Malaysia’s anti-graft chief under spotlight as controversies resurface

KUALA LUMPUR – Malaysian anti-graft chief Azam Baki’s past shareholding is under fresh scrutiny after allegations that a “corporate mafia” has infiltrated the Malaysian Anti-Corruption Commission (MACC).

The allegation has reignited questions about the independence of the country’s graft-busting agency,

with several government lawmakers calling on Feb 13 for Tan Sri Azam to be suspended pending an independent investigation.

Prime Minister Anwar Ibrahim previously defended Mr Azam against the accusations, but the pressure has led to his Cabinet announcing on Feb 13 that a special task force will be formed to look into the allegations against MACC.

“A special task force led by the Chief Secretary to the Government will investigate allegations raised. After investigations are completed, it will be tabled to the Cabinet for further action,” Communications Minister Fahmi Fadzil said in his weekly post-Cabinet meeting press conference.

On Feb 11, Datuk Seri Anwar had urged Mr Azam’s critics to listen to the latter’s explanation about the controversies.

“The man is doing his job. Why would you insult him? You have to hear him out,” the Prime Minister said at the Chinese New Year reception of the Associated Chinese Chambers of Commerce and Industry of Malaysia.

On Feb 13, former economy minister Rafizi Ramli led seven other MPs from Parti Keadilan Rakyat (PKR), which is part of the government coalition, to call on party president Anwar to act against Mr Azam.

“I would like to advise Prime Minister Anwar not to repeat the mistakes made by Najib Razak during the 1MDB scandal,” Datuk Seri Rafizi said of the Malaysian state fund scandal that led to the conviction of former prime minister Najib and triggered investigations in several countries.

Mr Rafizi argued that early warnings about that scandal were dismissed before it escalated into a global enforcement crisis that damaged Malaysia’s institutional credibility.

He also said that “spending a few days in lock-up would be worth it”, stressing that intimidation tactics would not silence him if it ensures that the allegations are not quietly dismissed.

He added: “I’m a veteran when it comes to being arrested, raided and searched. I am prepared to go through it again... In the end, the truth will prevail.”

Shareholding questions revived

The show of defiance came after Mr Rafizi confirmed on Feb 12 that a report has been lodged against him with MACC over an

RM1.11 billion (S$359 million) investment

by UK-based semiconductor design firm Arm Holdings.

The controversy involving Mr Azam was fuelled by a report from Bloomberg, which revisited a 2021 investigation into alleged money laundering involving about RM500 million channelled through publicly listed companies on Bursa Malaysia.

The case, probed by the Inland Revenue Board and MACC, ended without prosecution, with a substantial portion of seized funds reportedly returned to businessman Victor Chin.

Bloomberg cited allegations of collusion between enforcement officials and corporate figures, including claims of payments amounting to millions of ringgit. No fresh charges have been announced.

Scrutiny has also turned once more

to Mr Azam’s past financial disclosures.

Recent reports by Bloomberg and Malaysiakini cited corporate filings showing that he previously held about 17.7 million shares in moneylender and investor Velocity Capital Partner, valued at roughly RM800,000. Separately, he was also reported to be holding 4.52 million shares, around a 1 per cent stake, in technology provider AwanBiru Technology.

Under Malaysian civil service regulations, senior officials must declare share ownership and are subject to limits intended to prevent conflicts of interest.

Mr Azam

has denied wrongdoing

and said he is open to scrutiny. In a statement on Feb 13, he said he welcomed investigation by any independent committee established by the government to examine his shareholdings.

“I have nothing to hide,” he said, adding that all financial and asset declarations were made in accordance with public service regulations and through official channels.

Mr Azam’s tenure itself has drawn attention. He was first appointed to the role in March 2020, and then reappointed from May 12, 2023, to May 11, 2024, followed by another term from May 12, 2024, to May 12, 2025.

His contract was again extended for a further year until May 12, 2026, a move that drew criticism at the time from some opposition lawmakers, who questioned the renewal amid ongoing controversy.

Calls grow for parliamentary oversight

This scrutiny reflects a broader debate about oversight of Malaysia’s anti-corruption framework. While the MACC is subject to monitoring by advisory panels, its chief commissioner is appointed by the king on the advice of the prime minister.

Reform advocates have long argued that MACC should be placed under the purview of Parliament.

PKR MP Wong Chen had proposed that future appointments of the MACC chief should go through a bipartisan select committee process and include comprehensive asset declarations. He also pointed to the forthcoming Ombudsman Bill as a potential avenue to strengthen institutional accountability.

“Maybe it’s time to add MACC into the policy... when it is tabled in Parliament this year,” he said.

Mr Raymon Ram, president of watchdog Transparency International Malaysia, said the episode highlighted the need for credible oversight mechanisms rather than political escalation.

While acknowledging MACC’s public statement that Mr Azam had declared his shareholdings and disposed of them within the same year, Mr Ram said conflict-of-interest safeguards for senior public office must be independently verifiable.

“Allegations reported in the media are not findings of guilt,” he said, stressing that the presumption of innocence must prevail.

Political analyst Syaza Shukri said the episode was troubling, though not entirely unexpected.

“This is not the first time Azam has faced allegations, and the previous episode was handled in a way that left many unsatisfied,” she said.

She added that defending the MACC chief on the basis that he was simply performing his duties was insufficient. “Doing your job is the minimum expectation of any public servant.”

Dr Syaza warned that the way the government handles the matter could affect public confidence.

“Yes, we can see the government going after some cases in line with its reform promises, but it looks very uneven,” she said.