Taib's Kleptocracy: Money Logging - On The Trail Of The Asian Timber Mafia

Money Logging

Book Review : Money Logging By Lukas Straumann, Bergli 

A sad tale of the Asian timber mafia and the man who did more than anything to create it, Abdul Taib Mahmud. 

On Oct. 3, 2011, a depressed, paranoid former chief operating officer for a San Francisco-based property company called Sakti International named Ross Boyert slipped a plastic bag over his head, taped it tight and suffocated himself to death in a Los Angeles hotel room. He was 61. 

But Boyert, however delusionary he was when he died, left behind him an explosive legacy – the details of virtually all of the properties owned by Abdul Taib Mahmud, the longest serving public official in Malaysia. It is a breathtaking collection according to the documents that Boyert – who was fired by the Taib interests -- gave to a crusading journalist named Clare Rewcastle Brown. They show that Taib, through nominees, family members and other subterfuges, is worth in excess of US$21 billion.

Taib is not mentioned on the Forbes list of Malaysia’s richest, but if he were, he would be worth almost twice as much as the man listed as richest -- Robert Kuok, whose fortune is in property, sugar, palm oil and shipping. He would also be about halfway up the list of the world’s 50 richest billionaires although his name is not mentioned there either. 

That is because, according to this book by Lukas Straumann, Taib amassed his entire fortune illegally, as undoubtedly a handful of others have around the world that remains hidden. Nonetheless, according to Boyert’s documents and the research by Rewcastle Brown and Straumann, he is an engine of corruption the likes of which the world has never seen.

Taib built his real estate empire in Canada, the United States, Australia and the East Malaysia state of Sarawak on timber. In the process, in his 33 years as chief minister, he staged some of the most depressing environmental destruction on the planet. An estimated 98 percent of the old-growth timber of Sarawak, a state three times the size of Switzerland, is gone, sold via timber permits to logging companies, many of them connected to him, that shipped the logs to Japan, China and across much of the rest of the world. 

Using the documents furnished by Rewcastle Brown, and with considerable additional reporting, the story of Taib’s looting of Sarawak is told by Straumann, the director of the Basel-headquartered Bruno Manser Fund, an NGO named for a Swiss naturalist who fought to save the indigenous Penan tribe from the depredations of the loggers’ bulldozers, and who disappeared into the forest in 2000 and has never been found. 

It is an explosive book. Taib has threatened to sue Amazon if it distributes it. So far, Amazon has backed away from delivering it. 

The book, Money Logging: On the Trail of Asia’s Timber Mafia, published by Bergli Books, also of Basel, tells the story of Taib’s rise to power, starting in 1965 as minister of agriculture and forestry. By the end of that decade, he would be Sarawak’s richest politician. Today he holds interests in property companies that own prestigious buildings in Seattle, San Francisco, Ottawa, London, Adelaide and in Malaysia itself. The major companies he controls through family members or by proxies, according to Boyert’s documentation, include Sakti International, Wallyson’s Inc., Sakto Group, Citygate International, Ridgeford Properties, Sitehost City and literally scores of smaller ones. He is believed to control more than 100 companies. 

One of the most important things about this story is that Taib was first anointed by Tunku Abdul Rahman, the father of Malaysia and the country’s first prime minister. Abdul Rahman was followed in office by five other prime ministers who sat in Kuala Lumpur and later the Putarjaya government complex and did nothing about him. 

It was hardly a secret that he was both looting the country and stealing, on a breathtaking scale, the resources that belonged to the Dayak, Murut, Penan and other local tribes that make up the peoples of Sarawak. 

Nothing was done about him because he developed a political machine that could deliver votes to the Barisan Nasional, the ruling national coalition in Peninsular Malaysia. Taib is a Muslim. Most of the Sarawak tribes are either Christian or animist. And, to the government across the South China Sea, it would have been unthinkable to have a non-Muslim government leader in charge. 

Later, during the current administration of Prime Minister Najib Tun Razak, it became clear that the Barisan’s very survival depended on Taib and his fellow Kleptocrat, Musa Aman, who continues stealing the people of the neighboring state of Sabah blind, although on a smaller scale. 

What’s worse is that Taib’s activities in Sarawak, according to the book, spawned a series of giant timber companies including Concord Pacific, Samling, Shin Yang, WTK and Ta Ann Holdings – all of which have received backing from the international banking community including HSBC and others – and have expanded far outside of Malaysia to Cambodia, Australia, Gabon, Equatorial Guinea, Congo-Brazzaville, Papua New Guinea and just about every other country with less than reputable governments and tropical timber to loot. 

“Virtually all of this timber (from Papua New Guinea) was exported to China in the form of logs and other Asian destinations and the trickle-down of wealth in the country itself remained minimal,” Straumann writes. That is true of virtually every country in which the Malaysia-based lumber companies operated. 

There is one more sad corollary to this story. As a Dec. 23, 2014 story in the New York Times about Costa Rica’s rainforests demonstrates, tropical forests will regenerate, and, given the space of time, return to their former state. The forests of Sarawak, if not all of Borneo, once one of the world’s greatest green lungs, will not. Sarawak’s forests are being replaced with oil palm plantations.

Taib has stepped aside as chief minister and is now the state’s governor. He ostensibly is under investigation by the Malaysian Anti-Corruption Commission after the Swiss government forwarded allegations to the Malaysians of money-laundering into Swiss banks.

“It is up to his successors (as chief minister) to correct the state’s course of action and the government’s condescending attitude towards its indigenous peoples,” Straumann writes. “Now, the Malaysian judiciary and anti-corruption authorities need to live up to their responsibility. While it is a good thing that Sarawak’s last ‘White Rajah’ has finally stepped down, he does not belong in the governor’s residence. He belongs in jail.” 

P/S: That last sentence is sadly unrealistic. Malaysia’s anti-corruption commission and its judiciary have no intention of doing anything about Abdul Taib Mahmud. He remains far too valuable to the ruling coalition in Putarjaya to keep the state in loyal hands. 

He has announced plans to build a long series of (52) dams on rivers to supply power that, given Borneo’s state of development, will never be needed. But skimming from the contracts will continue to supply a fortune to Taib and his family (not forgetting also the timber that will be cleared).

Additions in red by Sarawak Headhunter