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. The prosecution gave notice it would apply to forfeit the A$1.2 million if Mr Taib was found guilty. His lawyer, Terry O'Gorman, said Mr Taib would be 'strenuously defending the charges against him'. Speaking after a meeting of the UMNO supreme council yesterday, the Prime Minister, Dr Mahathir Mohamad, said it was Mr Taib's 'own wish to resign so that any investigations conducted would not damage UMNO's image'. Mr Taib has been chief minister of Selangor for more than 10 years. His future in UMNO would be determined after the trial, Dr Mahathir said.
