Saturday, June 30, 2018

Maminco-Makuwasa: How to raid the savings of bumiputeras

NST - Dr Mahathir : Cabinet ministers involved with corruption will be dropped immediately:

From Wikipedia:

In 1981, a company namely Maminco Sdn Bhd was established soon after Mahathir became prime minister, seeks to control the price of tin on the London Stock Exchange. Maminco take out loans amounting to RM1.5 billion from Bank Bumiputra but in debt when tin prices fell at last.

Another company called Makuwasa Sdn Bhd is established to cover losses that Maminco. The new shares supposedly created and reserved for the poor natives, was converted to the Employees Provident Fund (EPF), to sell the shares and the low market price to indemnify Maminco. Taxpayers lost about RM1.6 billion in the Maminco scandal.


From the WTF (Wastage of Taxpayer Funds) report:

Past Scandals – The Maminco-Makuwasa Affair

Estimated losses: RM 1.6 Billion

Malaysia used to be the world’s leading tin producer accounting for 31% of the world’s output. It was a major contributor to the country’s economy providing employment for more than 40,000 people.

In 1985 the world tin market crashed with the price plunging by 50%. Many tin mines in Malaysia had to close as it was no longer economical to operate the tin mines. One of the factors that contributed to the collapse of the tin market is the ill-fated attempt by the Malaysian government to corner the tin market and to prop up the tin price.

This is the Maminco scandal that is usually found at the top of the lists of scandals and bail-outs plaguing Malaysia since Mahathir became the PM. This is probably because it was the earliest scandal occurring immediately after Mahathir became the PM in 1981. Although not the largest loss in terms of value, it still caused a loss estimated to be RM1.6 billion or more.

In this crooked scheme, a RM2 company Maminco Sdn. Bhd. was set up and was used to secretly buy tin future contracts and physical tin in order to push up prices on the London Metal Exchange. To finance its covert activities, Maminco obtained financing from Bank Bumiputra – naturally. At one point, this RM2 company was borrowing astronomical amounts from the bank – as much as RM1.5 billion.

Initially, they succeeded in pushing up the tin price artifically. But the higher prices stimulated increased tin production and resulted in the US releasing its strategic stockpile. The tin price could not be maintained at the artificially high level for long and eventually it collapsed.

Undertaking this Maminco scheme is already bad enough. But instead of admitting their mistake, Mahathir and his merry band cooked up another scheme to hide the losses incurred by Maminco from the Malaysian public. Another RM2 company called Makuwasa was set up.

The idea was new shares reserved for bumiputras allocated to EPF were diverted to Makuwasa at par value! Can you believe this? These cheaply acquired shares could then be sold for a profit at market price! Instant profits made by Makuwasa can then be used to cover the Maminco’s losses. Effectively, Makuwasa is used to raid the savings of Malaysians to help pay for Maminco’s losses!

In 1986 Mahathir publicly admitted that Makuwasa was created to recoup the government’s losses from the Maminco debacle and to repay its loans to Bank Bumiputra.


  1. grandmother was still alive then....noong noong ago...

  2. thats the reason we pick ph irregardless whos the pm, ph dun do thing the way bn did, which close both eyes on corruption. ph close one eyes of era before najib, n open both eyes during najib era n after. at least for the first 50 days, they walk the talk.

    As Kit Siang says, UMNOA and Ktemoc are trying to create diversions.

    1. Actually the truth hurts, that's why PH ignores it.

    2. Yeah.....that why hadi awang frolicking with najib.

      So adultery is not haram in islam eyes

  4. Arul Kanda Kandasamy ex-CEO of 1MDB bumped into Apandi Ali ex-AG at the pasar malam.

    AKK: Hello Pandi, ada baik?

    AA: Tada baik lah Samy. I was put on garden leave for a while, but I have no garden. So boring. Now I kena pecat. How about you?

    AKK: Same like you I was on garden leave. Now my garden no more lallang, I never knew I was good at cutting grass. Must be in my genes. I oso kena fired. Some more it was two days before my contract expired. TWO days! So cruel. My past gaji I have to return. Breach of contract they said.

    AA: Teruk lah, this gomen got no heart.

    AKK: You know ah Pandi, I always wanted to say something to you.

    AA: What’s that ?


    AA: Why my fault?

    AKK: That day in January 2016, vai you must hold up those two flowcharts showing the 1MDB money flow at the press conference, all the cameramen took pictures. After that everything bocor.

    AA: Sorry lah. I didn’t understand the flowcharts. My assistants prepare everything so I just tayang lah the pretty pictures. Buat macam hero. Now I oso suffer like you.

    But you Samy, why you must have so many 1MDB ceramah before GE14. I saw the bacterial video of your ceramah in Lucky Garden. You buat people even more geram, trying to defend 1MDB.

    AKK: Viral Pandi, viral. OK I admit that was a disaster. But some more when you left the AG chambers I hope you didn’t leave any Red Files for Tommy to find ah.

    AA: That I cannot guarantee Samy. Thousands of files in my office.

    AKK: Lie-dad die lah. Anyway got to run, my bini vaiting for the groceries at home. She is cooking my favourite tikka masala tonight. Yum yum. See you later Pandi...

    AA: Ok see you later Samy but hopefully not in the lokap next week...bai....

    1. Hahaha...TS, you seemed to be privy to these private chattings. Boleh tak dedah those between Pokjib and Roastmah Pok....

  5. Make a police report immediately. BTW is this a google translate? Terrible English.

    1. A police report was made on Zeti and Shukri but NFA from the PDRM.

  6. Kaytee? Can you tell us what's the point? No monies went into TDM account and neither were there Tin Ingots laying around his house or in those companies and banks.

    Why not write something more current where monies are diverted to parties, companies, individual accounts linked to money laundering or outright cronies awarded contracts running into billions of RM. There's plenty to choose from.

    Ahjib's right hand man already provided the list running into many pages to the 1MDB taskforce so no need to speculate true or not.

    Going by the list, just 2 names a day to blog would cover at least 2 years.

    Do you need Dedak to do that? Postpaid ok or not?

    1. Kaytee wants to make nostro piggy char siew but cant be done. How? Write shit lor

  7. There's a big difference.
    Maminco and similar fiascos like BNM scandal are attempts to generate money via speculation. Unsurprisingly, most speculators will get burnt.
    Whereas 1MDB is primarily a personal slush fund for Najib to fund his politics and feed his wife's appetite by selling prime land at dirt cheap prices to 1MDB which then 'revalue' the land to market price. Jho Low and gang then cycles the profits thru elaborate schemes and endless shell companies to clean it.
    SO the main issue in the first case is STUPIDITY while the second is pure intentional CORRUPTION. Of course both are still due to greed.

    1. No point in reasoning this cheebye kaytee whose his dick is with najib's hand. Better shame him to kaytee death

    2. U think this sycophant doesn't know the difference?

      Not in a million years lah!

      He does it bcoz these r the grandmother's stories that r good for recycling ad nauseam to remind blur-sotongs about supporting an old mahafiraun.

      There is a similarity with the current rants on mom's now half-dead blog. Those rants r fitnahs generated using half truth hence can no longer be long & winding. The more cheong-hei the writing the more inconsistent loopholes to be spotted. Hence, can only skip on the subject surface to avoid overexposure the lies!

      Here, the grandmother's stories carried similar half truth to overweight the write-up.

      What u have mentioned is just one of the key point - WHO benefited from the scam!

      So the main point here IS this jibby sycophant is trying to pull woods over the eyes of the blur masses to paint a lesser evil picture for jibby vis-a-vis mamak's past malfeasances.

    3. So, the consequences of corruption are investigation and prosecution.

      Stupidity? Re-election. Brilliant

    4. Cover-up is also corruption.

      So, on your CV, you are 90+, stupid and corrupt.

      What do you call people who hire you?

    5. The thing is najib is evil and must be beheaded regardless of kaytee wants.

      Kaytee can always end his life to end this misery. Kaytee wanna talk shit about mamak....we will talk full shit about najib till kaytee mampus

    6. One way to look at it IS smart!

      But what does a otak-kosong, dirty-foam-over-the-mouth blur-sotong care?

      He just rants father&mother about his lost tongkat!

      Using a known villain to clean out the lair is the best Machiavellian move that people like u can NEVER understand.

      More so a reformed villain!

      Wakakakakaka… cursed yr heart out if u have one.

    7. you are like Hew Kuan Yau, encouraging a Malay dictator to sapu bumiputera savings - lu sangat evil lah, Pauline will stuff your mouth up fully with her thatch

    8. Me, like to yr pet hate Hew KY?

      Wakakakaka…… in yr cracked mirror u r just the reflection of that mom lah.

      The Malay dictator who sapu bumiputera (+ Nons) savings r yr per idol rosmanajib le. U play blur or what?

      WRT Pauline, u must know her VERY well to be able to tell every 'topology' of her body!

      Wow…… perhaps u & her have a hand together with yr mom, just like the two razaks sharing that poor Mongolian girl!

      Tsk… tsk… dirty… dirty… sex maniac.

      Maybe u like young girls/boys too. After all, u r a zombie lover mah!