Opposition leader Anwar Ibrahim has invited Bank Negara governor Zeti Akhtar to be a panellist to explain the massive problem of increasing illicit funds outflows from the country.

Describing the recent findings of the Global Financial Integrity (GFI) on the problem as disturbing, Anwar said he will write to Zeti today and is inviting all Pakatan Rakyat menteri besar and chief ministers to participate.

zeti akhtar with bank negara report "I hope Zeti ( left ) will participate in the discussion with us, and Umno and BN members can also participate when we hope to have a forum next month.

"Malaysia's deputy finance minister has been describing the 2009 GFI report as a misrepresentation (claiming that) the amount is far less, and they will address the problem.

"However, the GFI has come out with a report that the illicit outflow is from US$30.41 billion in 2009 to US$64.38 billion in 2010, which is double the amount. This shows the (government’s) measures and enforcement has failed," he said.

This, Anwar said, shows the failure of Prime Minister cum Finance Minister Najib Abdul Razak's administration in addressing the problem.

azlan He further descrubed 2009 and 2010 as “critical years” as during the two years in question, Najib had ascended to power, replacing former PM Abdullah Ahmad Badawi.

“This means that Najib had miserably failed to control and manage the economy with transparency and had failed to effectively address the problem of corruption. I am throwing an open challenge that Najib must respond. How is it you are not able to monitor the illicit transfer of funds when you claimed earlier that there is a dispute,” he said.

“If we were to compare the other lower rung nations in the survey of illicit funds transfer, like China, Mexico and Saudi Arabia, besides Malaysia, our country is the only country which had seen the rise in outflow of such questionable funds, resulting it to double”.

The GFI study, he said, is an important independent yardstick to measure the illicit transfer of funds as internationally, all this should have been accounted for.

Najib dismal as Finance Minister

“The placings of Malaysia at the lower end of the spectrum should be viewed seriously by all parties in Malaysia. Why have Najib or Bank Negara not responded to this disturbing findings? Who is in charge of finance and the economy?” he asked.

The opposition leader stated this shows that the problem of corruption, abuse of power, transferring of gambling, vice and criminal syndicates, transfer pricing and tax evasion have not been successfully addressed by the present government.

NONE “The outflow, if not tackled properly, would be to the detriment of the Malaysian people here as already the country has a large amount deficit and culminating with this latest revelation in the illicit outflow of funds”.

Describing Najib's economic management as dismal, Anwar ( right ) said Najib had failed to address several vital issues, such as the rise of prices, ample housing for the poor, the suppression of wages and rampant corruption.

“At the macro level, the budget deficit and culminating with his failure in dealing with the illicit outflow of funds resulting in it to double within a year from 2009 and 2010 are important vital issues which should be addressed.

“That is why, I have asked Najib and Umno leaders to debate on economic issues, however, he does not want to,” he said.

Lax in attitude of Malaysian media

In the GFI report, it had outline three factors affecting illicit funds transfer, including issues relating to the perception of corruption, the size of the illegal economy from illegal trade such as vice, and criminal syndicates or illegal gambling without licensing and also weak enforcement by the institutions concerned.

Anwar then blasted the mainstream media in not reporting the issue.

He said that in India, the GFI 2009 report was front-paged in describing it as “the Great Indian robbery”.

NONE “However, in Malaysia, you do not find the papers reporting this concern (with the exception of the portals) as the Indians described the outflow of US$500 billion as robbery. You only have deputy ministers saying that the amount reported was wrong and not much.

“Till today, there has not been an official response from Bank Negara or the government to address the issue”.

Citing the probe on RM40 million “ donation ” to Sabah Umno following timber kickbacks, as an example, Anwar said this could be just the tip of the iceburg.

“The money should have gone to the state not an individual or party,” said the opposition leader.

Asked whether there are ample laws to address the problems, Anwar said there already is the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 in place, and the Money Services Business Act 2011 in place.

“I think it is not a question of laws but the enforcement done by these agencies to help counter the problem,” he said.

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