M’sia ex-finance minister Daim Zainuddin faces allegations in Pandora Papers scandal

On Monday (29 January), Tun Dr Daim Zainuddin,  former Malaysian finance minister, faced charges in the Sessions Court, for allegedly failing to disclose his assets to the Malaysian Anti-Corruption Commission (MACC).

After the charge, made under Section 36(2) of the MACC Act, was read to him, the 86-year-old pleaded not guilty.

The offence outlined in Section 36(2) pertains to the willful neglect or failure to comply with a MACC notice, compelling the accused to provide a written statement on oath or affirmation regarding their assets.

Daim is accused of failing to declare a total of 71 assets, including ownership in 38 companies, seven vehicles, 19 plots of land in Kuala Lumpur, Selangor, Negeri Sembilan, Pahang, and Kedah, as well as six properties.

Additionally, he allegedly omitted to declare ownership of an Amanah Saham Berhad and Amanah Saham Nasional bank account.

After considering arguments from both the prosecution and defence, Sessions Court judge Azura Alwi set Daim’s bail at RM280,000 (approximately US$59,146) with one surety, without imposing any further conditions.

Unveiling the Enigma of Tun Dr Daim Zainuddin

Speculations abound concerning the mysterious persona of Tun Daim, particularly due to his close association with Tun Dr. Mahathir, the former Malaysian Prime Minister, during his tenure as a business advisor to the then Deputy Prime Minister.

Born in 1938 in Alor Setar, Kedah, Daim’s early life was shaped by his father’s role as a government clerk and his mother’s role as a homemaker.

Commencing his education at Sekolah Melayu Seberang Perak, Daim continued his secondary education at Kolej Sultan Abdul Hamid (KSAH), Kedah, and Institut St Xavier, Pulau Pinang.

Returning to KSAH, this time as an educator, Daim initiated his career as a temporary teacher in 1957. He later pursued a law degree at Lincoln’s Inn, qualifying as a lawyer in 1959.

His legal career included service in Kota Bahru, Kelantan, as well as roles as a Magistrate in Johor and Deputy Public Prosecutor in Perak.

Daim’s involvement in business began with unsuccessful ventures in the salt and plastic production industries.

In 1973, he entered the realm of property development after acquiring valuable land in Maluri, on the outskirts of Kuala Lumpur.

Establishing Maluri Sdn Bhd, where he held a majority ownership of 60%, marked the inception of his diversified investments.

As reported by Asiaweek in 1982, Daim’s close ties with the then Menteri Besar of Selangor, Datuk Harun Idris, played a role in these business endeavours. Daim expanded his holdings by investing in the stock market and serving as a business advisor to Dr Mahathir.

In the realm of politics,  Daim’s political journey included roles such as being a Senator, UMNO Treasurer, and Member of Parliament representing Kuala Muda, Kedah.

He was appointed as the Minister of Finance in 1985 until he voluntarily stepped down from the Cabinet in 1991.

As Finance Minister, he was instrumental in implementing economic policies aimed at fostering Malaysia’s development and growth.

Daim’s tenure saw the initiation of various economic reforms and strategies, contributing significantly to the nation’s economic progress.

He has not held any public office since his resignation more than two decades ago in May 2001.

Daim re-entered the spotlight in 2018 when Tun Mahathir, upon Pakatan Harapan’s victory, appointed him as the chairman of the Council of Eminent Persons (CEP) to oversee the country’s economic and financial affairs.

The CEP was disbanded in March 2020 following the loss of power by PH after the Sheraton Move.

The Pandora Papers controversy involving Tun Daim

The allegations against Tun Daim Zainuddin first surfaced in 2021 when Malaysiakini, a Malaysian online media outlet and a partner of the International Consortium of Investigative Journalists (ICIJ), exposed purported offshore assets linked to the former finance minister in the 2021 Pandora Papers investigation.

The Pandora Papers, a global collaboration led by the ICIJ, drew on 11.9 million confidential records leaked from 14 offshore financial service providers.

The cross-border investigation exposed how more than 300 politicians, business people and criminals worldwide used shell companies and trusts in some tax havens to hide their wealth or evade taxes.

Revelations from the Pandora Papers implicated Daim and members of his inner circle in offshore entities amounting to at least US$31 million.

Malaysiakini disclosed that, based on leaked data, Daim’s two children allegedly assumed ownership of two British Virgin Islands (BVI) companies at ages 9 and 12, eventually becoming owners of multiple offshore entities used for acquiring luxury properties in London by the age of 20.

When confronted by Malaysiakini in 2021, Daim asserted that the companies had been disclosed to the authorities, and taxes had been duly paid. However, he refrained from commenting on the family trusts, as reported by Malaysiakini.

In 2021, Anwar Ibrahim, then the opposition leader in Malaysia’s Dewan Rakyat, submitted an emergency motion urging the House to debate the Pandora Papers revelations. The documents included details on offshore financial assets and business associates of Daim.

By early 2023, Malaysia’s anti-corruption agency initiated an investigation into Daim’s offshore assets, suspecting a possible link to the alleged misappropriation of US$480 million in state funds dating back to the 1990s.

Daim and the son of a former prime minister, whose shell companies were identified in the leaked documents, were summoned by anti-graft authorities.

In December 2023, the MACC seized Menara Ilham, a 60-storey building owned by Daim’s family, citing a violation of the MACC Act 2009. The seizure followed the agency’s discovery of an offence linked to the act.

Rolls Royce, luxury hotels among Daim’s 71 assets seen in charge sheet

The charges against Tun Daim include the alleged failure to declare a diverse range of 71 assets, ranging from a Rolls-Royce and ownership in 38 companies to luxury hotels, a beach resort and a pleasure club:

Vehicles:

1. Mercedes-Benz 600 SEL
2. Jaguar XJS HE
3. Mercedes-Benz 450SEL
4. Mercedes-Benz 450 SLC
5. Rolls-Royce Royce 2 Axle Rigid Body
6. Austin Morris Austin
7. Ford Prefect

Companies:

1. Ibu Kota Developments Sdn Bhd
2. Maya Seni Holdings Sdn Bhd
3. Menara Ampang Sdn Bhd
4. Dream Cruiser Sdn Bhd
5. Landbelt Corporation Sdn Bhd
6. Kenari Teliti Sdn Bhd
7. Fnq Advanced Materials Sdn Bhd
8. Kota Tandop Development Sendirian Berhad
9. Alun-Alun Resort (M) Sdn Bhd
10. Dasar Seroja Sdn Bhd
11. Gigantic Promotions Sdn Bhd
12. Jupiter Alliance Sdn Bhd
13. Inayat Realty Sdn Bhd
14. Suasa Urus Sdn Bhd
15. Avillion Berhad
16. Meridian Haven Sdn Bhd
17. Avillion Vista Hotel Sdn Bhd
18. Vast Access Sdn Bhd
19. Fortune Valley Sdn Bhd
20. Reliance E-Com Sdn Bhd
21. Admiral Marina Berhad
22. Golden Envoy (M) Sdn Bhd
23. Mela Lifestyle Sdn Bhd
24. AVI SPA Sdn Bhd
25. Avillion Hotel Group Sdn Bhd
26. RPB Capital Holdings Sdn Bhd
27. Genius Field Sdn Bhd
28. Festive Place Sdn Bhd
29. Avillion Suite Hotel (PD) Sdn Bhd
30. Taman Unik Sdn Bhd
31. Admiral Cove Development Sdn Bhd
32. Nesline Sdn Bhd
33. RPB Development Sdn Bhd
34. OS Resources Sdn Bhd
35. Avillion Hotel (Kl) Sdn Bhd
36. Avillion Hotels International Sdn Bhd
37. Admiral Hill Hotel Sdn Bhd
38. Reliance Shipping & Travel Agencies (Perak) Sdn Berhad

Properties and Land:

1. Lot 265, Seksyen 89, No. 325 Ritchie Condo, Kuala Lumpur
2. Lot 12, Seksyen 89, No. 327 Persiaran Ritchie, Kuala Lumpur
3. Unit 1D, NO 16, Jalan Taman U-Thant, Kuala Lumpur
4. 10, Jalan Wirawati, Taman Maluri, Kuala Lumpur
5. Rompin House, Bukit Fraser, Fraser’s Hill, Pahang
6. House near Jalan Kampung Pandan, Kampung Pandan, Kuala Lumpur
7. 333, Jalan Kolam Air, Taman Melawati, Kuala Lumpur
8. 204, Desa Kuda Lari, TK 1-A150 3, Kuala Lumpur
9. 333, Persiaran Ritchie, Desa Pahlawan, Kuala Lumpur
10. Socfin House-White Palace Kuala Lumpur
11. Lands near Taman Maluri, Cheras, Kuala Lumpur
12. Houses near Cinta Condominium, Jalan Madge Off Jalan U-Thant, Kuala Lumpur
13. Lot 12 & 13 Puncak Dani & Dani Lodge Gohtong Jaya Genting Highlands, Pahang
14. Unit No. W4DC-075 & 061, Phase 4D, Wangsa Melawati, Kuala Lumpur
15. Houses at Wisma Dani, 1, Jalan Jejaka 4, Maluri, Kuala Lumpur
16. Lands near Taman Dagang Ampang, Selangor
17. Lot 129 Seksyen 58, Menara Ampang, No. 149, Jalan Ampang, Selangor
18. Lands Lot No 1680 and 1681, Mukim Bujang Daerah Kuala Muda, Kedah
19. Double Storey Semi D, Phase 5B, Bukit Saujana, Ijok, Selangor
20. Suite # 8-13-6, Menara Mutiara Bangsar 8, Jalan Liku Off Jalan Bangsar, Kuala Lumpur
21. Avillion Port Dickson, 3rd Mile, Jalan Pantai, Port Dickson, Negeri Sembilan
22. Avillion Admiral Cove, 5½ Mile, Jalan Pantai, Port Dickson, Negeri Sembilan
23. Avillion Cameron Highlands, C-3-1 Jalan Camelia, Tanah Rata, Cameron Highlands, Pahang
24. Admiral Marina & Leisure Club, 5 1/2 Miles Jalan Pantai, 71050, Si Rusa, Negeri Sembilan
25. AVI Pangkor Beach Resort, PT1130, Jalan Pasir Bogak, Pangkor, Perak