MALAYSIAN ANTI-CORRUPTION COMMISSION UNDER FIRE

UNCLAS SECTION 01 OF 03 KUALA LUMPUR 000598 SIPDIS SENSITIVE FOR EAP/MTS AND INR E.O. 12958: N/A TAGS: PGOV KDEM PHUM KJUS MY SUBJECT: MALAYSIAN ANTI-CORRUPTION COMMISSION UNDER FIRE AFTER DEATH OF WITNESS REF: A. KL 588 - BY-ELECTION AND POLL A BOOST FOR NAJIB ¶B. KL 78 -- NAJIB LEADS TAKEOVER OF OPPOSITION STATE ¶C. 08 KL 1116 -- MALAYSIA PASSES ANTI-CORRUPTION BILLS Summary and Press Guidance -------------- ¶1. (SBU) The Malaysian Anti-Corruption Commission (MACC) ramped up their anti-corruption activities this week by focusing on opposition politicians in the opposition-held Selangor, Malaysia's wealthiest and most populous state. The opposition has cried foul over the investigations, claiming that the anti-corruption body set up this year has been used as a tool by the Prime Minister and his ruling Barisan National (BN) coalition to harass and intimidate members of the opposition. On July 16, a political secretary to a senior opposition politician mysteriously fell to his death from the 14th floor of the MACC building, shortly after an 8-hour interrogation by government officials. This death has created an uproar in opposition circles, resulting in an ad hoc protest on July 17 that resulted in several injuries and arrests. Opposition leader Anwar Ibrahim is organizing a further protest meeting for July 19. ¶2. (SBU) Recommended Press Guidance. We recommend that if asked, the Department "expresses hope for an impartial and thorough investigation." End Summary and Press Guidance. Background on Selangor and the MACC -------------- ¶3. (SBU) Following the landmark general elections in March 2008, the opposition coalition Pakatan Rakyat (PR) took control of five of Malaysia's thirteen states. In February 2009, three state assemblymen in the state of Perak switched allegiance from the PR to the BN, effectively yielding control of that state to the BN in a move widely perceived as a hostile takeover led by future PM Najib Tun Razak (ref B). There has been general speculation among the opposition that the BN's next takeover target would be Selangor, Malaysia's wealthiest and most populous state. ¶4. (SBU) The Malaysian Anti-Corruption Commission (MACC) is an investigative body within the Prime Minister's Department whose purpose is to investigate officials for graft and abuse of power. Since its implementation in January 2009, the MACC has proven to be an effective tool for the ruling BN coalition while drawing the ire of critics for its apparent political bias, as the vast majority of investigations have been conducted against opposition figures. The MACC Targets Opposition Politicians in Selangor -------------- -------------- ¶5. (SBU) The MACC began investigating seven members of the Selangor state assembly on July 13, acting on accusations that they were hoarding state funds meant for projects within their constituencies. Selangor Chief Minister Khalid Ibrahim and the DAP leadership criticized the investigation, claiming they were baseless and an attempt to politically undermine the opposition's leadership in Selangor. On July 15, the MACC continued their investigation by raiding the office of Selangor DAP Executive Counselor (or Exco, equivalent to a state cabinet minister) Ean Yong. The officers seized several computers during the July 15 raid, and requested Ean's political secretary Teoh Beng Hock to appear at the MACC headquarters for further questioning. The MACC officials classified Teoh as a witness and not a suspect. Death of a Political Secretary -------------- ¶6. (SBU) The MACC's probe was thrown into turmoil upon a janitor,s discovery of the deceased body of Teoh on July 16 on the roof of an adjacent building to the state MACC headquarters. Teoh's interrogation began at 5 pm on July 15, and MACC officials acknowledge that it did not end until 3:45 am the next morning. The MACC officials claim that Teoh decided to rest instead of going home, and that he was last seen sleeping on a couch in the visitors lounge at 6 am. Exco Ean claimed that he attempted to check in on Teoh at midnight, but that he was denied access to Teoh. Initial reports indicate that Teoh died from a long fall, but the cause remains unknown. Family members adamantly maintained that suicide could be ruled out, pointing out that Teoh was scheduled to obtain his marriage certificate on July 17. KUALA LUMP 00000598 002 OF 003 Protests Ensue -------------- ¶7. (SBU) Public reaction, at least among the political opposition, has been swift and harsh. At a candlelight vigil on July 16 and an ad hoc protest the next day, angry crowds called PM Najib a murderer, and yelled for the BN to "go to hell." As opposition leader Anwar Ibrahim and several key opposition leaders met with MACC officials at their headquarters on July 17, an angry mob clashed with police, resulting in several injuries and six arrests, including an opposition MP and a Selangor state Exco. The mob dispersed after Anwar emerged from the meeting and told the crowd to go home for the time being, vowing that the PR leadership would continue to pursue the case. Opposition Statements -------------- ¶8. (SBU) Opposition leaders have universally condemned the MACC and are demanding it be held accountable for the death of Teoh, maintaining that he was in their custody at the time of his death. Lim Guan Eng said, "Unless the MACC can clear its name, the public may suspect that Teoh was mistreated and the MACC had a hand in his sudden death. There must be full transparency and accountability." Opposition leader Anwar Ibrahim called for a high level independent probe into the incident, describing it as "part of a pattern of government harassment and systematic attack on the PR." Islamic Party of Malaysia (PAS) urged that all MACC officers involved be suspended or remanded for investigation, and also requested an Independent Commission of Inquiry. Selangor Chief Minister Khalid Ibrahim called Teoh's death "a direct consequence from the investigations of the MACC, which has been selectively picking on our (opposition) officers, elected representatives, and state agencies in Selangor." Government / BN Reactions -------------- ¶9. (SBU) Official government reactions and key BN figures have given more mixed statements regarding Teoh's death. Not surprisingly, leaders from both Chinese parties in the BN, the Malaysian Chinese Association (MCA) and Gerakan, have expressed anger over Teoh's death and have called for an independent inquiry. More surprising is that UMNO Youth Leader Khairy Jamaluddin called upon a Royal Commission to investigate the MACC, the first time an UMNO Youth Chief has taken a position that could put him squarely at odds with the government. Veteran UMNO leader Tengku Razaleigh also criticized the MACC, noting "the strange circumstances of Mr. Teoh's death put the credibility of the government and our investigative and law enforcement agencies under a microscope." ¶10. (SBU) Other government officials are urging for patience and giving the MACC the benefit of the doubt. Deputy PM Muhyiddin Yassin called on everyone to allow the police to conduct their investigation before jumping to conclusions. (Note: PM Najib is out of the country until early next week. End Note.) Muhyiddin stressed, "We are not looking to cover-up. We want a transparent investigation," but ruled out an independent commission to investigate the death. Home Minister Hishamuddin Tun Hussein has also said, "There will be a thorough investigation carried out." Minister in the Prime Minister's Department Mohd Nazri Aziz was quick to defend the MACC and cautioned against blaming the MACC in Teoh's death. Nazri implied Teoh's death was a suicide because he "jumped out of the building", adding "he should have gone home" after the interrogation ended at 3:45 am. What's Next -------------- ¶10. (SBU) Although four government pathologists have already examined Teoh's body, CM Khalid said that a pathologist appointed by the Selangor state government would help the police with their investigation into the death of Teoh. Opposition leader Anwar Ibrahim has called for a massive rally to take place on Sunday afternoon, July 19, in Selangor. Some Additional Background on the MACC -------------- ¶11. (SBU) As one of his final acts as Prime Minister, PM Abdullah pushed an updated anti-corruption bill through his KUALA LUMP 00000598 003 OF 003 BN dominated parliament late last year (ref C). The MACC officially became the law on January 1 2009. The intent of the MACC is to increase "the integrity and capability of the body to combat corruption more effectively, efficiently, pro-actively and with transparency." The appointment of the members lies solely with the Executive branch, which raised concerns that the MACC would be beholden to the Prime Minister and his ruling UMNO party. MACC Chief Commissioner Ahmad Said Hamdan stated that the Commission will not hesitate to take action against any political party, including UMNO, involved in corruption. Post Actions -------------- ¶12. (SBU) Ambassador Keith called the operations center on the evening of July 16 (local time) to report the incident. Emboffs have been in touch with their contacts and will continue to monitor the situation closely. KEITH