Malaysia narrows scope of probe into Covid-era stimulus packages by previous govt

Malaysia’s PM Anwar Ibrahim this week said there was a breach of procedure found in the handling of RM600 billion of public funds. PHOTO: AFP

KUALA LUMPUR - Malaysia’s anti-graft agency said its investigation into the alleged misuse of Covid era stimulus packages by the previous administration will focus on RM92.5 billion (S$28.4 billion) spent by the government.

This comes a day after the Malaysian Anti-Corruption Commission said that it had opened an investigation into the alleged misappropriation of RM600 billion of public funds for tackling the pandemic.

In a statement Friday, the MACC said a total of RM530 billion was spent by the government in 2020 and 2021 on stimulus packages, based on inputs from the Finance Ministry. Of this, RM437.5 billion were external or non-government funds, it said.

The ministry is due to submit details of how the public funds were used next week, the agency said. 

The MACC said on Thursday that it would summon former premier Muhyiddin Yassin and two ex-Cabinet ministers who served in his administration for the alleged misappropriation of RM600 billion of public funds for tackling the pandemic.

The other two are ex-health minister Khairy Jamaluddin and former finance minister Tengku Zafrul Aziz, who now heads the international trade and industry ministry in the new government. The funds for the pandemic included resources for vaccines, local media reports say. 

News of the probe comes as Prime Minister Anwar Ibrahim is reviewing projects and plans approved by past administrations in a bid to burnish his credentials as a reformist and fulfill his alliance’s election manifesto promises to fight corruption.

Datuk Seri Anwar himself faces criticism for picking the head of the former ruling coalition, Zahid Hamidi, who faces graft charges as one of his deputies. 

PM Anwar this week said the Finance Ministry found there was a breach of procedure in the handling of RM600 billion of public funds during Tan Sri Muhyiddin’s time as premier. Mr Anwar also ordered a review of the 5G mobile services contract awarded to Ericsson AB last year, citing concerns about cost and transparency. BLOOMBERG

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