Sabah Corruption Scandal: Now is the time to introduce a Political Financing Act

5 FEBRUARY 2025

PRESS STATEMENT

On 3 February 2025, it was reported that the whistleblower who exposed a series of videos implicating Sabah assemblypersons in an alleged corruption scandal has claimed that state Governor Musa Aman’s son-in-law, Mohd Arifin Mohd Arif, offered a settlement to silence him. The whistleblower also revealed that the alleged settlement included reinstating his revoked mineral exploration licences in exchange for issuing a pre-written public statement declaring that the funds were political donations. The Center to Combat Corruption and Cronyism (C4 Center) demands that the Madani government take these allegations seriously and expand investigations into this matter, and also to treat corruption as a matter of significant public interest. 

The pre-written statement that the whistleblower was asked to release as his own words contained claims such as:

  • What had transpired between himself and Sabah Chief Minister Hajiji Noor in his first whistleblowing to Malaysiakini was a “misunderstanding” and that the whistleblower was prepared to set the record straight;
  • That the “contributions” made to the Sabah state assemblypersons were actually political donations that were similarly made to other parties including UMNO, Star, and PBS. The whistleblower later told Malaysiakini that the contributions to the Sabah state government were never donations. 

Furthermore, the whistleblower also alleged that Arifin acted as an intermediary between him and Hajiji Noor, who “promised” to reinstate mineral exploration licenses so long as the pre-written statement was released by the whistleblower. Hajiji Noor allegedly stated that he would agree to return the licences, but the company name had to be changed, and a new application had to be submitted to avoid any controversy. 

These allegations reveal the degree to which corruption risks have deeply rooted themselves in Malaysia’s political system. Firstly, the pre-written statement demonstrated that political donations have become so normalised, accepted, and unregulated within the system that politicians are under the impression that it can easily be used to dispel allegations of corruption against them. There is no consideration made to whether or not these “donations” would need to be justified or corroborated with documentation further down the line. In doing so, these allegations illustrate what anti-corruption advocates and civil society organisations have long claimed – that political donations are a smokescreen to obscure money politics and the formation of crony networks and favours.

Secondly, these allegations also demonstrate the amount of power Chief Ministers have over the disbursement of state government contracts and permits to private entities, so much so that a promise to reinstate the permits to the whistleblower’s company can be done simply, ostensibly on the unilateral discretion of the Minister. It is also incredibly revealing that Hajiji was able to provide advice on how the company must be renamed and the application resubmitted in order to avoid detection, showing almost certainly that this is the modus operandi to ensure contracts go to pre-selected individuals and entities. 

Demands for change are growing louder

In the wake of these allegations, the Madani government has done little about political financing reform, despite the clear need for such regulations. The government has, however, been vocal in discouraging public protest against corruption.

Two rallies were organised by the Sekretariat Rakyat Benci Rasuah, a primarily student-led group, in response to the Sabah state government corruption scandal and to also spur the government to enact anti-corruption reform – most recently on 25 January 2025 in Kuala Lumpur. Shamefully, 13 students were summoned by the police to give their statements regarding their organisation and participation in the Himpunan Rakyat Benci Rasuah rally.

It is shameful that the government, the police force, and university administrators have issued statements and threats against a grassroots anti-corruption movement demanding a cleaner Malaysia – even more so when these same parties apparently have little to say about the corruption scandal unfolding in Sabah, which ignited the movement in the first place.

C4 Center has repeatedly interrogated the Madani government’s self-proclaimed commitment to anti-corruption, and these events have cast doubt on that commitment even further. Investigations and enforcement by the Malaysian Anti-Corruption Commission are not a permanent solution to resolve the systemic rot in our institutions — the Madani government must revive the political financing agenda and table the relevant Act in Parliament. 

Hence, we demand that the government: 

  1. Introduces a Political Financing Act alongside other regulations that ensure political financing is transparent and accountable;
  2. Separate the offices of the Attorney General and Public Prosecutor such that high-profile prosecutions are free from perceptions of political interference;
  3. Halt the intimidation of student anti-corruption protesters and other members of the Sekreteriat Rakyat Benci Rasuah and ensure that future rallies and demonstrations are protected under the right to freedom of expression and association.

END OF STATEMENT

Issued by:

Center to Combat Corruption & Cronyism (C4 Center)

For further enquiries, please contact:

c4center@gmail.com

019-216 6218

Website: https://c4center.org

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