9 Sep 2010

RM 78 million from Sarawak’s Sewers – Taibs’ Shitload of profit!

RM 78 million from Sarawak’s Sewers – Taibs’ Shitload of profit!

This post is also available in: Iban

It has emerged that Abdul Taib Mahmud and his family have conducted a massive raid on the public funding for Kuching’s new sewerage system.

Figures show that out of a total 530 million ringgit handed out from taxpayers’ money to pay for the project, a staggering 78 million ringgit has been siphoned off by the Taib family and a crony company called Nishimatsu Construction (Nishimatsu’s parent company is currently being prosecuted in Japan in connection with a massive bribery and corruption scandal).

The theft is just the latest example of  the so-called ‘skimming’ of publicly funded projects by using bogus sub-contracts, which has become a standard form of abuse in Sarawak under Taib.  Critics have condemned it as the crudest possible form of corruption. 

 “Even a child could understand what is going on”, complained one outraged opposition figure last week, “the only reason Taib gets away with it is because he would sack any newspaper editor who dared to print what is going on.  If the people knew the extent of it, the billions he has stolen in this way, they would be marching in fury!”.

Skimming using bogus sub-contracting is now standard practice in Sarawak

The method of theft is indeed astonishingly simple and the Chief Minister, Abdul Taib Mahmud, has made it common practice during his thirty years rule over the State of Sarawak.  First he abuses his position of power by placing a project in the hands of a company run by an unqualified member of his own family or a friend.  Then the crony sub-contracts the project to another company that is capable of doing the job, but for far less than the original amount.  This way the Taibs pocket the difference. 

'Businesswoman' - Raziah Mahmud

In the case of the Kuching Sewerage System, therefore, it came as little surprise to insiders when it was announced on 30th September 2008that the Chief Minister had awarded the 530 million ringgit contract to a consortium of three companies that included Kumpulan Construction, which is run by his sister, Raziah Mahmud. She and Taib’s brother Onn own 87.5% of the shares in the company. 

So what does Raziah Mahmud know about building a public sewerage system?

Kumpulan construction reportedly has no construction equipment and Raziah Mahmud is not qualified to build a modern sewerage system.  In fact, her meteoric ‘business career’ developed shortly after Taib Mahmud became Chief Minister, when numerous public contracts started coming the way of companies suddenly started up by herself and other Taib family members.  

Onlookers point out that Raziah Mahmud has only developed one area of evident expertise, which is her ability to rapidly sub-contract projects which have been handed to her by her brother.  Thus, on 21st October 2008, less than a month after the original government contract was awarded to the consortium of Kumpulan Construction, Nishimatsu Construction and Hock Seng Lee Bhd (HSL) it was further announced by HSL that the project had now been sub-contracted to them alone, but at the much reduced sum of 452 Million Ringgit.  This leaves 78 million ringgit unaccounted for in the hands of the other two companies, Kumpulan and Nishimatsu.

Unsavoury business partner?

Ichiro Ozawa - Japanese opposition leader forced to resign over Nishimatsu funding scandal. Who next?

Sarawak Report would therefore like to know how the missing 78 million ringgit was divided between Raziah Mahmud and the Japanese-owned Nishimatsu Construction Co?

Nishimatsu Construction hit the headlines last year when the Japanese authorities arrested its Chairman for operating a I billion Yen slush fund, which he admitted he had used to make bribes to gain foreign contracts and to make illegal political donations.  The scandal forced the resignation of the Japanese opposition leader Ichiro Ozawa. 

Therefore, it is only fair to demand a clear explanation of the relationship between Nishimatsu and the Taib family and to ask what work could have been carried out by Kumpulan/Nishamatsu during this three week period that could have merited a payment of what is around US $25 million?

If such enquiries have brought a top political resignation in Japan, what might a proper investigation produce in Sarawak?

Taibs’ long-standing ties with Nishimatsu

Nishimatsu admitted paying 400 million yen bribe to build this water tunnel in Thailand. What was the deal in Sarawak?

Our researches have further shown that the Kuching Sewerage project is just one of several large-scale public construction projects that have been handed in much the same way to the same consortium of Kumpulan Construction, Nishimatsu Construction and HSL. 

Since  Raziah’s take-over of Kumpulan in June 1986 (up to which point it was a dormant company) the projects awarded to the same three companies have included the 40,000 seat outdoor stadium at Petra Jaya worth RM105 million and The Senari Deepsea Port valued at RM160 million.

Unfortunately for the public purse however, the level of profit that Kumpulan has been able to register from these major ventures has been minimal, according to figures obtained from the Register of Companies.   For example, in 1991 a turnover of MR8.5 million produced only MR 249,474 in profits and in 1991 a turnover of MR 5,811,443 produced profits of just MR 23,451.  In fact for five of the years between 1986 and 1998 the company actually registered a loss for tax purposes.

How much went to Taib himself?

Given that Sarawak Report has now established that Taib family members operate a system of secretly holding shares in their companies in trust for the Chief Minister (see Unmasked – Taib the Godfather, Sarawak Report), the people of Sarawak can assume that in fact a large chunk of the money skimmed off from the sewerage project has gone straight into Taib’s own foreign bank accounts. 

Wealth - Raziah and her family pose in their sumptuous surroundings

The vast ‘cut’ taken by the Chief Minister’s family for this project means that either the people of Sarawak have paid MR 78 million too much for the job in the first place, or that the contract is now short of money and will be inadequately carried out. 

Worringly, the most likely answer is a combination of both, meaning the people of Kuching have paid too much money for a sub-standard sewerage system purely in order to further enrich the Taib family.  

Reform of the system could immediately be carried out by returning to the conventional system of open tendering for public contracts, which is the globally-accepted method of preventing fraud of this nature and is supported by the main opposition parties in Sarawak.

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  • Yes Men

    He is the most powerful man in Malaysia at this moment, even PM couldn't do anything. Anyway, always remember, money is not everything, it can't make you become the most happiest man in the World and you can't use it to buy you to stay forever because you can't rewind your life.

  • Najibrazak

    You ask what Nishimatsu and Kumpulan will do with the RM78 million stolen from this contract? Surely divide it as the Taibs do with all their stolen money. Kumpulan (significant name) will have the "family" 50% and Taib's half will be processed via Japan as so much of his previous thefts have been. Dont forget the Samling connection! Money to Japan easily converts to money to the Virgin Islands and/or the Channel Islands and from there as "legitimate" capital to go on building the Taib property empire. Business skills, as the Taibs claim, or criminal skills. It is for you, the voters, to choose your verdict. Choose correctly and you will see the stolen money return to its rightful owners; the people of Sarawak.

  • suara sumbang

    May he suffer from what he did to all Sarawakian… lets fight for our freedom from this culprits…vote him out and send him to jail…

  • Pingback: RM 78 MILLION FROM SARAWAK’S SEWERS – TAIBS’ SHITLOAD OF PROFIT! « Hornbill Unleashed

  • http://magickriver.blogspot.com Antares

    Once again, bravo, Sarawak Report, for showing what good investigative journalism is all about – and for performing your very important duty as a harbinger of positive change in Sarawak (and the rest of Malaysia). You may find this badge, spotted at Zorro's blog, of particular interest.

  • kukubesi75

    excellent report but people at the longhouses, kampungs folks outside city area have to be informed too!!! pls make this report in many languages and i would personally make it into small flyers to hand it out publicly!!! kill those pests!!!

    • Raja Kepayang

      kukubesi,

      you should help us to distribute this messages to the long houses, etc…

      Do net be helpless and depend on others all the time.

    • budakpendang

      the author should publish this article in sarawakians own languages, so the infos will spreads among them.

  • Sarawak Bee

    …And yet they claimed that Bumiputra could not perform in the economy…This is how they do it, in a very simple and easy way.

  • cnlee

    Good for you, Sarawak Report! It seems that the rot so extensive, not only in Peninsular Malaysia, but Sarawak as well, that the only way to stop avaricious and corrupt leaders is to vote them out and bring them to justice once they have fallen. Continue your good work, but will the ordinary rakyat of Sarawak have access to your expose? If not you will have an uphill battle to fight for their hearts and minds.

  • Pingback: Even from Sarawak’s sewers – Taib can dig RM78 million! « Dewan Pemuda PAS Sarawak

  • benggong

    Sarawak – Land of Conbill (conned by government and billed the rakyat

    • Yes Men

      Should read "Conned by Taib family" because government may change in the next election.

  • Regime

    Send BN to the bed of Death this coming election.

    • borneo kriptonite

      bukan BN yg patut hilang tapi c rambut putih.

  • Taik manuk

    People are angry now. Start the March of Fury!!!

  • Fu Qihua

    Remember President F. Marcos of Philippines? He and his famous or shall I say infamous wife plundered the country. The country is still stuggling to come out of poverty after so many years. Will it happen here in Malaysia?

  • Mata Kuching

    The PM, AG, MACC, PDRM are all working in cohort with the Paramount pirate of Borneo and Thief Minister of Sarawak, the greatest Kleptocrat in Asia, Taib Mahmud, to systematically plundered the rich Borneo jungles for timber”. “Most of the state of Sarawak has been illegally absorbed into the possession of his cronies and family members through ‘privatisations’ and the handing out of palm oil and timber concessions, via arbitrary state acquisitions of native lands. Taib is getting greedier and hungrier as his days are numbered and his Dynasty and Empire is coming to an end. He is now plotting and scheming with the approval from Najib to rob Sarawak by planning a dozen more dams, investing in Aluminium Smelting Plant, Halal Hub and Sarawak Coridor of Renewal Energy (SCORE) of which the constructions, infrastructures, material supplies and logistics will all be awarded to his family and cronies' companies.

    • Sarawak Bee

      In this way, he can implement both "Development" and "Profit" win win business. Development is to show to the people that he has done something and Profit will remain in his pockets which eventually become a "Foreign Investment".

  • Pingback: RM78 million from Sarawak’s sewers – Taib’s shitload of profit! |

  • Innocent Sarawakian

    Of all the scandal, no exception for this one, the ArmChairWorrior (MACC)will still stay down wit it.

  • http://SarawakReport frank

    The family concerned has been a popular family of corrupts and Taib was said to have owned unaccountable amount of assets in Canada and the US and it has been an open secret on such report, why except the Sarakians are still in the dark?! This is incredible none of the Sarawakians who has the conscience to stand and say No to such evil act which will only cause the State to doom while only benefiting the family of corrupts just like the Peninsula was suffering for the past 38 years!

    Stop from being called the gullible voters and all fair minded Sarawakians should use your votes wisely to kick out the corrupted beasts from the State and confiscate whatever filthy lucre found with the family, which every dollar and cents are rightfully belong to the rakyat!!!

    • http://- Melya

      How can the people of Sarawak to voice up THEIR rights? want to start the move is certainly complicated and no one leader who can help Sarawak to move forward. no one dared to oppose openly as He will surely send HIS man to threaten to shut up the ppls. moreover, he has been bribing the people of Sarawak with a little sugar given and we were like ants that have already satisfy with d little sweet.how sad.

  • warispatinggi

    it will be better and widely read if report can be published in BM

  • Anak_swak

    I think the federal government should ask MACC to look into all these allegations of the CM, if not a sizeable number of seats will be lost especially in the urban chinese areas in the future elections.

    Najib should take some action, don't worry, he will not dare to take his party out of BN, even then, if he joins PKR, the people will still resent him.

  • pcs

    what can be done if he steps down? he's so old and the money will sure inherit to his family when he collapses. there's not much to be done.

  • Joseph

    the people of sarawakian dont have extra pocket money because THE TAIBS take it all

  • Richard

    Having worked in Borneo for many years–I am AMAZED you people tolerate the on-going corruption!!!!!

  • Pingback: RM 78 million from Sarawak’s Sewers – Taibs’ Shitload of profit! « "Mangkang Menua,Mangkang Dunya,Ngetan Ke Bansa!!"

  • Pingback: Taib’s family ‘profited’ from Kuching sewerage project « Michael's Archive

  • http://yahoo.com.my Ak Borneo

    After so-so many stories about the CM of s'wak, I wonder if these stories are reliable piece of evident convincing and

    strong enough to bring him to the court of law. Otherwise no point to shout around and be just another old story that doesn't do any good to our blood pressure! It would be a great piece of present to the s'wakian if he's escorted to the court for his wrong doings!

    • Sarawak Bee

      What do you mean? Which court? Malaysia Hight Court or United Nation High Court? Look at the "judgments" of our courts today!

      • http://yahoo.com.my Ak Borneo

        Any courts of law any where in this world, of course not in Malaysia! Little children of Borneo also knows how Malaysian judisiary works. This is one of the possible ways to drive/force him out of Petra jaya red handedly!

  • http://daudrahman pbb

    To stop another project by taib family "STOP SUPPORT BN & PARTY PBB" for next election first.

    Sure SPRM come .

    • Dr Who

      Everything is too late. They have "cleaned up" the jungle ,sold the land and the money has been transferred.

  • Indahme

    I am still waiting for Sarawak Report to expose the wealth of Sabah CM Musa Aman.Please do that as a favour for us Sabahans.We just want to know if their modus operandi is similar.

    • Sarawak Bee

      "Sarawak Report" is for Sarawak only. Talking about Sabah problems should be appeared in "Sabah Report". Or this site should be renamed as "East Malaysia Report". Sarawak Report is a good site because it has all the "nice pictures" to show to the people.

  • aksadai

    tai palat tai mamut had today denied any wrong doings as alleged by several bloggers and other website and at the same time refused to answer to those allegations in specific which is contradictary. it is not surprising as he knows that he is the guilty party. i would like to share with you guys amongst the latest act of vicious corruption committed by him and family(esp. his son in-law mother fucker syed. The award of Beluru-lapok road to PPES works sdn bhd thro so called open tender at RM101m.

    For decades the people of the area suffered due to unbearable conditions of the road and now tai palat mamut n family get all the profits as result of other people suffering. May him rest with peace with his ill gotten wealth

  • want malaysia

    78m is not alot, whole $malaysia$ might be ok for them until next generation lah.

  • anakmenakantaibmahmu

    Semoga Allah memberi hidayah serta petunjuk ke jalan yang lurus kepada Pehin Seri dan keluarga, dan semoga mereka semua bertaubat sebelum maut datang menjemput. Tinggal berapa hari lagi Pehin Seri nak hidup…

    Saya risau, andai dia terus “bakhil” dan “tamak” begitu, harta-harta nya nanti akan dikalungkan di tengkuknya di padang mahsyar kelak. Dan sesungguhnya tidaklah harta-hartanya mampu membantunya pada hari yang tiada pertolongan kecuali pertolongan Allah jua…

    Setiap perkara akan diminta pertanggungjawapan di akhirat kelak… Wallahu musta’an…

  • Datuk Wii

    This is a true account about the contract for construction of the new PGA (Polis Gerak Am) camp which is recently completed in Miri. The contract sum for the project was awarded at RM300mil to a politician related construction company (see below), however had been totally sub-contracted to a local chinese sub-con, for a mere RM230mil. Where does the rest RM70mil of our taxpayer money gone?

    Among them I can say is in the thick wallet of Datuk W.Mawan himself. And his nephew afford to buy a new custom painted Silver Ferrari 599 GTB Fiorano (which you can see at somewhere at Satok). Wow, I'm sure glad all our hard earned taxpayer money is used up for another rich man toy (who totally doesn't deserve it).

  • Bujang sadok

    YB BN is pirate of borneo…..voter for pakatan rakyat

  • http://Sarawakreport O Mo(Black hair)

    What has Datuk W.Mawan done for the Iban community? No wonder he stood up to amput Tahi Mamut to continue leading Sarawak, because he has yet to add a few more zeros to his bank a/c. Same as Alfred Jabu and James Masing, all good for nothing.

  • sickofBN

    But the problem is 'Pek Mo' CM says since Swak people (& my family)still want me, then I will continue to lead. Even joker Sammy declared he is stepping down next Jan. So you see, how greedy is this Pek Mo. But sorry thing is, despite all the 'huh hahs', majority of the rural voters still vote BN ! That's the problem. Swallow your own bitter pill !

  • Joseph

    NEXT TIME DONT MARK YOUR X TO BN..THINK TWICE, YOU WANT HIS LEGACY OR HE WILL FOOLS YOU ONCE AGAIN. TELL ME WHAT DO GET AS WHAT HE GET NOW….

  • cracked shops

    Even "SHITS" he won't let go.

    —–for God sake: wake up u

    natives…NOW! & finish BN this

    coming state election or at least deny BN of it's 2/3 majority. All those

    components r balls bearers only.

    Where's MACC ???? S'WAK IS DOOMED.

  • PENAN

    Inviting outsiders to DIG GOLDS

    in S'wak. while it's people suffers.

    Claiming to protect the natives.

    My foot, Nah !!.

  • sarawakian

    that's we called sarawakian… wisely in talking, but do nothing!!!!

    • joseph

      YOU ARE RIGHT, FOR SO LONG WE SOME SARAWAKIAN ARE UNDER A CURSE OF TAIB AND HIS BLACK MAGIC. WHO GONNA BREAK OFF THE CURSE??? ITS OUR VOICE, ACTION AND VOTES!!

  • joseph

    HE DIG THE OIL/GAS/MINERAL OF SARAWAK, CUT OFF THE TREES,CREATE NO JOBS FOR OUR CHILDREN(IMAGINE WHERE SOME OF THEM GONE TO).DO WE GET SOME SHARE WHEN SARAWAK PROSPER?? TAIB KEEP IT FOR HIS OWNS(YOU KNOW WHO AND WHERE)

  • http://google Pusu, Belachan &

    Don't go voting or do not vote for BN…eitherway can do…lol

  • deathtrapper

    To all hatemongers and personality assasinators

    Where ever you are dear, this sign reached you.

    *** signs of continuous trouble and final death …. to YOU dear.

    Dont have to prove it…. but YOU will experience IT.

    Sleeps well…dear.

    for final Peace to the world.

    Amen. Amin. Ameen.

    Global Anti-Slanderer & Anti-Hatemongers Movement.

    Signed DT

  • John Nokeng

    Don't worry people of Sarawak. Taib's time will come in line with the universal law of cause & effect (karma). Maybe not in his lifetime, but in the next. Remember, no one can escape God's law that governs the universe.

    • swk warrior

      but why so S-L-O-W!?

    • Anonymous

      And very important, all his 'running dogs' will get the same fate. They will be judged at the same level as Taib. Because of them,. EVIL BREEDS EVIL.

  • anonymous1112

    Taib.. he's done it again!

  • http://none observer

    1.CRONYISM

    2.NEPOTISM

    3.GREED

    4.MONEY LAUNDERING

    5.TAX EVASION.

    WHERE ARE YOU IRD,MACC,COMMERCIAL CRIME,BNM AND MOF? IN DEEP SLUMBER ,WAITING FOR PEOPLE TO REPORT.YEAH SITTING COMFORTABLY IN AIRCON OFFICE.

  • http://none Darod Branas

    CONTACT FOR RM530 MILLION IS GIVEN TO KUMPULAN AND THEN SOLD TO HOCK SENG LEE LESS RM78 MILLION,I.E RM452MILLION. KUMPULAN HAS NO EXPERTISE,ENGINEERS,EQUIPMENTS,ETC,ETC.IT IS JUST LIKE GLOBAL UPLINE "LEMBU POUNYA SUSU TAPI SAPI PUNYA NAMA.SO THESE TWO COMPANIES ARE OWNED BY A BUNCH OF LAZY MALAYS WHO DO NOT WANT TO WORK BUT WANT MONEY ONLY. SO THEY EITHER SUB CONTRACT OUT OR APPOINT SO CALLED FAT COW ADVISOR. WHEN WILL THE MALAYS EVER LEARNED??SAD TO SEE THAT THE FAT COW CONTROL ALL THE FINANCE AND PROJECTS OF GU. SAD SAD SAD…HOW LOING WILL IT GO ON. WAKE UP DIRECTORS OF GU. WAKE UP. DO NOT SLEEP NOW,WAKE UP.THERE ARE MANY QUALIFIED MALAYS WHO WANT TO DO THE JOB AND STOP GIVING THE JOB TO FAT COW.

  • james

    He just got the big contract for himself since he become CM.

  • http://none RAJA MANGGENG

    quote from TM;

    " I DON'T WANT TO MAKE THE MALAYS AND THE DAYAKS RICH,IF YTHEY ARE RICH,THEY WILL GO AGAINST ME".

    unquote.

  • parai apai jilak

    piss to the asshole CM….vote him out during the next state election.

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