The issue of the Pandora Papers involves a deeper structural and regulatory concern at the heart of it, says Howard Lee, Pakatan Harapan Youth Chief, in an interview with Business Today.
While the Malaysian government said this week that it will run investigations via government agencies on controversial claims in the Pandora Papers relating to prominent leaders in the country, Lee says that even if investigations were carried out wholeheartedly, and prosecutions and convictions have taken place, these will only be a punitive measure on those who have been revealed.
“These punitive measures don’t change the structures and regulations that have allowed this to happen in the first place,” Lee stresses.
He urges the constitution of a Royal Commission of Inquiry (RCI) to investigate the relationship between current legislation and regulations following the revelations by the Pandora Papers. He also wants investigators to come up with a recommendation on how to curb future illicit outflows.
“An RCI should be set up to investigate the impact and implications on the people, as a result of such money laundering antics,” he says.
In a Facebook post, Lee shares that Pakatan Harapan Youth, as well as fellow leaders of the Youth Wing and the coalition partners, have lodged a police report to expedite the investigation into the Pandora Papers allegations and that it revealed various offshore financial activities in an effort to hide assets worth billions of ringgit.
The post read, “The illegal flow of Malaysian money abroad amounting to Rm 1,800 Billion from 2005 to 2015, as reported by the Global Financial Integrity (GFI), needs to be investigated transparently and thoroughly.
“We consider that it is a revelation that has already tarnished the integrity of the country and it should not be taken lightly by the authorities. The implications are quite serious and MUST be taken into account because we cannot accept that Malaysia is now wallowing in the manipulation of state property for personal gain. The individuals listed in the ‘Pandora Papers’ consisting of political figures, their family members, and corporate tycoons have smeared charcoal on the faces of all Malaysians for this despicable act, then spat in the face of national sovereignty,” the FB post stated.
The Pandora Papers refer to the millions of leaked documents put together by the International Consortium of Investigative Journalism (ICIJ), and made public on Oct 2, allegedly revealing offshore accounts of present and past leaders, including presidents, prime ministers, billionaires and prominent business people.
On the other hand, former prime minister Tun Dr Mahathir Mohamad said a few days ago that the Pandora Papers exposé has exposed immoral behaviour but not an illegal activity in Malaysia, as offshore holdings were not expressly illegal here in Malaysia and that anyone was free to conduct their business abroad.
“It is up to the government (to investigate) but, in terms of the law, it is not wrong; but in terms of morals, it may not be appropriate to have money and keep it abroad,” he says.
Dr Mahathir argues that some might not want to repatriate their funds from business operations abroad as they would incur additional costs and that offshore holdings would only be illegal if there was tax evasion involved, reiterating that no current law compelled Malaysians to repatriate earnings and profits from business conducted in other countries.
Former British prime minister Tony Blair and the current Kenyan President, Uhuru Kenyatta, are on the list. It is now public knowledge that finance minister Tengku Zafrul Aziz and one of his predecessors, Daim Zainuddin, are also named.
