News feature

Someone must have cast an evil spell on Selangor: its Menteri Besar and scandals have become synonymous in recent years. One by one, they have trot the road to infamy. This time round, it is Dr Mohd Khir Toyo's turn.

He has been accused of abusing his power in land and government project deals worth over RM100 million to a dubious band of cronies.

Media activist Ahmad Lutfi Othman has lodged a report on the matter with the Anti-Corruption Agency (ACA) on Oct 23. The ACA said however it has only received information, not an official report, from Lutfi a week later.

"Fine, I will follow the ACA's procedures just to make sure they will kick start the investigation immediately," said Lutfi.

So yesterday, he went back to the ACA office in Putrajaya and lodged an official report on the matter. He also handed in documents with details of the individuals and companies involved.

When the young Mohd Khir was appointed MB last August, many pinned their hopes on him to salvage Umno's badly tarnished reputation.

Khir's predecessor, Abu Hassan Omar, had resigned amid rumours sparked off by a poison-pen letter that he sired an illegitimate child with his wife's sister.

Abu Hassan claimed that the 11-year-old boy in question was his sister-in-law's son and that of his best friend, a Chinese Muslim convert who has the same name as him.

Interestingly, Abu Hassan had replaced Muhammad Muhammad Taib who was forced to step down in 1997. Muhammad Taib was arrested for failing to declare the large amount of money he was taking out Australia late 1996.

He was acquitted by a Brisbane court in 1998 after he failed an English test and successfully convinced the jury that he did not understand the requirements in the cash declaration form because of his poor command of the language.

He was later charged for corrupt practices by the ACA in Malaysia but was acquitted. Muhammad Taib told the High Court that the RM2.4 million (A$1.2 million) in his suitcase was his brother's money for investment in Australia.

The accusations

The accusations against Mohd Khir may be less sensational than his predecessors but they do not pale in magnitude.

The accusations are:

  • Awarding a multi-million ringgit road project to a company, said to be financially troubled and already blacklisted for delays in several government projects in other states. The road project, priced at RM92.5 million (RM4.5 million for each km), was awarded without going through an open tender for the construction of a proposed 20.5km road in Sekinchan.

  • A 100-acre plot of land in Shah Alam was given to four companies - Layar Kekal Sdn Bhd, Tirai Gemilang Sdn Bhd, Usahasewa Sdn Bhd and Samasys Sdn Bhd - which share some same individuals on their board of directors. One man was a director in all four companies, three others were directors in at least two companies.

  • A state map shows that the land is on an adjoining stretch that cuts across several districts in Shah Alam.

  • In another project, four companies were each given a 50-acre plot of land in Kuala Langat. Their board of directors include new appointees in their 20s who came on board on the same date in May this year. The companies had their applications for land approved about two months later. A check with the Registrar of Company showed that the companies share the same address.

    • Walkout

    Recently, six opposition members staged a walkout during a Selangor state assembly sitting after their emergency motion on corruption allegations against Mohd Khir was rejected.

    Lutfi was arrested by police in Shah Alam a day before under the Publications and Printing Presses Act for publishing pro-reform tabloid Memo14 without permits.

    He was released on bail but some 20,000 copies of Memo14 were confiscated by police. That Oct 30 issue of Memo14 contained extensive reports on graft allegations against Mohd Khir.

    "I suspect that it was an effort to stop the circulation of our newspaper. Previously, the police never confiscated all of our newspapers," said Lutfi, who was the editor of Detik weekly magazine until it was banned by the government last year.

    Mohd Khir said the accusations were unfounded. He insists that he has no personal interest in all the projects approved by the state executive council and that the allegations should not be raised by the opposition.

    An officer at Mohd Khir's office said the state chief is in Langkawi attending a training course for all state government officials but DAP state assemblyman for Bandar Klang, Teng Cheng Khim said he was not informed about the course at all.

    Sources told malaysiakini that Mohd Khir will organise a 'special session' with the Selangor state assembly members to explain his graft allegations.

    But Mohd Khir's fate will mean more than just a series of explanations and denials on his part.

    Observers on Umno politics said the party president and Prime Minister Dr Mahathir Mohamad was aware of the allegations.

    "Eventually, he will decide what to do with Mohd Khir," said an observer.