Ignorance no defence for Negri MB in RM10m transfer

KUALA LUMPUR, Nov 30 — Datuk Seri Mohamad Hasan has found himself in a pickle over his alleged transfer of RM10 million to London, due to the perception that he should have known better than to send the money through a money changer.

The Negeri Sembilan Mentri Besar’s use of a money changer has thrown up a host of questions, most of which involve corruption allegations that the Pakatan Rakyat (PR) — and even his enemies in Umno — are already exploiting.

Mohamad’s predicament has invited comparisons to another Umno politician — Tan Sri Muhammad Muhammad Taib, the former Selangor MB — who was caught in Brisbane in 1997 for failing to declare nearly RM4 million worth of Australian dollars.

Muhammad admitted in court later that he had bought several properties worth nearly RM17 million. He was eventually acquitted after he claimed ignorance of Australian laws because he could not understand English.

But Mohamad does not have the same option.

Before he was made Negri Sembilan Mentri Besar in 2004, he was the managing director of Cycle & Carriage.

Mohamad has followed the footsteps of Muhammad. — file pic

As a major corporate figure, Mohamad is familiar with the laws surrounding money transactions.

The Malaysian Insider reported yesterday that Mohamad is understood to have privately blamed his own staff for making him use the services of a money changer.

But the questions surrounding him now is not just that he used a money changer instead of a bank, where he would have had to make an official declaration, but why he chose the illegal option.

Mohamad, who became mentri besar in 2004, is currently under Bank Negara Malaysia (BNM) probe for allegedly transferring funds amounting to RM10 million to London through a money changer, Salamath Ali.

Mohamad’s illegal transaction surfaced because of Bank Negara’s drive to go after hot money sent through Indian-Muslim money changers in the system known as hawala — which financial authorities and even the United Nations had promised to eradicate as a conduit for financing global terrorism and crime.

Mohamad had avoided answering questions about the transaction from DAP lawmaker Anthony Loke in the Negri Sembilan state assembly sitting last week.

But he cannot stay silent for long, now that the knives are out for him in his own party.

Yesterday, The Malaysian Insider reported that Negri Sembilan Umno warlords are using allegations of the illegal money transfer to unseat the unpopular Mohamad.

PR lawmakers are also pressing the Malaysian Anti-Corruption Commission (MACC) to initiate an investigation.

In 1997, Muhammad was forced to resign as Selangor Mentri Besar after his failure to declare the cash he was carrying surfaced.

Mohamad’s enemies in Umno will want him to do the same as Muhammad, and possibly install the popular Tan Sri Isa Samad as his replacement.

But The Malaysian Insider understands that Umno president Datuk Seri Najib Razak is not likely to push for his removal.

The original plan was always to have a new MB in Negri Sembilan only after the next general elections.

But both Mohamad and Najib will have to come up with convincing arguments to appease the state’s party warlords and also to avert a potential backlash from the public.