PKR, coalition partners should challenge Anwar over Najib

By P. Gunasegaram

The most disturbing news last year for Malaysia is the organisation of support for Najib Razak’s house arrest and the attendant things such as acquittals and discharges not amounting to acquittal (DNAAs) in corruption cases.

They are unbelievable, aimed at forgiving and trivialising the most serious crime in Malaysia and the largest kleptocracy the world has ever seen. Borrowed money at 1MDB systematically stolen and put into private accounts controlled by the infamous Jho Low, and other losses, amount to at least RM50 billion.

Jho Low was known to Najib. According to repeated court testimony, he used the Najib connection to force through deals at 1MDB. They could not have gone through without Najib’s approval, who as finance minister was in sole control of 1MDB’s affairs through the Minister of Finance Inc, a government company which owned all of 1MDB.

In fact 1MDB’s memorandum and articles of association explicitly required that the finance minister approved all major deals which were undertaken by 1MDB. 

Total losses of over RM100 billion

KINIBIZ estimated the losses emanating from 1MDB (see chart) at nearly RM42 billion in a series of articles more than nine years ago, describing in detail how they took place. With other losses through companies like SRC in related and separate transactions, the losses would have amounted to over RM50 billion.

Source: KINIBIZ

This was not money lost through legitimate investments but stolen from 1MDB. Because much of the money lost was borrowings, they still had to be repaid, a double whammy. True there have been recoveries but recovery of stolen money does not absolve perpetrators from the crime.

If we assume RM50 billion as total losses, and an opportunity cost of just 7% a year, not large or unusual for a strategic development company which 1MDB was billed as, the losses more than double to RM100 billion or more!

How is it possible that three political parties, Umno, Pas and possibly Bersatu, are supporting Najib? And there appears to be tacit approval at the top too from the Madani government which includes PKR, DAP and Amanah?

Is that not the greatest betrayal of the people who for the first time in the 61 years since independence overthrew the BN government of Najib Razak in 2018 because they believed he was the person most responsible for the disaster that was 1MDB? They gave a chance to Pakatan Harapan and PKR. But their leaders are intent on bringing Umno back into the mainstream.

Further there is evidence that Najib conspired with China over the East Coast Rail Link project, overpricing it to cover the holes in 1MDB’s balance sheet, as I explained in this article and earlier ones.

Why the forgiveness?

Have these people all forgotten what Najib was responsible for? Surely not. It is not just politics but involves plain corruption. The Edge reported in Sept 2018, the year Najib lost the elections, that the 1MDB asset recovery team is looking to recover RM974 million that Najib had dished out to various local individuals and groups from his main AmIslamic Bank account between 2011 and 2014.

That offers a clue. Many Umno and related personalities may be involved in these transfers. If Najib remains in jail and other charges proceed, they may well be asked to return the money or they may even be charged. 

But what is the reason for PM Anwar Ibrahim’s questionable stance? Why can’t he do more to ensure that the rule of law is enforced? What happened to his fight against corruption? His position that he cannot interfere in the judicial process is tenuous at best.

The problem has not been the judiciary, it’s the AGC which is at fault in terms of not adhering to procedure and asking for DNAAs as indicated below for both Najib and Deputy PM Ahmad Zahid Hamidi. If the attorney general is incapable of doing his job, the PM currently has the power to replace him.

So Anwar’s reluctance and  even his surprising assertion that previous prosecution of some prominent figures were too rushed and motivated by venom and vengeance indicates he may be throwing his weight behind the house arrest.

Explaining Anwar’s role

It smacked of political expediency and being on Umno’s good side, especially when a Malaysiakini article pointed out he had made no objections previously. Also, Anwar’s wife, Wan Azizah Wan Ismail was a key member of the administration then as deputy prime minister.

On January 6, Umno, in solidarity with PAS and perhaps including Bersatu, will hold a demonstration in support of Najib Razak outside the Court of Appeal, a move which blatantly puts pressure on the court in a decision that day over house arrest. And Anwar remains quiet.

Najib is seeking a judicial review to confirm if a prior order allows house arrest, following his drastically reduced sentence of six years and RM50 million fine for the SRC International corruption case by the Pardons Board from 12 years and a fine of RM210 million previously.

Already that Pardons Board decision in Feb 2022 came under fierce criticism over the steep reduction in jail sentence and fines, and over whether Najib deserved such a reduction so early on when he had barely served one and a half years of his 12-year sentence.

To compound that Najib already had serious cases to answer in the courts which were ongoing. It is troubling that some of these cases have since resulted in acquittals and DNAAs from procedural and other deficiencies by the AGC.

This appeal is in court even before legislation has been passed to enable house arrests. It is confounding how a house arrest can be done at this time when there is no provision for it at all. 

What stands out from all this is Anwar’s apparent willingness to condone grand larceny of epic proportions just so that he can remain in power, playing right into what Umno wants. 

Challenging Anwar

Despite all evidence to the contrary when Umno was reduced almost to the point of irrelevance with its 26 seats in the 2022 elections from 56 in 2018, he seems to think that this will keep him in power when a grand coalition  which may include PAS is returned to power in the next elections.

But if PKR does not figure high up in the number of seats garnered in GE16, you can be sure that Anwar will be got rid of in a jiffy – Anwar should know by now not to sleep with the enemy. Dr M should have taught him that much!

Also, how can PKR’s strength increase when Anwar is making such conciliatory moves with Umno to enable even a house arrest for Najib and standing by and watching DNAAs for Najib and Ahmad Zahid? PKR will do worse or even be demolished.

But I suppose ambition blinds – Anwar is taking this country down a slippery slope to remain in power. It’s time for others within PKR to act – and for his coalition partners too.

They should send a clear message that if he does not reverse and move in new, more morally correct directions, he is not assured of support. A challenge for the PKR presidency in the upcoming party polls this year would be a good way to see where the party stands regarding Anwar.

Coalition partners such as DAP, whose 40 parliamentary seats are over 50% more than Umno’s 26, must find the courage to challenge Anwar’s position or lose seats in the next elections. That applies to Amanah too with eight seats. 

Without DAP and Amanah, Anwar’s Madani government will collapse with 48 seats gone. Anwar must be made to realise that political reality does not mean sacrificing the thing that won the election in the first place.

Currently, the motley Madani government holds 147 out of 222 seats in Parliament, including 23 from Sarawak’s GPS. If UMNO/BN leave and take their 30 seats, the Madani government still can run with 117 seats. Umno needs Madani more than Madani needs Umno.

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P Gunasegaram says we need to maintain hope in the worst of circumstances. Happy New Year and all the best.