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Abdullah opens Pandora's box of corruption
By Anil Netto

PENANG - With a general election looming, Malaysian Prime Minister Abdullah Badawi has been eagerly promoting his government's recent crackdown on corruption. But he may have opened a Pandora's box, with demands for further action increasing and getting more vociferous. The premier, who recently completed 100 days in power, seems only to have whetted the appetites of Malaysians after the arrests last week of a former industrialist and a relatively little known serving cabinet minister.

As part of Malaysia's stepped-up attempts to crack down on corruption, the government last week charged Lands and Cooperative Development Minister Kasitah Gaddam, and tycoon Eric Chia, the former head of troubled steel giant Perwaja, with graft. Both cases date back to the time when Mahathir Mohamad was in power, and their arrests seem to provide evidence that Abdullah is serious about rooting out corruption.

Many Malaysians are now demanding more corruption-related arrests, and this time they are calling for the arrests of more prominent figures in the cabinet and the business world associated with the administration of former premier Mahathir. On a popular weblog, Malaysians are calling for the heads of several of Mahathir's senior cabinet ministers, a couple of whom are now serving in Abdullah's own cabinet.

As a result, Law Minister Rais Yatim recently announced that the Anti-Corruption Agency has completed investigations into 18 more high-profile corruption cases, which are currently with various authorities and awaiting further action. These cases, Rais said, involved "high-ranking individuals and decision makers".

But the ties to corruption seem endless. In coffee shops and homes, the question each time an arrest is made is, "What about this cabinet minister or that tycoon"? At times, the questions get a bit more uncomfortable: "How could Mahathir have allowed all this to happen in his administration?"

Mahathir's history of corruption
It was Mahathir who handpicked Eric Chia to head ailing steel giant Perwaja Steel. Even when it was clear that Perwaja was sinking, the firm was allowed to accumulate losses totaling RM11 billion (US$2.9 billion). "There is a very strong prima facie argument that the previous administration had protected Eric Chia all this while," said one political scientist, who declined to be identified.

During Mahathir's tenure as well, Bank Negara lost RM20-30 billion as a result of foreign currency speculation while Bank Bumiputra (now merged into Bumiputra Commerce) had to be repeatedly bailed out. The previous administration also did not believe in calling for open tenders for many major infrastructure projects, preferring to hand them over to a coterie of politically well-connected tycoons and firms.

With this in mind, there is still considerable mainstream support for Abdullah's crusade, boosted by glowing editorials in the mainstream press. But as the days pass, it is anyone's guess whether the public will be satisfied unless the crusade goes all the way.

And if the public isn't satisfied, it could mean trouble for Abdullah - who is expected to call for a snap general election soon to legitimize his position ahead of United Malays National Organization (UMNO) party elections, expected to be held in the middle of the year - particularly when the split in Malay voters and disquiet in the Malay heartland still lingers.

On February 11, opposition sources said a crowd estimated at close to 20,000 packed the obscure village of Kota Sarang Semut in Kedah, Mahathir's home state, for the launch of the joint manifesto between Keadilan and PAS (Parti Islam Se-Malaysia), the two remaining parties in the opposition Alternative Front. (A third party, the Democratic Action Party, pulled out of the alliance soon after September 11, 2001, citing differences over PAS's goal of setting up an Islamic state.) Difficult negotiations over seat allocations between Keadilan and the DAP (Democratic Action Party) - to ensure straight fights between the ruling coalition and the opposition and prevent a split in votes for the opposition - are continuing.

Abdullah needs to lead the ruling coalition to a comfortable win in the coming general election to ward off potential challengers for the UMNO leadership. He has correctly identified a couple of the main issues that sowed the seeds of discontent in the previous administration - corruption and abuse of police powers that provoked outrage on the streets during the heyday of reformasi demonstrations.

Before his first 100 days were up, he set up a Royal Commission to look into police operations and he is now in the midst of his anti-corruption crusade, steps that seem to be moving him in the right direction. However, critics say he has merely deflected some of the heat these issues have generated and deferred the real action - the outcome of the Royal Commission's inquiry and court decisions on the corruption cases - until after the general election.

In addition, questions are still being asked about the role of Scomi Group, controlled by Abdullah's son, which is alleged to have produced delicate parts needed to enrich uranium for nuclear bombs. One opposition party official told Asia Times Online he believes that it was more than just a coincidence that the two corruption arrests last week, aimed he said "to deflect public attention", came at a time when the United States had pointed an accusing finger at Malaysia for its alleged role in a wider nuclear smuggling network. In response, Abdullah has denied the US claims and Scomi threw open the doors to its factory in a bid to clear its name. Meanwhile, Scomi Group Bhd has just reported a pre-tax profit of RM21 million on sales of RM162 million for the year ended December 2003.

Critics also point out that Abdullah's treatment of the individuals implicated in the Scomi uproar differs from his treatment of alleged Jemaah Islamiah militants. As Home Minister, Abdullah is responsible for their detention without trial and continued incarceration - some of them for more than two years - under the harsh Internal Security Act.

Others, like Keadilan Youth leader Ezam Mohd Nor, have not failed to notice that the duo arrested for corruption last week were allowed bail, while ex-deputy premier Anwar Ibrahim, who is serving 15 years in prison on corruption and sodomy charges, has failed in his bail applications since his arrest and jailing in 1998.

Anwar may have added to Abdullah's agenda
Pro-reformasi activists say the pro-democracy movement that was unleashed following Anwar's ouster in 1998 must take some credit for pushing corruption, abuse of power and cases of police brutality to the top of Abdullah's agenda. After all, they say, it was Anwar who revealed in Parliament in 1996 that Perwaja was bleeding heavily.

During the heyday of reformasi in 1998-2001, the demands for an end to corruption, abuse of power and human rights violations reverberated on the streets. A tearful Mahathir announced his resignation to his party's general assembly in 2002, never really explaining the real reasons for his emotional decision. He finally handed over power to Abdullah in October 2003.

When Anwar was ousted in 1998, ethnic Malays, who make up just over half the population, deserted the dominant United Malays National Organization in droves. The opposition Islamic Party, PAS, riding on the wave of outrage, proved to be the biggest winner in the 1999 general election. But through it all, UMNO has cast a wary eye on Anwar's fledgling political vehicle, Keadilan. Key second-echelon leaders - the vital link between the party leadership and the grassroots - were detained without trial in 2001 under the Internal Security Act. They have since been released. And once again the reformasi movement has taken to the streets to demand Anwar's freedom before the upcoming general elections. They staged a rally on Saturday night in front of Anwar's family home in Cherok To-kun on mainland Penang.

One speaker said the reformasi movement's rallying cry should now include "Tangkap Mahathir, tangkap!" (Catch Mahathir), apart from "Reformasi!" and "Bebaskan Anwar!" (Free Anwar!). Several independent observers present estimated the turnout to be at least 10,000. But the pro-establishment New Straits Times cited police as saying that only 2,300 had turned up.

But judging from the crowd's response, Anwar could remain a central issue in the next general election. Almost all the politicians present made frequent references to his plight and there was little talk about the Islamic state issue. The crowd sat glued to a large screen, on which were projected videos of Anwar's arrest in 1998 and his rallying speeches. They chanted "reformasi", waved placards, and bobbed candles in the night air as leaders declared Anwar a political prisoner.

One opposition party politician present told Asia Times Online that he disagreed with the Alternative Front's bid to make Anwar's plight the central theme of its campaign. He said what was more important was for grassroots issues and the people's struggle for human rights, economic empowerment and social justice to be highlighted. An independent media analyst, on the other hand, felt that the reformasi movement, like similar movements elsewhere, still needed an icon or a rallying symbol like Anwar to keep the struggle for democratic reforms alive.

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Feb 18, 2004



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