Andrew Harding, NUS
East Asia Forum
11 September 2015
As it tussles with multiple crises of political legitimacy and governance, Malaysia has reached a decisive point in its more than half-century history as an independent nation. What started as a shocking but not exceptional scandal has turned into a political crisis of unprecedented proportions. This was underlined by the Bersih 4 protests on 29–30 August in Kuala Lumpur, attended by an estimated 250,000 yellow-T-shirted Malaysians.
First, it was discovered that a development agency, 1 Malaysia Development Berhad (1MDB), set up by Prime Minister Najib Tun Razak in 2009, was in debt to the tune of RM42 billion (US$9.6 billion). Where, it was asked, did this vast sum of money go? What mismanagement or corrupt practices led to such a meltdown?
Then it was reported that the sum of RM2.6 billion (US$700 million) had shown up in Najib’s personal bank account. It has been admitted— in instalments —that this money was indeed placed in that account, but it is claimed to have been ‘donated’ from Middle Eastern sources as recognition of Malaysia’s role in fighting ISIS and maintaining Sunni Islam. Given the timing (just before Malaysia’s general election in 2013) and Najib’s claim that the funds were used for party political purposes, the money was clearly intended and used to ensure victory for the ruling Barisan Nasional (BN) coalition, led by Najib’s UMNO (United Malays National Organisation) party.
Najib claims that nothing about this was illegal, given the current lack of statutory control over campaign spending, maintaining that he held the funds in trust for his party. But since BN won the election with a clear minority of votes, yet a majority of the seats in parliament, the legitimacy of the result was already in serious question even before the donation scandal came to light.
It gets worse. Najib’s response to attempts to get to the bottom of these matters has raised further questions about accountability and governance in Malaysia under BN rule. At first he was reluctant to give any explanation. Ultimately, denials followed by evasive answers raised many further questions. Continue reading “Malaysia’s troubles just beginning”