Malaysia anti-graft chief sacked as election looms
By John Burton in Singapore
Published: April 2 2007 03:00 | Last updated: April 2 2007 03:00
Malaysia's government has dismissed its top anti-graft official amid a corruption investigation in an effort to bolster its credibility ahead of a general election expected this year.
The government said it would not renew the contract for Zulkipli Mat Noor, head of the Anti-Corruption Agency, after it expired at the weekend. It did not refer to the inquiry into his conduct.
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The issue of corruption is seen as the biggest threat to Abdullah Badawi's government, which is expected by many to call an election in the final quarter of 2007 to take advantage of strong economic growth. The prime minister led the government to a landslide victory in the last election in 2004.
The government has been shaken by a string of high-profile scandals and Malaysia's ranking in several international surveys measuring corruption has slipped in the past year.
Mr Zulkipli was accused by one of his former officials of amassing "substantial property and assets through corrupt practices", an allegation he has denied. The deputy internal security minister has also been accused of corruption; he denies that he was bribed to free criminal suspects from jail.
Mr Abdullah had earlier rejected demands that the officials be dismissed while investigations were continuing, saying that 85 per cent of the complaints filed with the authorities were baseless. The treatment of Mr Zulkipli is a sign that the government had decided it must respond more strongly to public outcry over graft.
Mr Abdullah has long maintained a clean image in Malaysia's murky political world and promised to crack down on graft when he took over in 2003. He launched an investigation into the police force, viewed as the country's most corrupt agency, and several senior government officials were indicted for graft. But there has been little progress in securing convictions and carrying out proposed police reforms.
Transparency International last month ranked Malaysia 44th among 163 countries included in its annual corruption perceptions index, down from 39th the year before. The fall is embarrassing for Malaysia as it seeks to reverse a decline in foreign direct investment, which fell 14 per cent to $4bn last year.
The ruling National Front coalition is almost certain to win the next election but a drop in voter support due to lack of progress in fighting corruption could weaken Mr Abdullah.
The prime minister is -facing rising criticism for -proposing to relax affirmative action rules for the ethnic Malay majority to attract foreign investment. He risks alienating his biggest support base. Mahathir Mohamad, his predecessor, said last week that Malays could be "enslaved again" by foreigners if government dropped such rules for an economic zone near Singapore.
Copyright The Financial Times Limited 2007
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