KUALA LUMPUR – As the Court of Appeal prepares to hear the Attorney-General’s Chambers’ (AGC) challenge of the High Court’s decision to quash former prime minister Tan Sri Muhyiddin Yassin’s abuse of power charges next month, business tycoon Tan Sri Syed Mokhtar Al-Bukhary will also enter the spotlight.
The dropped charges involved companies that were alleged to have given RM232 million to Bersatu, and included Syed Mokhtar’s Bukhary Equity Sdn Bhd, a company intricately linked to both Muhyiddin and former prime minister Tun Dr Mahathir Mohamad.
The Court of Appeal has set February 28 and 29 to hear the prosecution’s appeal against the discharge and acquittal decision.
However, there are three other money laundering charges still ongoing at the Kuala Lumpur Sessions Court, two of which have also named Bukhary Equity.
With an estimated net worth of US$1.5 billion (about RM7 billion) Syed Mokhtar’s rise in Malaysia’s corporate arena and his involvement in Muhyiddin’s saga are filled with intrigue.
From the local market to government contracts
Syed Mokhtar’s journey began in Alor Setar, Kedah, where he actively participated in his family’s livelihood, selling produce at the local market and assisting with a cattle business.
In the 1970s, he ventured into rice transportation and secured a rice trading licence for his company, Shah Enterprises Sdn Bhd.
This move opened doors to lucrative government contracts, including the supply of rice to prominent entities like Felda, Mara, Pernas Edar, and Sergam Bhd, where Muhyiddin once served as managing director from 1974 to 1977.
Beyond the rice industry, Syed Mokhtar diversified into the garments sector through Amtek Holdings, supplying army uniforms to the government.
The Mahathir-era
Syed Mokhtar’s wealth soared during Dr Mahathir’s premiership in the 1990s, capitalising on the government’s various privatisation initiatives.
Describing Dr Mahathir as a mentor in his autobiography, Syed Mokhtar made significant business moves during this period.
He acquired a 19.9% stake in Malaysia Mining Corp (MMC) in 2001, followed by the takeover of Pernas International Holdings Bhd, now Tradewinds Corporation Berhad, through Restu Jernih Sdn Bhd in the subsequent year.
In 2005, he set his sights on DRB-Hicom, eventually using it to purchase Proton Holdings seven years later.
Mokhtar’s monopoly
However, the philanthropist’s rise as a business mogul in Malaysia has not been without controversy.
Through his other companies, Syed Mokhtar owns Padiberas Nasional Bhd (Bernas) which holds a monopoly over imports and distribution of rice, effectively a privatisation of an essential food staple.
It has been reported that Bernas paid dividends of nearly RM1 billion to Syed Mokhtar’s flagship, Tradewinds Group, over a three-year period from 2020 to 2022.
Shortly after taking office in December 2022, Prime Minister Datuk Seri Anwar Ibrahim criticised Syed Mokhtar over his monopoly of rice imports.
Previously, as opposition leader, Anwar had also criticised the delisting of Bernas from the stock market in 2013, when the tycoon began moves to take it private.
In June 2018, under Pakatan Harapan (PH) which formed the government after winning the general election that year, the cabinet decided to terminate Bernas’ monopoly on rice imports.
However, after a change of government following the Sheraton Move in February 2020, the administration under then prime minister Muhyiddin in December of that year, granted Bernas a 10-year extension until 2031 to import and distribute rice in the country.
Responding to Anwar’s criticism after he became prime minister, Syed Mokhtar pledged RM60 million to support local farmers.
Beyond the rice industry, his charitable organisation, Yayasan Al-Bukhary, has been implicated in Muhyiddin’s graft trial.
Last year, Muhyiddin was questioned by the Malaysian Anti-Corruption Commission (MACC) for awarding the organisation a tax exemption.
Muhyiddin explained that it was Syed Mokhtar who came to him and appealed for the reversal of a cancellation related to the foundation’s tax-exempt status.
The money-laundering charges against Muhyiddin are for allegedly receiving illicit funds amounting to RM195 million on two occasions from Bukhary Equity, with the monies being deposited into Bersatu’s CIMB account in 2021 and 2022.
A third charge is for allegedly receiving RM5 million via illegal activities.
Muhyiddin has applied to set aside these charges at the sessions court. – January 22, 2024