The improved methods employed by the Global Financial Integrity (GFI) in its findings released today mean that the Malaysian government cannot deny the fact the country remains one of the top in the world when it comes to illicit capital outflow.

NONEThe huge outflow, PKR director of strategy Rafizi Ramli (left) said today, further shows the link between corruption and illegal money outflow, as well as Malaysia's failure to address the problem.

“The GFI answers various technical questions raised by Bank Negara previously on the accuracy of the statistics cited in the study. With the new methods employed by GFI, the Malaysian government has no reason to deny its findings.

“The illicit outflow of funds at US$54 billion (RM173.84 billion) in 2011 and the combined total of RM370 billion between 2002 and 2011 fit evidence that the people are already aware of,” Rafizi said in a statement today.

He was referring to a Malaysiakini report today that Malaysia has been ranked fourth in this year’s GFI report based on illicit cash outflow from the country in 2011.

In last year’s report, Malaysia was catapulted into second position, with close to RM200 billion of dirty money having been siphoned out of the country in 2010.

Despite recording fourth place, the Pandan MP said, the GFI findings showed that the outflow of illegal money has increased and it showed that this was related to corruption.

NONEThe report by the Washington-based organisation, Rafizi said, stated that “panel data regressions also show that an increase in corruption and trade misinvoicing”, as the study is based on empirical financial data from all countries, including Malaysia.

He pointed out that the auditor-general’s report every year shows that alleged corrupt practices involving the people's money has not reduced but is, instead, increasing annually.

According to Rafizi, various trade done overseas, especially in London, certifies lavish transactions involving Malaysians and confirms that there have been illicit outflows of funds in the past few years.

Corresponds to budget deficit

Rafizi said Malaysia's fourth ranking in the outflow of illicit funds was also parallel to the country's financial position that showed budget deficits over the last 15 years.

“The budget deficit shows that expenditures have increased, including huge expenditures involving payments made across the world.

“The recent GFI report also certifies the relationship between the huge outflow of illicit funds from Malaysia with the financial problems faced by the country, which is due to corruption.

“It only shows that corruption is rampant in Malaysia and Prime Minister Najib Abdul Razak's ignorance of such findings will affect the development and growth of the country and affect the people.

Hence, rafizi added, Najib should relinquish his post as finance minister, since he has “failed in his task of managing the country's finances”.