In 2016, 2017 and 2020, the Panama Papers, Paradise Papers and the FinCen Files were released, respectively. These Pandora Papers are the largest data leak: with 2.94 terabytes of data from 14 offshore service providers.
The International Consortium of Investigative Journalists (ICIJ) that published the Pandora Papers highlights how Baker McKenzie, the largest law firm in the U.S., helped to create a sophisticated offshore finance transferring system that propels a pulsating shadow financialization capitalism economy that extracts from finance, insurance and real estates (FIRE) odious returns.
Baker McKenzie and its global affiliates have used their lobbying and legislation-drafting knowledge to shape financial laws globally. They have also profited - according to ICIJ investigations - from work done for people tied to fraud and corruption.
Baker McKenzie executed some financial plannings for Jho Low, the Penang-born and Wharton School graduate. 刘特佐 is a fugitive-financier accused by various authorities in multiple countries of masterminding the embezzlement of more than US$4.5 billion from the Malaysian economic development fund known as 1MDB.
In 2019, US authorities pursuing Jho Low had described him as a financial intermediary, which allowed him to link his connections to high net worth individuals, and even international institutions, to launder the money stolen through manipulation of the 1Malaysia Development Berhad (1MDB).
From the ICIJ’s reporting, it is discerned that Low relied on Baker McKenzie and its affiliates to help him and his associates to build a web of companies in Malaysia and Hong Kong to shift money looted from 1MDB - a national sovereign wealth fund.
Further, it is stated that the parents of Jho Low, Larry Low Hock Ping and Goh Gaik Ewe, were linked with the Coswell Corporation and Strategic Equities Ltd. Coswell purportedly was involved in property investments in London via Trident Trust (BVI) in 1991. The investments had an asset value of US$2 million while Strategic Equities had shares in Frencken Group Ltd (Singaporean industrial and precision machine manufacturer) which is worth US$5 million. However, both Larry and Goh were only listed as clients of Trident Trust despite their links to the 1MDB scandal.
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On 4 October 2021, Malaysiakini had reported that Ahmad Zahid was mentioned in the files of Panama law firm Alemán, Cordero, Galindo & Lee (Alcogal), which acted as agents for a BVI firm named Breedon Ltd.
Ahmad Zahid was a director in Breedon, which reports said was incorporated in September 1996. The firm was later reportedly renamed Rising Resources (BVI) Ltd in November that year.
Ahmad Zahid was then CEO of Malaysia-listed Kretam Holdings Bhd, which operates the Husong He Hydropower Station in China’s Yunnan province.
Umno president Datuk Seri Ahmad Zahid Hamidi has denied any involvement in tax evasion activities, after the leaked Pandora Papers linked him to a firm involved in offshore financial transactions that is based in the British Virgin Islands (BVI).
Speaking in the Dewan Rakyat Parliament, Ahmad Zahid (a Barisan Nasional MP of Bagan Datuk) said the arrangement was made during his time as the CEO of a public-listed company in order to facilitate dividend payouts from profits in its investee country.
“It happened when I was in the corporate sector, when I was a CEO of a public-listed company.”
Now, Zahid is denying involvement in the scandal pertaining to the RM$6 billion littoral combat ship (LCS) project which was approved when he was the defence minister in 2011.
Transparency International Malaysia (TI-M) urges the present government, helmed by Dato Sri Ismail Sabri to keep focused on the reform agenda and the ultimate goal of the NACP (National Anti-Corruption Plan)– fighting corruption to ensure economic prosperity for the nation. In doing so, TI-M implores the government to demonstrate its will and commitment in this regard by taking appropriate and immediate action within its jurisdiction on the information revealed in the Pandora Papers.
At the moment, Malaysia's score in the global rule of law index dipped 1.4 per cent to 0.57, ranking 54 out of the 139 nations surveyed in the World Justice Project's (WJP) Rule of Law Index 2021.
Despite public pressure from opposition MPs, the Malaysian Anti-Corruption Commission (MACC) has stubbornly refused to launch an investigation. This has raised public skepticism and doubts about MACC's credibility and justified suspicion that MACC will turn a blind eye when active politicians supporting the government are involved, (see also On the MACC Affairs.
The government should make it mandatory for all MPs and assembly-persons to declare all their assets onshore and offshore. This will enable the authorities to detect any new asset or property owned by MPs, especially those who hold high positions in political parties.
Serial corruption syndrome is the norm in 21st century Malaysia not unlike piracy scorching the Strait of Malacca in bygone days prior to western intrusion on Southeast Asia soils.