Craving for Spring - Politics and Corruption in Asia

The Asian Crime Century briefing eleven

Politics and corruption have been on display around Asia.

In Pakistan former Prime Minister Imran Khan was arrested on charges of misusing his office, following the election commission finding in October that Khan was guilty of unlawfully selling gifts from foreign dignitaries. The pursuit of Khan by the Pakistan authorities led to a violent confrontation outside his home in Lahore, and protests around the country. In Malaysia another former Prime Minister has also been charged with corruption offences, relating to receipt of $1.1 million. In Taiwan there are repeated cases of corrupt politicians, in particular to the Kuomintang. In Thailand there are increasing public concerns regarding the influence of Chinese criminals who have corrupted police and government officials.

China

Cui Maohu, director of the National Religious Affairs Administration, has been placed under investigation for suspected severe violations of party discipline and the country’s laws, which usually indicates corruption. Cui was promoted to head the National Religious Affairs Administration and in June 2022 made deputy director of the United Front Work Department, a role that involves responsibility for relations with non-Communist Party bodies at home and abroad.

India

The Directorate of Enforcement of the Ministry of Finance in India has conducted searches of Franklin Templeton India’s former and current officers in Mumbai in relation to the closure of some funds in 2020. The Directorate is also reported to have searched premises of Mr Vivek Kudva, former Asia-Pacific head of Franklin Templeton, his wife Roopa Kudva, who is also managing partner of Omidyar Network India, as well as on Mr Santosh Kamath, chief investment officer at Franklin Templeton, among others. The searches are in connection with Franklin Templeton closing six debt schemes in April 2020, which it had blamed on a lack of liquidity due to the impact of Covid-19 on financial markets. In June 2021, the Securities and Exchange Board of India held Franklin Templeton and its officers guilty of mismanagement, with Vivek and Rupa Kudva guilty of withdrawing their own investments ahead of the winding of the schemes. Franklin Templeton has appealed against the Securities and Exchange Board findings.

Japan

Life is increasingly hard for Yakuza members in Japan, some of whom plan to take legal action against six highway operators over a decision to scrap all cash-only toll booths and replace them with an e-payment system as part of their efforts to keep them. The companies are also toughening anti-gangster rules on applying for the electronic toll collection personal cards, or Pasoca, required to zip past the cashless gates. A senior member of the Yamaguchi-gumi, the largest Yakuza group, has vowed to fight against them being prevented from accessing Pasoca cards. Nine Yakuza members were arrested in Japan last year after allegedly hiding their identities to buy the Pasoca cards between 2015 and 2021, although they were not charged. The highway toll operator cancelled the Yakuza members’ cards last November.  Anti-Yakuza rules introduced in 2011 in Japan prohibit Yakuza members from accessing various services, including opening new bank accounts, signing property contracts and entering golf courses.

Malaysia

Former Prime Minister Muhyiddin Yassin has been charged with one count of money laundering in connection with a government stimulus programme during his premiership. Muhyiddin is accused of receiving RM5 million ($1.1 million) in January 2022, coming from alleged illegal activities of investment company Bukhary Equity. The case has been transferred to the Kuala Lumpur Sessions Court, following six other charges against Muhyiddin that are being tried there. Muhyiddin is the second former Malaysian premier, after Najib Razak, to be charged with corruption. Najib is serving a 12-year sentence after he was found guilty of one of the charges linked to state fund 1Malaysia Development Berhad.

Pakistan

Former Prime Minister Imran Khan, along with over a dozen other leaders from his Pakistan Tehreek-e-Insaf party, was arrested by the Police and charged with terrorism related offences. Police officers raided Khan’s home in Lahore. The charges relate to allegations that Khan and others are responsible for the violence that occurred outside the Federal Judicial Complex in Islamabad on 12 March. The Islamabad police arrested 60 people in relation to the violence and classified the actions as “terrorism”. Over 50 police officers were injured.  On 15 March, there was a stand-off outside Khan’s residence when police officers went there to arrest Khan who then called for his supporters to “come out”, leading to protests in Islamabad, Peshawar, Karachi, Rawalpindi and other cities. On 17 March, the Lahore High Court allowed a request of Punjab Inspector General to search the residence of Imran Khan for investigation into attacks on police teams when they went there to execute warrants issued by an Islamabad court for Mr Khan’s arrest on 15 March.

Corruption related charges against Khan are piling up. On 5 March, the police served arrest warrants to Khan to ensure his appearance in court on charges of misusing his office to sell state gifts.  The election commission of Pakistan had in October found Khan guilty of unlawfully selling gifts from foreign dignitaries. The Federal Investigation Agency then filed charges against him in an anti-graft court, which issued the arrest warrants after Khan failed to appear in court despite repeated summons.

Singapore

Thirteen men have been arrested for being suspected members of unlawful societies following a series of police operations. The operation was led by the Singapore Police Secret Societies Branch and involved checks on over 150 people, 40 entertainment venues, and food and beverage outlets.

Secret societies (or Triads) have been almost eradicated in Singapore. Secret societies started to develop in Malaya with the mass arrival of Chinese immigrants during the mid-19th century. The British had limited insight into the life of Chinese immigrants, which allowed secret societies to develop a role of governing the Chinese community.  Chinese Mutual Aid, clan associations and welfare organisations supported the Chinese migrant community, but were at times infiltrated by criminals who used some as a front for their activity. The British colonial government regarded ‘Hongmen’ organisations in Singapore as secret societies, but some Chinese secret societies provided protection and welfare to their members who had no idea how to engage with the British governing authorities.

Taiwan

The Criminal Investigation Bureau has arrested over 100 people during sweeps of entertainment venues and businesses as part of a crackdown on organized crime following widespread reporting of the extravagant spring banquet held by the Ming Ren chapter of the United Bamboo Gang at the Taipei Marriott Hotel. National Police Agency Director-General Huang Ming-chao stated that increased surveillance and police patrols are part of efforts to crack down on criminal activities and maintain public safety by curbing communication between gangs. The police action is focussed on the Ming Ren Chapter of the Bamboo Union, which is active in Taipei and New Taipei City. The alleged branch leader of the Ming Ren Chapter Wanhua branch leader Lin Yi-hua (林易樺), was arrested by the police in relation to allegations debt collection, as well as gambling operations and drug trafficking. During the police sweep, officers arrested 283 people in relation to 76 cases of kidnapping associated with telecoms fraud, and seized cash and weapons including 37 illegal firearms, machetes, broad knives, switch blades, truncheons and metal rods.

Illustrating the influence of criminals on politics in Taiwan, Kuomintang (KMT) Chair Eric Chu recently released the names of the party’s central election strategy committee that included two people with criminal records. One of those with a criminal record is the notorious “King of Hualien,” Fu Kun-chi (傅崐萁), who was found guilty of manipulating the shares of KTP Industries Ltd and other companies in 1999, for which the Supreme Court sentenced him to two years and 10 months in prison. Fu was also found guilty of manipulating the stock of Hold-Key Electric Wire & Cable in 2003, for which the Supreme Court last year sentenced him to eight months in prison after his repeated appeals failed.  The list has caused outrage amongst many politicians in Taiwan, largely because the KMT has been associated for decades with corruption, which is used for personal rewards and extending power.

On 14 March the Penghu District Court approved a motion filed by prosecutors to detain Kuomintang (KMT) Penghu County Speaker Liu Chen Zhao-lin and her secretary Chen Shu-mei with restricted contact for alleged corruption. Liu Chen's office and other locations were raided the day before, with prosecutors stating that the officials are suspected of committing major crimes under the Anti-Corruption Act.

Thailand

Chinese Triads in Thailand are allegedly undermining national security. For many decades Chinese criminals have been left free to operate criminal activities such as drug trafficking, arms trading, to human trafficking, gambling, and money laundering. The problem has not been visible as many of the Chinese businessmen involved have become naturalised Thai citizens. Many have also established connections with senior Thai military, police officers, as well as politicians. A large number of Chinese criminals migrated to Thailand about six years ago as the Chinese government launched a crackdown on corruption that forced many grey businesses to flee to Southeast Asia. These Chinese criminals have since expanded their businesses to include tourist agencies, restaurants, entertainment venues and hotels, but also prostitution and gambling catering mainly to Chinese expats.