Scams, Prospects, Pensioners’ Plight & Predicament

An innumerable number of Malaysians seem to have been duped and have become victims of the most scary scams. Jobs, junk investments and juicy deals of other sorts are often dangled to lure naïve Malaysians.

Pensioners or retirees with relatively small rather than substantial savings seem to be losing their hard-earned gratuities, savings and insurance payouts to scamming artists. Once their money is lost, it becomes untraceable.

This kind of victimhood seems to be the parlous and pathetic lot of some retired professionals, technocrats, teachers and other ordinary workers. Some of them are so embarrassed and ashamed about their bad experiences that they are unable to share it even with family members and friends. Regulatory institutions, enforcement bodies and the police seem to be unable to control or reduce this phenomenon.

Pensioners and about-to-be -be retirees seem to be particularly vulnerable.

Then there is another type of scam, a far from respectable but equally rotten scam.

Just before their mandatory retirement date some supposedly highly regarded entrepreneur comes into their lives. They offer them enticing investment prospects, board directorships, business partnerships and employment as one of their senior Vice Presidents of their conglomerates to take charge of government affairs. While these offers are being made the entrepreneur extracts from the prospective retiree highly profitable favours related to specific businesses. Indeed it is often the case that unscrupulous entrepreneur enlists the energies and experience of an esteemed technocrat to intentionally launch a fly-by-night business scheme. When one retires that same prospective employer could talk of declining business environment, staff layoffs and informs politely that time is just not propitious. Or there are cases where the government employee moves from the government position into a well remunerated private sector position. While there is nothing wrong with that it would be better if there is an at least six-month interval between the two roles.

Let us take another particularly egregious case. It involves an about-to- retire ambassador. A prominent high profile entrepreneur contacts the ambassador and seeks advice on some business proposal. The entrepreneur flatters the ambassador that he had been advised that the latter is particularly knowledgeable about a certain subject. So the businessman flies into the capital city where the the ambassador is stationed in his own private jet. The ambassador does all those things required including arranging appointments with potential investors, high government officials and other key contacts. The following day the ambassador flies with the entrepreneur in the latter’s plush jet to the industrial centre of the country. Many doors are opened to the entrepreneur and the mayor of the city hosts a luncheon in honour of the entrepreneur. A few weeks later there is another visit. On the second visit too the ambassador hosts the entrepreneur at a large sit-down dinner with polished silver, shiny crystal and crested crockery and cutlery and uniformed waiters in attendance. The cost of the entertainment is borne by the Malaysian taxpayer.

In the course of the two visits the ambassador had been promised a position in one of the entrepreneur’s listed companies. The position carries monthly allowances, sitting allowances, a chauffeur- driven car and a good class apartment in one of Kuala Lumpur’s most prestigious residential areas. Barely two months after these two visits the ambassador retired and returned to Kuala Lumpur, visits his kampong in the northern part of the peninsula for a month and then attempts to call on the entrepreneur. That call does not materialise. After more than ten years the ambassador shares this story with some other acquaintances who were similarly acquainted with this prominent entrepreneur.

The more classic case involves the most highly placed bureaucrats in policy, regulatory and security institutions. Upon retirement an entrepreneur with a business proposal approaches the bureaucrat. The bureaucrat realises that with the entrepreneur’s legendary business acumen and his fabled wealth the prospects for that project to takeoff are there. What the entrepreneur wants from the highly placed bureaucrat is specifically the reputable bureaucrat’s good name, experience and connections to facilitate access and secure loans, licences, permits, leeway in leasing land and most importantly the approval of various government agencies to pursue a particular project. The bureaucrat is persuaded to accept the position being offered because of the rather attractive income and perks. Once that retired bureaucrat is employed in the private establishment he realises that the loans and lease were being put to a private use than the designated purpose. The bureaucrat has been deceived but because he has accepted the employment he cannot wriggle out of the situation. The cost of the scam which could run into millions is borne by the taxpayer.

Bureaucrats generally conform and comply with public integrity principles. Admittedly a few bad apples holding office within the bureaucracy start serving their prospective post-retirement employers while still in active service.Some of these characters get rewarded with lucrative private sector positions upon their retirement from public service. There is a need to impose some conditions too before allowing these retirees to take up private sector positions in areas previously under their purview.

GLCs

There is also a small category of top civil servants, who upon retirement, are appointed to provide direction and leadership of government-linked entities. Little thought seems to have been given to the type of competitive or facilitation business they are required to lead. In recent years quite a few of these GLCs have sustained huge losses and have failed. Perwaja Steel and PKFZ are two particularly bad examples. What government had done was that it had transplanted circular-, directive - and command-issuing bureaucrats into essentially business, commercial and supportive facilitation agencies. The appointed ones are the highly successful operatives from a kiss-up, kick -down hierarchical system and they are clueless about baselines in business, balanced risk-taking, public relations skills, assessing market conditions, negotiations and other entrepreneurial qualities. Often appearing street smart on substantive issues and inefficacious they get to enjoy their cushy chairmanships of GLCs, attractive allowances and other benefits with no personal stake or skin in the game. When one sees the names of certain recycled civil servants named to head these large corporations one wonders how can a functioning state make these disastrous choices. It is time to re-examine these kinds of opaque decision making processes and prune down the GLCs which should be run on sound commercial lines by professionals. Recycled civil servants have no place in these entities.These recycled civil servants don’t possess the right vibes, versatility, virtues to understand competing vehicles and vendors in the internal and external environment. They also don’t possess the valour to admit that they are not au fait with the task. When GLCs fail there seems to be an established pattern of covering up and attempting a bailout of the entity. Billions have been lost this way. It cannot go on.

Few business entities from Malaysia have made the grade internationally. Beyond the iconic Shangrila brand there is perhaps Selangor Pewter and the operations of Sime Darby. Malaysia Airlines once had a good reputation which was ruined by unsavoury unprofessional management. We should aspire for world class universities, business entities and public utilities. After the scandal surrounding the 1MDB scandal the country’s reputation has gone to the dogs.

Aggrieved Pensioners

The vast majority who serve with undivided loyalty get to get by on their meagre pensions. The appalling thing is that this group that worked faithfully for the government until December 2012 has been shortchanged with pensions that are not commensurate with prevailing public sector salaries. It does seem odd that even after a Federal Court decision this issue has not been rectified.

From all this it has to be concluded that honest, dedicated, loyal and some outstanding retirees from the public sector are being subject to all kinds of taunts, trickery and troubles.

The reality is that that the older pensioners in their seventies and beyond are an alienated and marginalised group that is on a reduced income with creeping inflation, a convulsing corruption culture and a declining ringgit.

They should not be made to endure these additional difficulties in their twilight years.

Government must move out of the snake pit of snake charmers and snake oil selling operations

M Santhananaban

October 18, 2023