MACC has enough bite to probe Mara’s Melbourne property scam, says anti-graft watchdog

Anti-graft organisation Transparency International-Malaysia (TI-M) has urged the Malaysian Anti-Corruption Commission (MACC) to conduct a thorough investigation into Majlis Amanah Rakyat’s (Mara) purchase of a Melbourne property that was alleged to have been bought in a scam.

TI-M president Datuk Akhbar Satar said there were enough provisions in the MACC Act to investigate and bring to justice those responsible for the scandal, which was brought to light by Australian newspaper The Age yesterday.

“TI-M strongly urges MACC to set up a task force immediately to conduct a full investigation on a certain group of Malaysian officials, who are alleged to have used government investment funds to bid up the price for the Melbourne 5-storey apartment block, Dudley International House, from A$17.8 million (RM51.5 million) to A$22.5 million (RM65 million),” he said

“It is clear that the MACC has power to investigate this matter even though the alleged unlawful transactions may have occurred in Australia as the MACC Act has extra-territorial provisions whereby corrupt acts performed overseas are also deemed as offences committed in Malaysia.”

Akhbar also lauded Prime Minister Datuk Seri Najib Razak, who had said yesterday announced the corruption claims would be thoroughly investigated, saying that such an act is no longer just the abuse of entrusted power for private gain.

“But it can also involve a group of persons colluding for collective gain across political, economic, and social spheres in our local society and across international borders.

“Once again TI-M laments the extensive nature of corruption in Malaysia (and now on other shores) and those fighting corruption need to break the perceived impunity protecting corrupt leaders and senior officers as indeed ‘the big fish’ appear to escape the law ever so often.”

He said MACC should not only look into the procurement activities of Mara-related offshore shell companies but also examine money trails, transactions and beneficial ownership of legal entities.

“Corruption can be fester from both external factors and local policies in many ways, including through lack of transparency in payments by companies to foreign entities; opaque company ownership and transactions; weak money laundering and foreign bribery laws, as well as lack of stolen asset tracking measures and the existence of legal safe tax havens for the corrupt and their ill-gotten assets,” he added.

The Age reported yesterday that a “top” Mara officer, senior official and former politician had allegedly spent millions of government funds to buy an apartment block in Melbourne in a property scam.

In the exclusive report, the Australian paper alleged that “a group of super-rich Malaysian officials” overpaid by A$4.75 million (RM13.8 million) for an apartment block in the city in 2013.

The trio had allegedly “overbid” for the building, called Dudley International House, from A$17.8 million to A$22.5 million (RM65.3 million), with the difference pocketed as bribes back home.

Australian developers of the property received sham invoices for fake services, such as “consultancy and advisory”, from Malaysian firms, the paper said.

The paper alleged that the same group of high-ranking Malaysians was also involved in about A$80 million worth of Melbourne property, buying up offices and apartment blocks.

Last night Najib, in addressing the allegations, said: “The authorities here will conduct comprehensive investigations into the claims, and if any wrongdoing is found, action will be taken.”

However, in a press conference today, Mara chairman Tan Sri Annuar Musa admitted that Najib was the final approving authority in the purchase of the Melbourne property.

Annuar said the purchase of any property by the council had to go through procedures, including a final approval by the Finance Ministry or the Economic Council

“‎It is part of the procedure for the prime minister to approve.

“After the purchase is approved by Mara, it goes to the Rural and Regional Development Ministry‎, and after that, it is approved by the Finance Ministry or the Economic Council.”

Najib is also the Finance Minister ‎and chair of the council. – June 24, 2015.