1. 94 ESQUIRE OCTOBER 2014 ESQUIRE OCTOBER 2014 95
It was a display so extensive it even rivalled that
of Orchard Road’s, drawing visitors to the area and
causing minor traffic congestion. The occupants of
the house had been putting on these decorations for
many years—they “didn’t mind sharing the beauty”. In
2012, The Straits Times wrote a feature on the Nassim
Road bungalow’s decorations, noting that the budget
in previous years had been around SGD100,000. The
article also quoted Leonard Glenn Francis—resident
of the bungalow and the man responsible for arrang-
ing this spectacular display—as saying that he went
all out, because the season was an “important time for
him and his family”.
But last Christmas, the bungalow stood dark and
silent, stripped of its notorious lights. Two months
before the holiday season, Penang-born Leonard “Fat
Leonard” Francis, father of five and owner of Glenn
Defence Marine Asia (GDMA), a global maritime hus-
banding service provider, was arrested in San Diego by
law enforcement for what could potentially turn out
to be the largest bribery scandal in United States Navy
history. Francis, they suspected, had high-rank Ameri-
can Navy officers in his pocket, acting as moles behind
a simple yet extensive, invoice-inflating scheme to
swindle the US Navy out of tens of millions. For years,
GDMA had been able to secure coveted US Navy hus-
banding contracts for Southeast Asian ports by sub-
mitting proposals with the lowest prices amid a pool of
bidding companies.
In reality, GDMA was overcharging for services
rendered—everything from ship fuel to tugboats and
sewage disposal services were doubled or tripled in
invoices billed to the US Navy. Having done business
with them for 25 years, Francis had created a well-
oiled network of high-level navy officials to learn all
about American ship movements in Southeast Asian
maritime routes. Six feet tall and nearly 135 kilos,
50-year-old Francis had a knack for getting chummy
with naval officers he believed could be persuaded to
help increase business profits, and the relationships
had been established through the age-old incentives
of sex and money. He “groomed” targets, plying them
with expensive gifts, envelopes stuffed with cash, lux-
ury hotel stays, and prostitutes. In exchange, they pro-
vided Francis with ship routes and lobbied for ships
to dock at what he called “pearl ports”, meaning port
locations in Malaysia and Thailand with less oversight.
For years, he evaded detection—but when US federal
prosecutors caught on and began building their case,
his luck had finally run out.
Last September, Francis flew to San Diego for what
he believed was a business meeting with navy offi-
cials, court filings say. In the evening of September 16,
2013, Francis, along with his cousin and GDMA gen-
eral manager, Alex Wisidigama, were apprehended by
DCIS agents in a suite at the Marriott Marquis, over-
looking a private marina in north San Diego Bay. Ac-
cording to US prosecutor Robert Huie, one of the fed-
eral attorneys leading the case, neither Francis nor his
cousin “physically resisted arrest”.
That same day, two of Francis’ other key cohorts
were also apprehended. At the Colorado Springs Air-
port, law enforcement took US Navy Commander
Michael Misiewicz into custody. Over in Joint Base
Anacostia-Bolling, a military installation in southeast
Washington DC, John Bertrand Beliveau II, a senior
Naval Criminal Investigative Services (NCIS) agent
was detained, and nearly two months later, US Navy
Commander Jose Luis Sanchez was arrested in Tam-
pa, Florida. Huie confirmed that a total of seven in-
dividuals have been “charged since September of last
year and the present”, the most recent two being US
Petty Officer Dan Layug and Edmund Aruffo, a retired
lieutenant commander and GDMA’s country manager
in Japan. Because Francis has been in business with
the US Navy for more than two decades, the exact
amount he swindled from them is difficult to estimate.
But the losses sustained by the US in the time period
of 2011 to 2013, says Huie, “are within the range of tens
of millions of dollars”. Contracts that were previously
awarded to GDMA to service the US Navy for the next
four years totalled RM640 million, and have since
been withdrawn.
PACIFIC “PIVOT”
The scandal coincides with a trend of increased mili-
tary spending across Asia. Southeast Asia, according to
HE GIFTED U.S. NAVALOFFICERS HIGH-END GADGETS, ENVELOPES
STUFFED WITH CASH, PROSTITUTES AND EVEN LADYGAGA CONCERT
TICKETS,JUSTSO THATHE AND HIS COMPANYCOULD SECURE
LUCRATIVE CONTRACTS, LEARN AMERICAN SHIP MOVEMENTS AND
OVERCHARGE FOR DOCKING SERVICES.
HOW PENANG-BORN LEONARD FRANCIS—ALSO KNOWN
AS FATLEONARD—COSTTHE U.S. NAVYTENS OF MILLIONS
OF DOLLARS AND CAUSED ONE OF THE LARGESTBRIBERY
SCANDALS IN U.S. NAVYHISTORY.
WORDS BY SHERMIAN LIM
FIVE YEARS AGO, HE CHARGED THE U.S. NAVY
RM350,000 FOR A VISITTO PORTKLANG.
THREE YEARS AGO, HE SOLD THEM FUELWORTH
RM3 MILLION—WHEN IT COULD’VE BEEN HALF THE COST.
TWO YEARS AGO, HE HANDED THEM A BILLOF
RM8.5 MILLION SO THATA WARSHIP STRAIGHT
OUTOF A TRANSFORMERS MOVIE COULD DOCK IN
KOTA KINABALU FOR A GOODWILLVISIT.
THERE’S A HOUSE ALONG NASSIM ROAD IN SINGAPORE THAT, IN RECENT YEARS,
ATTRACTED PUBLIC ATTENTION FOR ITS EXTENSIVE CHRISTMAS DECORATIONS. THE
BRIGHTLY LIT SPECTACLE ON THE 70,000sqft VICTORIAN-STYLE BUNGALOW FEATURED
A GIANT SNOWMAN, A NATIVITY SCENE AND LIGHTS IN THE SHAPE OF SPARKLING
WHITE REINDEER. ROWS OF LIT, FLICKERING PINE TREES LINED THE DRIVEWAY,
LEADING ONE’S VIEW UP TOWARDS A FRONT DOOR DECORATED WITH POINSETTIAS,
GNOMES AND A GIANT CHRISTMAS TREE.

2. 96 ESQUIRE OCTOBER 2014 ESQUIRE OCTOBER 2014 97
various think tank reports, has seen relatively steady
economic growth in the past decade, enabling the re-
gion to procure military hardware: littoral equipment
such as warships, maritime patrol aircraft, subma-
rines and combat planes are just some examples of an
increasingly complex shopping list that has pushed
the region into one of the top spots in global defence
spending. Collectively, the region’s countries—Malay-
sia, Singapore, Thailand, Philippines, Vietnam, Brunei,
Cambodia, Indonesia and Laos—spent RM112 billion
on defence equipment in 2012, placing them on par
with the top 15 group of countries with substantial
military budgets.
That figure, however, still trails behind China,
whose total military tab ran up to RM340 billion that
same year, as noted by a report from the Australian gov-
ernment’s Defence Intelligence Organisation (another
report by the Stockholm International Peace Research
Institute places the spending figures closer to RM480
billion). The report also observed that this was a 10 per-
cent increase from the previous year, and in line with
China’s continued efforts at military modernisation,
focused on maritime vessels and equipment. Wary of
this growing naval strength and precipitated by recent
territorial tussles in the resource-rich South China Sea,
China’s Southeast Asian neighbours, including Malay-
sia, believe that their reasons to phase out aging, ’70s-
era military vessels to protect port interests, shipping
routes and territorial boundaries are justified.
Recognising the integral role of Asia-Pacific coun-
tries in the 21st century has prompted a switch in
America’s diplomatic and security policy. The “pivot”,
a buzzword popularised by former US Secretary of
State Hillary Clinton in an essay entitled “America’s
Pacific Century” published in Foreign Policy, an influ-
ential American politics magazine, describes a shift
in focus away from the Middle East and over to the
Asia-Pacific, where half the world’s population re-
sides. Even as the US looks to trim its own annual de-
fence budget—which was USD716 billion in 2013—the
Obama administration seeks to reassure Asian allies
of continued engagement in the region and a com-
mitment to forging new alliances. “One of the most
important tasks of American statecraft over the next
decade will be to lock in a substantially increased in-
vestment—diplomatic, economic, strategic and other-
wise—in the Asia-Pacific region,” Clinton wrote. “Our
outreach to China, India, Indonesia, Singapore, New
Zealand, Malaysia, Mongolia, Vietnam, Brunei and the
Pacific Island countries is all part of a broader effort to
capital city of Sabah buzzed in anticipation, preparing
to welcome the Stennis, a 97,000-tonne, 24-storey-tall,
Nimitz-class battleship the size of a small city. Stennis
had been in Port Klang earlier that same year, but call-
ing on Kota Kinabalu—now that was an impressionable
first for the city’s maritime history.
Aboard the Stennis, an approximate 5,000-strong
crew was also anticipating their four-day goodwill
visit. They gave a good show to visitors, impressing a
small group of VIP guests by flying them over to the
Stennis in C-21s, giving tours and hosting a recep-
tion in the ship’s hangar that featured a cake in the
shape of the Stennis. Among the 300 Malaysians who
attended were Joseph Pairin Kitingan, then Deputy
Chief Minister of Sabah, and Tengku Zainal Adlin,
Chairman of the Sabah Tourism Board. A Sabahan
dance troupe came on board, providing the evening’s
entertainment and showing American sailors how to
perform the traditional Sumazau dance.
Days later, Kota Kinabalu would be able to recipro-
cate this hospitality, when officers came into town to
experience the city’s offerings. Four weeks at sea had
the shipmates looking forward to sampling Southeast
Asian cuisine, hiking up Mount Kinabalu, white water
rafting, shopping and a few rounds of golf. “All aboard
that are going ashore! Leaving Stennis today for an epic
adventure in #KKCity to explore the rich Malaysian
culture!” tweeted Lieutenant Michael L Smith, public
affairs officer for the US Navy, on October 2, 2012. As a
customary practice of American naval servicemen, the
sailors also planned community service visits, volun-
teering their time at a Roman Catholic chapel, working
odd jobs at a home for disabled individuals, and even
showing up at Bukit Harapan Orphanage, presenting
young residents with toys and games.
For the purposes of diplomacy and cultural ex-
change, the visit, orchestrated by Francis with the help
of Misiewicz, was quite a success. Kota Kinabalu lo-
cals experienced a once-in-a-lifetime encounter with
a great American warship they’d only seen featured
in Transformers: Revenge of the Fallen; while for the
sailors, it was an enjoyable port call, albeit one among
MALAYSIA’S STATUS AS AN EMERING ALLY IN AMERICA’S CHANGE IN MILITARY
POLICY GAVE LEONARD FRANCIS’ COHORTS WITHIN THE US NAVY A READY-MADE
REASON TO LOBBY FOR SHIPS TO STOP AT HIS PREFERRED “PEARL PORTS”.
FOR THE PURPOSES OF DIPLOMACY AND
CULTURAL EXCHANGE, THE VISIT OF THE USS
JOHN C STENNIS, ORCHESTRATED BY FRANCIS,
WAS QUITE A SUCCESS. KOTA KINABALU
LOCALS EXPERIENCED A ONCE-IN-A-LIFETIME
ENCOUNTER WITH A GREAT AMERICAN WARSHIP
THEY’D ONLY SEEN FEATURED IN TRANSFORMERS:
REVENGE OF THE FALLEN.
the many they’d make en route to their destination of
deployment. The logistics of coordinating such a vis-
it would hardly be memorable—at best, a good trivia
topic for maritime enthusiasts—except to those foot-
ing the bill, and they would certainly have balked at
the figures. GDMA, Francis’ company, charged the US
Navy a hefty bill of RM8.5 million—more than twice
what they paid for the Port Klang call earlier that year,
also serviced by GDMA.
This is just one of the many occasions GDMA had
padded their invoices, and law enforcement was be-
ginning to catch on by then. Court records show that
the United States Defence Criminal Investigative
Service began looking into GDMA’s dealings with
the US Navy as early as 2009, when questions were
raised over charges totalling RM350,000 for force
protection fees during a scheduled navy visit to Port
Klang. A similar incident of overcharging occurred
when the USS Mustin visited Laem Chabang, Thai-
land, on October 2011. Instead of using a “sea card”,
which enabled the US Navy to purchase fuel at ne-
gotiated discounts from the Royal Thai Navy, a co-
hort of Francis persuaded the purchase of fuel worth
RM3 million from GDMA, when it could have been
half the cost with a “sea card”. But the incident most
telling of Francis’ high-handed manner of doing busi-
ness, as described in federal charging documents, was
in March 2011, when the USS Blue Ridge, command
ship of the Seventh Fleet, was barred from docking
unless they agreed to pay port tariff charges “levied”
by the Port Klang Cruise Terminal. This private-run
port authority was in fact owned by GDMA, and the
charges were made up.
THE WRONGDOING
Francis was able to stay one step ahead of the game
due to the naval officers who were working hand-in-
glove with him. When investigations began on the
Laem Chabang incident, he was alerted by Sanchez,
a 42-year-old commander with extensive experience
in procurements and husbanding services for naval
ships in the Western Pacific theatre. Sanchez began
his career in 2002 as a supply officer for ships in the
Seventh Fleet, the largest forward-deployed Ameri-
can fleet comprising 60 to 70 ships, 300 aircraft and
40,000 personnel based primarily in Yokosuka, an im-
portant navy base in Japan. Until April 2013, Sanchez
served in various roles at the Fleet Logistics Command
(FLC) centre in both Yokosuka and Singapore, where
he had been privy to all the operations, logistics and
decision-making by FLC administration—the perfect
inside man to pass information to Francis.
In a criminal complaint filed against Francis and
Sanchez by the US Defence Criminal Investigative
Service (DCIS), the latter was accused of violating his
“official and lawful duties” by forwarding classified in-
ternal information related to GDMA. The complaint,
unsealed by a Southern California district court in
November 2013 after the two men were arrested, de-
tailed dozens of emails and Facebook messages where
ensure a more comprehensive approach to American
strategy and engagement in the region. We are asking
these emerging partners to join us in shaping and par-
ticipating in a rules-based regional and global order.”
The pivot builds on the legacies of the Clinton and
Bush administrations, which began increasing cooper-
ation with Singapore and the Philippines, and sending
additional naval vessels to Japan and Guam as early as
1997. The US Navy’s entire fleet is currently split 50:50
between the Atlantic Ocean and Pacific Ocean theatres;
but with the “pivot” policy, the Navy is expected to in-
crease their presence in the latter region, making the
split 60:40. During the Bush era, 60 percent of subma-
rines were already stationed in the Pacific by 2005, and
in recent years, American lawmakers have set the scene
for increased engagement and initiatives for coopera-
tion. Between 2009 and 2012, Clinton and US President
Barack Obama both made visits to the region, includ-
ing a groundbreaking trip to Vietnam by Clinton—the
first visit by a US Secretary of State to reach out to the
country since the Vietnam War. This change in US mili-
tary strategy has been met with mixed reactions and is
still garnering debate from the nation’s foremost ex-
perts over a strategy that draws resources away from
high-crisis regions, as well as increases tension and
suspicion—particularly from China—as to why the US
is increasing their presence there.
THE PRICE OF DIPLOMACY
Meanwhile, what all this simply meant for business-
men like Francis was a new pot of gold to harvest. Ma-
laysia’s status as an emerging ally in America’s change
in military policy gave Francis’ cohorts within the US
Navy a ready-made reason to lobby for ships to stop at
his preferred “pearl ports”. Analysis by The Washing-
ton Post concluded that between 2010 and 2012, navy
ship visits to Port Klang, Sepangar, Laem Chabang
and Phuket rose from an average of two to three visits
per port to an average of 10 to 12 visits per port—an-
nually—but dropped following the arrest of Francis
and his cohorts. There were also stops, not at a “pearl
port”, which, nevertheless, produced big-ticket figures
including ones that the Americans had never docked at
before—like a four-day goodwill visit of the USS John
C Stennis (aka “Johnny Reb”, a nuclear-powered air-
craft carrier) to Kota Kinabalu Port on September 31,
2012. The scheduled port call, according to one of the
ship’s commanders, was part of the US government’s
“effort to foster closer relations with Malaysia”. The

3. 98 ESQUIRE OCTOBER 2014 ESQUIRE OCTOBER 2014 99
Francis and Sanchez discussed ship routes and desti-
nations, new husbanding policies, and ongoing inves-
tigations into port tariffs, fuel and other “gold-plated”
charges levied by GDMA. An email dated November
14, 2011, for instance, provided Francis crucial updates
on questions raised by the FLC director in Yokosuka
into invoices issued by GDMA for picket boats sup-
posedly provided in Thailand. If the company didn’t
verify these charges, the director “intended to have
NCIS investigate possible fraud”, and she was right in
her suspicions. The invoices were just more examples
of phony charges billed to the navy.
Sanchez’s emails frequently included advice to
Francis on how to handle queries from officials, but
he wasn’t the only one. Francis also had intel on what
the NCIS was doing, as detailed in an email to Sanchez
dated December 3, 2011. It described “two investiga-
tions” of possible fraud that were both “hard to prove
and charge”. He had “intel from the inside”, he told
Sanchez, and had seen the reports. “I will show you
a copy of the Classified Command File on me from
NCIS. Haha.” The person from whom Francis ob-
tained those files was Beliveau, a 44-year-old senior
NCIS agent, who had been stationed in Singapore
between 2008 and 2012. It isn’t entirely clear when
Francis’ relationship with Beliveau began, but court
records note that they “were in regular contact” over
the past five years, exchanging hundreds of text mes-
sages within short time periods. Like Sanchez, Beliv-
eau fed Francis with information, downloading sen-
sitive material from the NCIS database and coaching
him on how to shake off investigators. “Instead of do-
ing his job, Beliveau was leaking confidential details
of investigations,” US Attorney Laura Duffy said in
a press statement. “This is an audacious violation of
law for a decorated federal agent who valued personal
pleasure over loyalty to his colleagues, the US Navy
and ultimately his own country.”
MY COUNTRY FOR AN iPAD
The same can be said of Francis’ other known co-con-
spirators. Drawn by his lavish lifestyle, it didn’t seem to
takemucheffortatallforFrancistowinthemover.Like
a wealthy suitor intent on wooing a potential partner,
email surveillance outlined in court documents paints
a clear picture of the kind of extravagance and gratifi-
cation with which Francis showered cohorts such as
Beliveau, Sanchez, Misiewicz and Layug. Despite navy
rules stipulating that an officer can only receive gifts
with a maximum value of USD20, they chose to ignore
that rule flagrantly. Independent of each other, the
four officers received luxury hotel stays, airfare, pros-
titutes, mobile gadgets, and even Lady Gaga tickets, all
paid for by Francis. “Will arrange a nest for you... and
some birds [women],” Francis wrote in one email that
included pictures of female escorts. “Yummy… daddy
like” was Sanchez’s response.
In an email dated March 9, 2012, petty officer La-
yug wondered, “Any chance of getting an iPad 3?” The
27-year-old Layug, a logistics specialist stationed in
troubles due to an unhappy marriage between her and
Francis’ father, whom she accused of philandering.
Born into a wealthy family, Francis skipped col-
lege after completing his studies at a private school
and, according to his mother, opened a pub that ex-
posed the young man to “undesirable characters”,
and landed him in debt. He was a victim of his cir-
cumstances, a loyal son who “kept an eye on his fa-
ther to ensure that he did not bring other women
home”. One of Francis’ lawyers at the time, San Mar-
kan Ganapathy, produced a written statement from
the superior of the Little Sisters of the Poor Home for
the Aged, attesting that Francis frequently donated
money and gave “moral help” to the residents. The
current superior wouldn’t comment for this story, but
Ganapathy, who was a personal friend of Francis’ fa-
ther, was “surprised” when he heard about the recent
scandal. Back then, Francis was “a polite young man”
who gave the police full cooperation and served out
vy’s Western Pacific base in Singapore. Navy Secretary
Ray Mabus has also ordered an internal review of the
contract-awarding policy, causing at least one other
maritime servicing company in Malaysia to lose their
contractor status with the Americans.
And, naturally, with Francis behind bars in San
Diego, Glenn Defence Marine Asia is in tatters. The
company’s now dormant fleet assets in Singapore are
up for sale or auction. Calls to their office yielded no
response, and as of September 2014, the website is
“under construction”. Over in Port Klang, business
conglomerate Boustead Holdings announced the
purchase of Port Klang Cruise Terminal and three
parcels of land owned by GDMA for approximately
RM260 million, just a few months ago. Under new
management, the hope is that US Navy ships will
gradually return.
What happens to Fat Leonard now? When reached
for comment, mails to Patrick Swan and Elizabeth
Sloviter, Francis’ currently known lawyers, went un-
answered. He stands accused of bribing Misiewicz,
Sanchez and Beliveau, with each charge carrying a
maximum sentence of five years—a statutory prison
time of 15 years. US attorney Robert Huie wouldn’t
speculate prematurely on “what he [Francis] would
actually get”, but court filings indicate that federal
prosecutors are pursuing a longer sentence, arguing
that numerous individual acts of bribery occurred
within the three charges. In a strange twist of fate,
the United States is meting out its punishment in a
similar vein that Francis billed the US Navy for his
services. Sentencing guidelines in America enable
Huie and his team to tack on additional charges—
such as monetary losses, criminal activities and ob-
struction of justice—on top of the 15 years, to extend
Francis’ time in prison. Based on the filings, they’re
recommending at least 46 years.
That’s essentially a life sentence for Francis, and it’s
unlikely he will be shown leniency. The operation to
nab Francis and his cohorts, as laid out in court docu-
ments, was “six months in the planning” and involved
“near-simultaneous law enforcement operations in ap-
proximately eight countries in Asia… eight states with-
in the US and more than 100 law enforcement agents”.
And given that Fat Leonard has been around for a long
time, the saga might not be over just yet. “The matter
is under active investigation; we don’t consider the in-
vestigation closed or done with,” Huie says. “It’s a pos-
sibility that the investigation will grow.”
Yokosuka, had also begun receiving a monthly “allow-
ance” of USD1,000 from GDMA, beginning in May
2012, in exchange for regular ship schedule updates.
Investigators were unsure if Layug ever received the
tablet, and they weren’t always able to ascertain ex-
actly what Francis gave the officers that elicited such
warm expressions of appreciation. From Sanchez in
May 2011: “Thanks again sir… your man just left... I’m
completely humbled by everything…” But it appeared
that Francis took great effort in making sure the offic-
ers got the things they really wanted: “The [high-end]
camera is awesome bro! Thanks a lot!” came an email
from Layug in May 2013; and Misiewicz in June 2011:
“Thank you for the best leave (w/o kids that is) ever!”
DESIGNER CLOTHES AND A TROUBLED PAST
Despite the ingratiating largesse shown to the naval
officers, Fat Leonard had been able to establish, in a
testosterone-charged maritime world of tough Ameri-
can seamen, who was in charge. “You are a sore b***h
and I have not forgotten you. How do I send you a
gift?” he once wrote to Beliveau, after the NCIS agent
complained Francis had not adequately rewarded him
for his efforts. Francis was usually present at the docks
when naval ships arrived, waiting to greet the officers
and deliver gifts to a ship’s key personnel, according
to a Navy Times article. Western Pacific officers who
docked at “pearl ports” became used to seeing Francis
at the pier in designer clothes, flanked by half a dozen
bodyguards in suits, or arriving in a black Hummer
with reinforced and tinted windows. At the parties
he threw in Singapore and Hong Kong, Francis came
across as charismatic, well-versed in navy lingo, and
“genuinely interested” in an individual when speaking
with him or her. Others, however, thought him slimy,
like a “used car salesman”, and weren’t surprised to
learn about his arrest.
Fat Leonard’s legal troubles had begun long before
this scandal erupted. In 1986, at the age of 22, he had
been arrested and charged for illegally possessing two
Smith & Wesson Special revolvers, 14 rounds of am-
munition, and a bulletproof vest, all found in a raid
on his home in the exclusive Halaman Free School
neighbourhood in George Town, Penang. He was sen-
tenced to 18 months in prison and six strokes of the
rotan. Francis’ mother, Selena, tried to reduce the can-
ing sentence by testifying on his behalf, citing family
SENTENCING GUIDELINES IN AMERICA ENABLE PROSECUTORS TO TACK ON ADDITIONAL
CHARGES—SUCH AS MONETARY LOSSES, CRIMINAL ACTIVITIES AND OBSTRUCTION OF
JUSTICE—ON TOP OF THE 15 YEARS, TO EXTEND FRANCIS’ TIME IN PRISON. BASED ON
THE FINDINGS, THEY’RE RECOMMENDING AT LEAST 46 YEARS.
“WILL ARRANGE A NEST FOR YOU... AND SOME
BIRDS [WOMEN],” FRANCIS WROTE IN ONE
EMAIL THAT INCLUDED PICTURES OF FEMALE
ESCORTS. “YUMMY... DADDY LIKE” WAS JOSE
LUIS SANCHEZ’S RESPONSE.
his sentence without issue. He later skipped college
in London to help out with the family shipping busi-
ness in Penang, started by his grandfather in 1946. His
diligence soon paid off, earning enough of his father’s
trust to take over the business.
CONMAN OR ROBIN HOOD?
With the navy’s business rolling in, Francis was able to
expand to other ports in Malaysia and around South-
east Asia. A look through the Merchant Shipping Or-
dinance of 1957 indicates that Francis’s overbilling
scheme did not violate Malaysia’s maritime regula-
tions. And the arrival of thousands of servicemen
brought injections of wealth to the ports’ local econo-
mies, a result some might even liken to a sort of Robin
Hood-esque achievement, “He [simply] used his [mar-
itime] assets around the region to provide services to
the US, and this provided ancillary business to the lo-
cals,” says Martin Sebastian, head fellow of the Centre
for Maritime Security and Diplomacy at the Maritime
Institute of Malaysia. “There was no need to corrupt
any locals.” The trickle-down economy Sebastian was
referring to can be illustrated by the USS John Sten-
nis’ visit. If just half of Stennis’ 5,000 officers who vis-
ited Kota Kinabalu had spent USD150, or RM500 per
person on food, alcohol, entertainment and shopping,
the city could have made RM12 million just from that
four-day visit. Navy fleets have since pared down visits
to Malaysia’s ports, setting sail instead for the US Na-