Sabah scandal exposes dire need for political financing law – C4 Center

PETALING JAYA, Dec 19: The Center to Combat Corruption and Cronyism (C4 Center) has condemned a statement by Sabah Chief Minister Hajiji Noor recently that while his assemblypersons have never solicited bribes, political parties and politicians do accept donations. He was also reported saying that such an act was not a “wrong” practice in Malaysia nor in any other country.

In a statement issued today, C4 Center said such statements further pointed at the urgent need for the tabling of a Political Financing Bill.

“These statements were made in response to the ongoing controversy regarding corruption in his administration, linked to videos released by a whistleblower showing Sabah state assemblypersons allegedly soliciting bribes in exchange for the granting of mining licenses.

“Hajiji’s statements were in connection to the allegations of corruption in his administration by an anonymous whistleblower. He also stated that the release of these videos were part of a “well-orchestrated campaign” to spread lies and slander against his administration, a claim also echoed by Sabah state Finance Minister Masidi Manjun who was also implicated in the videos,” C4 Center said in the statement.

“Concerningly, Hajiji appeared to have knowledge of the whistleblower’s statement made to the Malaysian Anti-Corruption Commission (MACC). The whistleblower’s lawyer, Muhammad Shafee Abdullah, denied that his client made this statement and further questioned how Hajiji was able to obtain this information when it falls under the Official Secrets Act 1972.”

The comments made by Hajiji Noor expose a fundamental deficiency in Malaysia’s political system. While he argues that the existing manner in which political donations are obtained is acceptable locally and internationally, this argument is flawed. The means of political funding is an ongoing debate internationally with international organisations such as the United Nations, Transparency International, and the Organisation for Economic Co-operation and Development all having published many documents relating to the corruption risks involving political donations and financing and the need to introduce preventative measures against corruption from taking place. 

“Even in Malaysia, Hajiji is making false claims in asserting that political donations are not “wrong”, as governments both previous and current have made commitments to introducing a Bill to regulate political funding, as per the National Anti-Corruption Plan (NACP) 2018-2023 and the National Anti-Corruption Strategy 2024-2028.

“These commitments explicitly recognise that there is an inherent corruption risk in how political parties obtain financing. The NACP 2018-2023 even went so far as to state that the proposed Political Funding legislation would include an offence pertaining to lobbying under Strategic Objective 1.2.5. This is an unambiguous acknowledgement that government lobbying above a certain degree is a harmful act that must be penalised,” the anti-graft body said. 

Furthermore, Hajiji’s statements are contradictory. While he says politicians and political parties accepting donations is not a wrong practice in Malaysia, he also states that the claims against his administration are slanderous. If such allegations were not necessarily “wrong” in the eyes of Malaysian society, what impact could there be on his and his administration’s reputation? If they were mere donations, why were they performed so covertly, and why was this admission only made when videos from a whistleblower were released to the public?

It is common knowledge that patronage is a key feature of the Malaysian political system. The sheer cost of elections and the pursuit of power create inherent incentives for political parties to seek financial support from the business elite, who are then indirectly rewarded with political favours and lucrative business opportunities. Despite the clear corruption risks arising from this relationship, the practice of political donations and the various ways in which political parties raise funds remains unregulated.

Lastly, as conversations about political funding become more prevalent in the public sphere, questions must be asked as to why a Political Funding Bill has not yet been introduced despite years of promises. It is clear that powerful political parties benefit from the status quo, having already established strong patronage links in the private sector. This reluctance to reform the system is only strengthened when a party or coalition wins an election, enabling access to powerful government machinery that can be wielded in their favour. 

C4 Center reiterated its call for the government to introduce and table a Political Funding Bill that guarantees transparency through mandatory reporting requirements as to the amount of donations received by political parties.

The Bill must also place a hard limit on the amount political parties receive from private individuals, while completely doing away with corporate donations as they represent a significant risk area for the proliferation of money politics. 

–WE