Shares in firms linked to the chief minister of Sarawak state fell today following media reports that 77-year-old Taib Mahmud is poised to step down after more than three decades in charge of the resource-rich region.
Taib who holds sway over some of the world’s largest tracts of rainforest and whose family-owned firms routinely win state infrastructure jobs, is expected to announce a timeline for his resignation at a party meeting this weekend, local media said.
Taib, who became Sarawak chief minister in 1981, routinely denies accusations by non-government organisations that he has amassed up to $20 billion in personal wealth through corrupt practices. His resignation could cast doubts over his $100 billion plan to harness the state’s rivers into 12 dams by 2020 and transform it into an energy hub that can power huge smelters and light up the rest of Borneo island.
Taib has not been seen since the news came through of tumbling prices of shares in his companies, following rumours of his resignation. It must have been a shock to the old man to see his wealth diminish on the news of him giving up alone. Has that been enough to stop him in his tracks as he considers moving to the Governor’s Palace?
The Taib family runs a well-diversified financial empire with interests in Sarawak’s largest timber and logging companies, monopolistic control of log exports, plantations, construction, electricity supply, property development and state media. In 2011, the Bruno Manser Fund released information detailing the Taib family’s connection to over 400 companies in 25 countries and offshore districts.
There is nothing closer to Taib’s heart than business and that business relies on his arbitrary power to protect and promote his own businesses above all else. Investors know this and they know a successor will have different priorities.