Chinese firm paid US$100,000 per datukship

Chinese firm_300By Lim KayKay

KUALA LUMPUR: A Chinese mining firm, which claims to have paid US$100,000 per datukship for ruling Barisan Nasional (BN) politicians, has been singing like a bird to the New York Times on an issue which apparently caught the attention of the newspaper.

The payout for the datukships, according to Li Yang the chief executive of CAA Resources, was meant to facilitate operations at its iron ore mine in Bukit Besi, Terengganu.

The newspaper reported that the BN politicians had “indirect stakes” in the mine.

Li, the 27-year-old son of a wealthy iron magnate in China, told the newspaper that he was “simply following common practices in Malaysia” and did so to “build ties” with politicians and the royalty.

“If you have got these two to support you, then you can do anything you want, because the natural resources are all controlled by them,” Li told the newspaper in a reference to politicians and the royalty.

It was not immediately clear why Li spoke to the newspaper on the matter if his objectives, as stated, were to build ties with politicians and the royalty and to ease operations at his mine.

Terengganu Menteri Besar Ahmad Razif Abdul Rahman has denied the NYT report in an immediate response. He said in a media update that he had no knowledge about the matter and refused further comment.

CAA is in Malaysia, according to the NYT, following moves by Beijing to enforce stricter standards at home on labour rights, environmental protection and community relations in the mining industry.

In Malaysia, CAA hires non-unionised workers from Cambodia, Myanmar and Vietnam. These workers put in 12-hour shifts, seven days a week and are paid based on how much the mines works, according to the NYT, and following facts provided by Li.

Li also said that other workers at the mine are all from China and these include white collar workers, accountants and engineers.

CAA has divided its mine in Malaysia into two 500 acres each to avoid environment impact assessments (EIA). Only mines above 500 acres need to conduct EIAs.

Obviously, the mine has since received a new lease of life.

Bukit Besi is a small town in the Dungun district of Terengganu. Its name means “Iron Hill”. This name came about because Bukit Besi was the site of old tin mines which used to operate there. The mines of Bukit Besi then filled with water filled to form Tasik Puteri.

The iron ore mine which formed Tasik Puteri once held the distinction of being the largest iron mine in the world. During the Japanese Occupation, iron mining was handled by the Nippon Mining Company. After the war was over, the British took over the mines between 1945 and 1947, when it was sold to the Eastern Mining Company.

As the known reserves of iron ore at Bukit Besi became depleted in the 1960′s, continual operations were then considered no longer profitable. It was eventually shut down in the early 1970′s. Today, visitors to Bukit Besi can still visit the tin plants, stockpile buildings and tunnels used during the tin-mining days. The rail tracks and rail carts can still be seen in Bukit Besi. – FMT

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