From Asia Sentinel
Written by Barry Wain
Wednesday, 07 July 2010
The government backs down on a tycoon’s sports betting plan
The Malaysian government has portrayed its recent decision not to legalize sports gambling as the action of a responsible administration responding to public opinion and keeping its promise to be more open and accountable.
In fact, the episode is a sharp reminder of how deeply entrenched the crony culture is in the country and how little has changed under the leadership of Prime Minister Najib Tun Razak.
While Najib has pleased many Malaysians by refusing to allow businessman Vincent Tan to expand his gambling empire, the prime minister’s image has suffered because of his secretive attempt to revive sports betting.
In the public outcry over the proposal, Najib was also outmaneuvered by the political opposition through its control of key states in peninsular Malaysia. By reversing course, he underlined his growing reputation to backtrack on policy in the face of protest, as he has done over his ambition to dismantle certain parts of the New Economic Policy, the affirmative action plan that has benefited ethnic Malays for four decades.
Malaysians were kept in the dark this year as Vincent Tan, invoking an unpublicized agreement negotiated with the government decades ago, geared up to begin accepting bets on the World Cup in South Africa. With little warning, his company, Ascot Sports Sdn Bhd, announced that it had obtained exclusive rights to a business that could top RM20 billion annually – without competitive bidding or public discussion.
Dramatic as the news was, it wasn’t the first time that Tan had been on the brink of starting Malaysia’s first legal sports betting operation.
In 2004, months after becoming prime minister, Abdullah Ahmad Badawi discovered that a license had been issued to Tan in 2003 by Premier Mahathir Mohamad in his capacity as finance minister.
Abdullah’s aides said Mahathir had awarded the license not long before retiring, but the former premier denied being “personally responsible” for it.
Worried that his administration would be open to criticism by conservative Muslims, especially the opposition Parti Islam Se-Malaysia, which had long campaigned to close existing gaming outlets, Abdullah vetoed the gambling concession.
Tan’s revived plans burst into the open in early May in a filing with the stock exchange. Tan’s publicly listed Berjaya Corporation Bhd. said it was buying his 70 percent stake in dormant Ascot Sports for RM525 million. (His son holds the remaining 30 percent.)
Berjaya said, “The Ministry of Finance has given its approval for the re-issuance of the license…upon certain terms and conditions.” Berjaya subsequently made it known that the “re-issuance” took the form of a “letter of approval” it had received from the finance ministry in January. Najib acts as finance minister as well as premier.
In the uproar that followed, some of the mysterious history of the sports betting proposal emerged.
It transpires that Dr. Mahathir’s government first issued a license to Tan in 1987, without informing the public. After suffering losses, Tan surrendered the license in 1990, but apparently negotiated for Ascot Sports to be given the right of first refusal if a new license was issued.
At first, the Najib government did not dispute Berjaya’s claim to have obtained the license. But as opposition mounted to more legalized gambling – betting is permitted by non-Muslims on horse racing and lotteries and in a casino — Najib, wearing his finance minister’s hat, stunned the country by declaring that the license had not yet been issued after all.
In a written reply to members of Parliament, he said the government was “still getting feedback from various quarters” and had not finalized the terms and conditions. Najib’s hesitation in following through on the letter of approval his ministry sent to Berjaya four months earlier reflected his political dilemma.
A strong element in the backlash was the memory of the Mahathir era, when well-connected businessmen, widely termed cronies, were given privatization and other government contracts without any tendering process. Vincent Tan was the chief non-Malay crony.
Moreover, Tan made his initial fortune when granted the privatized lottery Sports Toto, until then controlled by the Ministry of Finance, in 1985. The deal was kept secret initially, erupting into what became the “Sports Toto Scandal” when word of it eventually leaked.
By seeming to allow the license to go to Ascot Sports in a non-transparent fashion, Najib drew attention to what looked like his broken promises to be more open. He also appeared to be condoning gambling, which is forbidden in Islam and opposed by many Malays.
The government attempted to frame the widening debate as an effort to curb underground sports betting, which is known to be rampant in Malaysia.
But in reality Najib needed increased gambling tax to help reduce Malaysia’s officially projected budget deficit from 7 percent to 3 percent of gross domestic product by 2015. One industry group estimated illegal sports betting turnover at RM20 billion to RM30 billion, and calculated potential government revenue at RM1 billion to RM3 billion.
Najib was also outflanked by the opposition. The Penang state government, led by the Democratic Action Party, declared a ban on sports betting, followed by Kedah and Selangor. Kelantan, controlled by Parti Islam and the only other state in opposition hands, forbids all forms of gambling.
Narrowing Najib’s options further, sections of his United Malays National Organization, including UMNO Youth, opposed the move. Terengganu state, in UMNO hands, also said it would not allow sports gambling, according to local press reports.
After a meeting of UMNO’s Supreme Council, Najib capitulated, saying the decision was taken “after much deliberation on the impact it will have from the perspective of religion and politics.” Left unsaid was why Najib felt bound by a tainted agreement entered by a past administration, and whether more such deals might surface.
Barry Wain, writer-in-residence at the Institute of Southeast Asian Studies, is author of Malaysian Maverick: Mahathir Mohamad in Turbulent Times.
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mahathir the babi finance minister
written by babi hunter , July 14, 2010
mahathir the babi started the bad governance went he as PM also appointed himself as Finance minister. the subsequent PM also followed his bad governance by appointing themselve to be the Finance Minister….. the so called good governance by malaysia standard…. something must be very wrong with malaysians or malaysia’s legislations to allow a PM to appoint himself as Finance Minister….
is a real joke that a CEO of a company is also the chief financial officer of the company….. wonder how many rational investors will invest in such company…..
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written by Rivelino Carter Moinin , July 12, 2010
umno/bn corrupted regime, your time will come to an end in the next GE-13.when PR takes over the next Federal Government, PR must launch a full investigation how did this country was manipulated by umno/bn since 1957
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Who gets the illegal Contracts?????
written by Goondu Mami , July 12, 2010
I want to ask Sentul-whether Vincent Tan is Chinese? Eric Cheah? Ting from Ekran-who is helping Dr M screw up Malaysia??? Tell me Buddy?
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Glad Chinese are Miliking the Malays ( the latter whoever they are) LOL!!!!
written by AllahMak-Wong , July 12, 2010
Chinese must not complain-MCA rejected Merdeka University , so that the Chinese Elite can get more contracts and make money-see how many Billionaires Chinamen are in malaysia.
Lets be honest-the Chinese need the Malays and vice versa-That is how Chinese operate. The traffic conjestion, the housing, the supply of goods and services etc-all controlled by Chinese because Malays cant do it.Politicians are not Malays-all campor-Indian Muslim etc etc. So if there is anyone to blame -Blame also Chinese-Money is their GOD!!! All thye UMNO cronies are Chinese-they are killing the Chinese….LOL!
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The Malays have Crony in Dr Mahathir Mohamed ( Ex-Indian Muslim ( Kerala) -who ought to be in Pakistan !
written by Lawarence Heaven , July 11, 2010
As a Malaysian Taxpayer, I take offence to Bernama-the Government media who reports to the Minister Mentor of Malaysia -Mahathir Mohamed. This bigot runs MALAYSIA-Najib is a dumb pawn-the suckers are the Malays, who don't have an identity -profess to suggest that UMNO is a Muslim organization when the latter are zealots who live and thrive with corruption, harlots and scandals. Shameful lot-I would suggest that the every country worried about Islam being politized -be transparent and uncover (a) the roots of Mahathir Mohamed, Najib, and Badawi. (b) Check every bank account of every Minister of Malaysia, past and present and (c) open up the jurisdiction to prosecute these evil men, who want to stir Muslims -Jihad and Wars. Malaysia is a Dangerous country.
I have never been more ashamed of my country-not about honest stands about other countries and behavior-there is freedom of speech, but to stir trouble like Mahathir is doing is dangerous. 60 % of Malaysia has no problems with Israel –why? Malaysia is not a Muslim country it's a multiracial country now hijacked by Indian Muslims among others! Malaysians know about Arafat and corruption which is synonymous with Mahathir and corruption. Malaysia needs a rĂ©gime change!
Anwar Cannot Be Loyal To Malaysia If He’s Loyal To Jewish Goups – Dr Mahathir
KUALA LUMPUR, July 11 (Bernama) — Former prime minister Tun Dr Mahathir Mohamad said if Parti Keadilan Rakyat (PKR) advisor Datuk Seri Anwar Ibrahim was loyal to Jewish groups , he could not be loyal to his own country.
“Of course if you are loyal to them, you cannot be loyal to Malaysia, but it is up to the people to decide,” he told reporters after the closing of the International Conference on Breaking the Siege: In the Spirit of Rachel Corrie and Mavi Marmara by Deputy Prime Minister Tan Sri Muhyiddin Yassin, here, Sunday.
Dr Mahathir said he was not surprised if a political leader like Anwar was very unhappy because the Jews were suspicious of his loyalty to them.
“So, he is now getting Cable News Network (CNN) to show that he is really loyal to them,” he said.
Recently, Trevino Strategies and Media Inc president Joshua Trevino wrote on an influential United States online news portal, The New Ledger, that Anwar hired media contacts, particularly in CNN to apologise for his Jew-bashing.
Trevino also claimed that CNN’s Connector of the Day programme was so tame in questioning Anwar’s anti-Semitic rhetoric to help him rebuild his image through the apology tour.
– BERNAMA
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written by LOVE MALAYSIA , July 10, 2010
ANY PROJECT’S IS STRONGLY SUPPORTED BY MAHATHIR’S, I’M SURE SOMETHING MUST BE VERY FISHY..WHICH HOT MONEY BREWING AROUND HIM. NOTHING IS FOR FREE IF IT’S COME FROM MAHATHIR’S..BCOS THIS IS SIMPLY MAHATHIR’S BOLEH.
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Milk the Chinese!
written by sentul , July 10, 2010
The Malay dominated policies treat the Chinese as milk cows. When you need anything from the Chinese whether it be “skills” or “money”, milk the Chinese for it. They have been doing this for 55 years. That is why the Chinese will still be skillful because the Malays always ask them to do their work for them. When the Malays need money they will “milk” the Chinese – just like this gambling thing. The Chinese don’t need gambling! Why can’t they give us more jobs, promotions, and scholarships? Why are they so obsessed with gambling? The money from this will only go to the Malays. That is why Dr M is so keen on it. He is one anti Chinese par excellence. His Chinese cronies are for show only. Anyway they don’t have support from the Chinese masses. Look at the GICs. They are run by Malay Umnoputras. See how they turn from gold to coal. See how they plunder the cash and other resources. That is what happens when anything is run by the Malays. Name me one entity run by Malays without government help. Even going to the North Pole, that woman had a GUIDE. All she had to do was follow him/her/them. She didn’t have to use her brain to plan the hard slog. Fortunately climbing Everest needed something more than a guide. That is why they still have not succeeded in doing it. Not that they tried. But the hurdle was too tough for them. All these years, they have not learned how to overcome hurdles by personal effort. They even need the Jews to plan for their 1Malaysia. What pride in ABILITY have the Malays got?
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Making of a Failed State
written by Soosai , July 10, 2010
1Malaysia.
The aborgine native indigenious Red Indians, the Orang Asli are 3rd class citizens.
Non-Musllim immigrants are 2nd class citizens.
Muslim immigrants are 1s class ctizens.
Mamaks need crutches.
Indonesian Muslims need crutches.
Pakistani Muslims need crutches.
Middle Eastern Muslims need crutches.
Turks (eg Hishammuddin) need crutches.
Now, even Bosnian Muslims need crutches.
The crutches have really grown the so-called Malays (assorted aforementioned Muslims) by the millions.
Question is – WHO IS GOING TO FEED THEM IN THE NEAR FUTURE. They simply don’t know how to fish let alone stretching out their bare hands like Ibrahim Katak, the Indonesian Muslim pendatang for handouts.
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Malaysia welcoming Muslim Fundementalsim-CORRUPTION of the GOVERNMENT
written by San Banaditi , July 09, 2010
One sure way for najib and UMNO to invite radical islam is to continue preaching the Koran and working with the elite to make money-illegally. The whole UMNO Machinery is not about helping Malays -forget about the non-Malay ( 2nd class immigrants), but the Malays can see that its the leaders who are making $$$$$$$$$$$$$.
Well, this is the sure way to invite terrorism-there are many educated malay who find themselves in the 50s and 60s angry with UMNO and the Malay Government discriminating them as malays. I think one must be forwarned-unless Malaysia stops ignoring impunity-welcome poverty, frustration and anger directed to UMNO and Malays-non-Malays collateral damage!
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Najib needs UMNO Crook Cronies
written by Gringo 888 , July 08, 2010
to run his operation.The whole government is geared for cheating the taxpayer, so that the elite can stay in power.Najib’s wife should be arrested for making money through her friends tour companies-I am sure that a ton of money went to her for all the government planned projects overseas!! Want to bet?
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Rouge State to a Paraiah Country; Malaysia
written by Contagious Chicung , July 08, 2010
Malaysia is literally broke-so say many economists and researchers all over the world.Najib needs money not only to run the country but to bribe his cronies to support him.
I see no future for Malaysia unless UMNO falls and some plural process takes place in this so called democracy.The Malaysian Institution which protects democacy has been dismantled-the Court have gone to the dogs-ABSOLUTE NO CREDIBILITY!, The Anti Corruption (ZERO Credibility), the latter is run by the Attorney General ( another crony of UMNO), the Police, Military, Parliament etc have been on a state of decline-there is genuine fear in people on the streets for security-armed criminals -legal and illegal walk the country.Sometimes the malaysian Police “moonlight” as criminals.
Its literally hot in malaysia-Corporate Rapists like Vincent Tan has raped the country with UMNO.I see no hope.I hope that developed countries will sanction and disgarce Malaysia-Sadly I think Anwar will be falsely and wrongfully jailed-this is UMNO & BN-I suggest that he leaves malaysia and emigrate like many other Malaysian have!
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Hundreds of Millions already made on stock market
written by Ying Yang , July 08, 2010
Buy Berjaya Shares. Announce Gambling Licence. Shares Go Up, Sell Shares, make profit.
Announce No Gambling Licence, Berjaya Shares Tumble, Buy Shares Cheap again.
Announce Gambling Licence is on, Berjaya shares go up, sell shares, make profit again.
MMmmmm, do this a few rounds, and already tons of money is made through stock market even before the issue of gambling licence is settled!!
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Putting his reputation and career on the line
written by Dr Adrian Wong , July 08, 2010
This is a well-written article – one that succinctly summarizes the history and facts for all of us ordinary citizens. Of course, there are facts that we can never verify ourselves, but I’m sure Mr. Barry Wain has his sources.
Detractors of this article should be aware that unlike their anonymous selves, Mr. Wain has put his reputation and career on the line by writing this article. The government, and all other parties mentioned in the article, are free to sue Mr. Wain for libel if they can prove that he has maliciously and falsely defamed them.
A lack of response from them is proof that Mr. Wain has told the truth. I wait with bated breath to see if anyone mentioned in his article actually does anything more than send their henchmen to post negative comments here. On second thought, I better not. I will probably die holding my breath!
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written by pollyanna , July 08, 2010
Rabid has said it right, Ascot Sports is not finished yet with a red card but merely a yellow one! It’s a smoke screen tactics of the PM which is at play!
Today’s news have revealed the true intention behind, that, Ascot sports will still be offered 1st priority for as long as they can comply with the 15 rules and conditions which Vincent might have been laughing like a horse now getting geared up for the ‘bid’ of the permit!
Such flip-flop policy of umno brand has become a common phenomenon and telling lies have become part of the mundane business just like the bull’s are farting!
Given another 20 years, this once a promised land will still far lag behind the little red dot Singapore in terms of eco-social developments and all other aspects!
It’s high time the Nation needs a thorough clean up, then only we can see changes, and for betterments of the future!
‘Storm the Bastille’ seems like the only psyche the rakyat of this beloved Country have to spare altogether for the interests of the whole Nation!
1 Malaysia??! Sucks!!!!
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Berjaya Gambling to spread out of M’sia …
written by razali ishak , July 08, 2010
Well written Barry!
If you have the time, you might want to look into how Vincent Tan’s brother, Danny apparently tried to bribe(?) the head of Sri Lanka’s Board of Investment (BOI) sometime back in the 1990’s to issue him a gambling license for his Bejaya Hotel there. I think he might have bought the hotel there to start teh gambling operation. (Keep in mind that fro a period, gambling was legallly operated at the then Ramada Renaissance Hotel in Colombo).
Luckily, the BOI head at the time was very upright and told him “no”!
He turned down a huge bribe!
ntvwh
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The land of flip-flops
written by Rabid , July 07, 2010
Barry, you spoke too soon. There as been another flip-flop on this. The licence is on again.
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The emperor and his clothes laid bare..
written by MYTaxPAYER , July 07, 2010
A well thought out article based on facts that we Malaysians rarely get to experience through our mainstream media under the BN manipulations. This PM is beholden to so many groups and individuals in and out of the country his hands are forever tied to those unseen power that seems to dog his every move.
In less than 2 years in office he has managed to not only bankrupted FELDA,made losses for SIME DARBY through the Bakun project,he is well on his way to bankrupting this nation. I list here some issues yet to be resolved as a token report card of this PM and his administration :-
- Dead Mongolian woman blown up by C4 by his ex bodyguards
- Defective Scorpene Subs purchased under dubious circumstances
- Worsening corruption despite his promises of transparency
- Appointing a man from FELDA to be in charge of SIME DARBY
- Further manipulation of the MACC and the AG as evidenced by the bias treatment and selective prosecution
- Draining Petronas of it’s cash reserves
- Frequent flip-flops on issues to satisfy different audience at different times
- Ruining the credibility and integrity of our Judiciary by appointing yes man into the system
- Intimidation through all available government institutions
- Manipulation of the mainstream media
- Blatant misuse of money and government institutions during elections
- Appointing his cousin Hishamuddin to be in charge of the nations security
- Neglect and disregarding the democratically elected opposition administration and state governments
- Devoid of any ideas as to how to propel the country forward in terms of economic progress
- Using a PR firm of questionable backgrounds as the nations image advisors
- Handing out PRIME government land to selected cronies and connected individuals without having any competitive bidding nor open tenders as would be the normal practice for such national assets
- Constant undermining of states under opposition rule
- Misuse of government funds by giving out RM1.5million allocation only to the BN’s Member of Parliament
- Giving away sovereign malaysian territory under unexplained deals to Singapore and Brunei
- Restricting information through bullying tactics such as refusal to approve printing permits to independent publications
Just to name a few. The emperor it seems is losing his clothes slowly but surely in the eyes of the people he claims to represent. We can only watch and suffer for now while waiting for the next General Election when HOPEFULLY these miscreants disguised as politicians can and will be replaced and that each one of them are called to face the consequences of their actions in an independent,impartial,fair court of law….
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written by CannotsayAllah , July 07, 2010
Hoi, UMNO – babi cannot, but judi can??!!
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My Convert Kutty Ibrahim
written by Samy , July 07, 2010
Mamak Kutty (a Muslim, mind you) supports gambling on record. Why? He said there is no such a thing as “haram” (Islam forbids) money. The ill-gotten gambling revenues can be used by Muslims i.e. it’s halal. Since, money is colorlesss such money goes into the Treasury (after being creamed off by the UMNOPutras) into mosque building, feeding needy Muslims, etc. Logical?
Mamak Kutty then says ‘Allah’ can’t be used by non-Muslims when EVERYONE in the world knows “Allah’ is not a Malay word but ABRABIC/Hebtew in origin. The source i.e. from Lebanon to Syria permits non-Muslims to use “Allah”. Who has the copyright for the word? Malaysian Muslims? Don’t tickle our toes. Muslims in this part of the world only borrowed and begin using the romanised writing script for the Malay language in the 20th century. They don’t even have an original writing form (Jawi is elementary and is Arab/Persia in origin). LOL unlike the Indians or Chinese.
Try harder Mamak Kutty so that your kind (Indian descent Malays) wlll continue to reap the NEP benefits over the gullibles, Indonesian descent Muslims.
You judge.
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Well said, Barry!
written by pollyanna , July 07, 2010
Was zenophobic a truth-phobic who just felt been offended when somebody was to unfold certain truth?!
Wasn’t what had been unveiled by Barry Wain exactly the open secret of which contained in the Pandora Box of that flip-flop supremo of the day?!
To reactivate the betting licence was seen as a sheer compromise, though unwittingly, between Najib and his old master Mahathir, in order to buy back the lengthy dirty-linen which the old goat was threatening to wash in the public!
“You help me, I help you” is more than a maxim but an unchanged rule in umno for any top gun to horse trade for powers and positions, and likewise, by extension to the cronies in business terms and for back door trading of monies in umpteen sums!
The unanimous betting ban declared by the oppositional States was indeed a blessing in disguise for Najib to pre-empt it as an alibi to revoke the license after Umno had had benefited from the financial baits that Vincent tan had thrown out to lull the leaping frogs to jump pool from the PR ruling States!
Killing two birds with one stone was what it happened to benefit Najib administration where he didn’t has to say the offensive ‘No” to both his old mamak master and also the chief crony of the obsolete regime Mahathirism who is so powerful ever….all blames are on the oppositions!
Very smart guy, though, but not smart enough to fool the rakayt!
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