Malaysian minister calls for royal probe into anti-graft body’s ‘corporate mafia’ claims

KUALA LUMPUR – A senior Malaysian minister has called for a royal inquiry into allegations that the Malaysian Anti-Corruption Commission (MACC) acted as an “agency for hire” in corporate boardroom battles.

Transport Minister Anthony Loke said he will table a proposal at the Cabinet meeting on Feb 27 to set up a Royal Commission of Inquiry (RCI) – Malaysia’s highest form of public inquiry, convened under the King’s authority and reserved for matters of serious national concern.

The call is a direct escalation from the Cabinet’s Feb 13 decision to form a special task force, headed by Attorney-General Dusuki Mokhtar, to investigate related controversies.

Mr Loke argued that this mechanism falls short because it covers only MACC chief commissioner Azam Baki’s shareholding breach, and not the broader allegation, reported by Bloomberg, that MACC officers colluded with businessmen in a “corporate mafia” scheme to force corporate takeovers.

“To be frank, I feel the government’s response has been inadequate and does not meet public expectations,” Mr Loke, who is the Democratic Action Party (DAP) leader and secretary-general, told Malaysiakini in an interview published on Feb 24.

Hours after Mr Loke’s comment, MACC denied the “corporate mafia” allegation by describing the claims as baseless and originating from an unverified online source, reported the New Straits Times.

DAP holds 40 federal seats, and is the largest component party in Prime Minister Anwar Ibrahim’s unity government. It has recently been pushing for institutional reforms, including the introduction of a prime ministerial term limit in Parliament, following its wipe-out in the November 2025 Sabah state election, where it lost all eight seats contested.

The party will also hold a special party congress in July 2026 – which Mr Loke has described as an internal “referendum” – to determine whether the party continues serving in government roles, including in Datuk Seri Anwar’s Cabinet.

It is set to address growing restlessness among DAP’s grassroots over unfulfilled pledges, government scandals and the perceived encroachment on the way of life of the non-Muslim minority.

Rare move for minister

Political pundits view the minister’s public call as rare, as it places government institutional credibility above Cabinet collective responsibility.

It also comes at a time when Mr Anwar is facing increasing scrutiny over fulfilling reformist promises made to Pakatan Harapan’s core base.

Mr Kamles Kumar, associate director at consultancy Asia Group Advisors, viewed Mr Loke’s public call for an RCI as “unusual for a sitting minister”, as it may create tension among Cabinet colleagues.

“By pushing for an RCI, Mr Loke reinforces DAP’s reform credentials and reassures members that it remains the party they voted into power in 2022,” the political analyst told The Straits Times.

Political analyst Phoon Wing Keong suggested that Mr Loke’s political manoeuvre indicates that DAP seriously views the MACC controversies as a criminal scandal ahead of the party referendum.

“Anwar did not state his stance on the ‘corporate mafia’, nor did he ask MACC’s Mr Azam to take leave pending investigation,” Dr Phoon, who is the head of the Huayan Policy Institute, a Chinese community think-tank, said. “There will be two inclinations within the party: either remain silent to enjoy the resources of the government, or uphold the party’s idealism for good governance.”

Firestorm over Bloomberg reports

On Feb 10 and 11, Bloomberg published two reports alleging Mr Azam’s breach of the civil service shareholding limit and the broader corporate takeover scheme.

Mr Azam has since denied the report on the shareholding controversy and filed a RM100 million (S$32.5 million) defamation suit against Bloomberg at the Kuala Lumpur High Court on Feb 20, also seeking aggravated damages and an injunction.

Public pressure led Mr Anwar’s Cabinet to form a special task force on Feb 13 to look into the allegations surrounding the shareholding controversy.

The committee summoned Mr Azam on Feb 19.

The task force, staffed by serving senior civil servants, has been slammed by lawmakers and civil society groups as lacking independence.

On Feb 20, a coalition of civil groups and individuals suggested that former chief justice Tengku Maimun Tuan Mat or a similarly respected figure lead the investigation instead.

Even a backbencher from Mr Anwar’s Parti Keadilan Rakyat (PKR), maverick MP Hassan Karim, has voiced support for the RCI call, and echoed the suggestion for Tun Tengku Maimun as the chair.

“I fully support the call for an RCI. Nobody would have confidence in the Malaysian stock market if MACC officers were involved in a corporate mafia, which is a commercial crime.

“Mr Azam should resign or be asked to take leave pending the investigation,” he told ST.

In a parliamentary debate on Feb 24, DAP backbencher Khoo Poay Tiong sternly warned the government to remove Mr Azam as MACC chief or face the wrath of voters in the next general election, due by February 2028.

“Azam must resign. He has to go. Either he goes, or we go,” he reportedly said.

Eight PKR federal lawmakers, led by former economy minister Rafizi Ramli, previously urged Mr Anwar to suspend Mr Azam pending investigation on Feb 14.