Controversial Malaysia state boss due to “retire”, but keep influence

Controversial Malaysia state boss due to “retire”, but keep influence

Monday, February 10, 2014 – 14:34

Reuters

KUALA LUMPUR – The chief minister of Malaysia’s Sarawak is expected to announce his resignation on Monday after 33 years in charge of the resource-rich state that have been key to keeping the national coalition in power but marred by corruption allegations and deforestation.

Taib Mahmud, 77, said over the weekend that he would likely step down by the end of this month, according to state news agency Bernama, following a series of meetings with his political allies. He is due to make a statement on Monday.

Despite what state media called his “retirement”, Taib’s influence over the sprawling Borneo island state is likely to remain strong as he is expected to step into the role of state governor, a more ceremonial role than his current post.

But his departure raises some doubt over whether his successor will be able to maintain Taib’s political balance between defending the interests of native Sarawak residents, and supporting the national Barisan Nasional (BN) coalition. The state is majority Christian in Muslim-majority Malaysia.

Sarawak, the country’s largest state, has been increasingly crucial to the long-ruling BN coalition as its support wanes in peninsula Malaysia. Without the 25 seats that Taib’s party and his allies won in last May’s election, the national coalition would have lost its majority in the 222-seat parliament, likely ending its 57-year rule.

Taib’s party emerged from the election as the coalition’s second-largest party after the ruling United Malays National Organisation (UMNO), boosting his sway over national politics.

Taib has short-listed three possible successors, including his housing minister who is seen as having close ties with the federal government and Prime Minister Najib Razak. “I think the big question is what happens over the longer term, whether his successors will develop minds of their own,”said Ibrahim Suffian, head of the Merdeka Center polling firm.

Taib, who travels by Rolls Royce and private jet, has been under pressure to step down amid a growing focus on alleged timber corruption in the state.

Environmental groups say that under his rule, Sarawak – which accounts for a quarter of the world’s tropical log exports – has lost 95 per cent of its virgin forest. Sarawak officials say 84 per cent of the state is forested although this includes massive oil palm estates planted in place of forests.

UNDER INVESTIGATION

Taib has been under investigation by Malaysia’s anti-graft agency since 2011 and is regularly accused by activist groups of enriching his family through his control over awarding huge infrastructure contracts.

Clare Rewcastle-Brown, who has long been a critic of Taib and who runs the Sarawak Report website, said Taib was merely”moving upstairs” into the new role and would maintain his overall influence on state affairs. “He will never willingly give up power as it would be too dangerous for him and threaten the business empire he has built up across Sarawak,” she said.

Taib is presiding over a $100 billion plan to harness the state’s rivers into 12 dams by 2020 and transform it into an energy hub that can power smelters built by Japanese and Australian firms and also light up the rest of Borneo island.

Shares in Cahya Mata Sarawak, owned about 40 per cent by Taib’s immediate family, snapped three days of losses to rise 2.5 per cent on Monday on expectations Taib will still have a say in how the state awards infrastructure jobs.

Timber companies such as Ta Ann Holdings and Jaya Tiasa that benefit from logging licenses awarded by Taib rose 2.3 per cent and 1.3 per cent respectively.

All the counters outperformed the broader market which inched up 0.4 per cent.

No clue yet on Sarawak Chief Minister’s successor

Monday, February 10, 2014 – 15:13

New Straits Times

MALAYSIA – With scrutiny heating up on the three aspirants to take over from Chief Minister Tan Sri Abdul Taib Mahmud, there was precious little that could be gleaned yesterday from Tan Sri Adenan Satem, Datuk Amar Abang Johari Tun Openg and Datuk Awang Tengah Ali Hassan.

At the outset of the state Barisan Nasional meeting yesterday chaired by Taib, only Awang Tengah would comment.

Adenan refused to comment, merely mumbling and shaking his head. He tried to avoid talking to reporters and left quickly.

Abang Johari was seen smiling and looking relaxed as he wandered around the Parti Pesaka Bumiputera Bersatu (PBB) foyer but did not speak to the media.

That left only Awang Tengah to capitalise on the moment.

The PBB senior vice-president, describing the closed-door meeting with Taib as “something special”, said the session was a “sad farewell”.

“The meeting is special because there is a possibility that it will be the last time that he (Taib) chairs a state Barisan Nasional meeting,” Awang Tengah said.

Awang Tengah appreciated the fact that everyone voiced their feelings about Taib’s succession plan.

“At the same time, they are sad because they want Taib to continue leading the state but we have to respect his decision.”

On his name being bandied about as one of three aspirants to succeed Taib, Awang Tengah expressed surprise at the speculation.

“I am just a small man but as I said, we will support whoever is chosen. The most important thing is to carry on all the good things chartered by Taib as he has built a strong foundation.

“This needs good team work.”

Commodities-Rich Sarawak’s Chief Minister Taib to Step Down

Abdul Taib Mahmud plans to retire as chief minister of Sarawak, after running Malaysia’s commodities-rich eastern state for more than three decades.

Taib, 77, intends to inform Sarawak’s head of state to of his intention to resign, Malaysia’s official Bernama news agency reported, citing the chief minister. The decision comes seven months after the Malaysian Anti-Corruption Commission formed a multi-agency task force to expedite investigations into claims of graft. Taib has denied corruption allegations, and press reports say he may seek to become the state’s governor.

During his 33-year rule of Malaysia’s biggest state, Taib’s government handed out concessions for logging and supported the federal government’s mega projects, including construction of the country’s largest hydroelectric dam. Oil palm plantations spread as loggers rolled back the frontiers of Borneo’s rain forest, home to nomadic people and rare wildlife such as orangutans and proboscis monkeys.

Some stocks linked to his relatives fell after the Berita Harian newspaper first reported on Feb. 5 that Taib planned to retire as chief minister and become the state’s governor. Cahya Mata Sarawak Bhd. (CMS), a construction and building materials maker, rose 3.8 percent today after declining 8.6 percent last week after the report.

‘More Powerful’

“It’s a misconception to think he’s really retiring,” said James Chin, professor of political science at the Malaysian campus of Australia’s Monash University. “When he moves up to governor, he becomes even more powerful. Certain things need his signature. He appoints the chief minister. All mining leases must be signed off by him.”

Taib and his allies control 25 Sarawak seats in Malaysia’s national parliament. That’s enough to ensure the ruling Barisan Nasional coalition falls from power should they ever choose to switch support to the opposition, said Chin. Prime Minister Najib Razak’s alliance was returned to power in May 2013 by its narrowest margin since independence in 1957.

Taib told Bernama he would step down from his current position by the end of this month. He is Malaysia’s longest-serving chief minister, in power longer than Mahathir Mohamad, who retired after 22 years as prime minister in 2003.

Important Role

“Taib is not really gone from Sarawak politics,” Ibrahim Suffian, a political analyst at the Merdeka Center for Opinion Research, said by phone. “From behind the scenes or even as the new governor, he will play an important role including handling economic issues. Most important now is who will be Taib’s successor.” Opposition parties have made some inroads in Sarawak in recent years, he said.

Taib had doubled up as the state’s finance minister, and minister for planning and resource management, according to his official website. He’s also president of Parti Pesaka Bumiputera Bersatu, or PBB, and state chairman of Barisan Nasional, Malaysia’s ruling political coalition headed by Prime Minister Najib Razak.

PBB met at the weekend and gave Taib a mandate to nominate his successor, the Star reported, citing party Chairman Amar Asfia Awang Nassar.

Local media, including the Star, have named three candidates short-listed by Taib to replace him. They are the party’s deputy president Amar Abang Johari Openg, senior vice president Amar Awang Tengah Ali Hasan and information chief Adenan Satem.

To contact the reporters on this story: Barry Porter in Kuala Lumpur at bporter10@bloomberg.net; Manirajan Ramasamy in Kuala Lumpur at rmanirajan@bloomberg.net