Anwar aide dismisses minister’s call for royal inquiry into Malaysia’s anti-graft agency

KUALA LUMPUR: An aide to Malaysian Prime Minister Anwar Ibrahim has brushed aside a minister’s call for a royal commission of inquiry (RCI) to probe allegations by a news outlet that Malaysia’s anti-graft agency colluded with a group of businessmen in corporate tussles.  

Such a high-level inquiry should not rest solely on speculation or innuendo, and would require substantial proof rather than unsubstantiated claims, said Kamil Munim, Anwar’s political secretary in the Finance Ministry, in a statement on Tuesday (Feb 24). Anwar is also Finance Minister.

His statement came hours after Transport Minister Anthony Loke said he would propose an RCI on the matter at a Cabinet meeting on Friday. 

Loke, who is secretary-general of the Democratic Action Party (DAP), said the government’s response to Bloomberg’s allegations – published in an investigative report on Feb 11 that cited internal documents and interviews with witnesses – had been “inadequate”.

Kamil said he respected any proposal to set up an RCI and agreed, “in principle, that the truth must be determined through a transparent process grounded in the law”.

“In a country that upholds the rule of law, any action must be grounded in established facts and credible evidence,” he was quoted as saying by news outlet Bernama.

An RCI, Malaysia’s highest form of public inquiry, is a fact-finding body convened by the king on the advice of the Cabinet. It looks into matters of “considerable public importance” and controversy, including the conduct of government officers and public service departments. 

An RCI typically consists of ex-judges tasked to inquire and turn their findings into a report. It does not have the power to charge individuals or impose sentences.

Kamil said existing processes, whether investigations, inquiries or special committees, should be allowed to run their course. They have the mandate and capacity to fully gather and assess evidence, he said.

POLICE INVESTIGATING, SAYS MACC

In a statement on Tuesday night, the MACC said the Royal Malaysia Police was investigating the matter and that it would cooperate fully.

MACC “strongly denied” the existence of any alleged “corporate mafia” and said it “completely rejects these unfounded allegations”. 

It added that the allegations in Bloomberg’s article appeared to have originated from an online blog “with no identifiable owner, author, or clear accountability”.

“The Commission views the dissemination of such false accusations with utmost seriousness, particularly when they may undermine public confidence in lawful enforcement actions,” it said in its latest response to the Feb 11 article.  

The MACC previously said in a statement on Feb 12 that it "categorically rejected" any suggestion or insinuations that its investigations are influenced by private interests. 

"All investigations undertaken by MACC are conducted strictly in accordance with the law, guided by evidence, and carried out independently without fear or favour," it had said. 

The MACC asserted on Tuesday the accusations were an attempt to discredit its investigations and enforcement action within the corporate sector, especially against parties who may be affected by ongoing legal proceedings. 

“MACC emphasises that all investigations are conducted based on evidence, in accordance with the law, and subject to established legal processes,” it asserted.

“The spread of baseless allegations originating from unverifiable sources risks misleading the public and undermining confidence in enforcement institutions. Such actions may be regarded as the dissemination of false information and defamation.”

The agency urged those with credible information relating to corruption or misconduct to lodge an official report with the relevant authorities for investigations to be carried out in an “orderly and fair manner … rather than through trial by media or publications that lack solid evidence”.

The government has also said it will form a special committee to investigate another matter, involving MACC chief commissioner Azam Baki and reported by Bloomberg a day before its “corporate mafia” article.

Bloomberg had reported that Azam was listed as holding 17.7 million shares in financial services company Velocity Capital Bhd, citing the company’s annual filing with the Companies Commission of Malaysia dated Feb 3 last year. The stake would be worth almost RM800,000 based on Feb 9’s closing price, well above the RM100,000 limit allowed for public servants. 

After the story was published, Azam said he had acquired the shares in early 2025 and sold them that same year. He maintained he had acted within the rules.

The special task force looking into this issue will be led by Malaysia's Chief Secretary to the Government Shamsul Azri Abu Bakar.

Azam has since filed a lawsuit against Bloomberg over the article on his shareholding, seeking RM100 million in damages.  

GOVERNMENT RESPONSE “INADEQUATE”, SAYS LOKE

Allegations of the so-called "corporate mafia" scheme represented a far graver issue than the shareholding controversy, Loke told news portal Malaysiakini on Tuesday.

"What is being alleged now concerns the entire MACC as an institution," he said, adding that the special task force lacked sufficient powers to investigate such claims.

Loke said he would not have needed to make a public call for an RCI if the government’s response to the controversy had been sufficient.  

"To be frank, I feel the government's response has been inadequate and does not meet public expectations," said Loke, whose DAP is part of Anwar’s unity government.  

"We first raised this proposal at the last Cabinet meeting and will continue to push for it. This is DAP's position," he said.

Unless the matter was thoroughly clarified, the MACC would continue to operate under a cloud of suspicion – a situation that would be unfair to the commission, Loke added.

After a poor showing at last year’s Sabah state polls, DAP leaders have been vocal about the need for reforms by the Anwar government.

Anwar, on his part, has said investigations into allegations and related matters involving Azam would be conducted transparently and openly, without protecting any individual.

Anwar also reportedly said he did not want the allegations against Azam to disrupt MACC’s operations, especially its investigations into high-profile corruption cases.

After passing the mandatory retirement age of 60 for public officials, Azam’s one-year contract as MACC chief has been extended thrice by the prime minister. 

Anwar has defended his decisions, saying Azam has shown “extraordinary courage” in going after powerful figures allegedly involved in corruption and abuse of power.

Azam’s current contract is due to end in May. 

Meanwhile, business portal The Edge reported that MACC’s director of legal and prosecution, Wan Shaharuddin Wan Ladin, will be transferred to the Appellate and Trial division at the Attorney General’s Chambers as its second deputy head from Mar 2.

His transfer will take effect days before the graft trial of former Prime Minister Muhyiddin Yassin that is set to begin on Mar 9. 

Muhyiddin was charged in 2023 for abusing his position as prime minister to receive bribes totalling RM232.5 million (US$59.7 million) for his political party, Parti Pribumi Bersatu Malaysia.