has not yet interviewed him, what's the reason for the long delay?

It was recently revealed in court that the ACA was scolded for probing the former head of the Economic Planning Unit. Did the ACA also get a scolding in the Perwaja case?

Why has it taken the ACA four years to investigate this payment? This is in sharp contrast to Chia, who was able to build up a dossier from scratch within six months.

If nobody is charged in court soon, whatever little credibility the ACA has left will be completely gone. And is it any wonder then that Transparency International's corruption perceptions index for 2000 shows Malaysia has dropped to 36, from 32, of 90 countries?