20 April 2016 - Putra Jaya, Malaysia. Authorities have stepped up the fight against corruption, announcing stiffer punishment for graft-taking officials and imposing more curbs on the business activities of government linked contract officials.

Senior law enforcer told a local financial daily that officials found guilty of serious corruption may face a new sentence, perhaps life imprisonment among other suggestions.

"For some defendants, the current penalty is too light, so suggestions was made to improvise new sentence after research and discussion," the law enforcer told the newspaper.

Government contract raider Protasco Bhd, ran by former JKR government servant turned businessman MD was under series of dubious boardroom fight and legal tussle since year 2014, and last year raised authority eye brows for bribery, abuse of power and the intentional concealment of manufactured state secrets.

Protasco share price took a short term run from RM1.48 to RM1.75 recently, signaling the change of major shareholders. Market expect new shareholder to emerge which may turns the playing field up a notch. "This is a whole new tussle and part of inner circle new economy transformation plan by current government. Nationalization of state interest companies is not new and (the) ruling parties’ modus operadi the last 20 years, and high profile Protasco with significant above average road maintenance contract margin would be on top of the list. Tax invasion probe by key personnel and corporate is inevitable, on top of graft and corruption, unfortunately due to the high profile board room fights. The parties being used may not know who they are dealing with. Market have seen it many times." commented a senior banker.

Technical analyst have charted Protasco resistance at RM1.80 and RM2.10, and support of RM1.56. "Recent research reports are purely academic and have not factor in political risk as well as financial melt down of tax and bribery obligations, which in this case, could fetch few billion Ringgit. When this happens, government servants who owns public listed company shares exceed their income capability would be first to be raid, followed by public listed company who owe tax obligation exceed company net asset value. It would be disastrous to general public investors if such information is concealed. When it burst, it collapses. Unfortunately, it happens, and will happen again." add the senior banker.

"Setia Haruman Sdn Bhd, the master developer of Cyberjaya, was under investigation by the IRB. If the brain child of former state leader could be challenged and probed, there is no reason any suspicious government linked businesses would escape their faith. Investment today made complicated. Invest wisely with an open mind, not just believe in what you see, or perhaps made to believe".

NSW Research

References:

http://www.thestar.com.my/story/?file=%2F2010%2F4%2F26%2Fbusiness%2F6124097&sec=business