Alas! We did it again!

By MT Webmaster Last updated Dec 17, 2013

According to the latest study by Global Financial Integrity (GFI), RM173.8 billion was siphoned out of the country in 2011, making Malaysia the fourth largest exporter of illicit capital that year after Russia, China and India.

Lim Mun Fah, Sin Chew Daily

Malaysia has climbed up to another peak. However, it is a shame instead of a pride for us.

Malaysia is actually a small country with a small piece of land and a small population. But we were ranked fourth in the world in terms of illicit outflow of funds!

Just like in previous years, our government officials said that the report was overstated. Bank Negara Malaysia (BNM) governor Tan Sri Dr Zeti Akhtar Aziz said so, so did Minister in the Prime Minister’s Department Datuk Paul Low Seng Kuan. Low even said that the report was exaggerated. He said that out of the figure, only 2 per cent or RM34.76 billion was from illegal remittances by foreign workers, criminal or corruption activities; 3 per cent or approximately RM5.2 billion was related to corruption and bribery; and 80 per cent was related to trade activities, including trade mispricing, transfer pricing, under-declaration and trades via a third country.

I do not know about the authority and credibility of the above remarks of Low, but I can strongly feel that he and Zeti are trying to tell the people that the money laundering situation in our country is not so bad and most of the illicit outflow of funds is actually illegal remittances by foreign workers, and only 3 per cent was related to corruption and bribery, while money changers were the culprit of money laundering activities.

Is it true?

Why did the GFI tell us that US$370.38 billion was siphoned out of the country from Malaysia via crime, corruption, and tax evasion in the 10 years between 2002 and 2011? Is the Washington-based research and advocacy organisation really so bad and simply wronged us?

I am a bit puzzled. Where did Low get his data? And according to Zeti, the BNM did not have any data about illicit capital outflow, believing that the GFI’s report was overstated based on its own assessment, and this can be seen from the Error & Omissions of Balance of Payments.

Who should I believe? The GFI? Or the BNM Governor and Minister in the Prime Minister’s Department?

If I believe our government officials, I should then have enough confidence to believe that our country has taken adequate precautions to prevent the outflow of black money, and corruption in our country is not that serious.

If I believe the GFI, I should then worry about how a small country like us can afford the illicit outflow of such an astronomical amount of money for a long period of time. And I should also worry about why we have failed to curb illegal money outflow over all these years.

Unscrupulous money changers are definitely unforgivable. But they are just intermediaries and the masters behind are the true culprits. What I want to know is, how many culprits have been brought to justice over all these years? Do any bigwigs involved? How much black money has been retrieved? These are the people’s money and our Treasury is in a great need to be refilled with the astronomical sum of money.

Power needs to be constrained while corruption needs to be prevented. Even if we are unable to reach the best result, we have to at least do our best. We have been ranked at top places in illicit capital outflow for several years, showing that we have failed in curbing money laundering activities. Why? Is it because we cannot do it? Or is it because we do not do it? Or, it is because we are simply helpless about it?

Zeti