Thu, 26 Feb 2004

Abdullah's war on corruption makes political sense

Pavin Chachavalpongpun, The Nation, Asia News Network, Bangkok

The rainy weather in Malaysia this week failed to cool the hot political climate caused by the most recent anti-corruption campaign unleashed by new Prime Minister Abdullah Badawi. The number of senior government officials now standing trial on charges of embezzling state funds is a testament to Malaysia's seriousness in its war on corruption.

High-profile cases include that of Kasitah Gaddam, the Land and Cooperative Development minister alleged to have played a part in a multimillion-dollar share transaction scam. Meanwhile, Shaharin Shaharudin, a former CEO of Perbadanan Nasional Bhd, an investment agency set up to help entrepreneurs, has been charged with criminal breach of trust amounting to US$121,000 (Bt4.75 million).

The prime minister has also closed in on the private sector. Eric Chia, former head of troubled steel giant Perwaja, has been charged with embezzling $20 million.

Abdullah's message is clear: "Even the most senior officials will not be spared if they fall foul of the law, no matter the size of their transgression".

The remark not only suggests that an alarming level of corruption exists in Malaysia, but also raises questions over the motives behind Abdullah's anti-corruption drive. To many, his aims are somewhat dubious.

Like many other countries, Malaysia has long suffered from the parasitic problem of corruption. The country was rated number 37 in the 2003 Transparency International Corruption Perceptions Index, with a score of only 5.2 out of 10, whereas Singapore ranked fifth with a score of 9.4.

Taken alone, these statistics make the efforts to clean up the system seem genuine. However, from a political perspective, the anti-corruption drive resembles a political device aimed at boosting the popularity of Malaysia's new rulers.

In the wake of Muhammad Mahathir's long reign, Abdullah most likely felt it imperative to establish his own credentials as the bold leader of a new regime. The war on corruption represents a major departure from Mahathir's days, when corruption was pervasive. The Eric Chia case, which dates back eight years, underlines the Mahathir administration's failure to prosecute fraud cases.

Abdullah is working hard to put forward calibrated changes in selected issues of political economy, such as improvements in governance. This explains why getting rid of corruption, cronyism and nepotism has become one of the main priorities of his administration.

The strategy is simple: He is simply looking to create an effective and credible image for his government. In terms of popularity, Abdullah has got a lot of political mileage from the recent arrests of several high-ranking officials, and more arrests seem likely. On a political level, even the opposition has come out in support of the premier's hard stance on corruption.

The anti-corruption policy and the government's new identity could be taken as attempts by Abdullah to win votes in the election expected to take place in May or June. Although many are skeptical whether Abdullah still remains in the shadow of his predecessor, he has sent out a clear signal that the de- Mahathirisation of the political system and policy regime is underway.

The coming election will put Abdullah to the test over whether he is capable of reproducing Malaysia's glorious days of better economic conditions and political stability. Of particular concern to Abdullah is how to strengthen the government's ties with grassroots Malays and the Malay-dominated civil service.

Considered this way, the anti-corruption drive appears part of an effort to establish a more transparent society and therefore a winning formula for Abdullah to accumulate more public support ahead of the polls.

In addition, the results of the election will have a powerful effect on the outcome of the United Malay National Organization (UMNO) party election, due to take place later in the year. The UMNO is the main ruling party of Malaysia.

The vote will touch on the issue of leadership succession. Abdullah has not actually been elected president of the UMNO yet and therefore needs an official endorsement from the party to cement his authority.

Abdullah needs to convince party members that he is able to lead both the UMNO and the country. The problem of corruption has long troubled the credibility of the UMNO and the government in general.

However, domestic conditions are not the sole driving force behind Malaysia's tougher anti-corruption policy; international factors play an essential part here also. Singapore, where corruption is almost non-existent, provides a perfect example of a transparent society.

Abdullah also looks up to Thailand, where the government recently adopted stiff measures to force underground businesses into the light, mainly to control corruption. However, it should be noted that Thailand does not necessarily represent the best model for eradicating corruption.

Thai prosecutors have failed to bring to justice many heavyweight defendants. The state has failed to punish convicted former health minister Rakkiat Sukthana, who jumped bail and went into hiding. In other cases, Thai politicians have managed to persuade higher courts to overturn earlier rulings against them.

In Thailand, the absence of laws, money, manpower and political will as well as the presence of local dark influences directly impede the state's anti-corruption efforts.

The graver danger is that some Thai politicians have obscured the line between politics and private wealth, leaving the door wide open to corruption. In any case, Abdullah is taking serious steps towards the long-term elimination of graft, such as awarding government contracts by open tenders. Complimenting Abdullah, Mahathir said: "It is a good, stern action against corruption".

Abdullah may not have entered Malaysia's highest political office with a trumpet blast, but he wasted no time in imposing major policies through which he intends to leave his own mark and alter the character of Malaysian society.