Dr Mahathir Mohamad's latest comment on corruption reminds me of a trip I made to the Philippines in December 1981. I was on a tour to some extinct volcano area outside Manila and traveling in a mini-bus together with other tourists from the West and Japan.

During the journey, the part-time tourist guide gamely asked each of us to introduce ourselves and our countries. I remember saying, among other things, that there was a new government in place but unfortunately this was by far the most corrupt government Malaysia ever had.

Why did I say that? By then Mahathir had dismantled the open tender system and awarded the Dayabumi building contract to a Japanese contractor at more than RM650 million, a colossal sum in those days, without an open tender.

Mahathir explained that he wanted the Dayabumi to be completed fast using steel structures and that Malaysians had neither the expertise nor the experience. That was a big lie. Did he bother to find out? Malaysians had already designed and built the Promet building in Jalan Tun Ismail just opposite Wisma Genting using structural steel frames.

It was no coincidence that the same Japanese contractor for Dayabumi was soon awarded the contract for the new Umno building at Jalan Tun Ismail. This had given new meaning to the term 'transfer pricing'.

Mahathir's single act of dismantling the open tender system has cost Malaysia hundreds of billions of ringgit with contracts being 'negotiated' (by whom, on what basis?). Money went down the drain when not only prices rose by two to three times but also when contracts were given to inexperienced and incompetent companies (many with RM2 paid-up capital).

Projects were delayed and bad workmanship was order of the day. Computer labs and naval patrol vessels are such examples. Mahathir created the Umnoputras and even he could not wean them off from easy money. Placing the Anti-corruption Agency under Parliament is the only way to prevent future abuse of power.

In 1981, I never dreamt that corruption in Malaysia would become what it is today - a culture that has permeated in all levels of government.