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Anwar suffers setbacks on the first day of his trial

| Source: REUTERS

Anwar suffers setbacks on the first day of his trial

KUALA LUMPUR (Reuters): Sacked finance minister Anwar Ibrahim on Monday suffered a string of setbacks on the first day of the sex and corruption trial that has exposed deep political divisions in Malaysia.

Judge Augustine Paul rejected a defense motion to grant observer status to foreign rights groups and legal experts, and refused to throw out corruption charges against Anwar.

The High Court judge's rulings were largely procedural and technical, but prompted Anwar to say his first day in court had been a difficult one.

"It's tough going in the first part of the trial, but what can we do?" Anwar told Reuters during a break in the trial. The first day of the trial which has drawn strong foreign interest passed without violence.

Several hundred police with automatic rifles, shields and batons ringed the courthouse in the heart of the capital as the trial got under way, two months to the day after Prime Minister Mahathir Mohamad dismissed Anwar.

About 500 people gathered peacefully around the courthouse behind police lines. There were sporadic anti-government shouts, but leaders said they had decided to stage a largely silent protest and not provoke a crackdown by riot police.

"We will continue until we have good government, until Mahathir steps down," one of the protesters told Reuters.

Anwar has pleaded not guilty to five charges of corruption and five of sodomy. Four of the corruption counts figure in the first phase of the trial.

Augustine rejected a request by Anwar's lawyers that the Malaysian Bar Council, several rights groups and United Nations Rapporteur Param Cumaraswamy be granted observer status.

"This is a big insult to the court," Augustine said of the request. "It gives the impression that the court may not be dispensing justice."

Opposition leader Lim Kit Siang urged Augustine to reconsider his decision.

"Anwar's trial has aroused unprecedented national and international interest," he said, "and it is not helpful for Malaysia's international image if a decision is taken which could only strengthen...concerns about Anwar's trial."

The debate over foreign observers symbolized the divisions that Anwar's sacking exposed in Malaysian politics.

Anwar's arrest on Sept. 20 and apparent beating while in police custody raised a storm of protest in foreign capitals, where while finance minister he established a reputation as a market-savvy moderate able to lead Malaysia into the next century.

But Anwar's critics have long accused him of currying favour among foreigners, and he has said he expects eventually to be charged with treason.

Augustine later rejected a defense request that the four corruption charges at issue be dismissed on technical grounds. "While we made lots of objections, we have lost every single one," Sulaiman said. "But no doubt we'll be raising other things as well."

Before his trial began, Anwar hugged his wife, Azizah Ismail, his two eldest daughters and father and mother. He looked in good health and smiled at reporters.

"I'm all right," Anwar, 51, told reporters. He no longer had the black eye which stunned the world in September, and he was not wearing the neck brace he had previously worn.

During an afternoon break, Anwar lashed out at Attorney- General Mohtar Abdullah for saying he would face more sex charges after his trial ends next year.

"I can't expect a fair trial if the AG comes out with an outburst," Anwar told reporters. "Dates are not set by him without referring to my counsel. Charges must be made known."

Anwar also assailed Mahathir, saying he had understated the projected cost of the prime minister's official residence to be built in a high-tech administrative zone near Kuala Lumpur.

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