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Extracted from
Malaysiakini.com
Timber
kickbacks scandal: Taib's 10-page clarification
May
14,
Sarawak Chief Minister Abdul Taib Mahmud took the unusual step of
refuting allegations of his personal involvement in a multi-million ringgit
timber kickbacks scandal in the state assembly today.
In a 10-page
‘personal statement’, Taib “categorically and completely refute” all the
allegations, which first appeared in Japan
Times, a Tokyo-based newspaper.
“They are
absolutely false,” he said.
Taib, who has been the
He had earlier vowed to sue malaysiakini and a number
of opposition leaders for defamation.
“It must be noted that the said newspaper (Japan
Times) and those in Malaysia, have not ... provided any fundamental
facts to support their allegations that 1.1 billion yen (RM32 million) was paid
to Sarawak officials as ‘kickbacks’ or ‘rebates’ and lubricant to facilitate
the timber trade,” he added.
According to the March 29 Japan Times
report, the multi-million ringgit ‘commission’ - made over a period of seven
years - was paid to Hong Kong-based company Regent Star said to be linked to
Taib and his family.
This was uncovered by Japanese tax authorities who deemed the payments made by
nine companies, which is part of a shipping cartel, as ‘illegitimate expenses’
since the Hong Kong agency - believed to be a paper company - did little
‘substantive work’ to justify the payments.
According to tax authorities, the shipping companies had tried to disguise the
payments as ‘business expenses’ and were thus not taxed.
Japan Times reported that the shipping firms were likely to be
slapped with well over 400 million yen (RM11.6 million) in back taxes along
heavy penalties for ‘hiding’ the funds from tax authorities.
According to the newspaper, the shipping companies were believed to have used
the money as a “lubricant to facilitate their lumber trade”.
The shipping firms, which have rejected the tax authorities' claim and argued
that the transactions with Regent Star were legitimate, have denied any
wrongdoing.
Taib:
I’ve no knowledge
Sarawak’s lumber export is controlled by the state government through Dewan
Niaga Sarawak - a state-affiliated organ in charge of timber export control
which is headed by the Sarawak chief minister's younger brother.
The Japanese shipping cartel was established in 1962 to avoid stiff competition
among the shipping companies in the import of lumber from
Taib, who is the country’s longest serving chief minister, denied any knowledge
in the arrangement made between Dewan Niaga and the Japanese companies.
“All arrangements made by the shipping companies from Japan and Dewan Niaga
with regard to the transportation of timber from Sarawak to Japan, or the
appointment of Archipelago Shipping as their local shipping agent, were made by
the companies themselves without interference or directive from the Sarawak
government or the chief minister,” said Taib.
Archipelago Shipping has since changed its name to CMS Transportation Sdn Bhd,
a company linked to Taib’s family.
Malaysiakini has reported
that all log carriers seeking to transport timber exports are required to
appoint shipping agency Archipelago Shipping as the sole agent for shippers to
pick up logs from three key
Taib also said that he and his state government “have no knowledge
of Regent Star, and have not received any remuneration or other payments from
the alleged
“If there had been any payment by the Japanese shipping companies to Regent
Star (as alleged), the
However, Taib did not mention his family’s involvement in the companies that
are allegedly involved in the scandal.
He said that he had decided to make the lengthy clarification today as the
legal action he vowed to take against his detractors may take time.
Taib’s statement was made in the state assembly this afternoon under Standing
Orders 22, which allowed a member to make a personal clarification.
However, the assembly speaker would not allow anyone to ask or speak on the
matter after the statement was read out.
The Anti-Corruption Agency has launched a probe
on the scandal.