Malaysia's trade minister in tears, denies cronyism

Malaysia's trade minister in tears, denies cronyism

Jalil Hamid, Reuters/Kuala Lumpur

Malaysia's trade minister denied on Tuesday her ministry handed
out lucrative import licenses to corporate cronies, bursting into
tears and swearing on the Koran she had no reason to resign.

Rafidah Aziz, one of the world's high-profile Muslim woman
politicians and reputedly the longest-serving trade minister,
made the denial after it was revealed her ministry gave two
former trade officials lucrative rights to import cars.

"Of course it's false, for God's sake," Rafidah, 61, snapped
when asked about speculation she was set to quit and end a
cabinet career that has spanned 25 years. "My conscience is very
clear... I have nothing to hide."

On Monday night, Malaysia's prime minister surprised many
Malaysians and delighted opposition parties by answering calls
for the government to reveal the names of firms and individuals
who hold Approved Permits (APs) -- licenses to import cars.

APs are seen as licenses to print money. They are given free
to firms controlled by ethnic Malays under a decades-old
affirmative-action policy designed to redistribute wealth in a
society where majority Malays own a minority of the economy.

APs give their holders an exclusive right to import certain
brands of foreign cars. For each car imported, the AP holder can
make as much as 40,000 ringgit (US$10,530), local media said.

The system has been criticized as fertile ground for corporate
cronyism and an economic inefficiency. But it only came under
serious scrutiny in the past few months when one of its
architects, former premier Mahathir Mohamad, called for reform.

Two former trade officials were on the previously secretive
list of AP holders released by Mahathir's chosen successor,
Abdullah Ahmad Badawi. Firms owned by the ex-bureaucrats have
been allocated rights to about a fifth of all imported cars this
year, according to the list published in the Business Times.

Tourism Minister Leo Michael Toyad was also on the list as
shareholder of an AP-holding firm but he told local media this
holding pre-dated his parliamentary career and had been declared.

Rafidah, trade minister since 1987, said she had no personal
links to any of the AP holders and at one point reached for the
Koran to swear that she had nothing to hide.

"I have nothing to do with any AP holders. I stand by God,"
she told reporters after chairing a meeting of the women's wing
of Malaysia's main ruling party.

"Why should we penalize ex-government servants. They retire
and they want to do business, so why not?" she added.

Rafidah's defiant tone then dissolved into tears when she was
asked about her recent spat with Mahathir over the APs issue.

Mahathir, adviser to state-controlled car-maker Proton
Holdings Bhd, had argued too many cars were being imported by too
few people and some importers tried to dodge import duty. Rafidah
has rejected his criticisms.

"It saddens me that everybody perceives that I was rude to
Tun," she sobbed, using his Malay title. "You are wrong, you are
completely wrong...I respect him."