The Pandora Papers and the MACC: How a Leak and a Probe Threaten Mahathir Mohamad and His Sons

The Pandora Papers, a massive leak of nearly 12 million documents that expose the hidden wealth and offshore dealings of some of the world’s most powerful and influential people, have put the spotlight on Malaysia’s former prime minister Mahathir Mohamad and his sons, Mukhriz and Mokhzani. 

The leak, which was obtained and analyzed by the International Consortium of Investigative Journalists (ICIJ) and its media partners, including Malaysiakini, revealed that Mahathir and his sons were linked to offshore entities worth at least $52 million, and that they owned or invested in properties in the UK and the US through these entities. The leak also triggered an investigation by the Malaysian Anti-Corruption Commission (MACC), which announced that it would probe the allegations and seek cooperation from the relevant authorities and individuals.

The Offshore Entities and Properties

The offshore entities and properties linked to Mahathir and his sons are:

• The Mahathir Family Trust: This trust, which was set up in 2004 in the British Virgin Islands (BVI), a notorious tax haven, was the main vehicle for the offshore wealth of Mahathir and his sons. The trust, which was managed by a Singapore-based firm, held shares in several offshore companies, such as M&M Consolidated Ltd, M&M Capital Partners Ltd, and M&M Global Ventures Ltd, which were also registered in the BVI. The trust also owned a luxury apartment in London’s Mayfair, worth £8.1 million ($11 million), which was bought in 2010 through a company called Kenington Ltd, also registered in the BVI.
• The Mokhzani’s Properties: Mokhzani, the second son of Mahathir, who is a prominent businessman and politician, owned or invested in several properties in the UK and the US, worth more than $41 million, through offshore entities. These properties include a mansion in Surrey, worth £6.9 million ($9.4 million), which was bought in 2011 through a company called Craven House Capital Plc, registered in the UK; a penthouse in New York, worth $13.8 million, which was bought in 2015 through a company called 737 Park Avenue 12A LLC, registered in Delaware; and a house in Los Angeles, worth $17.9 million, which was bought in 2017 through a company called 9133 Oriole Way LLC, also registered in Delaware.
• The Mukhriz’s Properties: Mukhriz, the youngest son of Mahathir, who is also a businessman and politician, and the current chief minister of Kedah state, owned or invested in two properties in the UK, worth more than $10 million, through offshore entities. These properties are a flat in London’s Knightsbridge, worth £5.4 million ($7.4 million), which was bought in 2008 through a company called Intra Binaraya Ltd, registered in the BVI; and a house in Oxfordshire, worth £2 million ($2.7 million), which was bought in 2012 through a company called Intra Harta Ltd, also registered in the BVI.

The Implications and Reactions

The implications and reactions of the leak and the probe are:

• The legal and ethical implications: The leak and the probe raise questions and concerns about the legality and morality of the offshore entities and properties linked to Mahathir and his sons, such as whether they were declared and taxed properly, whether they were acquired and used legitimately, and whether they were related or influenced by their political and business roles and interests. The leak and the probe also challenge the credibility and integrity of Mahathir and his sons, who have been vocal and critical of the corruption and abuse of power by the previous and current governments, and who have portrayed themselves as reformers and champions of good governance and transparency.
• The political and public reactions: The leak and the probe have sparked mixed and polarized reactions from the political and public spheres, with some supporting and defending Mahathir and his sons, and others condemning and criticizing them. Some of their supporters and allies, such as the opposition leader Anwar Ibrahim and the former finance minister Lim Guan Eng, have downplayed or dismissed the allegations, and have accused the government and the media of launching a smear campaign and a witch-hunt against them. Some of their opponents and critics, such as the prime minister Ismail Sabri Yaakob and the former deputy prime minister Ahmad Zahid Hamidi, have called for a thorough and impartial investigation, and have urged them to cooperate and explain their offshore dealings to the public.

The Pandora Papers and the MACC probe have put Mahathir Mohamad and his sons under the spotlight and under pressure, as they face allegations and investigations of their offshore wealth and dealings. The leak and the probe have also exposed and highlighted the complex and controversial issues and challenges of the offshore finance and the corruption in Malaysia, and have affected and influenced the political and public opinion and sentiment of the country.