Topic: Some cash-rich foundations not audited, donors unknown, says group
Coverage by: Free Malaysia Today
Related news: https://www.freemalaysiatoday.com/category/nation/2021/04/12/some-cash-rich-foundations-not-audited-donors-unknown-says-group/
PETALING JAYA: With Umno president Ahmad Zahid Hamidi’s court case involving the alleged misuse of millions belonging to Yayasan Akalbudi ongoing, the spotlight has fallen on foundations flush with funds led by politicians.
A report by the Center to Combat Corruption and Cronyism (C4), titled “Foundations and Donations: Political Financing, Corruption, and the Pursuit of Power”, said more transparency is needed as some of the foundations are not audited and have unknown donors.
C4 is calling for the Political Financing Act to be tabled in Parliament as soon as possible.
According to the report, a search with the Companies Commission of Malaysia (SSM) showed that former prime minister Najib Razak was also involved in nine foundations.
Among them are the Noah Foundation, Yayasan Rahah and Yayasan 1MDB.
Prime Minister Muhyiddin Yassin was involved in seven foundations, and is believed to be still active in Yayasan Nurul Yaqeen and TSM Charity Golf Foundation, both privately owned.
The report said the golf foundation was recognised in May 2010 and granted tax exemption by the finance ministry in 2011. “The foundation has accumulated RM27 million in donations since its inception in 2003, channelling about RM24 million to charitable bodies,” it said.
It said opposition leader Anwar Ibrahim was linked to Yayasan Aman for religious purposes.
In the report, Edmund Terence Gomez, a professor with Universiti Malaya’s economics and administration faculty, said several lessons can be learnt from the current court cases.
He said some of the foundations are family run and others controlled by politicians, and there are “suggestions” of abuse of power, donations for personal enrichment, secret war chests, buying support from the grassroots, and illicit donations.
This, he said, leads to patronage politics, while vote buying and treats have become commonplace during party and general elections.
“The playing field for party posts is also made unequal, allowing incumbents to remain in power for a prolonged period,” he said.
Gomez said although both Najib and Dr Mahathir Mohamad as prime ministers had spoken of a need to regulate political financing, both had delayed implementing the Act.
“The current Perikatan Nasional coalition has been silent on the issue, although Muhyiddin stressed that he would tackle corruption in his inaugural speech,” he said.
Launching the report today, Segambut MP Hannah Yeoh said opposition members are given RM100,000, which is not adequate as monthly operations may come up to RM30,000.
“MPs in urban areas may find it easier to raise funds but those in rural areas may find it easier to defect (to the ruling government),” she said.
She urged the Malaysian Anti-Corruption Commission to work with C4 and ensure that the accounts of the foundations are audited.
Gomez, who was at the launch, said the report may only reflect the tip of the iceberg. He said there is a “serious lack of accountability and no political will” as the Political Financing Bill is still with the Attorney-General’s Chambers.
“Is political money being used in party hopping. Where is the money coming from?” he asked.
C4 executive director Cynthia Gabriel said political funding through foundations often escapes the attention of pressure groups and the media.
“Some of the foundations are not even registered but are getting millions of ringgit.
“Even law firms are part of the network,” she said, adding that people need to question when donating to welfare and religious foundations as they may be abused “in a big way”.
