Lim Guan Eng’s response raises more questions

Dari Dalam Jabatan Peguam Negara

Mr Lim Guan Eng was a big proponent of CAT — Competency, Accountability and Transparency — when he was the Penang Chief Minister. We admired him for his boldness in advocating good governance. I am a fan of Pakatan Harapan, but I must say Mr Lim’s response raises more questions:

1. Why did he as the Finance Minister (FM) have to write to Tommy Thomas (AG) in the first place? If the tycoon has any representation to make to the AG, then shouldn’t his lawyers be liaising with the AG? Why go through the FM?

2. Assuming that the FMT report is true that only 12% of the 1MDB money was returned by the tycoon to the Government, was the tycoon taxed for the remaining 88% which he kept or had used?

3. If Mr Lim as the Finance Minister didn’t order the IRB to tax the remaining of the proceeds, then shouldn’t this be probed and the tycoon be subjected to tax investigation?

Mr Lim’s pursuit of Najib Tun Razak for the 1MDB funds by subjecting the same to income tax. I think it is a right decision. But, what’s good for the goose is good for the gander. So, if the tycoon was given a preferential treatment, then this should be probed too.

4. Speaking about Mr Lim, Section 127(3A) of the Income Tax Act 1967 gave him wide powers to exempt any person from tax with a stroke of a pen. In light of this troubling revelation, I wonder whether the tax exemptions granted by Mr Lim must be reviewed in accordance with the CAT principle advocated by him?

I would be grateful if Mr Lim can clarify the above.

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Guan Eng: I merely referred the matter to attorney-general

(FMT) – Former finance minister Lim Guan Eng, responding to allegations that he had requested action to unfreeze a tycoon’s bank accounts, said today that he had merely referred the matter to the Attorney-General’s Chambers (AGC).

Malaysiakini quoted him as saying: “Cases which are not within my jurisdiction are referred to the relevant authorities. It is the relevant authorities who have the power to act.”

He noted that the Malaysian Anti-Corruption Commission had acted speedily on FMT’s report this morning about the matter and said MACC “should be allowed to carry out their investigations”.

FMT’s report this morning, based on documents sighted by FMT, said Lim had asked the AGC to lift restrictions on a property developer’s bank accounts, which were frozen to facilitate an investigation into money laundering.

The report said that Lim had received a positive response from the Attorney-General, then Tommy Thomas, who subsequently ordered MACC to lift the freeze on all four bank accounts.

Lim did not respond to FMT’s requests for comment. However, he told Malaysiakini that he believed Thomas had acted appropriately when the case was referred to the AGC.

He said that it would be wrong if he did not refer such cases to the relevant authorities.

“I do not have any access to such information or documents unlike FMT which seems to have full access to the matter,” Lim was quoted as saying.

Earlier today, MACC deputy chief commissioner (operations) Ahmad Khusairi Yahaya confirmed that the agency had lifted the freeze on the tycoon’s accounts on the instructions of the AG at the time.

He also said the agency would investigate how confidential details of its investigations over the RM4 million received by the tycoon from 1Malaysia Development Berhad had been leaked to a politician.

This morning’s FMT report said there were exchanges between Lim and Thomas about four bank accounts that had been frozen because of RM4 million in transactions related to 1MDB-linked funds.

FMT’s source said there was a conflict of interest and that Lim had acted “despite failing to recover the bulk of the money”.

A total of 21 cheques amounting to RM4 million from then-prime minister Najib Razak were said to have been deposited into the tycoon’s CIMB bank account. However, only about RM76,000 was left when the freeze was lifted.

The report about the tycoon’s bank account comes weeks after Tommy Thomas came under criticism over the release of Najib’s step-son Riza Aziz on a conditional discharge from money laundering charges relating to 1MDB funds being used for the production of a Hollywood movie The Wolf of Wall Street.

Under an agreement with the prosecution, Riza is to return some US$100 million, or about 40% of the 1MDB funds he received.