"Daim's Dilemma!" So, What's The "Mystery" Behind The Refusal To Disclose His "Secret" Wealth?

"Daim's Dilemma!" So, What's The "Mystery" Behind The Refusal To Disclose His "Secret" Wealth?


13 Jan 2024 • 9:30 AM MYT




JK Joseph
Repentant ex-banker who believes in truth, compassion and some humour.

Credit Image: Sinar Harian


In the latest twist to the spellbinding Daim Zainuddin's “Pandora Papers” saga, his wife Naimah Khalid has accused the authorities of a sustained campaign of “disinformation and misperception” to portray her husband as being corrupt, just because he is very wealthy; she then went on to pose the question whether every successful businessman in Malaysia would be subject to the same accusation?


Actually, the issue went viral last month after the Malaysian Anti-Corruption Commission (MACC) seized the impressive 60-storey Ilham Tower, reportedly belonging to the ex-finance minister and his family, after he had reportedly failed to explain his “extraordinary” wealth following the Pandora Papers leak; this was in spite of repeated reminders and generous “extension periods” granted to him by the country’s graft busters.


For context, according to an earlier report by the Edge Malaysia, the Pandora Papers (just like the Panama Papers and Paradise Papers before that) refers to the set of highly confidential documents compiled by the International Consortium of Investigative Journalists (ICIJ) that exposed the leaked details of offshore companies in “tax havens” set up by several high profile politicians and companies from around the world.


Touching on “offshore tax havens”, although morally their existence is questionable, it is still considered “legal” for individuals, politicians and companies to open and maintain accounts there, purportedly to enjoy a better tax structure (though some will say that, often it's to evade tax in their own country!).


In fact, the act of holding offshore companies in tax havens and operating bank accounts there may actually arouse suspicion (of dirty money) because of the lack of transparency and the perception that the beneficiaries need not account for or disclose the source of their funds; one prime example being Jho Low and his band of bandits who reportedly transferred money all over the globe through offshore companies registered in tax havens.


Interestingly, in spite of the aura attached to it, offshore companies are basically nothing more than just shell companies managed by an offshore legal firm; and they are not for normal wealthy people, but rather for the uber rich.


Furthermore, when well-known business magnates are discovered to have offshore accounts it is not expected to cause a buzz or controversy because their wealth and sources of funds are well-documented by virtue of their stake in public listed companies; however, when it comes to politicians (especially those who hold high public office) whose ways of amassing wealth normally tends to be secretive, shouldn’t it warrant scrutiny?


Which brings us back to Daim’s dilemma with the Pandora Papers, where according to an earlier report in the Vibes, the ex-finance minister’s name, which had appeared in the leak, had actually linked him to five offshore entities; the report further stated that they all had links to Asiaciti Trust, an international financial company that according to the leak, revealed that it assisted various well-known figures to set up offshore companies, including individuals linked to Russian leader Vladimir Putin!


Daim was also listed as a settlor (aka trustor) in two offshore entities – DZ Financial Trust and ICB Financial Group while also being listed as a director for ICB Trustees Limited (Cook Islands), DZ Limited (Cook Islands), and ICB Shares Limited (Samoa).


To add to the intrigue, the same report further revealed that two of his sons were also linked to several British companies, one of which was Splendid International Ltd; according to company documents the siblings, Amin and Amir, were both reportedly having between 25% to 50% shares each in the said company which had fixed assets of £13,155,494 as per the company balance sheet for year 2022.


Incidentally, several other high profile Malaysians who have held ministerial portfolios were also named in the leak including Deputy Prime Minister Ahmad Zahid Hamidi and International Trade and Industry Minister Tengku Zafrul Tengku Abdul Aziz, although it was reported that they had earlier cleared their names (unlike Daim).


Daim’s wife may feel she has the right to claim that her multi-millionaire husband is being persecuted by PM Anwar’s government who wants him to be portrayed as a corrupt person just because he is a successful businessman; but the fact remains that he was the finance minister of the country (on two separate occasions) and furthermore he also served as the treasurer of a powerful political party that ruled the country. So, in truth, he had control over the country and his party's finances - he wasn’t just another “successful businessman.”


By virtue of that, doesn't MACC have the right to require him to disclose the source of his alleged “extraordinary” wealth? Furthermore, they have made it very clear they are not accusing him of corruption or money laundering - so isn't this an opportunity to clear his name?


Therefore, if it's confirmed that he is a clean, self-made, legitimate tycoon who never abused his position as one of the country’s prominent ministers, and also that he had never at any time acted as a proxy for anyone's ill-gotten wealth, then what other reasons could be stopping him from providing a full explanation to the authorities on his wealth and the Pandora Papers leak?


In fact, according to a latest report in FMT, the ex-Umno treasurer and his family members have just filed an application to commence judicial review proceedings against the investigation by MACC; clearly, they have now turned to the court to quash the probe against them, and are seeking a declaration that MACC’s probe is unconstitutional. But why the desperation to keep the source of their wealth a secret - at all costs?