The expanded administrative powers given to the government under Dr Mahathir Mohamad helped distract from government irregularities and was at the expense of accountability.
Source: Free Malaysia Today
The government has set up a royal commission of inquiry into the US$10 billion forex loss incurred by Bank Negara. This has served to refresh many people’s old memories of many a scandal in this country over the past three decades that would have very extensive ramifications if we were to pursue all of them.
Dr Mahathir Mohamad’s authoritarian rule set democracy back by many years, and scandals which had taken place when he was in office were too many and increasingly unfathomable.
When Mahathir was deputy prime minister in 1980, the cabinet approved a secretive tin market manipulation plan, allowing the government to conduct physical tin and futures dealings through Maminco throughout 1981. The country incurred a US$253 million loss as a result of an unexpected collapse in tin prices. Mahathir admitted to this as late as 1986.
After Mahathir took over as the prime minster, he introduced a heavy industries programme, setting up Perwaja Steel that eventually suffered a RM10 billion loss. He admitted the mistake only in 2002.
Mahathir was allegedly involved in the Bumiputra Malaysia Finance Ltd’s RM2.5 billion criminal breach of trust case in 1983, according to a CIA document declassified earlier this year.
The bailout of Malaysia Airlines also ate into much of the country’s resources. During the seven-year leadership of Tajudin Ramli, the national carrier incurred a cumulative loss in excess of RM8 billion.
In 2001, when MAS was on the brink of a liquidation crisis, its shares plummeted from RM8 to RM3.68, and the Mahathir administration bought 32% of shares at RM8 per share for a total of RM1.8 billion from Tajuddin. Continue reading →
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