KUALA LUMPUR – In recent weeks, former finance minister Tun Daim Zainuddin’s long-shrouded wealth has come under scrutiny after the Malaysian Anti-Corruption Commission (MACC) launched its investigations into him and his family.
Lately, the news is rife with reports about their judicial review application to halt the investigations and unfreeze their assets, including those of modern and iconic Ilham Tower Sdn Bhd, a multi-billion ringgit building and company linked to them.
For those unfamiliar with the 85-year-old Daim’s distinguished career and the ongoing MACC probe, here’s an overview of his rapid ascent in politics and the events leading to the current controversy.
Meteoric rise to politics
Born in Alor Star, Kedah, to a family of 13 siblings, Daim started his professional journey as a lawyer, qualifying as a barrister in England in 1959 at the age of 21. Upon his return, he worked with renowned firms such as Shearn Delamore and Allen & Gledhill.
Daim also served in the judicial service, starting as a magistrate and eventually becoming the president of the sessions court in Muar, Johor.
In 1969, Daim founded Syarikat Maluri Sdn Bhd, a property development company responsible for projects like Taman Maluri and Taman Bukit Maluri in Kuala Lumpur, with the land alone now valued at over RM26 billion.
His business ventures expanded to include ownership of the Malaysian French Bank (later RHB) and controlling interests in prominent public companies such as Sime Darby, Guthrie, TV3, Maybank, Consplant, Cold Storage and Nestle Malaysia.
In 1980, Prime Minister Tun Hussein Onn appointed Daim as a senator, and by 1982, Tun Dr Mahathir Mohamad urged him to contest the Kuala Muda parliamentary seat. In a span of two years, Daim became the finance minister in 1984.
Before joining the government, he placed his assets in a blind trust, later liquidating them as per cabinet directives, totalling over RM750 million. His tenure as finance minister in the 1980s saw a strict management style and significant reduction in government spending, resulting in the pay-off of RM6.8 billion in foreign debt by 1989.
Although he stepped down in 1991, Daim continued as an economic adviser before taking the minister with special functions role in 1998 and resuming the role of finance minister from 1999 to 2001.
Return to banking
After serving the government, Daim ventured into the business world, notably with the International Commercial Bank Group (ICB). His involvement expanded the Swiss-based company’s reach into Eastern Europe and Africa, culminating in the acquisition of Indonesia’s PT Bank Internasional.
In 2013, ICB was privatised, with Daim citing age and lack of interest from his children as reasons for delisting.
Another banking venture was linked to Hock Hua Bank (Sabah) Bhd, where Langkah Bahagia Sdn Bhd held a 51.8% stake in 1997. While no direct ties were established between Langkah Bahagia and Daim, the company’s then-director, Datuk Mohd Nasir Ali, revealed he was a nominee for Daim’s portion of the shares.
Mergers involving Hock Hua Bank eventually led to the formation of Alliance Bank, and speculation arose when reports indicated that Langkah Bahagia had sold its stake in Alliance, suggesting Daim’s possible involvement.
Pandora papers controversy
When Pakatan Harapan took office in May 2018, Daim was appointed chief of the Council of Eminent Persons (CEP), advising the new administration.
His tenure saw notable personnel changes, but allegations of crony capitalism emerged, which Daim denied, emphasising his clean record.
In August 2018, Daim declared the CEP dissolved stating it had ended as it fulfilled its mandate within the 100-day term.
In March 2020, MACC Chief Commissioner Tan Sri Azam Baki said that the commission had received a complaint regarding the alleged abuse of power related to the East Coast Rail Link (ECRL) project, which was directed at Daim while he was heading the CEP.
The complainant urged MACC to investigate the inflated cost of the ECRL project, asserting that it should be RM30 billion instead of the reported RM44 billion.
At the time, a source referred to a media report, claiming that despite the project’s cancellation in January 2019, it resumed in April of the same year. The government, persuaded to restart the project, engaged China Communications Construction Company Ltd (CCCC) for RM44 billion under the ECRL New Plan Package.
The source argued that the new plan should only cost RM30 billion due to reductions, such as the cancellation of five stations along the Gombak-Klang route. Despite these reductions, the new ECRL plan allegedly increased by RM14 billion in cost.
The ECRL project recommenced following an additional agreement signed by Malaysia Rail Link Sdn Bhd and CCCC on April 12, 2019. This agreement reduced the project cost by RM21.5 billion from the original RM65.5 billion and shortened the new alignment by 40km, from 688km to 648km.
Regardless, it was noted that Daim played a key role in renegotiating the ECRL project with China during the first Pakatan Harapan administration, resulting in a cost reduction from RM65.5 billion to RM44 billion after several modifications to the original plan.
In 2021, the International Consortium of Investigative Journalists (ICIJ) released the Pandora Papers, linking Daim to offshore entities.
The leak revealed that Daim’s name is linked to five companies with bases in various countries. These companies are all tied to Asiaciti Trust, an international company with an address in Singapore.
Additionally, Daim was listed as a settlor in two offshore entities known as DZ Financial Trust and ICB Financial Group.
He is also named as director for ICB Trustees Limited (Cook Islands), DZ Limited (Cook Islands), and ICB Shares Limited (Samoa).
Meanwhile, his sons Muhammad Amin Zainuddin and Muhammed Amir Zainuddin were also linked to three companies in Britain.
The now non-existent Newton Invest & Finance saw Amin and former Malaysian deputy public prosecutor Josephine Premla Sivaretnam as directors.
Its registered address at 17 Bryanston Square, London, United Kingdom, W1H 2DP lies in an area where the value of a parcel of land exceeds £32 million (RM190 million).
Meanwhile, Amin and Amir’s names appear together alongside Daim’s wife Toh Puan Nai’mah Abdul Khalid as directors for the Ilham Foundation in Britain which is located on the 10th floor of 240 Blackfriars Road, London.
Also, another British company named Splendid International Ltd features both sons as “individuals with significant control” and recorded over £13.15 million (RM80 million) in fixed assets in 2022.
Following these leaks by the ICIJ, Daim told the media that he had paid taxes in all jurisdictions where he does business.
Further, he added that not all companies linked to him are under his control and that the Pandora Papers leak prompted MACC investigations against him and his family.
On Friday, Daim asserted that his success as a businessman, with assets and properties acquired through legitimate means, predated his entry into politics.
He noted that had he chosen to remain solely in business without expanding his asset portfolio, the value of his liquid assets alone would now exceed RM50 billion.
In a supporting affidavit filed on Wednesday, Daim clarified that his decision to join the government and serve the country resulted in significant financial losses for him and his family.
The affidavit was submitted alongside a leave application for a judicial review, challenging the MACC investigation.
On Wednesday, Daim and his family filed an application for permission for a judicial review, naming the MACC and the public prosecutor as the first and second respondents, respectively.
Daim’s judicial review challenge against the MACC is scheduled for January 16 at the Kuala Lumpur High Court. – January 15, 2024