Sarawak Chief Minister Abdul Taib Mahmud took the unusual step of refuting 
allegations of his personal involvement in a multi-million ringgit timber 
kickbacks scandal in the state assembly today.


 <img align="left" height="146" hspace="5" src="http://mk-cdn.mkini.net/80/c3ef5c78567c3643ace1117b7e6b3442.gif" width="219">
 In a 10-page 'personal statement', Taib "categorically and 
completely refute" all the allegations, which first appeared in
 
 Japan 
Times
 
 , a Tokyo-based newspaper.
 </img>


 "They are absolutely false," he said.


 Taib, who has been the Sarawak 
leader for 26 years, reiterated he would take legal action against all those who 
had made the allegations, both in Japan and Malaysia.


 He had earlier
 
 <a href="http://www.malaysiakini.com/news/66207" target="_blank">
 vowed to 
sue
 </a>
 
 
 malaysiakini
 
 and a
 
 <a href="http://www.malaysiakini.com/news/66262" target="_blank">
 number of opposition 
leaders
 </a>
 
 for defamation.


 "It must be noted that 
the said newspaper (
 
 Japan Times
 
 ) and those in Malaysia, have not ... 
provided any fundamental facts to support their allegations that 1.1 billion yen 
(RM32 million) was paid to Sarawak officials as 'kickbacks' or 'rebates' and 
lubricant to facilitate the timber trade," he added.


 According to the 
March 29
 
 Japan Times
 
 report, the multi-million ringgit 'commission' - 
made over a period of seven years - was paid to Hong Kong-based company Regent 
Star said to be linked to Taib and his family.


 This was uncovered by 
Japanese tax authorities who deemed the payments made by nine companies, which 
is part of a shipping cartel, as 'illegitimate expenses' since the Hong Kong 
agency - believed to be a paper company - did little 'substantive work' to 
justify the payments.


 According to tax authorities, the shipping 
companies had tried to disguise the payments as 'business expenses' and were 
thus not taxed.


 
 <img align="right" height="448" hspace="5" src="http://mk-cdn.mkini.net/80/d7a36ee12d1b69c5c8e96aa5623adf2e.gif" width="250">
 Japan 
Times
 </img>
 
 reported that the shipping firms were likely to be slapped with well 
over 400 million yen (RM11.6 million) in back taxes along heavy penalties for 
'hiding' the funds from tax authorities.


 According to the newspaper, the 
shipping companies were believed to have used the money as a "lubricant to 
facilitate their lumber trade".


 The shipping firms, which have rejected 
the tax authorities' claim and argued that the transactions with Regent Star 
were legitimate, have denied any wrongdoing.


 
 
 Taib: I've no knowledge
 
 


 Sarawak's lumber 
export is controlled by the state government through Dewan Niaga Sarawak - a 
state-affiliated organ in charge of timber export control which is headed by the 
Sarawak chief minister's younger brother.


 The Japanese shipping cartel 
was established in 1962 to avoid stiff competition among the shipping companies 
in the import of lumber from Southeast Asia, including Sarawak.


 Taib, 
who is the country's longest serving chief minister, denied any knowledge in the 
arrangement made between Dewan Niaga and the Japanese companies.


 "All 
arrangements made by the shipping companies from Japan and Dewan Niaga with 
regard to the transportation of timber from Sarawak to Japan, or the appointment 
of Archipelago Shipping as their local shipping agent, were made by the 
companies themselves without interference or directive from the Sarawak 
government or the chief minister," said Taib.


 Archipelago Shipping has 
since changed its name to CMS Transportation Sdn Bhd, a company linked to Taib's 
family.


 
 Malaysiakini
 
 has
 
 <a href="http://www.malaysiakini.com/news/65715" target="_blank">
 reported
 </a>
 
 that all log carriers seeking to transport 
timber exports are required to appoint shipping agency Archipelago Shipping as 
the sole agent for shippers to pick up logs from three key Sarawak ports - 
Tanjung Manis, Bintulu and Miri.


 <img align="left" height="367" hspace="5" src="http://mk-cdn.mkini.net/80/5b2e7d5e6cc9989c13ee5d5b59224591.gif" width="250">
 Taib 
also said that he and his state government "have no knowledge of Regent Star, 
and have not received any remuneration or other payments from the alleged Hong 
Kong company".
 </img>


 "If there had been any payment by the Japanese shipping 
companies to Regent Star (as alleged), the Sarawak government and myself as 
chief minister, are totally unaware of such payments."


 However, Taib did 
not mention his family's involvement in the companies that are allegedly 
involved in the scandal.


 He said that he had decided to make the lengthy 
clarification today as the legal action he vowed to take against his 
detractors may take time.


 Taib's statement was made in the state assembly 
this afternoon under Standing Orders 22, which allowed a member to make a 
personal clarification.


 However, the assembly speaker would not allow 
anyone to ask or speak on the matter after the statement was read out.


 The Anti-Corruption Agency has
 
 <a href="http://www.malaysiakini.com/news/67041" target="_blank">
 launched a 
probe
 </a>
 
 on the scandal.


 
 <a href="http://www.malaysiakini.com/pages/albums/fax0/" target="_blank">
 Taib's full 
statement
 </a>
 



<a href="http://www.malaysiakini.com/news/65905" target="_blank">
 
 Related reports on the 
scandal
 
</a>

 .

<img align="left" height="64" hspace="5" src="http://mk-cdn.mkini.net/52/a764bb8fb1dad6ba2032f38ba4079454.jpg" width="64"/>
The Sarawak chief minister took the unusual step of refuting allegations of his personal involvement in a multi-million ringgit timber kickbacks scandal in the state assembly.

Timber kickbacks scandal: Taib's 10-page clarification

~RM12

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