Section 4. Corruption and Lack of Transparency in Government
The law provides criminal penalties for corruption by officials; prior to the February change of government, the government charged several former government officials with corruption, including the former prime minister, although there remained a broadly held perception of widespread corruption and cronyism in government institutions. Media outlets reported numerous cases of alleged official corruption.
The Malaysian Anticorruption Commission is responsible for investigating corruption in both private and public bodies but does not have prosecutorial authority. An auditor general is responsible, per the constitution, for auditing the accounts of the federal and state governments, government agencies, and other public authorities.
Corruption: In the first criminal trial in the country’s history involving a former prime minister, in July the high court convicted Najib Razak on all seven counts brought against him in the first of five corruption trials tied to the 1Malaysia Development Berhad (1MDB) investment fund scandal. Najib was charged with giving government guarantees on a loan from the country’s retirement fund to a subsidiary of the 1MDB, misappropriation of funds, and money laundering. Suits filed against Najib’s wife Rosmah Mansor on 19 counts of money laundering and tax evasion remained underway.
In May a sessions court granted Riza Aziz, stepson to Najib, a discharge not amounting to acquittal in relation to five counts of laundering nearly $250 million from the 1MDB investment fund. As part of the agreement, Riza will return $108 million in assets. Former attorney general Tommy Thomas, who initiated the charges against Riza and Najib, called it “a sweetheart deal for Riza but terrible for Malaysia.” Many members of the legal community condemned the court’s decision.
In June the high court acquitted former Sabah chief minister Musa Aman on all 46 criminal charges of corruption and money laundering leveled against him, citing its failure to obtain key banking documents and the unavailability of several witnesses. Musa was charged in 2018 with 35 counts of accepting gratification amounting to RM 243 million ($63 million). In 2019 he was charged with 16 counts of money laundering involving RM 160 million ($38.4 million).
According to the Malaysian Anti-Corruption Commission, authorities arrested 867 public officials for corruption and bribery from January 2019 to September 2020.
Financial Disclosure: Cabinet members must declare their assets to the prime minister. Senior civil servants are required to declare their assets to the chief secretary of the government. Junior civil servants must declare their assets to the head of their department. The assets, liabilities, and interests public officials must declare are clearly defined and do not include the assets and incomes of spouses and dependent children, except in the case of members of parliament. Public officials must declare their assets annually, but not upon entering or leaving office. Those who refuse or fail to declare their assets face disciplinary actions and are ineligible for promotion. Such declarations are made public.
In March, Prime Minister Muhyiddin announced that all elected representatives in the government must declare their assets within three months of the date they were sworn in. In July, the government released information on all declared assets publicly. As of August, 57 of the 70 officials in the Perikatan Nasional government had their monthly income and total asset value listed on the Malaysia Anti-Corruption Commission’s portal, which was accessible to the public.