Malaysia’s anti-graft chief slams report over US$203,900 shareholding as malicious, misleading

KUALA LUMPUR: Malaysian Anti-Corruption Commission (MACC) chief commissioner Azam Baki has called a recent report on his RM800,000 (US$203,900) shareholding in a financial services company malicious and misleading, saying he had declared the shares to the public service department.

Azam said he bought the shares last year and disposed of them that same year, reported news outlet New Straits Times (NST).

NST's report said Azam had "described the reports questioning the transaction as malicious and misleading, adding that he is considering legal action".

Business news portal Bloomberg reported on Tuesday (Feb 10) that Azam was listed as holding 17.7 million shares in 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 Monday’s closing price and Azam was still listed on Velocity Capital’s register of shareholders at the Companies Commission as of Tuesday, according to Bloomberg. 

A 2024 Malaysia government circular, cited by Bloomberg, states that a public servant may purchase shares in a company incorporated in Malaysia but the shares cannot exceed 5 per cent of the company’s paid-up capital or RM100,000 in value, whichever is lower.

Public servants are also required to declare assets at least once every five years and at the time of purchase and sale of holdings. 

Bloomberg reported that Azam, who is considered a public official under the law governing MACC, had not publicly declared his assets. 

In response, Azam told NST on Tuesday that he had nothing to hide regarding the RM800,000 worth of shares and that the transaction had been properly declared.

“I made the declaration on this, including sources of my income, through the Human Resource Management Information System to the Public Service Department (HRMIS). All transparent.” he said, as quoted by NST.

In a statement, the MACC said the Bloomberg report contained “misleading statements and unfounded allegations”.

“The report not only affects the image and reputation of the officer concerned but also unjustifiably associates MACC with allegations of wrongdoing, which may undermine public confidence in the Commission,” it said. 

MACC added that Azam has “fully complied with the applicable asset declaration requirements”, including declarations made via HRMIS to the Public Service Department covering sources of income as well the acquisition and disposal of assets.

“Any portrayal suggesting a failure to declare assets is factually incorrect and creates a misleading impression of the integrity and governance framework governing MACC and the public service, thereby unfairly and detrimentally reflecting on the Commission as a law enforcement agency,” the statement said. 

Checks of Velocity Capital’s web portal revealed that the Bursa Malaysia-listed company was previously involved in transportation, logistics and ceramics manufacturing, according to NST.

The company is now reportedly moving towards financial services, including moneylending. 

Meanwhile, Deputy Minister in the Prime Minister’s Department (Law and Institutional Reform) M Kulasegaran said in Parliament on Tuesday that any decision regarding Azam would be made by Prime Minister Anwar Ibrahim and the Cabinet.

He also said there did not appear to be any laws specifically limiting investments by civil servants. 

“There is no concrete requirement on investment limits,” he said when winding up the debate on the motion of thanks for the Royal Address.

Earlier in the day, several backbenchers called for investigations into Azam in the wake of the Bloomberg report. 

Hassan Abdul Karim, Pakatan Harapan MP for Pasir Gudang, asked if Azam could be placed on garden leave pending a professional and fair investigation, noting how former prime ministers such as Muhyiddin Yassin and Ismail Sabri Yaakob had been investigated by the MACC.

Ramkarpal Singh, Pakatan Harapan MP for Bukit Gelugor, echoed the call and asked whether action could be taken against Azam if he was found to have owned shares over a certain limit. 

Pandan MP and former Economy Minister Rafizi Ramli raised questions about Azam’s involvement – through his shareholdings – in a network of transactions involving Farhash Wafa Salvador Rizal Mubarak, a former senior aide to Anwar, and another listed company awarded multi-billion ringgit government contracts in August and October last year.

The latter company, NexG Berhad, secured more than RM2.5 billion in government contracts, including a RM1.73 billion six-year contract from the Home Ministry to supply passports. 

NexG is a major shareholder in a third listed company MMAG Holdings. So was Farhash, who bought 462 million shares in MMAG Holdings in March last year and sold them on Dec 31. The 462 million shares were, and are still pledged to Velocity, the company in which Azam held shares.

“This means that Velocity Capital is the money-lending company involved in transactions concerning Farhash and linked to NexG Berhad, which received government tenders worth more than RM2.5 billion,” Rafizi said in a statement.

Rafizi also called on Anwar to suspend Azam from his duties with immediate effect for a comprehensive investigation into the “allegations of misconduct”, which he referred to as the ownership of shares exceeding RM100,000. 

Farhash has denied any business links with Azam, reported Malaysiakini. 

This is not the first time Azam has faced scrutiny. 

In late 2021, he was criticised by the public after a Malaysian journalist reported on his stockholdings and questioned whether they breached rules for public officials on owning and declaring assets. 

Protesters later marched in Kuala Lumpur in January 2022 calling for his resignation and arrest, reported The Star. 

Anwar has extended Azam’s one-year contract thrice after Azam passed the mandatory retirement age for public officials. 

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.