Andrew Harding, NUS
East Asia Forum
11 September 2015

As it tussles with multiple crises of political legitimacy and governance, Malaysia has reached a decisive point in its more than half-century history as an independent nation. What started as a shocking but not exceptional scandal has turned into a political crisis of unprecedented proportions. This was underlined by the Bersih 4 protests on 29–30 August in Kuala Lumpur, attended by an estimated 250,000 yellow-T-shirted Malaysians.

First, it was discovered that a development agency, 1 Malaysia Development Berhad (1MDB), set up by Prime Minister Najib Tun Razak in 2009, was in debt to the tune of RM42 billion (US$9.6 billion). Where, it was asked, did this vast sum of money go? What mismanagement or corrupt practices led to such a meltdown?

Then it was reported that the sum of RM2.6 billion (US$700 million) had shown up in Najib’s personal bank account. It has been admitted— in instalments —that this money was indeed placed in that account, but it is claimed to have been ‘donated’ from Middle Eastern sources as recognition of Malaysia’s role in fighting ISIS and maintaining Sunni Islam. Given the timing (just before Malaysia’s general election in 2013) and Najib’s claim that the funds were used for party political purposes, the money was clearly intended and used to ensure victory for the ruling Barisan Nasional (BN) coalition, led by Najib’s UMNO (United Malays National Organisation) party.

Najib claims that nothing about this was illegal, given the current lack of statutory control over campaign spending, maintaining that he held the funds in trust for his party. But since BN won the election with a clear minority of votes, yet a majority of the seats in parliament, the legitimacy of the result was already in serious question even before the donation scandal came to light.

It gets worse. Najib’s response to attempts to get to the bottom of these matters has raised further questions about accountability and governance in Malaysia under BN rule. At first he was reluctant to give any explanation. Ultimately, denials followed by evasive answers raised many further questions. Read the rest of this entry »

By Ghazala Irshad
Huffington Post
09/11/2015

PUTRAJAYA, Malaysia — The irony that leaders of the country hosting an international gathering against corruption are themselves embroiled in an embezzlement scandal provided unprecedented drama for 30 million Malaysians and a rare live case study for more than 1,000 anti-corruption conference delegates who visited Malaysia last week from around the world.

Leaked documents implicating Prime Minister Najib Razak in the embezzlement of $700 million from a state development fund prompted protesters nationwide to don yellow and call for his resignation, ahead of the 16th International Anti-Corruption Conference (IACC) last week.

The scandal was the proverbial elephant in the room on the opening day of the IACC hosted by Malaysia on September 2. Then Jose Ugaz, president of global corruption watchdog group Transparency International, boldly addressed it head-on.

In a fiery speech introducing the new keynote speaker, the Malaysian minister of governance and integrity — who replaced Razak at the last minute — Ugaz clearly outlined all of Razak’s ethical violations and demanded specific answers from an independent probe.

“There are unanswered questions about the $700 million that made its way into the Prime Minister’s personal bank account,” Ugaz said, as the conference hall thundered with applause and cheers.

“In recent weeks we have seen the attorney general who was critical of the government suddenly replaced, the [state development fund] task force suspended, investigators at the Anti-Corruption Commission arrested or transferred, and newspapers suspended for reporting on the matter,” Ugaz continued.

“These are not the actions of a government that is fighting corruption. Malaysia is facing a corruption crisis.” Read the rest of this entry »

By Mong Palatino
The Diplomat
September 11, 2015

Another troubling sign that the ‘race card’ is being exploited in the country’s politics.

More than 250 licensed non-government organizations in Malaysia are planning to mobilize 30,000 people on September 16 to protect and promote Maruah Melayu (Malay dignity). The event also aims to show support for the beleaguered leadership of Prime Minister Najib Razak, who is being implicated in a corruption scandal.

The event was clearly organized to counter the Bersih (which means ‘clean’ in Malay) protest last August 29 and 30, which gathered more than 100,000 people in Kuala Lumpur. Some leaders of the Malay Pride Rally have ridiculed Bersih as a Chinese conspiracy. To prevent the Chinese protesters from undermining the government, they urged their fellow Malays to join the September 16 gathering and to wear red in order to oppose the yellow color of Bersih.

This framing of the issue is rejected by many who insist that it is a distortion of the real politics of Bersih. While it is true that Chinese protesters were present during the Bersih protest, they were joined by Malays and other citizens who believe that Najib must resign and that a clean election is needed to promote good governance in the country. Last month’s Bersih, and the three previous Bersih protests, didn’t pit the Chinese versus the Malays, although some allies of the government wanted the public to believe that racial sentiments are undermining the country’s stability.

From the beginning, the issue was about corruption and abuse of power by the ruling coalition, which has been in power since the 1950s, yet leaders of the Malay Pride Rally continue to speak about Chinese machinations. Read the rest of this entry »