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Malaysian Prime Minister Anwar Ibrahim speaks during a session at the Milken Institute’s 10th Asia Summit in Singapore on Wednesday. Photo: Prime Minister’s Office of Malaysia

Malaysia’s Anwar vows no let-up on anti-corruption drive amid outcry over ally’s discharge

  • The decision to drop corruption charges against Deputy PM Ahmad Zahid Hamidi sparked criticism that the move is a betrayal of Anwar’s reform agenda
  • Anwar says corruption is ‘endemic’ but stresses that Malaysia’s anti-graft agency has not found a single corruption case linked to any government leader since November
Malaysia
Malaysian Prime Minister Anwar Ibrahim on Wednesday said he was committed to his pledge to weed out corruption, amid an ongoing outcry over the public prosecutor’s decision to drop dozens of corruption charges against a key ally in his unity government.
Last week, the High Court approved an application by the attorney-general’s chambers to discharge Deputy Prime Minister Ahmad Zahid Hamidi from 47 charges of corruption linked to a charity foundation that he had established, sparking criticism that the move was a betrayal of Anwar’s reform agenda.

Opposition politicians are planning a public rally on Saturday to protest against the decision.

Malaysian Deputy Prime Minister Ahmad Zahid leaves the High Court after the court dismissed 47 corruption charges against him. Photo: dpa

Anwar said the decision was made solely by former attorney-general Idrus Harun, who he said had told him ahead of his retirement that there was sufficient evidence to disprove the charges levied against Ahmad Zahid.

“He said: ‘Sir, this is an issue of my conscience’, and he gave me the facts,” Anwar said during a plenary session at the Milken Institute’s 10th Asia Summit in Singapore.

“I said, ‘Can you support this?’ He said yes, with 11 facts to be adduced in court and for the judge to decide,” he said, adding that the charges were rushed by his predecessor and long-time rival, Mahathir Mohamad, after Ahmad Zahid refused to dissolve his former ruling Umno party and join Mahathir’s then-party Bersatu.

Ahmad Zahid was among a clutch of senior Umno leaders charged with corruption in the aftermath of the 2018 general election, which led to a historic change of government on the back of public anger over rising living costs and allegations of rampant corruption.

His erstwhile party boss, former prime minister Najib Razak, is the only one from the group so far to be found guilty of corruption over 42 million ringgit (US$9 million) in funds linked to a former unit of scandal-tainted state fund 1Malaysia Development Berhad (1MDB).
Najib, who is a year into a 12-year jail sentence, and his supporters maintain his innocence.

Malaysia’s Anwar loses coalition partner in protest at Ahmad Zahid walking free

Anwar admitted the recent ruling had put him and his administration in a difficult position due to the long-held perception of widespread corruption in Malaysia, especially in the aftermath of the multibillion-dollar scandal at 1MDB.

But he stressed that Malaysia’s anti-graft agency had not found a single corruption case linked to any government leader since November, when Anwar became prime minister.

“That, to me, is important. Yes, there have been cases that happened in the past … the issue of corruption is endemic, systemic. If I want to take that up, it will involve so many others,” Anwar said.

“But what is important is that we are starting a fresh, new system. Yes, it is perception, and I don’t blame the cynics, because we inherited a corrupt system.”

Chinese Premier Li Qiang (left) holds a welcoming ceremony for Malaysia’s Prime Minister Anwar Ibrahim in Beijing, China, in April 2023. Li and Anwar are expected to meet in Nanning later this week. Photo: EPA-EFE

Balancing ties with US, China

Asked about the ongoing conflict between the United States and China, Anwar said it should not be seen as a zero-sum game for Malaysia and its fellow Asean member states.

He said the fact that China and the US operated on distinctly different systems did not mean that countries needed to stop dealing with them if they faced any problems.

“I would want Malaysia to be closer to the United States, as much as we are very much close to China,” Anwar said, adding that he would meet China’s Premier Li Qiang in Nanning later this week, and attend the 2023 Apec meeting in Seattle at US President Joe Biden’s invitation in November.

Anwar and Cambodia’s new Prime Minister Hun Manet are among regional leaders expected to attend the annual China-Asean expo in Nanning.

“This idea that you either have to be with China or the United States … no,” Anwar said. “Why should we suffer and be told what to do? We must be fiercely independent, as independent nations.”

Anwar said it was only to everyone’s benefit that the two superpowers worked towards de-escalating tensions, which had a direct effect on trade and investments in Southeast Asia.

“I think the world needs Asean to … keep centrality as the thrust of its foreign policy to continue to have effective engagement with China and the United States,” Anwar said.

A 1MDB billboard at the fund’s flagship Tun Razak Exchange development in Kuala Lumpur, Malaysia. File photo: Reuters

1MDB saga not over

Anwar said his administration would also continue to pursue US investment bank Goldman Sachs to renegotiate a new settlement over its role in 1MDB.

“Malaysia suffered immensely due to the excesses of 1MDB. It could not have happened in the manner it did without the complicity of international financial institutions, in this case, particularly Goldman Sachs,” he said.

The bank had “not been forthcoming” when asked to renegotiate the settlement, said Anwar, adding that it should return “most” of the money from the 1MDB deal.

He said he had not set any timeline to renegotiate the settlement with Goldman Sachs, but stressed that the government was prepared to go all the way to recover the funds.

“You cannot shy away. You can’t. You can’t consider us some banana republic that you can squander and leave us alone,” Anwar said. “It is not my money, and I owe it to my people, the money has to be returned to the people for their education, their public health, for their basic amenities. You can’t, therefore, ignore this.”

Anwar had earlier said Malaysia could file lawsuits against the bank to recoup more funds, as a 2020 settlement of US$2.5 billion in cash and a guarantee on the return of US$1.4 billion in assets did not go far enough.

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