Malaysia’s top graft buster under fire over allegations of agency misconduct, rules breach

By Ashley Tang and Danial Azhar

KUALA LUMPUR, Feb 12 (Reuters) – Malaysia’s top graft investigator faced fresh calls to step down on Thursday, after multiple media reports this week alleged misconduct involving him and other senior officials at the country’s anti-corruption commission.

The Southeast Asian nation has been working to clean up its image in recent years after the multibillion-dollar 1MDB scandal – which led to the jailing of a former prime minister in 2022 – dented investor confidence and left the government with years of lingering debt.

But its efforts to root out graft have been called into question following repeated scandals involving Malaysian Anti-Corruption Commission chief Azam Baki, who was appointed to the role in 2020. Azam has consistently denied wrongdoing. 

Several opposition lawmakers, including the head of the parliament’s Public Accounts Committee Mas Ermieyati Samsudin, called for Azam’s resignation and for a thorough probe into MACC’s practices. 

“To me, this is a very serious matter, and I and other members of parliament demand that the government and the prime minister respond to this matter seriously,” she said, according to a video of her remarks posted by a local news portal. 

The Centre to Combat Corruption and Cronyism, an independent group, urged the government to expedite proposed reforms removing the prime minister’s powers to appoint the MACC chief, and immediately suspend all anti-graft officers implicated in the media reports.  

QUESTIONS RAISED OVER RULES BREACH, MISCONDUCT ALLEGATIONS

On Tuesday, Bloomberg reported citing a corporate filing from last year, that Azam held 17.7 million shares in a financial services company – currently worth about 800,000 ringgit ($205,128.21), well above the 100,000 ringgit limit allowed for public servants. 

The filing was still available on the website of the Companies Commission, according to Reuters’ checks on Thursday. 

Azam told local daily New Straits Times that he had declared the transaction and that the shares were disposed of last year. 

MACC said Azam had fully complied with the asset declaration requirements, including on the acquisition and disposal of shares. 

“Any portrayal suggesting a failure to declare assets is factually incorrect and creates a misleading impression of the integrity and governance framework governing MACC and the public service, thereby unfairly and detrimentally reflecting on the Commission as a law enforcement agency,” MACC said in a statement.      

The Public Service Department said in a statement it would review all rules that have been in place for more than 20 years, or are no longer relevant, including guidelines on share ownership by public officials. It did not mention the allegations against Azam.

Azam’s trading activities had faced similar scrutiny in 2022, when Malaysia’s securities regulator said it was unable to determine whether he had broken the law after allegations that he owned millions of shares in two publicly listed companies in 2015 and 2016.

Bloomberg in a separate article on Thursday reported that MACC officials were helping a group of businessmen to seize control of companies, citing internal documents and interviews with witnesses. Reuters has not independently verified the report. 

MACC said it would not comment on those allegations and rejected suggestions that its investigations were influenced by private interests.

Prime Minister Anwar Ibrahim’s office did not respond to a request for comment on the media reports.  

($1 = 3.9000 ringgit)

(Writing by Rozanna Latiff: Editing by Sharon Singleton)