KUALA LUMPUR – Malaysia’s anti-graft agency said on Dec 30 that it was investigating a former finance minister and key ally of former prime minister Mahathir Mohamad under the country’s abuse of power and money laundering laws. 

In a statement, the Malaysian Anti-Corruption Commission confirmed media reports in December that it had seized Ilham Tower, a 60-storey building in Malaysia’s capital Kuala Lumpur, as part of its investigation into Tun Daim Zainuddin.

Mr Daim, 85, said in a statement on Dec 28 that he denied all wrongdoing and that he was not informed of what offence he had allegedly committed despite repeated queries to the commission.

He also described the probe against him as a “political witch-hunt” driven by the anti-graft agency and Prime Minister Anwar Ibrahim.

Datuk Seri Anwar, who came to power in 2022, has vowed to weed out high-level corruption, but has faced accusations by some critics of targeting political rivals.

The commission said on Dec 30 that it had acted independently according to the law, and that it had opened investigations against Mr Daim in February based on information contained in the Pandora Papers – financial records leaked in 2021 which revealed offshore assets held by politicians and public figures worldwide.

Mr Daim, his associates and family members were reported to have held assets worth at least £25 million (S$42 million).

The commission said it had asked Mr Daim to declare his assets in June and granted five extensions to the former minister for him to do so – the latest on Nov 14.

It added that “he has every opportunity to clear his name if the case is brought to the court of law”.

Mr Daim held the finance portfolio twice: between 1984 and 1991, when he was succeeded by Mr Anwar; and from 1999 to 2001, after Mr Anwar was sacked by then Prime Minister Mahathir for alleged corruption and sodomy.

Though retired from active politics, Mr Daim remains an influential figure.

In 2018, when Tun Dr Mahathir came out of retirement and returned as prime minister, he appointed Mr Daim to lead a government advisory council tasked with scrutinising everything from government policies to the management of state-linked firms.

Mr Daim also led talks to renegotiate several deals with China, including the East Coast Rail Link project, part of Beijing’s Belt and Road programme. REUTERS