Sabah scandal exposes dire need for political financing law

By C4 Center

On 15 December, Sabah Chief Minister Hajiji Noor reportedly said that while his assembly members have never solicited bribes, political parties and politicians do accept donations.

He added it was not a “wrong” practice in Malaysia nor in any other country.

These statements were made in response to the ongoing controversy regarding corruption in his administration, linked to videos released by a whistleblower showing Sabah state assembly members allegedly soliciting bribes in exchange for the granting of mining licences.

The Center to Combat Corruption and Cronyism (C4 Center) strongly condemns these statements and calls for the tabling of a political financing bill with utmost urgency.

Hajiji’s statements were in connection with allegations of corruption in his administration by an anonymous whistleblower. He said the release of these videos were part of a “well-orchestrated campaign” to spread lies and slander against his administration, a claim also echoed by Sabah Finance Minister Masidi Manjun, who was also implicated in the videos.

Concerningly, Hajiji appeared to have knowledge of the whistleblower’s statement made to the Malaysian Anti-Corruption Commission (MACC) where the whistleblower allegedly did not admit to giving the alleged bribes.

The whistleblower’s lawyer, Shafee Abdullah, denied his client made this statement and further questioned how Hajiji was able to obtain this information when it falls under the Official Secrets Act 1972. 

Hajiji’s comments expose a fundamental deficiency in Malaysia’s political system. While he argues that the existing manner in which political donations are obtained is acceptable locally and internationally, this argument is flawed.

The means of political funding is an ongoing debate internationally with international organisations such as the UN, Transparency International and the Organisation for Economic Co-operation and Development (OECD) all having published many documents relating to the corruption risks involving political donations and financing and the need to introduce preventive measures against corruption from taking place. 

Even in Malaysia, Hajiji is making false claims in asserting that political donations are not “wrong”, as governments, both previous and current, have made commitments to introducing a bill to regulate political funding, as per the national anti-corruption plan for 2018-2023 and the national anti-corruption strategy for 2024-2028.

These commitments explicitly recognise that there is an inherent corruption risk in how political parties obtain financing.

The anti-corruption plan for 2018-2023 even stated that the proposed political funding legislation would include an offence pertaining to lobbying (under strategic objective 1.2.5). This is an unambiguous acknowledgement that government lobbying above a certain degree is a harmful act that must be penalised. 

Furthermore, Hajiji’s statements are contradictory. While he says politicians and political parties accepting donations is not a wrong practice in Malaysia, he also says the claims against his administration are slanderous.

If such allegations were not necessarily “wrong” in the eyes of Malaysian society, what impact could there be on his and his administration’s reputation? If they were mere donations, why were they performed so covertly? And why was this admission only made when videos from a whistleblower were released to the public?

It is common knowledge that patronage is a key feature of the Malaysian political system. The sheer cost of elections and the pursuit of power create inherent incentives for political parties to seek financial support from the business elite, who are then indirectly rewarded with political favours and lucrative business opportunities.

Despite the clear corruption risks arising from this relationship, the practice of political donations and the various ways in which political parties raise funds remain unregulated.

Lastly, as conversations about political funding become more prevalent in the public sphere, questions must be asked about why a political funding bill has not yet been introduced despite years of promises.

It is clear that powerful political parties benefit from the status quo, having already established strong patronage links in the private sector.

This reluctance to reform the system is only strengthened when a party or coalition wins an election, enabling access to powerful government machinery that can be wielded in their favour. 

Hence, C4 Center reaffirms previous calls for the government to introduce and table a political funding bill that guarantees transparency through mandatory reporting requirements as to the amount of donations received by political parties.

The bill must also place a hard limit on the amount that political parties receive from private individuals, while completely doing away with corporate donations, as they represent a significant risk area for the proliferation of money politics. – C4 Center