Minister in the Prime Minister Department, Paul Low tried to do some damage control and “window dressing” on the latest annual report published by Global Financial Integrity(GFI) that estimated an outflow of RM173.84 billion of illicit capital from Malaysia.
Paul Low had said the following, “It is not that I am in denial. GFI itself in its report said that trade misinvoicing make up about 80 percent of illicit outflow on average, while the remainder 20 percent is hot money.
“My rough estimate is that corruption makes up about 3 percent of that hot money (20 percent of RM173.84 billion), which includes underground criminal activities like drug smuggling and trafficking,” he said.
I have rebutted Paul Low argument in a statement yesterday, that trade misinvoicing could not have made up 80 percent of illicit outflow since countries that have higher trade export like United States, Germany, Japan, France, South Korea and Netherlands had a smaller net error and omissions (NEOs) than Malaysia.
However, let us give Paul Low the benefit of doubt and take his estimation at face value. Based on his estimation, Malaysia has lost RM33.72 billion to underground criminal activities and RM1.04 billion to corruption.
Despite Paul Low’s best effort to do some damage control and “window dressing”, he could not hide the fact that a staggering amount was lost through underground criminal activities and corruption. Paul Low failed to comprehend that a tiny portion out of an astronomical amount is still huge, not tiny.
RM1.04 billion of corruption is more than 4 times the money lost through the “cow-gate scandal” and RM33.72 billion of underground criminal activities would also put Malaysia as one of the biggest “black market” in the world.
The Royal Malaysia Police and the Malaysian Anti-Corruption Commission must immediately respond to Paul Low’s open confession that such a staggering amount of money was lost through underground criminal activities and corruption.
Media Statement by Chong Zhemin, DAP Perak Economic Development Bureau Chief and Political Secretary to Taiping MP