Press Statement: SHOULD THE POLICE BE IN BUSINESS?

 

PRESS STATEMENT: 20  JUNE 2019

 

 

 

SHOULD THE POLICE BE IN BUSINESS?

 

C4 refers to the recent statement made by the Inspector General of Royal Malaysia Police (IGP), Datuk Seri Abdul Hamid Bador, having discovered 67 associations registered under the Royal Malaysian Police (RMP)’s name. Moreover, those associations have no whatsoever connection with the RMP. There were also allegations of such organisations selling police representative cards to private individuals and which in turn misused to collect donations, avoid summons etc.

 

C4 is extremely concerned with this discovery as well as the rise in the business connections within the RMP itself. Many companies, joint ventures and partnerships were established via their cooperative society, Koperasi Polis Diraja Malaysia Berhad.

 

 

KOPERASI POLIS DIRAJA MALAYSIA BERHAD (KPD)

 

The KPD was established in April 1928 to help reduce the financial burden of the police and staff in the police department. While the KPD is registered as a cooperative society, they are in fact a conglomerate venturing into various profit making businesses ranging from hospitality, travelling, construction among other things, as shown below:

 

 

 

The subsidiaries owned by KPD and KOP Mantap, as per their website:

 

Company Name

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.

9

KOP Logistics & Distribution Sdn. Bhd.

 

KOP Mantap is a public listed company incorporated in Malaysia on January 1993. It is wholly-owned and an investment arm of the KPD. It also has major and/or partial shares in the following companies:-

 

 

 

Company Name

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 Plantantion Sdn Bhd

11

KOP Printing and Stationery Sdn Bhd

12

KOP Dahlia Hotel Sdn Bhd

13

KOP Limousine Services Sdn Bhd

14

KOP Nusantara Hotel Sdn Bhd

 

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

Notably, the former IGP, YDH Tan Sri Fuzi Bin Harun and Deputy IGP, YDH Tan Sri Noor Rashid Bin Ibrahim were the former board members of the KPD while they were still working in the police force.  This raises the question as to any conflict of interest with them holding positions in both the law enforcement agency as well as the Chairman and Vice Chairman of a business conglomerate. 

It is also interesting to note that both former IGP Tan Sri Khalid Bin Abu Bakar and Tan Sri Fuzi Bin Harun were the directors of SME Ordnance Sdn Bhd and PBLT Sdn Bhd during their tenure in the police force.

Both PBLT and SME Ordnance had allegations of monetary losses.  In fact, the Ministry of Finance had to bear RM80 million in consultation fees for PBLT’s postponed projects as well as complaints were filed by the employees of SME Ordnance for not receiving their remunerations.

All these business joint ventures and partnerships with private entities and/or individuals create a huge grey area and raise a question – whether the police force would be business minded or remain ethical, as expected from every member of the police force.

The conflict of interest becomes inevitable when law enforcement agencies are involved in businesses.  It creates opportunities for abuse of power and leads to corruption. 

Thus, C4 hopes that IGP Abdul Hamid Bador would look into this as part of the needed reform of the police force.

C4 stands ready to engage and dialogue with the IGP on these concerns.

 

Released by:
Cynthia Gabriel (Ms.)
Executive Director, C4 Center