Dishonest Contracts
Abdul Taib Mahmud governs Sarawak purely in order to make a profit for himself.The biggest company in Sarawak is Cahya Mata Sarawak, the huge construction conglomerate, which is owned mostly by himself and members of his family.Before Taib took power CMS was a profitable public company owned by the State, but he used his influence to privatise it and then take it over himself. Nowadays Taib makes sure numerous government projects, involving huge payments from the taxpayer, are given to CMS.
An estimated MR 500 million are handed out each year to CMS by the department of Public Works alone. On top of that there are numerous one-off projects, for example the construction of the multi-million US dollar Aluminium Smelter project linked to the controversial Bakun Dam and of the new MR300 million Parliament Building in Kuching- guess which company the Sarawak State ‘negotiated’ to give these contracts to?![]()
Straight Scams
Another frequent scam is when money ‘disappears’ through sub-contracting. What happens here is Taib hands out a huge government contact to CMS or another family company, which is then allowed to sub-contract the whole job to another company for far less money. In this way the Taib family can make millions of ringits of profit for doing nothing at all. The Malaysia Anti-Corruption Commission announced in November that a staggering 60% of the money laid out every year by Taib’s government on state projects ‘disappears’. It is easy to see how.
Kickbacks worth billions of Ringits
Taib also makes sure his companies and family members control all the key positions where is it possible to accept big bribes from businesses. Take the scandal exposed when the Japanese tax authorities revealed some months back that tens of millions of US dollars have been paid in secret, illegal kickbacks by Japanese shipping companies exporting timber from Sarawak. The money, which adds up to hundreds of millions of ringits over the last 20 years, was paid directly to companies owned by Onn Mahmud, the brother of Chief Minister Taib Mahmud.
Faced with prosecution for not declaring these bribes, the Japanese timber companies explained that the Sarawak government does not allow export permits unless they ‘negotiate’ with a companycalled Achi Jaya Shipping. Achi Jaya Shipping is owned by Onn Mahmud, the brother of Tab Mahmud.
Taib has taken millions of hectares of native customary rights lands from their rightful owners, the indigenous peoples of Sarawak. The estimated value of timber exported from Sarawak is US$ 25 billion. He has taken billions of that profit for himself. How much went to the rightful owners? In the process, his careless, unsustainable logging has destroyed one of the world’s most precious natural jungles.
Jobs and concessions for the family
Living room is decorated with gilt-edged European-style sofa sets. Taib Mahmud is said to wear double-breasted suits, driving around in Kuching in his cream-coloured Rolls-Royce car. Laila Taib and her children are the majority shareholders of Sitehost Pty. Ltd., Australia, which owns Adelaide Hilton Hotel, according to Aliran Monthly, the reformist Malaysian magazine. Taib was described as "flamboyant with expensive tastes" and had reportedly purchased a piano once belonged to late American showman Liberace for US$2 million. He also wears a ring with a walnut-sized red gem surrounded by small diamonds
Taib Mahmud has handed out over 1 million hectares of logging concessions to his own family. He has also made sure that all the most influential jobs in the Government and state companies go to his own family. Particularly favoured is his cousin, Abdul Hamed Sepawi, Chairman and major shareholder in the developer Naim Holdings Bhd., which has received numerous government contracts.
The Managing Director of Sarawak Energy Bhd (SEB), which is handing out the contracts for the dam-building, is Taib’s brother-in-law, Aziz Husain. Taib’s brother Onn Mahmud controls shipping permits. Taib’s sister Roziah Mahmud controls a huge business empire in Sarawak and was handed control of the Royal Mulu Hotel in Mulu National Park. Now Taib’s son Suleman has been given a parliamentary seat and as Taib grows visibly weaker every day the talk is all about making him the new Chief Minister!
Why vote back a weak and corrupt old man, who is dashing early into the elections just so that he can use his last fading influence to hand over to his inexperienced son? PKR have pledged to chase the Taib family for their money and return it to invest in Sarawak. Suleiman Taib will seek to continue his father’s rape of this country
Cahya Mata Sarawak Berhad (CMSB), the company controlled by Taib's family, has been awarded various government contracts including the maintenance of Sarawak's roads over the last 15 years.These contracts also include construction of roads, supplying roofing materials for low-cost housing units, building hospitals, and upgrading airports. In 2001, the Malaysian federal government allowed the CMS Group's banking unit Bank Utama to acquire RHB Bank to become one of Malaysia's 10 core banks. The company, PPES Works (Sarawak) Sdn Bhd, which is 51% owned by CMSB, recently completed the construction of the New Sarawak State Legislative Assembly Building in 2009.CMSB is currently under the joint venture with leading aluminium producer, Rio Tinto Alcan (RTA) to develop aluminium smelter in Similajau as part of theSarawak Corridor of Renewable Energy (SCORE).
A doctoral thesis written by Universiti Malaysia Sarawak (UNIMAS) lecturer, Dr Neilson Mersat, alleged that Taib's family wealth comes mostly from Sarawak state government contracts without tender, and profits were sent overseas to hide them. Another lecturer in the faculty of Social Sciences at UNIMAS, Andrew Aeria, wrote a thesis which claimed that CMSB takeover of Bank Utama and other companies is an example where highly-profitable business are only favoured between well-connected individuals. The privatisation of state-owned companies deprived the state government of sources of income, thus raising the burden of taxpayers.
In 2000, the Sarawak cabinet had approved RM 551.02 million state contract to be awarded directly to Titanium Management Sdn. Bhd. Taib's son, Mahmud Abu BekirTaib is a major shareholder in the company.This contract allowed Titanium to repair or replace 384 old bridges in the state in 7 years. The Malaysian 2006 auditor general report stated that agreement in the contract was favouring the contractor. There was a cost overrun of 72% from the original cost. A survey conducted by auditor-general department on 12 sites of the bridges discovered that the design of bridges over narrow rivers do not meet actual needs and were not built economically.
In 2008, the Sarawak government planned to build 12 dams in Sarawak in order to meet the future energy demand of industrialisation. These dams are scheduled to be completed in 2020 although they need to be approved by environmental impact assessment. A memorandum of understanding was already signed between the Sarawak Energy Berhad and China Three Gorges Project Corporation on Murum Dam project. A total of 51 dams may be constructed by the year 2037. This controversial hydroelectric project is receiving fierce criticism because of catastrophic disasters that they may cause and the possible displacements of native communities. The opponents of the plans cited this project as corruption and capital cronyism because CMSB is expected to be benefited indirectly by supplying concrete material for the construction of dams and building of aluminium smelter that consume much of the generated electricity.[90] In March 2009, Al Jazeera's '101 East' English programme was aired where the Sarawak's 12 dams issue and economic domination by Taib's family was discussed in great detail. Minister of Land Development, Dato Sri Dr. James Masing accepted the interview on this issue but the Chief Minister Pehin Sri Taib Mahmud declined the interview invitation.
James Masing, in an interview with Al Jazeera English, maintained that the contracts were awarded in a transparent manner either in open or closed tenders. He said that the state government give the contracts based on the previous good track record of the companies, not because of the alleged political connections.
Taib owns a mansion in Demak Jaya which overlooks the Sarawak River. According to photos in the July to December 2006 newsletter of Naim Cendera Holdings Bhd, Taib's
In the latest expose, Taib is alleged to have established a real estate empire, Sakto Corporation in Canada worth a few hundred million dollars, under the name of his son-in-law, Sean Murray.This company was founded by Taib's brother Onn Mahmud, Taib's daughter Jamilah, and Sean Murray. Sean Murray and Taib's daughter has successfully won the trust of Canadian government departments to move into the their office spaces after an open and competitive lease search. The ORC briefings stated that the facilities owned by Sakto Corporation was "built to high energy and environmental specifications" and "building is green in a number of ways".Sarawak Report also alleged that Sakti International Corporation in United States which is also managed by the same couple, owns Abraham Lincoln building which houses the(FBI) facility.Taib family is also alleged to own property portfolio in London.Taib Mahmud and his family have not shown any reactions to such allegations made by Sarawak Report.






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