Why indy blogs thrive April 6, 2007Posted by elizabethwong in Democracy, Human Rights, Malaysia, Politics, Southeast Asia.
I’d asked my dinner companions last night why pro-government blogs do so badly in the open market, despite all the money thrown in to nurture and nourish them.
Naturally, the answer was right in front of me all this while.
One can just pick up a copy of one of many licensed, state-sanctioned dailies from the news stands. And they aren’t going to publish or follow-up on news such as the one below, despite it being more than a week old.
Thursday, March 29, 2007
Nine Japanese shipping companies that transport lumber from Sarawak, Malaysia, allegedly failed to report some 1.1 billion yen of income in total during a period of up to seven years through last March, sources said Wednesday, alleging the money constituted kickbacks to Sarawak officials via a Hong Kong agent.
Such tax irregularities have occurred as the Tokyo Regional Taxation Bureau determined the companies’ remuneration payments to Regent Star, a Hong Kong agent, which has a connection with Chief Minister of Sarawak Taib Mahmud and his family, were rebates, not legitimate expenses, the sources said.
Although the Hong Kong agency did very little in the way of substantive work, the shipping companies are believed to have used rebates as a lubricant to facilitate their lumber trade, the sources added.
Lumber export is controlled by the Sarawak state government on grounds of forest resources protection.
Rejecting the tax authorities’ conclusion, the shipping firms claim the transactions with Regent Star have been legitimate and deny wrongdoing.
The companies accused of the alleged tax evasion include Mitsui O.S.K. Kinkai Ltd. and NYK-Hinode Line Ltd. belonging to the Nanyozai Freight Agreement (NFA), a cartel formed in 1962 to avoid excessive competition in import of lumber from Southeast Asia. The 12-member group is exempt from the Antimonopoly Law.
The shipping firms will likely be slapped with well over 400 million yen in back taxes along with heavy penalties, the sources added.
According to NFA and other sources, the Japanese cartel concluded an agreement in 1981 with Malaysia’s Dewaniaga Sarawak regarding lumber transport. Dewaniaga is a state-affiliated concern in charge of lumber export control and is headed by the Sarawak chief minister’s younger brother.
Try lubricating out of this.