Top Malaysian Graft Buster Says the Government Is ‘Meddling’ in Massive Corruption Probe

The ongoing scandal has galvanized popular hostility toward the government

For weeks, Malaysian Prime Minister Najib Razak has sat at the center of the largest corruption scandal in the country’s history, besieged by allegations that he personally pocketed around $700 million from a state development fund called 1Malaysia Development Berhad (1MDB). Now, Najib’s government is being accused of obstructing an independent investigation into the scandal.

“There is — apparently — some meddling going on,” Tunku Abdul Aziz Ibrahim, who chairs the advisory board to the anticorruption commission investigating the 1MDB case, said in an interview with the BBC. “I think that … there has been interference, and I think it is unfortunate. It was ill-advised on the part of the government to have made all these changes while the investigation was ongoing.”

Read more on Time.Com

Investigators Believe Money Flowed to Malaysian Leader Najib’s Accounts Amid 1MDB Probe

Malaysian investigators scrutinizing a controversial government investment fund have traced nearly $700 million of deposits into what they believe are the personal bank accounts of Malaysia’s prime minister, Najib Razak, according to documents from a government probe.

The investigation documents mark the first time Mr. Najib has been directly connected to the probes into state investment fund 1Malaysia Development Bhd., or 1MDB.

Mr. Najib, who founded 1MDB and heads its board of advisors, has been under growing political pressure over the fund, which amassed $11 billion in debt it is struggling to repay.

The government probe documents what investigators believe to be the movement of cash among government agencies, banks and companies linked to 1MDB before it ended up in Mr. Najib’s personal accounts. Documents reviewed by The Wall Street Journal include bank transfer forms and flow charts put together by government investigators that reflect their understanding of the path of the cash.

The original source of the money is unclear and the government investigation doesn’t detail what happened to the money that went into Mr. Najib’s personal accounts.

“The prime minister has not taken any funds for personal use,” said a Malaysian government spokesman. “The prime minister’s political opponents, unwilling to accept his record or the facts, continue to try to undermine him with baseless smears and rumours for pure political gain.”

More on The Wall Street Journal 

Malaysia’s 1MDB Delays Loan Payment Again

Malaysia’s 1MDB Delays Loan Payment Again

KUALA LUMPUR—Malaysian state-owned investment firm 1Malaysia Development Bhd. missed another deadline to repay a $550 million loan over the weekend, although people familiar with the matter say it is edging closer to sealing a financing arrangement with local tycoon Ananda Krishnan to help pay off the debt.

Source : WSJ

2014 Corruption Perceptions Index Results

The 2014 Corruption Perceptions Index (CPI) results were launched today, announcing Malaysia’s ranking as:

2014 Country Rank: 50/175

2014 CPI Score: 52/100

The results have improved compared to last year’s which were:

2013 Country Rank: 53/177

2014 CPI Score: 50/100

Although Malaysia has climbed the ranks, TI-Malaysia still urges the Malaysian Government to take on board its 7 recommendations to ensure greater improvement. Amongst these are: strengthened political will, amend Section 36 of the MACC Act, implement a Political Party Financing Act, eligibility to join the Open Government Partnership, practice open tender, establish a multi-disciplinary task force by the Auditor-General’s department which has intervention powers, and for Malaysia to spearhead an ASEAN anti-corruption action plan.

The full list of recommendations and results can be found in the presentation below:
CPI 2014 Presentation_Final

Source : Transparency International Malaysia

Business Corruption in Malaysia

The level of corruption in Malaysia is considered relatively low in the region of South East Asia, and corruption is punished under existing laws such as the Malaysian Anti-Corruption Commission Act. The Malaysian Anti-Corruption Commission (MACC) was established to provide for offences and penalties for private and public sector corruption. However, the overall effectiveness of the Commission is hampered by the lack of capacity and technical skills in some areas. The government of Malaysia recognises corruption as an important problem in the country and has taken steps to address the problem through, for example, the introduction of the Corporate Integrity Pledge in 2011 and the Whistleblower Protection Act in 2010. 

Government procurement is an area subject to corruption, and closed-door negotiations are allowed for public procurement in cases where it is possible to help local companies obtain a foothold in the economy through the acquisition of a tender. Government favouritism towards Bumiputera (ethnic Malays and other Malaysian indigenous peoples) companies for small public contracts continues to exist. Moreover, the policies of awarding huge infrastructure projects to selected Bumiputera companies without open tender and of giving special licences to the same group has encouraged corruption between public officials and domestic and foreign companies. In order to reduce corrupt practices and enhance transparency in the procurement process, MyProcurement, a new government tender portal, was launched in April 2010. 

February 2014
GAN Integrity Solutions

Source : Business Anti-Corruption Portal