4-3-2024 (KUALA LUMPUR) Malaysia’s expanding corruption investigation into high-profile figures including former finance minister Daim Zainuddin and two of ex-PM Mahathir Mohamad’s sons has now turned its focus to questionable state bailouts of businessmen linked to the two leaders around the 1997 Asian Financial Crisis.
Government sources stated the controversial RM836 million acquisition by state oil firm Petronas of debt-laden shipping assets owned by Mahathir’s eldest, Mirzan, in March 1998 tops the list. Also under scrutiny is the RM1.79 billion 2000 rescue of Tajudin Ramli, who then controlled struggling national carrier Malaysian Airline System (MAS).
The Mirzan bailout poses issues for Mahathir as Petronas answered directly to the PM, Mahathir at the time, requiring his and the board’s greenlight for purchases and divestments. Officials say the Anti-Corruption Commission (MACC) is examining Mahathir’s potential role. Petronas directors who served then will also be interviewed.
Separately, the MAS probe connects to MACC’s ongoing case against Daim, charged in January for not declaring assets. Investigators are looking into the high premium paid by the government for Tajudin’s 29% stake despite MAS’s struggles and his RM1 billion debts.
Beyond MAS and Mirzan, the MACC has two other Mahathir-era deals in its sights – the trading platform Central Limit Order Book (CLOB) and the takeover of conglomerate Multi-Purpose Holdings Bhd (MPHB) in the 1990s. Both tie back to Singapore businessman Akbar Khan and Daim.
Officials admit investigating deals from over 20 years ago poses hurdles like sourcing documents and people with context, as many have left. Given this, MACC is compelling asset declarations allowing “net worth and source of funds” analysis to trace suspect wealth.
After charging Daim and wife for not declaring assets of 38 firms, 25 properties and luxury vehicles, MACC demanded declarations from Mirzan and brother Mokhzani. While the probe has attracted attention, officials say formal corruption charges are far off due to the complex back-and-forth required.
Still, it reopens 1990s debates between Mahathir, who used state funds to aid crony capitalists, and Anwar, then finance minister, who advocated free markets and high interest rates. The Mirzan bailout epitomized this rift.
Mahathir alleges Anwar now victimizes his family with selective probes not targeting others named in the Pandora Papers like Zahid Hamidi. But Anwar counters Mahathir enriched his inner circle via contracts and abused power directing the Mirzan bailout despite objections.
Beyond Daim’s holdings, MACC questions surround the RM1.79 billion paid Tajudin for his MAS stake in 2000, while finance minister. The high premium despite MAS’s struggles raises corruption concerns.
MACC also wants to contact Akbar, key in unfreezing Malaysian equities on Singapore’s CLOB. He won a concession from Daim to manage their return and took over MPHB, profiting handsomely.
