Identifier
Created
Classification
Origin
09KUALALUMPUR598
2009-07-17 10:58:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Kuala Lumpur
Cable title:  

MALAYSIAN ANTI-CORRUPTION COMMISSION UNDER FIRE

Tags:  PGOV KDEM PHUM KJUS MY 
pdf how-to read a cable
VZCZCXRO0029
PP RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHKL #0598/01 1981058
ZNR UUUUU ZZH
P 171058Z JUL 09
FM AMEMBASSY KUALA LUMPUR
TO RUEHC/SECSTATE WASHDC PRIORITY 2997
INFO RUCNASE/ASEAN MEMBER COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RHHMUNA/HQ USPACOM HONOLULU HI PRIORITY
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
--------------------------

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