Malaysian minister calls for update on ‘corporate mafia’ probe

A Malaysian minister urged the country’s police chief to clarify the status of investigations into allegations that a network of businessmen was colluding with anti-graft agency officials to oust executives.

The government has ordered law enforcement agencies, including the Malaysian Anti‑Corruption Commission (MACC), to probe the allegations involving the businessmen, nicknamed the corporate mafia. So far, the police say they have found no evidence of the MACC’s involvement.

“It is going to be about two months since the Cabinet expressed concern and called for a full investigation,” Digital Minister Gobind Singh Deo – national chairman of the Democratic Action Party, the largest party in Malaysia’s ruling coalition – said in a Facebook post. “Transparency is paramount.”

The Securities Commission Malaysia should also state what steps it has taken to address this, Mr Gobind said. The regulator would have jurisdiction over the matter if there is any market manipulation involved by the use of force or other measures to transfer shares in any company, he added.

Spokespeople at the police headquarters, the Securities Commission, MACC and Prime Minister Anwar Ibrahim’s office did not respond to requests for comment.

The MACC and its current chief commissioner, Mr Azam Baki, have been under scrutiny since Bloomberg News published two reports in February.

One focused on Mr Azam’s shareholdings in a financial services firm that were worth more than the allowed limit for public officials. The other was on the corporate mafia network. The MACC and Mr Azam denied the allegations of wrongdoing in the reports.

In April, the government named Mr Abdul Halim Aman, a former High Court judge, as the next anti-graft chief, taking over from Mr Azam after his term ends on May 12.

The Inspector-General of Police must clearly state whether those cited in the reports have been questioned, and outline the subsequent steps to be taken, Mr Gobind said. 

“Given the specific allegations involving named companies and individuals, the probe must be exhaustive, extending to every person, entity and MACC officers implicated in the complaints,” he said.

“This is a matter of significant public interest, as the integrity of our markets and national institutions is at stake,” he added.

The allegations “must be resolved strictly in accordance with the law”, Mr Gobind said. BLOOMBERG