Malaysia’s Anwar promises ‘full disclosure’ as ‘corporate mafia’ scandal grows

Malaysia’s government will publicly release the findings of a special task force on corporate malfeasance in three months, Prime Minister Anwar Ibrahim said on Tuesday, as his administration seeks to appease public anger over its perceived failure to clamp down on corruption.

Anwar is facing a reckoning in the final stretch of his term after his ruling Pakatan Harapan coalition was handed bruising defeats in three state elections over the past year. Former supporters have accused the coalition of abandoning its promised reforms in favour of a political compact with former ruling party Umno.

Public discontent has been compounded by allegations of a so-called “corporate mafia” involving officers from the Malaysian Anti-Corruption Commission (MACC), who were alleged to have coerced stake sales and corporate takeovers.

The MACC and Azam Baki – who was chief commissioner at the time and was himself accused of holding stocks well above government-mandated limits – have denied the allegations, which were first reported by Bloomberg in February.

Anwar said he had instructed the Attorney-General’s Chambers to form a special task force on corporate crime made up of representatives from the central bank, the police, the MACC, the Securities Commission and other relevant agencies.

“The task force will prepare a report within three months. This report will be a government report, and I have asked that the report be presented to the public,” Anwar told parliament in a question and answer session.

Anwar’s assurance comes months after allegations emerged that individuals close to him and his party were linked to “corporate mafia” dealings.

The controversy followed disclosures by prominent investor Victor Chin Boon Long, who accused former Anwar aide Farhash Wafa Salvador Rizal Mubarak of using enforcement agencies to force a boardroom takeover at IT firm NexG.

NexG currently holds 2.5 billion ringgit (US$612.3 million) worth of contracts to supply passports and national identity cards to the government.

Farhash denied the allegations, saying he had no knowledge of any campaign to take control of the company.

Chin also alleged that he had paid 9.5 million ringgit to a lawmaker from Anwar’s People’s Justice Party, whom he identified only as “Mr R”, on the promise that the politician would help settle a problem with the “corporate mafia”.

Human Resources Minister Ramanan Ramakrishnan later denied that he was the individual in question and challenged Chin to reveal the identity of “Mr R”.

Anwar said at no point had his administration attempted to cover up any wrongdoing, even when it involved members of his own party. He pointed to the case of his former political secretary, Shamsul Iskandar Mohd Akin, who was charged last December for allegedly receiving some 240,000 ringgit in bribes.

The prime minister added that the government had frozen or seized assets and shares worth around 5.3 billion ringgit and issued 1.1 billion ringgit in compound fines for offences related to corporate crime.

The public release of the task force report would serve as further proof of his administration’s commitment to transparency, Anwar said.

“This will show that there is no one that is protected. Be it Azam Baki, Farhash, Victor Chin … we will allow for full disclosure,” he said.