The buyer beware

Professor Tan Sri Dato' Dzulkifli Abdul Razak
My View - The Sun Daily
January 31, 2017

DURING the run-up to the Year of the Rooster, my friends from China were lamenting about buying gifts for loved ones back home. Although the proudly "Made in China" (MiC) items are available worldwide, they face a dilemma because buying one would raise suspicions that the items were bought "locally" as an afterthought. The last time I brought home from Europe a necktie labelled "Made in Malaysia" I was embarrassed when the recipient naively pointed out that the item was "locally" made.

To the non-Chinese, however, the perception is the opposite and most marvel at things MiC. Not just the price but also the range to choose from. In one instant, a colleague related how on a visit to China he spotted a "slick-looking" data-bank device promoted as a memento suitable for his office mates back home. In his excitement he grabbed a dozen and paid a bargain price. He was buoyed by a statement in bold capital letters stamped on the packaging: GUARANTEE (sic) NO ERROR IN DEVICE.

Later, he found out that none of the devices worked and his excitement turned into anger. He wasted no time to get an exchange if not a total refund given the "guarantee" commitment on the packaging. Much to his surprise he was flatly refused. "What about the guarantee statement?" he asked. To this the dealer politely advised him to read the statement from right to left, and not from left to right as he assumed. At once the reason becomes clear: DEVICE IN ERROR NO GUARANTEE. He had been manipulated.

This anecdote provides us with the lesson on the need to be extra cautious when buying not just souvenirs but other goods and services as well. Important advice for foreigners especially those who are eager to hunt for bargains and impress those back home. Experienced dealers are aware of such gullibility and are quick to exploit naive buyers.

This is not confined to a personal and individual level. Institutions like the World Bank also issue similar warnings. A case in point is when it reportedly notified that "China Communications Construction Co Ltd (CCCC) and its subsidiaries have indeed been debarred from participating in projects financed by the development institution for fraudulent practices in a Philippine project." It is of interest to note that Malaysia had sealed a multibillion ringgit deal with CCCC to build the 600km East Coast Rail Link.

The World Bank statement was dated July 29, 2011, well before the decision to sign the deal. The bank in addition clearly highlighted that "under the sanction, CCCC is ineligible to engage in any road and bridge projects financed by the World Bank Group until Jan 12, 2017." Indeed, the World Bank's sanction system states that successor organisations – through purchase or reorganisation – will be subject to the same sanctions applied to the original firm, which in this case was China Road and Bridge Corporation (CRBC).

Under the present circumstances it is best to bring such "warnings" into the open and clarified publicly well in advance so that it is not raised after the fact in Parliament. Malaysians deserve better in the attempt to (re)gain their confidence and trust where billions of ringgit are at stake. This was recently made worst by several news reports on how easily corruptible public and senior government personnel are when they meet the business fraternity in faraway places. Politicians are not excluded, warns the MACC chief. The Chinese media, like the World Bank, also carry high-profile scandals involving their counterparts.

While there may be some "feel good" factors behind such seemingly strategic moves, the people must be fully convinced that it is genuinely so since they are now forced to tighten their belts to save every single sen to make ends meet.

It may well be argued that Malaysia has had a completely different experience and that the World Bank has not issued any restriction to any country from collaborating or dealing with CCCC. But discerning leadership must also read deeply in between the lines especially as the "buyer" representing the interest of the people in today's world, tainted with greed and dishonesty. After all the World Bank is emphatic in its statement that "CCCC is the designated successor entity to CRBC which, along with six other firms and one individual, was debarred by the World Bank for eight years, from January 12, 2009, following an investigation of the Philippines National Roads Improvement and Management Project by the World Bank's Integrity Vice Presidency."

Oblivious of this, the "buyer" risks consequences as in the above-mentioned anecdotal case. Ultimately, the person concerned who anxiously wanted to boast about the latest MiC technology had to swallow his pride. He had no choice but to present the slick-looking (defective) IT devices as "glorified" paperweights. If only he is more vigilant he would have been spared the humiliation.

Moral of the story: caveat emptor!

Always beware before finalising any transaction no matter what. Don't let the ego interfere. Where public money is involved laying out the full facts publicly before signing any deal will safeguard the interest of all parties.