A SENIOR official of Malaysia's main ruling party, facing court action in Australia for alleged possession of undeclared currency, has resigned as chief minister of Selangor state.
The development is an embarrassment for the federal Government and a victory for the opposition.
Muhammad Taib, 51, vice-president of the United Malays National Organisation (UMNO) and one of Malaysia's most prominent and powerful politicians, had been resisting opposition calls for him to stand down since he was detained at Brisbane airport on December 22, when the equivalent of A$1.2 million (HK$7.23 million) in currency was found in a suitcase he was carrying.
Mr Taib said the cash was for the purchase of a Gold Coast property where his and his brothers' children could stay while studying in Australia.
The pressure for him to resign - not only from the opposition but also from some of his UMNO colleagues - became irresistible on Friday after a Brisbane magistrate ordered him to stand trial on August 19, charged with attempting to transfer the undeclared currency out of Australia and making a false declaration.
Both charges carry possible jail penalties as well as fines.