WITH the Pandora Papers exposing several prominent local leaders parking their funds offshore, a lawmaker urged the Inland Revenue Board (IRB) and Malaysian Anti-Corruption Commission (MACC) to investigate the matter.
“My question is simple. If you earned your money legitimately, why park it at an offshore account? Maybe, they did earn their money legally but didn’t want to pay local tax rates.
“But that shows the hypocrisy of the Malay elites. When they shout about Bumiputera equity and all, it’s actually about their self-interest and has nothing to do with ordinary Malays.
“Just like the Government demanding local freight forwarders to have 51% Bumiputera equity. It’s actually for the Malay elites and not common folk. Once they make money there, they will park it offshore,” Klang MP Charles Santiago told FocusM.
The Pandora Papers was worked by hundreds of journalists across the globe, exposing how powerful leaders from developed and developing countries parked their money offshore, either to evade tax or pay little of it.
Among the Malaysians mentioned in the documents were former Finance Minister Tun Daim Zainuddin, former Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi, Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz, his deputy minister Datuk Yamani Hafez Musa and Selayang MP William Leong.
Malaysiakini reported Daim defending his financial transactions, saying he was a successful businessman before entering politics and had paid all his dues to the Government.
Zahid also defended himself at the Dewan Rakyat saying 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.
Touching on the matter, Santiago said that money laundering has been a problem for years now and those involved usually want to either evade tax or pay little levy.
“Perhaps, during their stint in the corporate sector, they made some extra cash which could not be explained. Hence, they decided to park it outside the country.
“Zahid says that he no longer holds any position at the company but that is a nonsensical way to wash your hands over the claims.
“And Daim said that he had paid all his taxes but if he has, why park the money offshore? Can you imagine how much the Malaysian economy would benefit if the money is kept here instead?” he queried.
However, the DAP leader acknowledged that the money parked offshore need not come from illegitimate activity.
“That’s why the authorities must find out the source of the money to determine how to go about it,” Santiago stressed.
On that note, he said that money laundering was a problem worldwide and it usually affects developing nations.
“One must understand that the more people launder their money, the lesser funds Governments would have to build schools, hospitals, roads and other social infrastructure due to lower tax revenue,” Santiago stressed.
PKR MP defends his corporate dealings
On related matter, PKR MP William Leong explained his association with Collister Holdings Ltd (Jersey) and Philippines National Steel Company based in Manila, where he served as executive vice president and chief operating officer, respectively, between 1994 and 1997.
“Financial and tax experts had advised me that this was the best way to manage my income, finances and investments as an expatriate.
“All these were legally and rightfully conducted. There was no infringement of both Malaysian and Filipino laws,” he said, in a statement.
As for his dealing with the British Virgin Island company of Maxcorp (Asia) Overseas Ltd, Leong stressed that it was related to his law firm acting on behalf of a client in a normal corporate work.
“But I cannot disclose any matter on this case because of professional solicitor and client confidentiality, without my client’s consent,” he remarked. – Oct 5, 2021.
