Crisis in Trengganu? What crisis?

 An excerpt from “Disquiet”

Crisis in Trengganu? What crisis?

It may be that in all the posturing that is happening within UMNO, within the Federal Government and the Attorney General’s chamber concerning the events in Trengganu, some of the actors in the unfolding saga have lost sight of the obvious. In the absence of the Sultan, His Royal Highness the Regent of Trengganu has the absolute power and discretion to appoint the Menteri Besar of the state. Put another way, the choice is that of the Regent, and no one else. It is as simple as that. The Constitution of Trengganu is a document in 3 parts: Laws of the Constitution of 1911, Laws of the Constitution of Trengganu (First Part) and Laws of the Constitution of Trengganu (Second Part). In determining the constitutional position on any matter pertaining to the state, all 3 parts must be read harmoniously. Put another way, all three parts must be reconciled.

It follows therefore that in determining the ambit of powers of the Sultan (referred to as Raja in the constitutional documents), or the Regent as the case may be (and for ease of reference, only the Sultan shall be referred to in this comment), reference must be made to all 3 documents.

Chapter Six of the 1911 Laws emphatically provides that His Royal Highness is empowered as the sole authority for appointing ministers and officials. The chapter does not qualify the power of His Royal Highness to do so nor does it set out any criteria by which His Royal Highness is required to exercise his power. As I see it, Chapter Six vests an absolute discretion in the Sultan to appoint ministers and officials. This would necessarily include the Chief Minister or Mentri Besar.

Article 63 of the First Part expressly preserves the prerogatives, powers and jurisdiction of the Sultan except where expressed otherwise in the First Part. This is significant as the absolute power of the Raja to appoint a Mentri Besar is preserved except where otherwise expressly provided.

Article 14 of the First Part provides for the appointment of the State Executive Council including the Mentri Besar. The appointment is made by His Royal Highness. The language of the provision does not detract from His Royal Highness’ power to appoint. Criteria are however provided as follows: the candidate selected must be a member of the Legislative Assembly AND must be a member who in His Royal Highness’ judgment is likely to command the confidence of the majority of the members of the Legislative Assembly.

The Second Part is silent on this aspect of the powers of the Sultan.

Reconciling Chapter Six of the 1911 Laws with Article 14 of the First Part, two points are manifest. The power to appoint the Mentri Besar is that of the Sultan and only that of the Sultan. In exercising this power, His Royal Highness must choose a member of the Legislative Assembly who in His judgment commands the confidence of the majority of the Legislative Assembly. Put another way, it is the subjective view of the Sultan that matters and not of anyone else. Though expressions of support are factors that should be taken into consideration, the Constitution does not bind the Sultan to act only in accordance with such expressions of support.

Furthermore, it is unreasonable to suggest that all that matters are the numbers. The Sultan cannot be expected, nor does the Constitution require His Royal Highness, to act as a rubber-stamp

In this context, I am of the view that the Sultan may take into consideration all matters that His Royal Highness may reasonably view as having a bearing on the question of confidence. What if the Sultan formed the view that he was not confident that a particular member who seemingly had popular support would not make a suitable Chief Minister. Statements issued by the Palace indicate the concerns of the Palace over the handling of the Pantai Batu Burok episode as well as events that occurred during the recent General Election by Idris Jusoh. These are matter that are evidently bearing on the minds of those who advise the Regent.

These are considerations of weight that go to the question of confidence more so for the fact that it is glaringly obvious that twenty UMNO assembly-men who have endorsed the appointment of Idris Jusoh may not necessarily be acting in accordance with their own conscience but rather the dictates of the party. There is, in a manner of speaking, a dimension of duress in the saga, made obvious by the threats of disciplinary action that have been leveled against Ahmad Said by UMNO. To this end, it is questionable whether it can be said that Idris Jusoh truly commands the confidence of the majority of the Legislative Assembly.

These factors go to show that there is basis for doubt in the mind of the Regent and the advisory council as to the appropriateness of appointing Idris Jusoh. If so, this doubt may reasonably undermine the belief of the Regent and the advisory council that Idris Jusoh truly commands the confidence of the majority.

Regrettably the rhetoric of the Prime Minister and the Attorney General lend to a conclusion that the Regent and the advisory council are expected to rubber stamp the wishes of the majority. Though this may have been how appointments were made in the past, this does not bind the Sultan or the Regent in the present, more so where the past practice may not have been Constitutionally thought through.

In the same vein, I would say that there is no basis for the assertion that the Regent is acting unconstitutionally. In the circumstances, such statements verge on being disrespectful.

For purposes of argument, I would go further. Even if the Regent had decided for no apparent reason to appoint Ahmad Said as Mentri Besar instead Idris Jusoh, there would be no basis for challenging the decision to appoint the said person. The decision is solely that of the Sultan and as such, is in my view not justiciable in a court of law. The only recourse for those members of the Legislative Assembly who disagree is to move a vote of no confidence in the Legislative the Assembly. This is clearly envisaged under the Trengganu Constitution (Article 14(6)).

Significantly, if that were to happen, a new State Executive Council would be appointed unless the Sultan is requested by the Mentri Besar to dissolve the Legislative Assembly in which event elections would have to be held. This may not be politically expedient for those who complain.

And perhaps that is what this is all about in the final reckoning.

MIS

Why Sultan of Terengganu does not like Idris Jusoh

An excerpt from Malaysia Today…

Why Sultan of Terengganu does not like Idris Jusoh

One thing that Malaysia Today would like to raise is the matter of Terengganu’s oil royalty which we hope Mahathir will address on 28 July. Since the mid-1970s, Terengganu had been enjoying a 5% royalty on all the oil and gas extracted in the state. That is what is provided for under the Petroleum Development Act. In fact, not only Terengganu, but any state in Malaysia where oil and gas is extracted they would enjoy the same. However, in 2000, this royalty was withdrawn and converted to Wang Ehsan (goodwill money).  Suddenly, the RM800 million or so a year that Terengganu was supposed to get as its 5% share of the oil and gas revenue was transferred out of the state and into the hands of one man, Idris Jusoh.

Malaysia was then already suffering from an outbreak of JE. But in Terengganu it was JE of another kind, Jusoh Enterprise, Idris Jusoh’s family business. Jusoh Enterprise or JE was suddenly flush with funds, RM800 million a year to be exact. Then, in 2004, Umno, under the
stewardship of Abdullah Ahmad Badawi, won back the state from the opposition. But the state did not win back its 5% oil royalty. The Wang Ehsan continued and Idris Jusoh, who now became the Chief Minister, continued to single-handedly manage the fund. Even the State Economic Development Corporation (SEDC) and the Terengganu State Economic Planning Unit (UPENT) were left totally in the dark. One man, Idris Jusoh, decided how the money was spent, and it is a lot of money.

But the new Prime Minister, Abdullah Ahmad Badawi, would not tolerate one man managing the state’s coffers. He wanted Idris Jusoh’s hands out of the RM800 million a year cash box. However, to revert to the 5% royalty only meant that the money would come directly under state control. That would not serve their purpose. They wanted direct control of the RM800 million. Now it was under the control of the Prime Minister’s Department but passed down to Idris Jusoh’s hands. What they needed to do was to get Idris Jusoh’s hands out of the equation.

Then Khairy Jamaluddin, Abdullah’s son-in-law cum adviser, came out with a fantastic new ‘umbrella concept’, better than even Mahathir’s. They wanted control of the RM800 million a year. But they did not want to get it out of Idris Jusoh’s hands by putting it into the hands of the state. That would merely be a case of out of the frying pan, into the fire. They wanted direct control of the money without Idris Jusoh deciding on how the money is spent.

And this is how they did it.

First they appointed Wan Farid, Khairy’s ‘running dog’, as Abdullah’s Political Secretary. Then they appointed Wan Hisham, Wan Farid’s brother, as the State Exco Member in-charge of tourism. Then they gave Patrick Lim, Khairy’s business partner, the sole monopoly of all state tourism projects. Now the network is intact and Idris Jusoh has been
cut off.

Patrick Lim’s job is to create all sorts of state tourism projects at hugely inflated prices. He would then propose these projects to Wan Hisham, the man in-charge of tourism. Wan Hisham would then pass them on to his brother, Wan Farid. Wan Farid would then pass them on to Khairy. Idris Jusoh would of course be left out of the loop and he would only know about them when it was a fait accompli — as the Malays would say, “Nasi sudah jadi bubur.”

They built 30 houses at RM1 million each on an island in the Terengganu River. They launched a RM300 million a year yacht race called the Monsoon Cup. Hundreds of millions a year is being spent to ‘attract tourists to Terengganu’. It seems this year the amount of Wang Ehsan has shot up from RM800 million to RM1 billion — so there is even more money to play around with.

To ensure that Idris Jusoh keeps his hands out of the cash box, Abdullah himself chairs the state meetings though he is the Prime Minister and not the Terengganu Chief Minister. Of course, Idris Jusoh, being the Chief Minister, is allowed to sit in on these meetings though he has no say on what they propose. Patrick Lim, though he is not in the government, is also allowed to attend these meetings.

Abdullah would then propose all sorts of tourism projects conjured by Wan Hisham, Wan Farid and Khairy. Details are of course not discussed; only the gist of things and the amounts involved. Whenever Idris Jusoh raises any questions, he would be told to ‘leave it all to Patrick Lim who knows what to do’. Idris Jusoh is not to involve himself in the details.

After awhile Idris Jusoh got quite pissed and tried to resist. One project that he knew nothing about was placed before him and he was told by Patrick Lim to sign the papers. But how could he sign the papers when he knew nothing about it and would eventually have to bear responsibility for it?

Patrick Lim walked out of Idris Jusoh’s office and phoned Wan Farid who complained to Khairy. Within an hour Idris Jusoh received a phone call from Abdullah who ordered him to sign the papers, which he of course did straight away.

Patrick Lim’s hold on Abdullah was apparent to all but somehow not to Idris Jusoh. One day Abdullah visited Terengganu to chair the regular meetings on how to spend Terengganu’s RM800 million (which is now RM1 billion because of the increase in oil prices). Idris Jusoh fetched Abdullah from the airport but before his car could move Patrick Lim’s car cut in front of Idris Jusoh’s car and Abdullah got out of Idris Jusoh’s car and got into Patrick Lim’s car. Idris Jusoh should have realised then who really runs Terengganu.

Yes, RM1 billion a year is a lot of money. This money, which should belong to Terengganu, is not going to the state. It is going to Wan Hisham, Wan Farid, Patrick Lim and Khairy. And Abdullah chairs the state meetings to decide how the money is spent. And Wan Hisham, Wan Farid, Patrick Lim and Khairy help spend the money. And they spend it all. And Idris Jusoh has no say in how it is spent. And if he refuses to sign the papers he will get a phone call from Abdullah.

Now do you know who runs this country? Abdullah says he and not his son-in-law runs this country. Idris Jusoh however will tell you that Khairy runs this country. And Khairy also runs Terengganu and manages its RM1 billion a year through Wan Hisham, Wan Farid and Patrick Lim. And Abdullah chairs the Terengganu State meetings on behalf of Khairy
and according to the plan on how Patrick Lim wishes to spend the RM1 billion a year.

And now do you know why Mahathir is so pissed? And he has every reason to be pissed. In fact, I too am pissed. And that is why I agree that Mahathir stays pissed with Abdullah and his son-in-law. The Terengganu issue alone is enough for me to get pissed. And rest assured that Terengganu is but the tip of the iceberg.

Yes, it is nice being able to walk in the corridors of power. And much can you do when you walk in the corridors of power. And RM1 billion a year is nice to manage if you have that power to do so. And when you walk in the corridors of power you would of course have that power.

Malaysia: Election Woes

Oxford Business Group

11 March 2008

Malaysia‘s political landscape was dramatically transformed last weekend as the ruling coalition government, Barisan Nasional (BN), suffered its lowest margin of victory in 50 years. BN secured just under two-thirds of the federal parliament, a significant departure from the previous elections held in 2004, when the party won 90%. Islamist and leftist opposition parties also won control of five of the country’s 13 states, up from one in the previous term.While BN won the election as expected, few observers had anticipated that the crucial two-thirds majority, which allows the government to change the constitution at will, would not be attained.
 

The governing regime has done well to improve the economy, and Malaysia experienced GDP growth of 6.3% in 2007, as well as a 69% jump in foreign direct investment (FDI) to $13.7bn. In this respect, many feel the surprising results stem not from economic, but from political issues, pointing to the unprecedented swing as an indication of growing voter frustrations over inflation, racial tensions and a government that did not perform as much as promised to curb corruption and increase transparency. Since its independence in 1957, Malaysia has had one ruling party with little in the way of opposition representation in parliament, and observers now expect a short period of fragmented government.

The governing party is currently engaged in massive spending programmes, which over the past 12 months have included the introduction of five designated economic development zones. Some fear that many of these projects could be stalled or scaled back should the new state governments decide to review them.

Another concern is related to the potential for a slower decision making process for the passing of crucial economic legislation. For example, BN had indicated prior to the elections that it would review lowering the current subsidy on oil prices in 2008, a policy to which the opposition has already expressed disapproval.With stocks markets across Asia already reeling over investor concerns abuot a possible US recession, the unexpected election results could not have come at a worse time for Malaysia’s stock exchange. On the first Monday of trading after the elections, the benchmark Kuala Lumpur Composite Index (KLCI) fell by 10%. This was the biggest one-day drop since the Asian financial crisis in 1998, and led to the suspension of trading for a brief period towards the end of the day.Share prices in 99 of the top 100 KLCI member companies fell, with major companies linked to the federal government or behind large government projects accounting for the largest declines.

Of the four new states in which the opposition was victorious, foreign investors are looking most closely at the island of Penang, a key manufacturing base and home to major US electronics firms such as Dell, Intel and Motorola. Lim Guan Eng, Penang’s new chief minister elect, has assured foreign investors that the state’s pro-business policies will remain unchanged, telling press, “We will not undertake any policies that will frighten investors away.” Vincent Leusner, president of the American Malaysian Chamber of Commerce, said, “The opposition victories will not hurt American investment.

“Nonetheless, analysts believe that foreign investors will act with caution for the time being, in order assess the impact of the opposition influence on economic policies.While, as demonstrated in the stock market, reactions to such dramatic results will often be knee jerk, political and economic observers point out that there may be substantial longer-term positives. As volatility in a country’s election results is generally seen as indicative of the degree of democracy, some have suggested the recent events could be a catalyst for greater transparency and corporate governance. The private sector may be able to look forward to an era of more transparent public tendering and awarding of government projects.Gerald Ambrose, managing director of Aberdeen Asset Management Malaysia, told OBG, “A powerful opposition is a positive development for the long term, providing checks and balances for trillion ringgit government spending.

“The absence of violence following such hotly contested elections, as well as the success of opposition parties, are also encouraging signs negating any possible suspicions of elections fraud or deceit.The last time the ruling coalition failed to attain the two-thirds margin was in 1969, when polls were followed by a period of race riots and a declaration of a state of emergency. While the past few days have seen some small-scale demonstrations, they have remained peaceful and orderly, a testament to what many believe is a maturing democracy.