Police involvement in businesses will lead to conflict of interest, warns C4

Center to Combat Corruption and Cronyism executive director Cynthia Gabriel.

PETALING JAYA: The Center to Combat Corruption and Cronyism (C4) has criticised the increase in business connections with the police force, established through their cooperative society, Koperasi Polis Diraja Malaysia Berhad.

In a statement, C4 executive director Cynthia Gabriel warned that businesses tied with the law enforcement agency may lead to a conflict of interest and give rise to abuse of power and corruption.

She argued that despite being registered as a cooperative society, in reality, it was a conglomerate venturing into various businesses such as hospitality, travelling, construction and others.

C4 also listed the subsidiaries owned by the cooperative and KOP Mantap (a public-listed company serving as an investment arm for the cooperative) as shown on their website:

  1. Auxiliary Force Sdn Bhd;
  2. KOP Security Agency Sdn Bhd;
  3. KOP Tradtech Sdn Bhd;
  4. KOP Educators & Consultant Sdn Bhd;
  5. KOP Travel & Tours (M) Sdn Bhd;
  6. KOP Logistics & Distribution Sdn Bhd;
  7. KOP Aviation Sdn Bhd;
  8. KOP Agrolink Sdn Bhd; and,
  9. KOP Logistics & Distribution Sdn Bhd.

C4 highlighted that KOP Mantap also has major or minority shares in the following companies:

  1. KOP Petroleum Sdn Bhd;
  2. KOP Property Development Sdn Bhd;
  3. KOP Computer Sdn Bhd;
  4. KOP Perunding Risiko (M) Sdn Bhd;
  5. KOP Fire Engineering Sdn Bhd;
  6. KOP Bintang Sdn Bhd;
  7. KOP Property Maintenance Sdn Bhd;
  8. KOP Construction Services (Malaysia) Sdn Bhd;
  9. KOP Trading Sdn Bhd;
  10. KOP Plantation Sdn Bhd;
  11. KOP Printing and Stationery Sdn Bhd;
  12. KOP Dahlia Hotel Sdn Bhd;
  13. KOP Limousine Services Sdn Bhd; and,
  14. KOP Nusantara Hotel Sdn Bhd.

“KOP Mantap has also formed joint ventures or partnerships with many private companies such as Eita Resources Bhd, G3 Global Bhd and Protasco Development Sdn Bhd,” Gabriel said.

She added that former inspector-general of police Fuzi Harun and former deputy IGP Noor Rashid Bin Ibrahim were the ex-board members of the cooperative while they were still working in the police force.

Former IGP Khalid Abu Bakar and Fuzi Harun were also the directors of two companies — SME Ordnance Sdn Bhd and PBLT Sdn Bhd — during their tenure in the police force, she said.

PBLT Sdn Bhd (formerly known as Pembinaan BLT Sdn Bhd) is a company owned by the Ministry of Finance Incorporated (MKD), specialising in both public and private property and infrastructure facilities.

On the other hand, SME Ordnance, formerly known as Syarikat Malaysia Explosive Sdn Bhd (Malex), was first established in 1969 as a manufacturer of small-calibre ammunition for national defence needs.

“Both PBLT and SME Ordnance faced allegations of monetary losses.

“In fact, the finance ministry had to bear RM80 million in consultation fees for PBLT’s postponed projects,” she said, adding that complaints were filed by the employees of SME Ordnance who did not receive their remunerations.

“This raises the question as to any conflict of interest arising as they are holding positions in both the law enforcement agency as well as being the chairman and vice-chairman of a business conglomerate.”

C4 hoped IGP Abdul Hamid Bador would look into this as part of the reforms needed for the police force.

Recently, Hamid announced that 67 associations were registered under the police force, despite having no connections with the police.

There were also allegations of such organisations selling police representative cards to private individuals, which are then misused to collect donations and avoid summonses, among others.