Following the money: Political financing in Malaysia

First published in The Asia Dialogue on 30 July 2019 here.

It is important to examine how political parties are financed, as this reveals who has the biggest influence on party decision-making. The questions of real concern are: does the money come with strings attached? Does this lead to political parties – and the governments they lead – compromising their political decisions and policy-making processes?

Until its fall in 2018, the National Front (Barisan Nasional) and its main component party, the United Malays National Organisation in Malaysia (UMNO), ruled Malaysia – hence it had a dominant party electoral authoritarian regime. Scholars had long documented how UMNO engaged in practices of widespread political patronage in the form of funding in exchange for business favours, which included access to contracts, speedy government approvals, and purchasing government land below its market value.

Large flows of money

UMNO’s control over the economy via government-linked companies (GLCs) also allowed it access to public resources it could wield for political purposes. Ruling for more than 60 years since the country’s independence, the lines between party and state had become increasingly indistinct. The accumulation of such resources created a grossly uneven playing field for the opposition to compete against the ruling coalition.

The 1MDB (Malaysia’s sovereign wealth fund), for instance, was revealed to be a massive political financing vehicle in the 13th general election campaign. RM 2.6 billion was found in then Prime Minister Najib Razak’s personal bank account, which he claimed was a donation from Saudi Arabia. In Najib’s ongoing trial, the Malaysian Anti-Corruption Commission confirmed that RM 212 million of 1MDB funds had been transferred to his political party, UMNO.

Essentially, the large sums of money flowing between business and political parties is symptomatic of several conditions. First, although the Election Offences Act limits campaign expenditure for individuals contesting a parliamentary seat (RM 200,000) and a state seat (RM 100,000), there are no limits on how much a party can spend during an election. Second, there is no restriction on foreign funding.

And third, political parties are governed under the Societies Act 1960, and so although they are required to submit their audited financial statement to the Registrar of Societies, they do not have to reveal the sources of their donations. The lack of transparency and accountability surrounding political financing therefore lends credibility to suspicions about how money influences politics and policy.

Efforts to reform political financing

Civil society had long called for political financing laws to be introduced. In response to Najib’s call to reform political financing in 2009, Transparency International published a book in 2011 called Reforming Political Financing in Malaysia that contained specific proposals for adoption.

Then in 2015, while embroiled in the 1MDB controversy, the government instigated a National Consultative Committee on Political Financing, which released its report in 2016. One proposal was for the enactment of a Political Donation and Expenditure Act, but no action was taken by the Barisan government to implement any of the report’s recommendations.

In the lead-up to the 14th general election in 2018, the opposition coalition Pakatan Harapan (Pakatan) released its election manifesto, which included a commitment to introduce a Political Finance Control Act which would adhere to various principles, including the state funding of parties according to a formula, identifiable sources of funding, audited accounts to be made available, a ban on political parties owning assets above RM 1 billion, and a ban on GLCs making political donations.

After coming into power in 2018, Prime Minister Mahathir Mohamed committed to tabling a new law on political financing. Following through on this, the government launched its National Anti-Corruption Plan (NACP) in January 2019, in which it commits to ‘introduce new legislation on governing political funding and to include an offence on lobbying’ by December 2020. However, at the time of writing, the National Centre for Governance, Integrity and Anti-Corruption – the government department in charge of drafting this legislation – has not yet sought consultation with civil society or members of parliament on the matter.

The future of political financing in Malaysia

In the past, opposition parties without access to such largesse resorted to raising funds through the different ad hoc ways possible: organising fundraising dinners, member contributions, and private donations. However, when the opposition Pakatan Rakyat (the previous iteration of the current Pakatan Harapan, which at the time included the Pan-Malaysian Islamic Party but did not include the yet-to-be formed Parti Pribumi Bersatu Malaysia) won over the rich, urbanised states of Selangor and Penang, this provided access to state-level resources for the first time.

Fees and allowances from political appointments – ranging from GLC directorships to elected and local council representation – were some of the ways party members could now contribute to financing their parties in a legitimate fashion. Newly in control of these rich states, the parties also had new opportunities to engage with business – another potential source of donations. Although this paled in comparison to the money available to UMNO, it nonetheless offered a platform from which to accumulate the resources necessary to face the incumbent party in the elections.

Pakatan has been in the federal government for over a year now, and to its credit, it has committed to a slew of institutional reforms. However, the institutional and legal framework that specifically governs the financing of elections and political parties has not changed. This means the new government is susceptible to the same influence from business. For example, residents are opposing a proposed development project within the vicinity of a popular park in urban Kuala Lumpur, the developers of which are connected to the Minister of Federal Territories (the ministry which oversees the administration of Kuala Lumpur).

Regulating and enforcing political financing is unpopular with many political parties as it impedes their flexibility in raising funds. Politics – and particularly elections – is an expensive business, after all. But parties ought ultimately to be accountable to their voters, not their financiers. At the very minimum, the law must ensure transparency of funding and the sources from which it flows. Failure to reform political financing puts Pakatan at risk of succumbing to the same political patronage that afflicted UMNO.

Tricia Yeoh is PhD Candidate at the University of Nottingham Malaysia and a Fellow at the Institute for Democracy and Economic Affairs (IDEAS) Malaysia.

*Articles published by The Asia Dialogue represent the views of the author(s) and not necessarily those of The Asia Dialogue or affiliated institutions.

Posted in Elections, General Politics, Transparency and Good Governance | Leave a comment

Seeking fresh leads to Beng Hock’s death

First published in the New Straits Times on 17 July 2019 here.

IT has been 10 years since the “mysterious” death of Teoh Beng Hock, the aide of a Selangor state executive councillor being investigated for his use of allocation funds in 2009.

Monday, July 15 was the anniversary of his death. To date, no party or individual has been charged.

A quick refresher: Teoh was held overnight at Malaysian Anti-Corruption Commission (MACC) Selangor headquarters to have his statement taken, but died the next day, having “fallen” to his death.

The MACC report claimed that Teoh committed suicide, but the Royal Commission of Inquiry concluded that he was driven to suicide.

However, in September 2014, the Court of Appeal unanimously ruled that Teoh’s death was caused by multiple injuries from a fall from the 14th floor of Plaza Masalam, as a result of an unlawful act or acts of persons unknown, inclusive of MACC officers who were involved in his arrest and detention.

The state of Teoh’s consciousness prior to his fall is a crucial pillar of the suicide theory.

Three different forensic pathologists who were present at the second post-mortem — Dr Shahidan Mohd Noor, Dr Peter Vanezis and Dr Porntip Rojanasunan — concluded that Teoh sustained a pre-fall injury at the neck region, which the inquest’s coroner also agreed with, and the Court of Appeal referred to when concluding that there was foul play.

Dr Porntip held that he wasn’t conscious, as did one Court of Appeal judge.

If Teoh wasn’t conscious, how could he have committed suicide?

The Attorney-General recently decided to investigate Teoh’s case under section 342 of the Penal Code (wrongful confinement) instead of section 304 (culpable homicide).

Here are some aspects which should be included in the course of the investigation.

MATCH THE DNA FOUND ON TEOH’S BELT

The second DNA report prepared by Dr Seah Lay Hong stated that the DNA of “one other unknown male contributor” was detected at Teoh’s waist belt. This male contributor, who was in close proximity to Teoh before he died, has remained unidentified.

Re-collect DNA samples of all officers who were at the MACC Selangor premises on July 15 and 16 (2009) to match that of the “unknown male contributor”.

AUTHENTICATE THE ANONYMOUS LETTER BY MACC OFFICERS

According to the Malaysian Bar’s RCI submission, an anonymous letter dated Aug 5, 2009 written on an MACC letterhead made multiple allegations.

One of the allegations include that Hishamuddin Hashim (the MACC officer in charge of the operation) initially evaded the collection of his DNA sample, but later gave it in the privacy of his own office room; that it was his unique method of interrogation where he would “hold and lift a person by his belt from the front and shake him vigorously”; and that he had instructed his officers to wipe away fingerprints from the window where Teoh fell from.

The prime minister and MACC chief should make an open call for the author(s) of the anonymous letter to come forward.

The author(s) should be guaranteed protection under the Witness Protection Act 2009 (Act 696). Authenticating the letter means the investigators can use the letter’s contents.

INTERVIEW ALL OFFICERS INVOLVED IN THE CASE AGAIN

All officers involved in Teoh’s arrest and detention should be recalled for interviews.

In fact, all officers working in MACC Putrajaya and Selangor as at July 2009 should be interviewed. Those who reveal information should be guaranteed protection under the Witness Protection Act 2009.

LOCATE TEOH’S ORIGINAL STATEMENT

Teoh was interviewed twice during the course of that fateful night. The first was between 10pm and midnight on July 15, 2009, with no official statement taken. The second was between 1.30am and 3.50am on July 16, 2009, the statement of which was recorded, according to MACC.

But to date, the original statement with his original signature has never been produced. It is missing.

Only copies of the statement were made available to the RCI.

The MACC under the new chief should attempt to locate the original statement with the original signature.

COMPARE SAMPLES OF TEOH’S HANDWRITING TO ’MYSTERY NOTE’

More than a year after the inquest began, the police produced a “mystery note” which they said was found in Teoh’s backpack.

The handwriting experts were unable to match the handwriting with Teoh’s writing because no samples of Teoh’s writing was provided to the inquest or RCI.

Handwritten documents should be requested from Teoh’s family so that handwriting experts can compare them against the “mystery” note.

INVESTIGATE MACC OFFICERS FOR CRIMINAL CONSPIRACY AND OTHER OFFENCES

The relevant officers should be investigated for a range of offences as recommended by the Bar in its RCI submission.

The submission also stated that they were involved in criminal conspiracy in the cover-up of Teoh’s death, giving false evidence and fabricating evidence with respect to Teoh’s death, and that they destroyed and tampered with evidence with the intent of saving a person from punishment with respect to Teoh’s death.

It has been 10 long years of waiting. It is hoped the investigation will expand beyond merely wrongful confinement.

Time for a closure. The family and public can wait no longer.

The writer managed the case of Teoh Beng Hock’s death on behalf of the Selangor state government in 2009

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Reviving the Spirit of Federalism: Decentralisation Policy Options for a New Malaysia

This policy paper was published as Policy Ideas No. 59 for the Institute for Democracy and Economic Affairs (IDEAS) Malaysia. It can be downloaded for free here.

Introduction

Up to 2008, the spirit of Malaysia’s federalism had all but faded, given the country’s highly centralised institutions and system of political economy. It was only when five states fell to the then national opposition Pakatan Rakyat that same year that the discussion of federal-state relations, especially within Peninsular Malaysia, began to take on a more interesting tone.

Over the following ten-year period up to 2018, states – not just those run by the national opposition – began to escalate their claims on a variety of policy issues, ranging to the demands for oil rights in Kelantan, Terengganu, Sarawak, and Sabah, to self-determination of companies selected to perform waste management services in Penang and Selangor as opposed to these being selected by the federal government. Where the federal government had previously typically responded to state complaints about funding gaps by allocating more funds, the relationship between the centre and the states required a maturing beyond such paternalistic reactions.

The 2018 Pakatan Harapan general election manifesto contained a slew of offerings for such states in East Malaysia where the demands were the loudest, including returning Sabah and Sarawak to the status accorded by the Malaysia Agreement 1963, and Promise 24 even committed to “revive the true spirit of federalism”.

To read the full policy paper, click here.

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The Fall of the Corrupt

First published in theSun here, on 17 May 2018.

IN Ayi Kwei Armah’s book, The Beautyful Ones are Not Yet Born, the protagonist is a civil servant who chooses not to take bribes for favours at the expense of his children’s education and basic access to shoes. He is surrounded by friends who, unlike him, benefit from the corrupt system and live in luxury.

That is, until the regime one day falls. His friend, to escape conviction, enters the latrine and wades through faeces, symbolic of the muck of deceit he was part of. The main character is vindicated and continues to live life the way he has chosen: uncompromised honesty.

For far too long, Malaysians have become used to corruption as a way of life. It is part of the air we breathe; many businessmen are obliged to include under-the-table money to ease approval processes to government bodies, infrastructure projects are inflated in value, and deals are often shrouded in secrecy without open tenders. We have become accustomed to the rule that there is no price to pay for corruption since even the highest-level offenders can get off scot-free.

But the astoundingly swift events following the general election may give us reason to believe otherwise. After the fall of the Barisan Nasional government, Prime Minister Tun Dr Mahathir Mohamad has moved quickly to act on his promises to clean up the government.

The heads of key institutions that are said to have colluded with Datuk Seri Najib Abdul Razak in the 1MDB scandal have either resigned or been terminated. This includes the attorney-general, Apandi Ali, Malaysian Anti-Corruption Commission chief commissioner Dzulkifli Ahmad, and Treasury secretary-general Irwan Serigar (chairman of the 1MDB board). The purge of the top leadership has begun, and others who are proven to have had a hand in aiding and abetting corruption will surely also begin to quiver in their seats, now that the 1MDB case will soon be reopened.

With the formation of the new committee on institutional reforms announced two days ago, it is foreseeable too that with institutional reform will come the replacement of individuals unfit for duty. It is time for those with the best capabilities and calibre to be appointed, especially those with no record of corrupt deals.

However, the challenge is, this is the system that has existed for such a long time that undoing and untangling the complex web will not be immediate. The danger is that instead of wiping out the culture and practice of corruption, there is a new slate of cronies ready to receive the goodies from the gravy train they were waiting for all along. Switching from one group of rentiers to another would not signal real reform, only the changing of guards.

There may have been a “Malay tsunami” that is said to have happened across Malaysia, where even hardcore Umno supporters chose to switch camps to vote for Pakatan Harapan for the first time, but it is important to note that voters in different parts of Malaysia voted for different reasons.

While it may have been for governance and anti-corruption reasons in the cities, it is more likely for economic and bread-and-butter reasons in rural areas. After all, the main message of Pakatan was to abolish the GST, which was the convenient bogeyman to explain the rising cost of living. Would they expect the culture of hand-outs and “money-for-votes” to stop? Probably not – and educating a larger mass audience about the importance of good governance will take an even longer time.

But on the other hand, there is a key lesson to be learnt out of all this: that no one leader can so blatantly pocket millions of ringgit into his own personal bank account without suffering some consequences.

One week ago, we were in a place where we thought that the corrupt would always win, that the system was so deeply rotten there would simply be no alternative. Now we know it is possible to live in a world where some injustices can be righted. Will all past scandals have their truths revealed? Will the system change overnight, so that there is absolutely no corruption at government agencies? Will all past leaders have their corruption record publicly brought to court? Probably not. But there are small triumphs to be celebrated, and celebrate we must.

The unpredictable has taken place: Najib and wife Rosmah Mansor are now on the Immigration Department blacklist, barred from leaving the country. Investigations on their involvement in 1MDB, and possibly other national corruption scandals, will resume under the instruction of the new prime minister.

Under a new attorney-general, perhaps there will now be cooperation to share documents and files with other countries to help them in their investigations of the case. There is now hope in the renewal of the institutions that are meant to uphold the rule of law, in order to protect our fundamental rights as citizens.

In The Beautyful Ones are Not Yet Born, the main character is not given a name, but is just referred to as “Man”. It is believed the author did this intentionally, to tell the story of not just him, but many of us simple civilians living our simple lives.

There are moments in which we may choose the less lucrative option of bypassing bribes based on our conscience, and nobody will celebrate us for doing so. But these are the real heroes of the day, especially when we quietly witness the fall of the corrupt.

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Notes on a New Nation, Day 7

Notes on a New Nation
Day 7 Post GE-14 (16 May 2018) and Concluding Thoughts (for now)

How apt it is to end the week with what most would consider to be sweet justice. Just seven short days following the 14th general election on 9 May, Malaysians witnessed history come full circle with the royal pardon of Anwar Ibrahim and immediate release from imprisonment today (16 May). He met with the Royal Pardons Board at 11am, was released at 11.30am, and made his way immediately to the Palace to meet with the Agong alongside Wan Azizah, Nurul Izzah, and Azmin Ali. The pardon was a complete one, meaning that all convictions have been reversed, and he can therefore immediately enter into politics again. In a video where Anwar was informed by the prison officers that he was exonerated of these, Wan Azizah can be seen to be emotional; and her joy at reuniting with her husband is visible. After a press conference, he went back to his home in Segambut, where he met with numerous local and international media for interviews. That evening, he met with an overflowing crowd of supporters celebrating his release at Padang Timur, in Petaling Jaya, at which other PH leaders spoke including Wan Azizah, Nurul Izzah, Saifuddin Nasution, Rafizi Ramli, Mat Sabu, Lim Guan Eng, and Muhyiddin Yasin.

At his press conference, Anwar said that he would take some time to rest and recuperate and spend time with the family. He would also be accepting speaking engagement invitations from renowned universities around the world, including Harvard, Georgetown and Stamford, as well as play a role in sharing about the voice of reason in Islam, ensuring there is freedom and justice for all citizens. It is expected that he will do what he did when he was released in 2004, travelling to shore up international support while speaking in various countries, and then return to Malaysia in active politics thereafter. It was a joy to see him reunited with his family, especially well-timed before the start of Ramadhan and the fasting month for Muslims. A specific timeline has not been set for his return into politics and government, but a one to two year period is what the leaders have repeated, which allows for stability and a smooth transition between the prime ministerships of Tun Dr. Mahathir and Anwar Ibrahim, it is hoped.

The night before (15 May), the Auditor General’s report on 1MDB was declassified under the OSA and released on its website. The page was accessed by so many people that the site crashed. Many have already summarised its contents elsewhere, also in the news, so it shall not be needed here. This is a good layperson summary of the report’s contents: http://says.com/…/the-1mdb-audit-report-was-declassified-ye…

The other big pieces of news today (16 May) were that first, the GST rate would be reduced from 6% to 0% on all items, beginning from 1 June 2018, as announced by a press statement by the Ministry of Finance. On the same day, the federal government also issued a gazette to amend the Goods and Services Tax (Rate of Tax) Order 2018. This was slightly surprising, since the day before, Zeti Akhtar Aziz had said that the PH government would probably need more than 100 days to remove GST. The removal of GST would mean that the government will revert to the original SST (sales and service tax) regime. Accounting consultants and companies will probably need to scramble to make these changes quickly. This move will probably boost confidence in business, and although prices may not necessarily fall, they will stabilise somewhat and inflation rates would be curtailed for a time period. The day after the PH win, the share prices of FMCGs (fast-moving consumer goods) rallied, likely for this reason.

On the same day, Tun Dr Mahathir also announced that the current fuel prices would not change. If required, the government would subsidise to maintain the fuel prices. The previous government had set the prices of petrol and diesel on a weekly basis since March last year. The combination of the GST and petrol announcements have come as welcome news for especially the working class. Of course this means the government will need to ensure that its fiscal balance will not be detrimentally affected.

In a press conference yesterday, Tun Dr Mahathir also made several other announcements, including that all official slogans of “1Malaysia” and “Negaraku” (the previous government had combined the two to be “1Malaysia Negaraku) would be removed from all government premises, and that the practice of welcome statements like “Salam 1Malaysia” and so on would stop. In the same PC, he also said that as many as 17,000 political appointees’ contracts would be terminated, but positions like lower-level drivers who are not political appointees would be maintained. My understanding is that these 17,000 people are those who were brought in to implement political projects under certain agencies set up by the political leaders, for instance projects like 1M4U. It would be excellent to have a full list of these 17,000 people and what agencies or projects they were actually assigned to, though. The termination of these staff would help reduce government expenditure on salaries, according to Tun.

The Registrar of Societies (ROS) yesterday announced that it now formally approves the formation of Pakatan Harapan. Tan Sri Muhyiddin Yasin also said he was informed that PPBM’s status has been restored. So Pakatan Harapan is now an official political coalition, officially in government. Things are falling into place.

The final big news of the day (night actually, hence the reason this write-up comes the morning after instead of during the day when it is usually published) was the raid on former Prime Minister Najib Razak’s homes. At least five of his numerous homes in Kuala Lumpur were raided late last night, where updates started streaming in on the usual social media platforms that police cars and Black Marias were surrounding his home. It was later confirmed that the raids were conducted up to 4.20am, in the early morning of 17 May. His lawyer confirmed that the raids were done on the basis of anti-money laundering laws and that some personal possessions were taken, including handbags and clothes (source: http://www.scmp.com/…/malaysian-police-raid-ex-prime-minist…). The rumours on social media were that Najib would be arrested the same night, but these turned out to be false.

The one other state update is that in Sarawak, Parti Rakyat Sarawak (PRS) has expressed its support over the proposal for all Sarawak Barisan Nasional parties to leave the coalition and form a new locally-based political alliance. Sarawak Chief Minister Abang Johari had said that PBB would meet its three partners in Sarawak BN to decide whether to stay or leave the coalition and form a new united alliance among state-based political parties. (source: https://www.nst.com.my/…/prs-supports-move-pbb-leave-bn-for…)

The past one week has been a living dream for many of us who never thought we would be alive to witness the fall of the corrupt regime. This must be especially true for those who had worked to challenge the system for decades on end. Of course, we must remember those whose struggles contributed to the cause, but who have left us: people like Karpal Singh, Tok Guru Nik Aziz, and political victims like Teoh Beng Hock and others. Their families will always remember, and so must we.

That we had a smooth and peaceful democratic transition from one government to another is a miracle in itself. Many had predicted that were BN to fall, there would surely be unrest on the streets – but nothing happened. This is a testament to the people of Malaysia’s firm belief in peace, and of course credence must be given to the police and army for ensuring stability in a time of what most would consider to be an unsettling few days, just after the election results. The role played by Tun Dr Mahathir and his company of seniors cannot be underscored, since the civil servants and law enforcement officers would have given them the due respect owed as the new government of the day – other less senior leaders might not have commanded the same level of allegiance, of course this is merely hypothetical at this point.

In Anwar Ibrahim’s press conference yesterday, he said that the most significant value that he learnt while being in prison is the value of freedom, and that nobody should be allowed to undergo the same travesty. These are powerful words that must resound with all. In an interview I gave, I said that it was not just about Anwar Ibrahim, but about the rest of us common citizens. If the court of law was allowed to be interfered with politically for one man, what is the assurance that the same would not take place for any one of us? The independence of the courts, the legal system as a whole, is what we as citizens must depend on, to ensure we are treated fairly when the time comes. This is the real meaning of the ‘rule of law’, that phrase so often quoted these days ever since Tun Dr Mahathir began using it; that all citizens should be treated equally before the law, without any political intervention or otherwise.

Over the last week, I have attempted to document the events of each day, alongside some minimal commentary, mainly because things took place at such a rapid pace it was hard to keep up. This was done mainly for my own future reference (I would have done it anyway, perhaps in a separate Word document), but realised that many others were also struggling to keep up with the news, hence my decision to share them publicly on FB. I hope it has been helpful to wade through the almost hourly updates in the news. Seven days is not long enough to capture the tremendous change that is bound to take place after this. But I shall have to move on to other things. If there is interest in my continued updates, perhaps I should transform this into some paid subscription platform that will go into my child’s future education fund (not really kidding).

On that note, yes, my first child will be born into a new Malaysia, one that I can hopefully use to convince her that upholding the values of honesty and integrity do amount to something after all. That it is not always the thief and liar and cheat who get away with their wrongdoings. That sometimes, just sometimes, it is okay to dream of a better place. We will not always succeed, but for that one week, Malaysians experienced the sweetness of victory, and I will always relish that feeling even when, in the future, things go down the drain once again. This ends my notes on a new nation (for now). Thank you all for reading.

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Notes on a New Nation, Day 6

Notes on a New Nation
Day 6, Post-GE14 (15 May 2018)

The slowest news day since the election, so we shall keep it short.

Last evening (14 May), the Agong released a press statement stating that he was satisfied with the necessary procedures by the Royal Pardons Board, and that the meeting with Anwar Ibrahim had been set for the following day (15 May) at 11am. He also pointed out that the Prime Minister’s Office had requested for that meeting to be postponed to tomorrow (Wednesday, 16 May) at 11am, and that this would be finalised as planned on 16 May 2018 accordingly. It is unclear why the Agong felt the need to include this final factoid into his statement, unless to point out that Prime Minister Tun Dr Mahathir had intentions other than to ensure the early pardoning, and hence release, of Anwar Ibrahim. There are internal dynamics at work that one cannot readily comment on without knowing further details.

The ‘Team of Eminent Persons’ wasted no time today in setting up a new committee on Institutional Reforms, consisting of retired Court of Appeal judge Datuk K.C. Vohrah; retired Court of Appeal judge and former Suhakam commissioner Datuk Mah Weng Kwai; National Patriots Association president Brig Jen (Rtd) Datuk Mohamed Arshad Raji; Tunku Abdul Rahman Professor of Law at Universiti Malaya Datuk Dr Shad Saleem Faruqi; and Hakam president Datuk Ambiga Sreenevasan. In a statement released today, it said the committee would advise on the institutional reforms needed for the country. It would present its findings to the Team of Eminent Persons, and the latter would present its report to the Prime Minister. So far, we have had two teams being formed within one week, to deal with economic and institutional reforms.

The statement did not specify which institutions would be the primarily targeted ones, but from the PH manifesto, there is a laundry list of institutions that the coalition has committed to, including the MACC, Election Commission, AG’s Chambers, and providing parliamentary oversight on the National Audit Department, Petronas, Bank Negara and the Securities Commission. The PH also committed to being part of some international good governance platforms like the Open Government Partnership, Open Budget Initiative and the Open Contracting Partnership, incidentally all of which IDEAS as a think tank has been championing for many years. There are also reforms needed such as on federalism, where Sabah and Sarawak’s position in the federation would need to be restored to the commitments as laid out in the Malaysia Agreement 1963. The manifesto is long and cumbersome, but on institutional reforms it is solid and bold.

Tun Daim also said elsewhere that Tan Sri Abu Kassim formerly of MACC and Shamsiah Yunus, the former deputy governor of Bank Negara, would both be part of the new taskforce to reopen investigations into 1MDB. They were both previously part of the old taskforce set up for the same purpose, until the taskforce was disbanded upon the removal of then AG Gani Patail, as well as the dismissal of Deputy Prime Minister Muhyiddin Yasin, and Tan Sri Abu Kassim himself.

Tun Dr. Mahathir was said to have met with several prominent individuals today, including former AG Gani Patail, Bukit Aman Commercial Crime Investigation Department director Amar Singh, and Chief Justice Raus Sharif. Mahathir has said that PH would probably have a case against Najib Razak and be able to charge him soon.

In other news, different actors seem to be taking on their own moves. For instance, Media Prima removed Ashraf Abdullah its group managing director and replaced him with Manja Ismail today, seen as a move to appease the new federal government administration.

The state of Perlis seems to be unresolved – there is no news about its MB having been sworn in yet. The Pahang state MB was sworn in today (15 May), Wan Rosdy, of UMNO. It is interesting that the incumbent MB Adnan Yaakob, was not retained in his position. There were rumours that the position was not as highly sought after as previously, given the state’s poor finances and how it would now be in opposition at the federal level. As for Sabah, although Shafie Apdal was sworn in as the new Chief Minister, there are some developments with regards to political parties, where the creation of Gabungan Sabah (a BN-friendly alliance) is taking place (PBS will take in remaining followers and former party members of UMNO, UPKO and PBRS to form “PBS Plus”, after which an agreement will be signed between PBS Plus and Sabah Star to form Gabungan Sabah) (from Malaysia Decides app).

And of course, there will be a flurry of news tomorrow once again with the release of Anwar Ibrahim, much awaited and to-be-celebrated by his supporters. Today scores of PKR members visited him in Cheras Rehabilitation Hospital, anticipating the release tomorrow, and it is expected that there will be a celebratory gathering at Padang Timur in Petaling Jaya, well into the night – one final evening event the likes of the campaign ceramahs over the last few weeks.

The day after tomorrow marks the first day of Ramadhan, so perhaps the last few weeks’ exciting – and equally exhausting – days will come to an end, as our Muslim friends quieten down and pace themselves for a period of reflection. Much has happened in our country in the past week, but reforms will surely not take place overnight. It is time we all Malaysians also used this period wisely to be introspective, listening more to each other, both friends and foes.

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Malaysia’s new leadership line-up strengthens Mahathir’s hand

First published on the Channel NewsAsia website on 14 May 2018, here.

Mahathir Mohamad named three Cabinet ministers and announced the establishment of a Council of Elders on Saturday (May 12), in a move that strengthens his position within the Pakatan Harapan coalition, says one observer.

KUALA LUMPUR: Malaysia’s seventh Prime Minister Dr Mahathir Mohamad wasted no time in getting to work after the 14th general election concluded with the country’s first ever change in government.

The Barisan Nasional’s defeat was both shocking and historic, since Malaysia has never known any other government since its independence in 1957. Time is ticking against the new Pakatan Harapan government for it to prove itself capable and show quick results.

In a major move on Saturday (May 12), three days after polling day, Mahathir announced the names of the top three Cabinet positions, apart from himself as Prime Minister and Dr Wan Azizah as Deputy Prime Minister, as well as a Council of Elders. These moves will surely strengthen Mahathir’s hand over the administration.

The three he named are Lim Guan Eng as Finance Minister (from the Democratic Action Party, DAP), Mohamad Sabu as Defence Minister (from the Amanah party, the breakaway arm from Islamic party PAS), and Muhyiddin Yassin as Home Minister (from Mahathir’s own Parti Bersatu, and former deputy prime minister under recently deposed Prime Minister Najib Razak).

He was to have announced 10 ministers altogether, but the remaining seven will have to wait. Negotiations with four parties within a political coalition are challenging and a fine balance is required to ensure fair representation, including that of ethnicity, gender and capabilities.

Unlike Barisan within which UMNO was the dominant party in most if not all decisions and appointments, this time the four parties consider themselves to be equal partners with no one party having a stronger position over another.

However, Mahathir in a live telecast statement the following day iterated that although some deliberation among party leaders would take place, the ultimate decision over the final Cabinet members would be taken at the discretion of the Prime Minister.

This may irk some members of the Pakatan Harapan coalition. Yet considering the urgency of addressing the country’s numerous problems, it seems fair to demand swift and efficient action, bearing in mind also the Prime Minister’s age, who at 92 is the world’s oldest elected leader. But Mahathir is doing all he can.

LIM GUAN ENG’S APPOINTMENT STRENGTHENS COALITION POLITICS

The appointment of Lim as Finance Minister is a bold move in the right direction for a few reasons.

First, Pakatan had in its election manifesto committed to separating the positions of Prime Minister and Finance Minister to avoid a conflict of interest.

It was in fact Mahathir himself who first occupied the two positions simultaneously after sacking Anwar Ibrahim (Deputy Prime Minister and Finance Minister in 1998), thereby starting the very practice later followed by his successors and heavily criticised by Pakatan leaders.

Appointing another person into the position is therefore a positive move that provides some check and balance between the top leader and his financial advisor.

Second, it is the first time the position will be held by a Chinese Malaysian since 1974 (occupied by then President of the Malaysian Chinese Association Tan Siew Sin).

During this election campaign, Barisan leaders had repeatedly painted Pakatan as a coalition manipulated by a Chinese-dominant DAP, preying on insecurities among Malay rural communities and suggesting that they would suffer economic losses at the hands of the DAP if Pakatan came into power.

Where having a strong Malay Prime Minister helps to mitigate these fears, appointing DAP’s secretary-general as Finance Minister also indicates confidence on Mahathir’s part.

It is also a reasonable decision given Lim’s two-term track record in successfully managing Penang’s finances, during which time the Auditor-General’s reports praised Penang for its healthy and prudent spending.

While it is based on qualifications – Lim is an accountant by training – Mahathir’s appointment also helps to strengthen coalition politics as a whole.

The other two appointments are also predictable, since by seniority Mohamad Sabu (commonly known as Mat Sabu) and Muhyiddin Yassin respectively would naturally take up top ministerial positions, the latter having significant government experience.

Mat Sabu, who has been detained twice under the Internal Security Act, has been a career politician known for his public-speaking abilities, but will need to prove himself capable of helming the hefty Defence Ministry.

COUNCIL OF ELDERS WITH TIES TO MAHATHIR

Mahathir’s additionally appointed Council of Elders serves as an advisory body to shape policies and programmes to achieve the 100-day promises made by Pakatan Harapan.

Chaired by Daim Zainuddin, Mahathir’s former finance minister, the team includes former central bank governor Zeti Akhtar Aziz, former president and CEO of Petronas Hassan Merican, businessman Robert Kuok and economist Dr Jomo Kwame Sundaram, many of whom had been either stalwart supporters or people who had served under Mahathir.

Dr Jomo is the exception in this array, who in the 1990s was publicly critical of Mahathir’s imprisonment of Anwar Ibrahim, as well as his economic policies. In late 1998, Vincent Tan, a known close associate of Mahathir, sued Dr Jomo for defamation for his articles on alleged cronyism and business in the country, but dropped the case subsequently.

Dr Jomo’s appointment suggests Mahathir is giving priority to economic reform over personal friction.

Bringing in these eminent experts who have vast experience and expertise is also intended to give observers and investors a sense of stability and assurance. Several were architects of the Malaysia Incorporated policy that Mahathir shaped in the 1990s and technocrats able to jump right into rebuilding the nation’s fundamentals.

This council has already begun work, and is expected to conduct immediate investigations into key economic matters. They have already met with key government-linked companies to align governance and investment policies, to ensure markets remain positive and stable.

These independent individuals will also be able to study alleged wrongdoing perpetuated within various ministries and investigate if they had been directed by senior civil servants under Najib’s government.

Already Mahathir has named the Attorney-General’s Office, the Malaysian Anti-Corruption Commission and the Election Commission as three government institutions that will need to be thoroughly examined for bias in their previous policies, with corrective action taken where necessary.

Mahathir has equated the process of forming the new Cabinet with that of Tunku Abdul Rahman’s in 1957, stating that this would be a small Cabinet that takes dressing from the Tunku’s model, which had less than 10 members and which later grew to accommodate more portfolios when proven necessary.

Mahathir has also committed to not more than 30 ministries being eventually formed.

Such hearkening back to the early days of the nation’s formation is a stark reminder to those he is addressing that this is a new beginning.

Perhaps this is what the country sorely needs now – a fresh start, led by one strong and fiercely determined individual.

Tricia Yeoh is chief operating officer of the Institute for Democracy and Economic Affairs.

Posted in Corruption, Economics, Elections, General Politics, Public Administration | Leave a comment

Notes on a New Nation, Day 5

Notes on a New Nation
Day 5, Post-GE14 (14 May 2018)

We are inching towards one week post-election day, but it feels like much longer, given the number of events taking place; the changing of the tides is rapid, and equally easily are people swept into its motions unthinkingly.

The word on my mind today is ‘purge’, where the old corrupt members of government are currently being purged and one assumes the ones with a clean record are affirmed. Many senior civil servants and politicians have vacated their posts today, the first official working day since polling day. First, the MACC Chief Commissioner, Tan Sri Dzulkifli Ahmad, has resigned, having sent in his resignation letter to the Chief Secretary Tan Sri Ali Hamsa at 8am this morning. Recall that Tun Dr. Mahathir has not minced his words, stating that the heads of several key government institutions, MACC, included, would be investigated for any wrongdoing. Resigning does not mean that Dzulkifli Ahmad would be cleared of his past misdeeds, if any. Mahathir said that a new MACC chief would take office tomorrow (15 May). A former MACC investigations and intelligence officer, Datuk Abdul Razak Idris, lodged two police reports against Najib Razak, one that he had allegedly misused his position for gratification and second that he allegedly owned unexplained properties.

Attorney-General Apandi Ali will be going on leave, and his duties would be taken over by the solicitor-general, announced by Mahathir at a press conference today, while the IGP Mohamad Fuzi said that the police would investigate the former IGP Khalid Abu Bakar if there is a case or report against him. Tan Sri Shahrir Samad, Chair of Felda (Federal Development Land Authority) has also resigned today (the seven-term Shahrir lost his Johor Bahru seat in last week’s election to Akmal Nasir).

Another big name is Tan Sri Irwan Serigar, Treasury Secretary General, whose contract will be cut short by nine months and will end on 14 June instead of 6 June 2019, according to Tan Sri Ali Hamsa. He is the chairman of the 1MDB board that is being investigated. On social media, scores of stories are emerging of people who have dealt with Tan Sri Irwan in the past, mostly shedding negative light on these dealings. These are merely anecdotal and unverified, so they will not be repeated here. So within one day, we witness the exit of the MACC chief, Attorney-General, Chair of Felda and Treasury Sec-Gen.

The Council of Eminent Persons appointed by Mahathir seems to be hard at work, already yesterday having met with the heads of government linked companies and government linked investment companies (GLCs and GLICs), specifically with the managing director of Khazanah Nasional Tan Sri Azman Mokhtar, Permodalan Nasional Bhd group president and chief executive officer Datuk Abdul Rahman Ahmad, Kumpulan Wang Persaraan (Diperbadankan) CEO Datuk Wan Kamaruzaman Wan Ahmad, Tabung Haji Group MD and CEO Datuk Seri Johan Abdullah, Armed Forces Superannuation Fund Board CEO Tan Sri Lodin Wok Kamaruddin and Employees Provident Fund CEO Datuk Shahril Ridza Ridzuan. The meeting seems to have been positive, with the six GLIC heads even issuing a statement thereafter, stating that it is “a very positive step of the process of a national reset from the standpoint of the economy and the markets.” Governance and performance of these institutions would carry on, with a key principle of separating politics and business in managing assets and public interests. One wonders how exactly these GLCs and GLICs will be dealt with under the new government, since GLCs have courted great controversy in their transparency and accountability. Apart from the publicly listed ones which are stringently monitored via Bursa Malaysia and Securities Commission, the many other unlisted ones have relatively little scrutiny and governance measures. No one ministry in the country even has a comprehensive record of all the GLCs in Malaysia, much less the state-related ones. All of this needs to be cleaned up quickly.

Of course, the political parties in PH, especially PKR, are all abuzz with the news that Anwar Ibrahim is due to be released very soon. Initially, a PKR statement circulated encouraging members of the public to be outside Cheras Rehabilitation Hospital to welcome his exit at 10.30am, Tuesday 15 May. However, a later statement retracts this and it is unclear when exactly Anwar will be released (although there were initial plans to have a post-release celebration at Padang Timur in Petaling Jaya at 3pm the same day. It is understood that Anwar would need to meet with the Pardons Board first, and then seek an audience with the Agong at the Palace, before he can officially be released. Whatever the case, it will happen soon.

The rest of the PH Cabinet has not yet been announced, although it was confirmed that Amanah has submitted three names to Tun Dr Mahathir for members to be included, while PKR has submitted 10 names for consideration. On this note, PKR’s Wan Azizah was reported to have said that a Chinese should not take the post of Finance Minister, but this was later denied by a senior PKR member. It is unclear of course what the context was of this remark – it could have been that she meant it was not feasible, that it would be a challenge convincing the electorate of its merit? Context is important. Again, race has a tendency to rear its ugly head in Malaysian political dynamics. While we may intend to be neutral on race, there is still a large segment of society that thinks along ethnic lines. How to move beyond race is a subject of great contention, and will require tremendous leadership on the part of PH and the community to resolve.

Story of the states: Shafie Apdal reported for his first day of duty in the Sabah Administrative Office today, although Jeffrey Kitingan (who had previously been sworn in as Deputy Chief Mnister) entered the Agriculture and Food Industries Ministry building to apparently begin his first day of work, while Sabah police chief confirmed that Musa Aman had left Sabah after the state Istana handed a letter to the latter that he no longer had the mandate to lead the government. So at least things are settled in Sabah. The Selangor Exco members were sworn in today, many of whom are new faces. They are Teng Chang KhimAmirudin Shari, Ganabatirau, Haniza Talha, Ng Sze Han, Shaharuddin Baharuddin, Hee Loy Sian, Siti Mariah Mahmud, Izham Hashim, and Rashid Asari. Sad to see some familiar faces having left the Exco like Elizabeth Wong, but wishing her well in the future.

Finally, the PH MPs in Kuala Lumpur seem to have publicly committed to holding local elections for the DBKL Mayor (KL City Council), which is long due. Hopefully this will also set the trend for all other states under PH to do the same. All it needs is for the National Council on Local Government to approve it, and the Election Commission, which is permitted to conduct elections throughout the country, would assist in the execution. Local elections are fundamental to the principle of democracy, since citizens are most likely to feel real differences in their ways of life at the council level – clean drains, well-lit roads with minimal potholes, and so on. This was not explicitly promised in the PH Manifesto, but even one city or state would set a great precedent for the rest of the country in the future.

This series will probably end on Day 7.

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Notes on a New Nation, Day 4

Notes on a New Nation
Day 4 Post-GE14, 13 May 2018

It has been the quietest day in news since election day (thankfully). Kudos to the media that has been faithfully following the news daily; they must be exhausted, but hopefully we all had a good night’s sleep last night, as the rest of the workforce prepares itself to get back to the grind tomorrow after a very long election holiday.

The biggest news since I last wrote the daily update has been the press statement issued by PKR’s Rafizi Ramli yesterday (Saturday 12 May), in which he stated that PKR assumed that the discussions were still underway and that Tun Dr Mahathir’s announcement is not final; that any decision on any appointments should be made collectively by all four parties within Pakatan Harapan; and that Tun Dr Mahathir was on the way to discuss with Dato’ Seri Anwar Ibrahim in the Cheras Rehabilitation Hospital regarding these nominations.

Rafizi’s statement essentially implied that Tun Dr Mahathir had not consulted all parties before making the announcement of the three Cabinet ministers yesterday. I am unclear as to the facts of the matter, whether PKR was or was not in the consultation meetings, and do not wish to speculate. It is of course unfortunate that this came only three days after the joyous jubilation many Malaysians were feeling. This is a historic moment, and Rafizi’s statement came as a dampener of sorts – too public, too soon – could he not have resorted to internal measures first? Could he not have discussed it with PKR leaders first? One may, however, consider it to be realistic, since governing in coalition is going to be a constant series of give-and-take. Working in a PH coalition will be invariably different from working in a BN coalition, where UMNO’s decision ruled supreme.

Tun Dr Mahathir today in a live telecast seemed to respond to these sentiments, stating that while names would be submitted by each party for each of the ministerial portfolios, the Prime Minister would make the decisions for Cabinet. And that within Cabinet, “we will also use the majority rule because if we try to do it by consensus, we will not be able to have any decision at all.” Some might equate this to be dictatorial; this seems to be a practicable solution for the time being. Without a firm decision, it is true that nothing would be able to move. This does not mean that there is no room for opposition; I believe most Malaysians would not want an authoritarian rule again, the likes of under Najib, but there has to be some fair balance struck between getting things done and airing one’s views on the appropriate platform at the appropriate time.

Mahathir also committed to a small a Cabinet as possible, not more than 25 and at maximum, 30. He reiterated the importance of having a non-corrupt government, that donations cannot be received by any party or person within the government except for what is permitted by Cabinet alone. He committed once again that Malaysia would be a business-friendly nation, reducing the processes of running business. The Anti-Fake News Law would have a clearer definition so that the public and media outlets would know what is fake and what is not fake. Infrastructure projects that are large would see foreign participation only if Malaysia does not have the expertise for it, and all would follow an open tender system. Finally, that several laws would have to be repealed by going to Parliament. An emphasis on “cleaning up” of government was repeated several times.

In other news, Nurul Izzah Anwar said that her father Anwar Ibrahim would receive a full royal pardon and will be released from prison on Tuesday (15 May). If this comes to pass, the next few weeks and months will be exciting, as the nation will once again see the return of the formidable duo – the time machine bringing us back 20 years to 1998 and before! There are bound to be challenges, given the two individuals’ separate leadership styles, ideologies and policy preferences, but it is hoped they can work things out for the sake of the country’s future, and all of us who voted them in to improve things, not shatter them further than the frail and fragile state of things we are already in.

As for the fate of our now ex-Prime Minister Najib Razak, the police were reportedly stationed at his private residence at Jalan Langgak Duta, Taman Duta, today. Five policemen were spotted stationed at his residence, said to be there for “security monitoring” purposes (source: http://www.theedgemarkets.com/…/police-cordon-entrance-naji…). Yesterday, police also raided his deluxe apartment block in Kuala Lumpur to search for “sensitive documents the new government fears may be taken out of the country” (source: https://www.thestar.com.my/…/police-raid-rosmah-deluxe-con…/). At this point in time, he is still a civilian and it is unclear how long these security measures can be sustained.

Finally, the states! Shafie Apdal of Warisan was sworn in at 9.11pm last night (Saturday 12 May) as Sabah’s new Chief Minister, after his party obtained a simple majority of 35 seats when six BN state assemblymen from Umno (four) and UPKO (two) defected to Warisan. But it is utterly confusing, because Musa Aman (who, as we recall, was sworn in as Chief Minister on Thursday 10 May, refuses to step down and in fact held its first State Exco meeting already at the Sabah State Administrative Centre yesterday (11 May). So it seems that Sabah has two Chief Ministers at present. (source: http://www.theborneopost.com/…/sabah-has-two-chief-ministe…/)

As for the other states, I made a mistake in yesterday’s post (I have edited to include the correction), in which I said that Nizar Jamaluddin was sworn in as Perak’s new Menteri Besar (this was wrongly reported in the news). In fact, PPBM Perak Chair, Faizal Azumu (also known as Peja) has been sworn in as the new Perak Menteri Besar. This is an intriguing case study because the two BN state assemblyperson who supposedly defected to PH have actually NOT jumped. They have chosen to remain as BN members, but supported the candidacy of Faizal Azumu as Menteri Besar. This is where the constitutional requirement of only commanding the majority of the assembly is required, not of party. I will have to check if there has been precedent of such a thing in the past.

In Johor, PPBM state assemblyperson Osman Sapian has been sworn in as its Menteri Besar yesterday. He has not gotten off to a good start; he announced that opposition members of the assembly would not be getting their constituency allocations. This is precisely what Pakatan had been critical of all this time, that the Barisan practised unfair treatment, especially when it came to financial aid of their constituents. It is hoped this will be reversed, since fair treatment of all assemblypersons should be practised.

Today, Lim Guan Eng has confirmed that Chow Kon Yeow will be taking over as Penang Chief Minister and will be sworn in as such on Monday 14 May. This follows yesterday’s announcement that Lim Guan Eng is the country’s new Finance Minister. In Negeri Sembilan, PKR assemblyperson and PH state chair Aminuddin Harun was sworn in yesterday as its new Menteri Besar, and I had not written it previously but Adly Zahari (Malacca PH Chair and Amanah assemblyperson) was sworn in as Malacca’s Chief Minister, as well as Azmin Ali (incumbent MB) as Selangor’s Menteri Besar on Friday 11 May. There have been no updated news yet on the situations in Perlis, Pahang and Sarawak at the time of writing.

So, the summary of states now again (since there have been changes since my last state tally) is as follows: PH holds 7 states (Kedah, Penang, Perak, Selangor, Negeri Sembilan, Malacca, and Johor), BN holds 3 states (Perlis, Pahang and Sarawak), PAS holds 2 states (Kelantan and Terengganu) and Warisan holds one state (Sabah).

Of the PH states, PPBM holds 3 MB positions in Kedah, Perak and Johor; PKR holds 2 in Selangor and Negeri Sembilan; and DAP, Amanah and Warisan each hold one Chief Ministership position in Penang, Malacca and Sabah respectively. (Thanks to Robert Lip Seng Kee for compiling this information).

Today’s reflection ends with this. Today Singapore (a daily) interviewed me a few days ago about whether I think this election spells the end of race-based politics in the country. It is apt that today is 13th May, the bogeyman often used by the previous government to scare us into thinking that trouble would spill out on the streets should we oppose the government. While I expressed my rather realistic (in my opinion, at least) doubts that it will take a long time for Malaysia to move away from racial politics (after all, PPBM still campaigned as a Malay party, and positioned itself as an alternative to UMNO to champion Malay rights), I do think we are moving in the right direction. This election, more than any before, indicated that voters were willing to put aside their differences to come together to fight a larger cause: corruption. Of course once this larger monstrosity is dealt with, it may come naturally that minute differences show up again starkly. I hope and pray that we are on the right trajectory. If Tun Dr Mahathir alongside the new leaders are bold and brave enough to do away with racial politics once and for all, we will finally be able to bury that ghost of 13th May for good. Pakatan Harapan is a coalition made up of parties not based on race (with the exception of PPBM which although is not explicitly formed based on race, does transparently champion Malay rights and allows for only partial membership status for non-Bumiputera), which is already miles and miles ahead of the Barisan Nasional consociational model of ethnically divided parties (which worked for the Malaya of yore, during the early formative years of the nation, but not any longer).

On that note, happy end of the long election “break”, and all the best to Malaysians who return to work tomorrow in what we can all consider to be a new Malaysia.

Posted in Elections, Ethno-Religious Politics, General Politics, Selangor | Leave a comment

Notes on a New Nation, Day 3

Notes on a New Nation
Day 3 Post-GE14, 12 May 2018

The news comes at us fast and furious, like bullets from a gun. I’m not sure how long I should be doing these daily updates; I suppose as long as things are not yet settled and press conferences are taking place each day with major announcements. Once again, this is to have an accurate record of these historic days.

Today’s update traces the events that have taken place between 6pm Friday 11 May and 6pm Saturday 12 May 2018, following Malaysia’s 14th general election on 9 May. I will try to order the points not necessarily chronologically but the biggest news of the day, normally starting at the federal government level, and then going to what is happening within the different states.

First, yesterday evening (11 May) there was a leaked flight schedule being circulated, showing that ex-Prime Minister Najib Razak and wife Rosmah Mansor were to depart from the Subang Airport to arrive at the Halim Perdanakusuma International Airport in Jakarta at 10am on 12 May. A video was also spread on social media depicting Hishamuddin Rais (long-time known organiser of street protests) calling for Malaysians to gather at the Subang Airport at 4am to stop the couple from leaving Malaysia. Many have derided this as irresponsible vigilantism, and prefer that the processes of law be adhered to. Malaysiakini broke the news early this morning that both Najib and Rosmah were blacklisted by the Immigration Department, based on checks done at 5.30am on 12 May, which returned the results as “Please refer to the nearest immigration office” in red letters (the same results other activists received in the past when barred from travel). However, when they checked again at 9.30am the results showed “No obstacle” in green letters, indicating they were not blacklisted. The Director General of the Immigration Department, Mustafar Ali, confirmed that they were “not blacklisted for now”, but the Immigration Department later issued a Facebook statement confirming that they had both been blacklisted.

Najib Razak on 12 May had issued a press statement on Facebook stating that he and his family would take a holiday abroad starting from today, after the general election. However, a police source later confirmed that the private flight was cancelled pending further instructions. Indeed, a crowd of about 100 (as reported in Malay Mail) had shown up in front of the Subang Airport to examine vehicles entering, to inspect them for Najib and Rosmah’s presence. Najib Razak later tweeted (at 11.58am) that he had been informed that the Immigration Department does not permit him and his family to leave the country, and that he respects this instruction and will be with his family within Malaysia.

Sometime in the late morning, a news report from MStar (the Malay version of the Star) stated that a Bersatu youth exco made a police report based on a video that allegedly showed a Prime Minister’s Department van delivering 50 Birkin handbags worth at least RM200,000 each to several condominium units in Paviliion Kuala Lumpur (source: http://www.mstar.com.my/…/berita-…/2018/05/12/ben-ali-lapor/).

This was the day of multiple press conferences being called for. Of course there was Tun Dr Mahathir’s press conference that all were awaiting, on the Cabinet announcement. But simultaneous to that were the initial press conferences supposedly first by Khairy Jamaludin (on behalf of the Youth, Women and Puteri [young women] wings of UMNO), and another separately by Zahid Hamidi. Later the media received notice that in fact, after the emergency UMNO Supreme Council meeting chaired by Najib Razak, Najib himself would be holding the press conference. At this press conference, Najib finally announced that he would step down with immediate effect as UMNO President and BN Chair, based on the “principle of moral responsibility”. He also announced that Zahid Hamidi would take over the duties as UMNO’s President, because the party constitution does not allow for “acting” Presidents. Hishamuddin Hussein would take over the duties of Deputy President and Deputy BN Chair. They left promptly after Najib made these announcements, with no Q&A session thereafter (which, my media friends tell me has been the norm – Najib Razak has almost never fielded questions from the floor).

Pakatan Harapan’s press conference was the next big thing of the day, where Tun Dr Mahathir announced several key individuals into the initial Cabinet. In the PC, he announced that apart from the already confirmed positions of himself as PM and Wan Azizah as DPM, the following three were confirmed: Lim Guan Eng as Finance Minister, Mohamed Sabu as Defence Minister, and Muhyiddin Yasin as Home Minister. Over the next two to three weeks, the other positions up to 25 ministries would be filled. It is interesting that he specifically mentioned that they want a “small Cabinet”; the BN government is known to be bloated with a relatively large Cabinet. Another interesting observation is that there is now a separate Minister of Finance from the Prime Minister. The practice of combining both the PM and Finance Minister results in a huge conflict of interest. But equally important to note that it was Tun Dr Mahathir himself who began this practice, after Anwar Ibrahim was initially sacked from his position as DPM and Finance Minister in 1998. Tun Daim was made Finance Minister I and Tun Dr Mahathir Finance Minister II, and then when Tun Daim later left the Cabinet, Tun Dr Mahathir took over the portfolio fully as full Finance Minister (Hwok-Aun Lee can verify this better than me).

Tun Dr Mahathir also announced the formation of a special “Council of Elders” or Council of Eminent Persons, consisting of 5 individuals, namely Tun Daim Zainuddin (his former Finance Minister and strong supporter/ally, who would also chair this council), Tan Sri Zeti Akhtar Aziz (former Central Bank Governor), Tan Sri Hassan Merican (former Petronas President), Robert Kuok (Malaysian-born tycoon, now based in Hong Kong) and Prof. Dr. Jomo Kwame Sundram (eminent economist and academic). The council would study and submit Cabinet papers on “things happening over the last years from 2009 until now”, and having independent people would be needed to vet reports and get “various data including those running government funds, and control some of the ministries which may involve some of the previous government”. Most within the line-up have had some relationship with Tun Dr Mahathir in the past, and have been considered to be critics of the Najib administration in one way or another in recent years. Tun Daim of course has been publicly supportive of PH during the campaign period; Tan Sri Zeti was part of the 1MDB investigative committee, then representing the Central Bank (but had remained silent after her retirement); Tan Sri Hassan Merican was known to have had his contract not extended after he made some critical remarks that the government should not depend excessively on Petronas for oil funds, Robert Kuok had been criticised quite vehemently by MCA upon the release of his memoirs (accused of supporting the opposition), and Dr. Jomo has been known to be instrumental in assisting the opposition in its various economic reports and position papers, although he too was appointed as a Fellow at ISIS (a think tank funded by the government). One may consider this to be “more of the old”, but given that Tun Mahathir does not have much time to get his reforms instituted, he may well be forced to depend on old, trusted advisors to get things moving.

As for what’s happening in the states, it is hard to keep up, since things keep changing every hour or so. In Perak, PAS released a statement yesterday offering a “no opposition unity government”, meaning that all parties (BN, PAS and PH) would form a government collectively, but only on the conditions that it should be led by a Muslim, and that the state exco should have a Muslim majority. Recall that earlier, Zambry had announced BN had the majority of state seats and was seeking an audience with the Sultan (he did not say where he would get the additional seats from, and it was assumed to be from PAS). The Perak Palace gave PH up to 2pm today (Saturday 12 May) to prove they have the numbers to form government. Finally, today, it was announced that two state assemblypersons (names unknown) have left BN to join PH. This makes the seat tally as follows: BN 25, PAS 3 and PH 31. At the time of writing, it was reported that Mohammad Nizar Jamaluddin has been sworn in once again as the Perak Menteri Besar, nine years after he was unceremoniously ousted when BN took control in 2010 in a disputed leadership crisis. (Am leaving the inaccurate fact in, as it was reported, but wrongly so. But the correct news is that the new Menteri Besar is in fact the Perak PPBM Chair, who is Faizal Azumu, also known as Peja, and he was sworn in by the Perak Sultan.)

Over in East Malaysia, over a whole day there seemed to be no resolution as to what is happening in the state of Sabah. Although Musa Aman was sworn in as Sabah’s Chief Minister on Thursday night (10 May), Warisan’s Shafie Apdal said it would not recognise the Sabah state government as it did not have the “absolute mandate” and the numbers to form government. At a press conference yesterday evening (11 May), Shafie Apdal announced that they now had 35 assemblypersons, after six BN ADUNs defected (Abdul Muis Pichu (Sebatik), Hamisa Samat (Tanjong Batu), Osman Jamal (Balung), and Jamawi Jaafar (Kemabong) from Umno, and Ewon Benedick (Kadamaian) and Abidin Madingkir (Paginatan) from United Pasokmomogun Kadazandusun Murut Organisation (Upko). (source: https://www.malaysiakini.com/news/424442). At the time of writing, it is understood that Shafie Apdal would be sworn in as the new Sabah Chief Minister at 9.30pm tonight (12 May). Sabah’s political developments are fascinating, and this feels like a repeat of what transpired in 1986 when there were two chief ministers having been sworn in. This was followed by a series of bomb blasts throughout Kota Kinabalu, which has been well documented by fellow documentary-maker Nadira Ilana in her short film “The Silent Riot” (more about it in this old article by Pei Ling Gan here http://www.selangortimes.com/index.php…). Peninsular Malaysians really need a “Sabah Politics 101” session after all of this is resolved. For those who haven’t followed Sabah politics in a while, the multiparty nature of local politics there is convoluted and confusing.

Finally, there were also news reports of Tun Dr Mahathir having met with Sarawak Governor Taib Mahmud (former Chief Minister) in Kuala Lumpur. It was rumoured to have been to discuss the possibility of BN component party PBB’s leaving the coalition to join PH. BN holds 19 parliamentary seats (PBB 13, PRS 3, PDP 2 and SUPP 1). If PBB were to leave BN, this would increase the parliamentary seat count of PH to 136 seats, still 12 short of what one imagines is the intent of Tun Dr Mahathir, to achieve a two third majority in Parliament, which would require at least 148 of the 222 seats. In response to these rumoured talks, Baru Bian issued a press statement as PKR Sarawak Chair, saying that Sarawak BN parties should not be allowed to join PH on principle, since PBB is UMNO’s proxy and having them in PH would betray the trust of the people. This is not yet resolved at the time of writing.

In the meantime, the two supposedly secure BN states seem to be shaky, where there is talk in Perlis of several BN MPs and assemblypersons switching over to PH (source: https://www.thestar.com.my/…/perlis-bn-mps-and-reps-on-ver…/) and something seems to be afoot in Pahang as well, where the swearing-in ceremony was originally scheduled for this morning (12 May, source: http://www.sinarharian.com.my/…/majlis-angkat-sumpah-menter…) but it has since been postponed to as late as next week. No reason has been given for this postponement. BN/UMNO seems to be imploding; late last night at UMNO’s 72nd anniversary celebration, a video was circulating on social media showing an UMNO Youth member speaking to the media, calling for Najib Razak to step down – he was very quickly and physically removed from the premises by other angry UMNO members, calling him a traitor to UMNO after all the party had done.

Finally, some interesting thoughts and questions about the nature of “official media” in this new era of government. Entities like RTM, TV3, Bernama, Utusan, Berita Harian, NST and so on have always been known to be pro-UMNO/BN, and it will be interesting to see over the following weeks the nature of their news reporting, and what PH would do to reform some of the more government-owned outlets. Already their coverage is beginning to be more open, although it will take time for a truly critical and mature mass media to develop once again, after having been stifled for many years. Tun Dr Mahathir did make a commitment in April this year to abolish the Anti-Fake News Act 2018, Sedition Act 1948, Prevention of Crime Act 1959, Universities and University Colleges Act 1971, Printing Presses and Publications Act 1971, National Security Council Act 2016, and any law with mandatory death sentences, as well as several “oppressive” provisions in laws such as the Penal Code, the Communications and Multimedia Act, Security Offences (Special Measures) Act, Peaceful Assembly Act, and the Prevention of Terrorism Act. (source: https://www.thestar.com.my/…/dr-m-pakatan-to-repeal-contr…/…). If these can be done quickly, Malaysians would feel more assured that Tun Dr Mahathir is not the same Prime Minister he used to be. His quick wit was not lost on the media in a recent press conference when he said, “Please ask your questions in an orderly manner… Please remember, I was the dictator.”

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