Malaysia’s anti-graft agency, Malaysian Anti-Corruption Commission, has arrested former home minister, Ahmad Zahid Hamidi, in connection with an investigation into suspected misappropriation of funds. Nepal government, however, is least bothered.
Ramu Sapkota, Kathmandu with Alyaa Alhadjri, Kuala Lumpur : Centre for Investigative Journalism-Nepal
On October 18, Malaysia’s anti-graft agency, Malaysian Anti-Corruption Commission, arrested former home minister, Ahmad Zahid Hamidi, in connection with an investigation into suspected misappropriation of funds. He was presented at the high court in Kuala Lumpur the next day. The anti-draft agency has charged Hamidi with money-laundering offences, money laundering and criminal breach of trust involving around RM117 million during his tenure as Internal Affairs Minister from May 16, 2016 to May 10, 2018.
He has been charged with 27 counts of laundering, 10 counts of criminal breach of trust, and eight counts of bribes involving a total misappropriation of RM 117 million. One of these involves a case of taking a bribe of around 21 million ringgit from three companies — one company named Profound Radiance SDN BHD — having connection with Nepal. Hamidi has been charged with taking a total of two million ringgit as bribe through three checks from this company on March 15, 2018. The anti-graft body has been investigating into eight cases against him.
The Profound Radiance SDN BHD, involved in collecting the passports of Nepali workers in Nepal, sends the documents to the embassy. According to the commission, this company was in operation dubbed as ‘One Stop Center’ since May 1, 2016 to carry out the process.
The Profound Radiance — one of the three companies involved in processing OSC in Nepal and Pakistan – was entrusted for the undertaking by Hamidi when he was the internal affairs minister of Malaysia.
Meanwhile, the nexus between the government officials of Nepal and Malaysia revealed soon after the issue of Hamidi’s involvement in financial irregularities was surfaced. The Center for Investigative Journalism (CIJ) had reported how the government authorities of both the countries collaborated to swindle Rs. 5 billion from the Nepali workers going to Malaysia.
What was in the news?
The CIJ report had exposed with evidence the involvement of how officials of Nepal’s Labor Ministry, Department of Foreign Employment, Department of Industry, Office of Company Registrar, Nepal Rastra Bank, Parliamentary Committee, and Commission for the Investigation of Abuse of Authority (CIAA) have collaborated in fleecing the poor Nepali workers. Similarly, the news had also exposed about the involvement of former Internal Affairs Minister and other authorities in the fraud.
Similarly, the report had revealed the fraud racket of two other Malaysian companies operating the OSC –Diamond Palace Co-operative Limited and Bukti Mgah SDN BHD via VLN Nepal Pvt. Ltd.
The VLN had had collected Rs. 590 million 7 hundred thousand 200 from two hundred seven thousand 414 Nepali migrant workers in the name of OSC system from May 1, 2016 to April 15, 2018. The VLN then sent the amount to Profound Radiance through ‘Hundi’ (illegal means). The report revealed Nepal Rastra Bank’s involvement while sending the huge amount of money through ‘Hundi’. The then Home Minister Hamidi had taken a bribe of ringgit two million while providing the OSC to the company.
Hamidi, who has been arrested in connection with an investigation into suspected misappropriation of funds, has been released on bail imposed by the Sessions Court by paying RM2 million. The High Court has given a deadline of December 14, 2018 to the anti-graft body for the mention of his case. This means that Hamidi has to appear in the court on the same day. Meanwhile, the investigation officials have initiated probe into the alleged involvement of other companies, and to forward the case to the court. Chief of the anti-graft body Datuk Seri Ajam Baki has vowed of bringing the guilty to book at any cost.
The CIJ investigative story published by Himal magazine as a cover story about the misappropriation of NRs 5 billion had exposed about the nexus between Nepali and Malaysian officials to send the amount to Malaysia through “hundi”. The Nepali Times also published the report in English. The news then appeared in various Malaysian newspapers, including Malaysiakini, The Daily Star, The Strait Times, The Sun Daily, Male Mail, and New Malaysia Times. Likewise, Singapore’s Yahoo News also published the report.
Meanwhile, after the revelation of the news, former minister Hamidi, speaking to journalists on July 22, 2018, had dismissed the allegations while challenging the government to prove the allegations about his involvement on the misconduct while sending Nepali migrant workers to Malaysia. However, parliamentarians of the opposition parties had demanded action against those involved in the fraud. The same day, Kasturi Patto, Member of Parliament representing the Democratic Action Party has said, “The government should not hesitate to take stern action against those fleecing the Nepali migrant workers.”
Likewise, on August 14, Human Resources Minister of Malaysia M Kulasegaran organized a press conference informed about the dismissal of Bestinet, a company involved in biomedical processing of migrant workers from 14 countries, including Nepal, Bangladesh, China, India, among others. This company had entrusted around 39 Nepali health agencies to carry out biomedical formalities through the Federation of Nepal Health Workers’ in Nepal. Meanwhile, the Malaysian government has said it has initiated investigation on the companies involved in fleecing Nepali migrant workers. Internal Affairs Deputy Minister Azij Jamman has vowed to take action against anyone involved in the racket.
Meanwhile, the Malaysian government has suspended the OSC system operated by three companies, including Profound, and the Immigration Security System operated by Bestinet GSG Nepal Pvt Ltd. The Malaysian Home Ministry had corresponded with the Malaysian Embassy in Nepal to suspend OSC and IIASC system.
Nepal on ‘reverse’ pace
Nepali authorities, meanwhile, seem to be least bothered about the plight of the Nepali migrant workers going to Malaysia. The Ministry of Labor, Employment and Social Security had on May 18, 2018 confirmed that health entrepreneurs, GSG, and Malaysia VLN had been collecting money from Nepali migrant workers through illegal means. The same day, the labor ministry informed about the Home Ministry about the companies involved in the irregularities. Even as the police arrested 44 employees, including Ram Shrestha, President of Malaysia VLN Nepal (P) Ltd, the team informed that the operator of GSG, Govinda Thapaliya and President of Federation of Nepal Health Entrepreneurs, Kailash Khadka had absconded.
Meanwhile, the Supreme Court has released on bail all 44, who were arrested by the police. A case was filed at the district court against VLN’s Thapaliya accusing him of financial embezzlement. However, a single bench of justice Amrit Bahadur Basnet released him on bail at Rs one million. Even as the Judicial Council vowed to investigate on Basnet, no progress has been reported so far.
Labor Minister Gokarna Bista, however, says the outcome of the issue, which is pending in the court, needs time to be matured. “Firstly, we will make a labor agreement with Malaysia before proceeding with other issues,” Minister Bista informed. He, however, sought Home Ministry’s cooperation to take action against the wrongdoers. Meanwhile, highly-placed sources have claimed that police have come under pressure not to arrest Govinda Thapaliya. A source at the Labor Ministry says, “The only thing that the police needs is the order from the Home Ministry to arrest Thapaliya.”
Meanwhile, Thapaliya, who is said to be absconding, was spotted with Rajesh Bajracharya, personal secretary to Prime Minister K P Oli, on a Facebook picture at a program organized by Nepali Embassy in Qatar on Shrawan 12. However, Metropolitan Police Circle DSP Mohan Bahadur Thapa claimed that Thapaliya was absconding and that police was ‘searching’ him. Similarly, Kailash Khadka, who was spotted with Nepali Congress President Sher Bahadur Deuba on a Facebook photo, has not been arrested yet.
State mechanism abets Rs 5 billion loot from poor Nepalis
