Statement: Effectiveness of Anti-Corruption Investigations Stained by Flawed MACC

8 DECEMBER 2022

Effectiveness of anti-corruption investigations stained by flawed MACC

Prime Minister Datuk Seri Anwar Ibrahim recently brought to light various instances of alleged mismanagement of Malaysia’s funds by the previous Perikatan Nasional (PN) government. The Malaysian Anti-Corruption Commission (MACC) seems to have taken up the mantle of investigation, announcing on 6 December 2022 that they have opened investigations into alleged PN’s misappropriation of a disputed RM600 billion, and also Ketereh MP Annuar Musa’s claim that then-Prime Minister Muhyiddin Yassin gave the United Malays National Organisation (UMNO) millions of ringgit to help the party during the 2020 Sabah elections.

Be that as it may, the Center to Combat Corruption and Cronyism (C4 Center) is of the strong view that these investigations will only continue falling flat unless the MACC is drastically reformed and undergoes an immediate overhaul in leadership. The MACC’s inability to adequately tackle corruption in government has ruined its own credibility, resulting in a serious trust deficit between the public and the MACC. 

Chief Commissioner Azam Baki has repeatedly indicated that he puts his self-interests above those of his held office. In late 2021, a journalist published articles based on publicly-available documents about Azam’s ownership of millions of shares in two publicly-listed companies while he was the head of MACC’s investigations department. Azam retaliated by suing them for defamation in a shameless and hypocritical act of whistleblower persecution. He then used this defamation suit as one of many excuses not to appear before a Parliamentary Select Committee (PSC), showing his contempt for oversight mechanisms. He has also publicly spoken against placing the MACC under Parliamentary supervision. 

MACC’s recent announcements of investigations are received with a hefty amount of scepticism. Crucially, it must be noted that the subjects of investigation (Perikatan Nasional government, Muhyiddin Yassin himself and the alleged monies given to UMNO) were still governing Malaysia when the initial allegations were made public before the 15th General Election. A key question arises: why were investigations not initiated then, but only now when Perikatan Nasional is no longer in government? 

Unfortunately, this is not a problem with Azam Baki alone – the MACC has shown a pattern of unwillingness to initiate investigations against standing leaders in government. Disgraced former Prime Minister Najib Razak was only investigated and charged in court regarding the 1MDB scandal after his Barisan Nasional government was voted out of power in 2018. In a similar vein, former Penang Chief Minister Lim Guan Eng was only investigated for bribery in the Penang undersea tunnel case after the Pakatan Harapan was ousted and replaced by Perikatan Nasional in 2020. 

Worse still is that MACC’s lack of independence has ostensibly led to its abuse by the government either as a tool of suppression or simply an ineffective bystander. Dr Xavier Jeyakumar formerly of Parti Keadilan Rakyat (PKR) left the opposition party and pledged support to the PN government in 2021 allegedly due to selective investigation by the MACC – but if the MACC had substantive leads on this, why were the investigations dropped? This also brings to mind the unfettered powers held by the government, particularly the ability of the Prime Minister to exercise control over the MACC’s investigations through other institutions – the 1MDB saga saw MACC’s office raided by the police in an attempt to hamper investigations. 

It is clear that the MACC in its current state simply cannot function unless thorough systemic reform is implemented. With that, C4 Center strongly urges the following: 

  1. Azam Baki must be removed from his position as Chief Commissioner of MACC and replaced with an individual who has a demonstrable track record of excellent anti-corruption work.
  2. A Special Committee must be set up immediately to implement the long overdue reforms to the structure of the MACC, involving an amendment of the Federal Constitution for the establishment of the Independent Anti-Corruption Commission (IACC), effectively establishing it as Constitutional Commission.

Currently, the MACC comes under the jurisdiction of the Prime Minister’s Office from which it also receives funding. MACC is thus not independent from the executive branch of government, opening it to the possibility that its exercise of investigative powers could be influenced and limited by the government, particularly if individuals in government engage in corrupt activities. Establishing an IACC would greatly curtail this influence, freeing it from political influence and allowing it to function properly as an anti-corruption enforcement agency.

C4 Center, in collaboration with the Malaysian Bar Council, Institute for Democracy and Economic Affairs (IDEAS), Transparency International Malaysia, and Citizens’ Network for a Better Malaysia, made this call in the Joint Memorandum for the Reform of the Malaysian Anti–Corruption Commission (the Memorandum) in 2015 at the request of the MACC itself.

  1. Amendments to the Whistleblower Protection Act, Official Secrets Act, and the enactment of a Freedom of Information Act at the Federal level must be implemented. These laws relate to the need for disclosures by insiders on corrupt practices that have taken place intentionally hidden from public view. Particularly, the scope of the Official Secrets Act must be greatly reduced because it has granted government officials disproportionate powers to hamper investigations on the basis of “secrecy”. This recommendation was also made in the Memorandum.

END OF STATEMENT

Issued by: 

Center to Combat Corruption & Cronyism (C4 Center)

For further enquiries, please contact: 

info@c4center.org 

012-379 2189 / 03-7660 5140Website: https://c4center.orG

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