Introduction by Dr Lim Teck Ghee
Centre for Policy Initiatives

On 5 March 2013, CPI posted an article on ‘NEM at ground level: same old model, no paradigm shift’. The article revealed how pork importation has degenerated from a freer market to a semi-monopoly controlled by a business-political mafia and which involves the highest level of leadership in the Ministry responsible.

On 13 March, the Malaysian Association of Pork Importers (MAOPI) issued a press statement – apparently available only to the Chinese mainstream media – in which it denied the charges in the CPI article and alleged that the contents of the article were untrue and aimed at smearing the good name of MAOPI.

Since then we have received further damaging disclosure from both members and non-members of MAOPI on the subject.

We are reproducing below unedited excerpts from another informant.

We hope that the new information can be the basis of an open inquiry into monopolistic and cartelization practices emanating from and justified by those manning the higher levels of politics and the civil service. These practices aimed at extracting undeserved or exorbitant rent returns are found not only for the pork importation trade. All sectors of the economy in which licences are required are vulnerable to corruption and manipulation by the public officials responsible for licensing and by individuals or groups favoured with unfair advantage in the licensing process.

Fingers need to be pointed and guilty parties exposed when dubious licensing and quota systems proliferate or are permitted to run amok as is happening with the New Economic Model.

Another major area of concern raised by our latest informant’s letter is that the Malaysian Anti-Corruption Commission has been acting in support of the corrupt parties and complicit in preventing the issue from being fairly investigated. This – if shown to be correct – confirms the widespread belief that the MACC is not an independent body and is simply functioning as a tool of the ruling party.

Finally, we note that the officials of MAOPI present at the press conference stated that the CPI article was written with bad intentions by someone with political motives and belonging to the opposition party.

We would like to place it on record that the Centre for Policy Initiatives does not have any association with any political party and that I am not – and have never been – a member of any political party.

Our mission is to provide the public and other key stakeholders with accurate information, data and analysis on national issues, and the best way of doing this is by ensuring our independence and integrity.

(Dr Lim Teck Ghee is CPI director)

Letter received by the CPI (below)

Dear Dr Lim,

Thank you so much for your article titled ‘NEM: Old Model in New Packaging” dated 4 March 2013 that you had highlighted half of the very true insights and challenges faced by current Malaysian pork importers.

In fact, the 50 cents per kilogram surcharge were taken by the two Datuks’ (President and Vice president of MAOPI) personally owned companies since early 2012 until end 2012. The consortium mentioned in your article was approved to collect 50 cents per kilogram only via MAOPI’s second AGM meeting in March 2013, AFTER the release of your article.

Another main part of the truth is, since year 2012, all importers were “threatened” and forced to “share” 50% of the quota allocated with the two Datuks owned companies. In short, the two Datuks owned companies will actually hold more than 50% of total import quota allocated and become majority of the market holders instantly.

For any importers who refused to contribute 50 cents and refused to “share” 50% of the quota with Datuks, MAOPI will “mark” those “uncooperative and disobedient” importers. Eventually, those marked importers’ quotas were withheld and “cut throat” by Director General of Department of Veterinary Services and further excluded in the future quota allocation name list and unable to import until today.

The unfair practices and policies of MAOPI are fully supported by Director General of Department of Veterinary Services. During many occasions, for those who were unhappy with MAOPI policies were approached by Director General of Department of Veterinary Services personally, and it was made very clear verbally that quota will be given only if cooperating with MAOPI (even though the Ministry of Agriculture has never approve to allocate quota to MAOPI and it is never a mandate to join MAOPI in order to be eligible to import).

Another problem is none of the importer “dare” to question the validity and legality of Konsortium MAOPI Sdn. Bhd. (Co. no. 1017113-D) as a 50 cents collector now as might lead to “cut throat” consequences! In fact, many letters were written to Ministry of Agriculture and even Malaysian Anti-Corruption Commission (MACC) to highlight the corruption and collaboration between MAOPI and Director General of Department of Veterinary Services.

However, most of the complaints letters were looped back to MAOPI due to its strong “networks”. MAOPI questioned those importers where their letterheads were used and advised them to lodge police report to proof [prove] that those complaint letters were forged by someone else. A copy of the police report to be given to MAOPI and MAOPI will further clarify with the reported authority to “cancel” the complaints. In short, there is no chance for the true independent party to initiate corruption investigate.

Attached are 2 MAOPI’s official letter dated 8/8/2011 was sent to many importers and letter dated 1/8/2011 was sent to many foreign embassies / trade commission / importer members.

These letters are a clear proof of monopolization, power politics, cartelization, foreign discrimination, and against free trade act. For a true NEM, quota implementation in many industries especially small industry such as pork importation should be ceased immediately. Quota implementation in pork importation is just a legalized excuse and powerful tool to encourage and further boost corruption at the expense of the importers and final consumers.

The attached letter given to President of MAOPI dated 8 July 2011 by Director General of Department of Veterinary Services is another proof of power abuse, as quota allocation is given to the individual importer instead of association.

Although the quota of 15,000 metric tonne given to MAOPI for 6 months stated in the letter was eventually abolished, the manipulation of quota allocation cannot be avoided. This is because, as at today, the quota allocation proposal including the importer name lists are still filtered by the Director General of Department of Veterinary Services.

Another attachment is the committee members of MAOPI as at 2013. The companies mentioned are all controlled and owned by either President or Vice president of MAOPI. Again, this is a clear proof of monopolization of quota. Based on SSM search, the first five companies were allocated quota since implementation in 2011.

Below findings are worth investigating.

1. Wide Dynamic Sdn Bhd
2. Delight Corner Sdn Bhd
3. Sim Swee Hin Sdn Bhd
4. Tumpuan Cerah Sdn Bhd
5. Golden Century Import & Export Trading
6. Fantasy Ruby Sdn. Bhd
7. CL Integrated Resources Sdn. Bhd

Dr Lim, importers really hope that you can help, such as posting the attachments to foreign trade commission in various countries such as Canada, Australia, USA, European Union, embassies of Germany, Spain, Belgium, Sweden, The Netherlands and Denmark, as these are the main countries that are exporting.

Importers urge the interference from exporting countries authorities to demand to cease the quota implementation since it is a main barrier to the free trade and free market, to request Director General of Department of Veterinary Services to step down, and to dissolve MAOPI.

Importers will also appreciate if you could lodge a report to the top position and the right person of MACC with the attachments given. Let the MACC investigate by interrogating all importers individually. Importers will be more than happy to tell the truth to MACC directly.

Importers apologize for not being able to disclose their names as they really need to protect themselves from being “marked” by MAOPI and “cut throat” by the Director General of Department of Veterinary Services.

CPI note
We have not included the attachments in this article for now and have blanked out the names and i/c numbers of various individuals listed as heading the companies.

MAOPI and Ministry of Agriculture officials in a recent group photo