30 MAY 2012
PRESS STATEMENT
FRENCH SUBMARINES
DIVING MALAYSIA
INTO DEEP CONTROVERSY
SUARAM, a
leading Malaysian human rights NGO, welcomes all media, both regional and
Malaysian media, as well as members of the diplomatic community in Bangkok, to
this exclusive press briefing, on one of the most sensational and controversial
corruption scandals in our country, and perhaps in the region of ASEAN.
In a script
befitting a Hollywood spy thriller, this corruption scandal surrounds the
purchase of two French “SCORPENE” class submarines whose price continues to
escalate till today, the shocking and brutal murder of a glamorous Mongolian
woman, the blowing up of her body by C4 explosives, the decision of the French
courts to hear evidence about the alleged bribery of top Malaysian and French
officials – and the growing links between these – spell big headaches for the
ruling administration, and e specially for current Prime Minister Najib Razak.
This is the
first joint media conference between our French lawyers and the SUARAM team,
following the commencement of a judicial inquiry at the Tribunal De Grande
Instance in Paris, that will probe alleged corruption crimes and illegal bribes
involving top officials from both Malaysia and France.
As was
earlier reported, the SUARAM delegation comprising board members Kua Kia Soong,
Cynthia Gabriel and Fadiah Nadwa Fikri, returned after a successful hearing
before Judge Roger Le Loire, one of the two Instruction Judges assigned to
oversee the case.
The Judge
had principally accepted a list of seven proposed witnesses including current
Defence Minister Ahmad Zahid Hamidi, former Defence Minister and current Prime
Minister Najib Razak, and a central figure in the procurement process, Abdul
Razak Baginda as key witnesses that can further assist in the inquiry before
the Tribunal.
Access to the Investigation Papers
Following
the commencement of the inquiry, SUARAM has gained full privileged access to
the 153 investigation papers from the Public Prosecutor’s office. This is a
huge step forward, as many of the details kept confidential are now made
accessible to SUARAM as the civil Plaintiff in the criminal case against the
DCNS (French shipbuilding company).
French law
provides several constraints on the area of access. While we are not able to
obtain a hard copy and distribute copies, we are however entitled to full view
of the documents and are able to quote them to the media and to the public.
It is also
crucial to note that the complaint lodged by SUARAM has led to the commencement
of a criminal investigation which has just opened, leaving a huge possibility
of criminal prosecution of those involved in this corruption scandal. Our
lawyers have forewarned that the French and Malaysian officials as well as the
companies involved in the corruption scandal may be put on the “suspects” list
as the criminal case proceeds in the French Courts.
Legal Jurisdiction
Malaysia’s Legal Obligations under the
UN Convention Against Corruption (UNCAC)
Malaysia as
a signatory to the UNCAC since 2008, is now obliged to cooperate with other
nation states in preventing, investigating and prosecuting offenders of
corruption. State parties are bound to render specific forms of mutual legal
assistance in gathering and transferring evidence for use in court and to
extradite offenders.
An
overarching trend in the fight against trans-border corruption is universal
jurisdiction. This means a country can bring to trial and prosecute in that
country those accused of having committed a crime in another country.
The SCORPENE
submarine scandal provides the platform for universal jurisdiction to be
applied. By ratifying the UNCAC, Malaysia has signaled to the world our
willingness to submit to an international framework of cooperation.
THE LONG ARM OF THE LAW
Judge Le
Loire after hearing an elaborate testimony from SUARAM, accepted our statement,
and promised to proceed with the inquiry with no stone unturned. On the
acceptance of the 7 witnesses proposed by SUARAM, the French Judge had asked
for the full details of the persons involved, in order to begin issuing
subpoenas as he saw fit.
SUARAM
lawyer Joseph Breham has further explained that the French court is able to
take on several courses of action, in compelling the Malaysian witnesses to
assist in the inquiry and the ongoing investigations.
The judge
will issue a subpoena in writing on a witness.
Once a
subpoena is issued, the witness is obliged to appear before the courts and to
assist the courts in its works.
If the
witness refuses to abide by the subpoena, the court can issue a notice “mandate
d ‘amener”, compelling the witness to appear before it.
If the
witness fails to oblige, a warrant of arrest may be issued. The warrant of
arrest is applicable within the boundaries of the French territory, and may be
internationalized, if the judge deems necessary.
Based on the
judges’ discretionary power, they can ask Interpol to issue a red notice i.e an
international warrant of arrest.
CRIMINAL INVESTIGATIONS
Following
the commencement of the civil case between SUARAM and DCNS, the French
authorities have initiated criminal investigations against several top ranking
DCNS officials.
The outcome
of the investigations could lead to prosecution of several officials linked in
the procurement process. Witnesses named in the civil case may also be brought
into the suspects list to assist in the criminal probe.
Expose and Findings
SUARAM has
had several media conferences back in Malaysia, systematically exposing
information and developments of the case. Today’s media event in Bangkok has
been an inevitable outcome, following the forced deportation of one of two
SUARAM lawyers, Mr William Bourdon, last July when he visited Malaysia and
spoke at a SUARAM sponsored event, giving a briefing on the developments of the
case. SUARAM has had several media conferences back in Malaysia, systematically
exposing information and developments of the case. The deportation has signaled
a complete snub by the Malaysian authorities over the ongoing inquiry, and have
rejected any forms of cooperation thus far.
When SUARAM
filed a complaint within the French judicial system, in April 2010, public
prosecutors raided the DCNS office, and seized confidential documents,
including the procurement contract, bank vaults, invoices and other crucial
documentation that allowed for further investigation.
Specific findings from the PARIS PAPERS
Document 97.
The
documents seized by the French police include a note for the French Minister of
Defense dated 2 June 1999 related to an interview with the Malaysian Minister
of Defense and the French-Malaysian diplomatic relationships as far as defense
is concerned.
In a
document tagged “Malaysia”, there is a confidential report regarding PERIMEKAR
and TERASASI. The report includes a note on “Retracing the background of
negotiations”. The note states that pursuant to the major defense contracts
between France and Malaysia, there is a requirement that substantial transfer
of money has to be channeled to individuals and/or political organizations.
The note
specifically states that apart from individuals, the ruling party (UMNO) is the
biggest beneficiary. Consultants (company agents) are often used as political
network agents to facilitate these monetary transfers and to receive
commissions from their mandators.
The note
mentions about Mohd Ibrahim Mohd Noor and Razak Baginda as points of reference
for political network. The note further states that both Mohd Ibrahim Mohd Noor
and Razak Baginda have strong political connections as Mohd Ibrahim Mohd Noor
is close to the Finance Minister Daim Zainuddin and Razak Baginda is close to
Defence Minister Najib Razak.
The note also
explains that by early 2001, Mohd Ibrahim Mohd Noor’s influence began to
decline following the fall from power of the Minister of Finance, Daim
Zainuddin which resulted in the disappearance of Mohd Ibrahim Mohd Noor’s name
from PERIMEKAR both as shareholder and director which was later replaced by
people of Razak Baginda’s network. Razak Baginda eventually becomes the main
point of reference for political network to facilitate the money transfer.
The noted
stated:
“On the contrary, Razak Baginda maintained
excellent ties with the Minister of Defense and the Prime Minister.
Furthermore, his wife is a close friend of the Minister of Defense’s wife.
Therefore, Baginda became the centre of the network: Terasasi is linked to
Baginda while PERIMEKAR was initially controlled by Mohd Noor.”
Previous Expose
Upon
returning from France after meeting with Judge Roger Le Loire at Tribunal de
Grande Instance on 19 April 2012 and after gaining full access to the
investigation papers, SUARAM had exposed two crucial documents: document 87 and
144.
Document 87
The
documents seized by the French police from the office of Mr. Henri GIDE
(THALES) on 28 May 2010 includes a fax written in English and sent by F. DUPONT
dated 1 June 2001 addressed to D. ARNAUD, CCed to BAIOCCO and SAUVAGEOT with
“MALAYSIA/SUBMARINE PROJECT” as the subject.
Mr. DUPONT
detailed out the chronology of visits and future actions during the journey in
Malaysia of which there were various planned undertakings in particular
negotiation meetings with the Ministry of Defense and the management members of
PERIMEKAR during which two (2) contract proposals would be mentioned (from DCNI
to PERIMEKAR as well as between PERIMEKAR and the Malaysian Government).
He finally
indicated a meeting with DATO’ SRI NAJIB in France on 14 July 2001 with the
condition that DCNI offers a maximum sum of USD 1 billion for PERIMEKAR’s stay
(in France).
Document 144
The
prosecutor’s office upon instructions had received from THALES International
Asia, an envelope on 22 August 2011. The envelope contained:
- A sub folder entitled “C4”
- A sub folder entitled “invoices”
- PDF files
- A USB thumb drive
Among the
crucial documents was the existence of an invoice faxed by TERASASI Sdn Bhd
(Company No.524814-P) on 19 September 2004 to Bernard BAIOCCO the then CEO of
THALES International Asia. The invoice stated an amount of Euro 359, 450.00 for the purpose of success fees to be paid to
Alliance Bank Malaysia Berhad, Branch CP Tower, Seksyen 16, Petaling Jaya,
Account No:12109-0-01-3000450-8 and
contains a handwritten note in French as follows:
“Razak
demande si ce SF peut etre pris en compte assez vite. Le Support Fee suit avec
un rapport”.
Translation
Razak
requests if that SF can be taken into account quite urgently. The support fee
follows with a report.
It therefore
appears that Thales International Asia could not ignore that the sum paid to TERASASI
Sdn Bhd ultimately benefitted Mr Najib Razak the Minister of Defence and/or his
consultant Abdul Razak Baginda.
CONCLUSION
SUARAM’s
call for accountability for this serious crime of corruption has fallen on deaf
ears despite its continuous effort to demand answers from the Government of
Malaysia. The insistence of our government leaders that French law cannot reach
them, speaks volumes of the ignorance coupled with a lack of political will to
perform its obligations under the UNCAC.
However, this
will not in any way hamper SUARAM’s determination to uncover the truth in its
pursuit for accountability. By taking up the case on behalf of the Malaysian
taxpayers, SUARAM vowed to continue its effort in unraveling the truth as the
case proceeds in the French Court in due course.
END
