Malaysia ex-minister Daim Zainuddin slams PM Anwar Ibrahim for ‘political witch-hunt’ over corruption probe

A 58-storey building in Kuala Lumpur belonging to the close ally of ex-PM Mahathir Mohamad was seized as part of the investigation
Mahathir has sarcastically remarked that ‘suspicions alone should be enough’ to warrant the investigation against Daim

Malaysia

Hadi Azmi

Published: 8:39pm, 28 Dec 2023

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Embattled Malaysian former finance minister Daim Zainuddin on Thursday described the corruption probe into his wealth as a “political witch-hunt” maliciously driven by Prime Minister Anwar Ibrahim and the nation’s corruption body.

A close ally of former Prime Minister Mahathir Mohamad, Daim has been at the centre of a corruption investigation which saw the Malaysian Anti-Corruption Commission (MACC) seize his 58-storey, 274-metre-tall Ilham Tower in central Kuala Lumpur on December 18.

Daim, 85, held the finance portfolio twice, between 1984 and 1991, when he was succeeded by Anwar, and from 1999 to 2001 after Anwar was sacked from power on grounds of corruption and sodomy.

In a punchy first public statement since the seizure of his tower, Daim “categorically” denied “any corrupt act or wrongdoing of whatsoever nature” by him or his family and instead accused Anwar of abusing his power to drive an investigation against a political rival.

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Daim accused the prime minister of being in cahoots with MACC chief Azam Baki in “an organised effort to discredit” him by releasing misinformation and baseless insinuations to the media.

It is “highly inappropriate and an abuse of power for a prime minister to interfere or influence an ongoing investigation by making blatant public insinuations of guilt,” Daim said.

The former minister said the corruption chief Azam Baki had declined to reveal the exact offence he is accused of, leaving him in the dark over the nature of the investigation.

He added that he had kept silent out of respect for the investigation but felt compelled to speak up accusing the prime minister and MACC of failing to show the same respect for due process.

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“[I have] no choice but to respond to protect my reputation and good name,” he said.

Little has been revealed of the seizure, aside from the MACC chief confirming it is related to Daim’s wealth, and that it was done under Section 38 of the MACC Act.

The section stipulates that such property can be seized after the public prosecutor is satisfied with information by the MACC that it is the subject matter of a corruption offence.

Despite retiring from active politics after his last stint as a member of parliament in 2004, Daim continues to be an important figure in Malaysia, particularly after 2018 when he was hand-picked by Mahathir to lead the five-member Council of Eminent Persons (CEP), which served as advisers to his government.

He also famously represented Malaysia as a “special envoy” for a “special reason” ahead of Mahathir’s first 2018 visit to Beijing, as well as leading negotiations with China on several deals including the East Coast Rail Link project (ECRL) that is part of the Belt and Road Initiative during the era of ex-prime minister Najib Razak.

Malaysian Prime Minister Anwar Ibrahim at the Asean summit in Jakarta on September 7, 2023. Anwar has dismissed accusations that the corruption investigation against ex-minister Daim Zainuddin was “a conspiracy”. Photo: AP

Last Friday, Anwar told the press that criminal elements are behind Daim’s “extraordinary wealth”, describing it as “an open secret”.

“Stop making interpretations that there must be a conspiracy whenever we ‘touch’ an influential person,” Anwar said.

“We are not representing a broken system, and our system must show examples of taking brave action against the corrupt.”

Anwar has set his stall out as a corruption buster keen to reset the nation’s reputation, which was sullied by the 1MDB scandal which billowed out under Najib.

But critics say he is merely settling old political scores.

On Wednesday, Mahathir took a jab at the investigation on X, saying he completely agrees that senior statesmen should be investigated over their wealth and their property should be seized if they cannot explain how they acquired it.

Malaysia’s former prime minister Mahathir Mohamad in Putrajaya, Malaysia, on November 1. Mahathir has made snide remarks on the corruption investigation against his ally Daim Zainuddin. Photo: Bloomberg

“It is not necessary to obtain documentary evidence of their misdeeds. Suspicions alone should be enough,” said Mahathir in a sarcastic remark.

Anwar’s animosity towards his predecessor has been well documented with him telling the press in July 2022 that Daim “would have sleepless nights” if he became prime minister.

“When I brought up the issue of the Pandora Papers where they squandered billions of dollars and he was named in it, he didn’t answer,” Anwar said, adding that Daim is “the last person” who wanted to see him as the prime minister.

The Pandora Papers is a massive leak of financial documents in 2021 which exposed the offshore financial activities of politicians, celebrities, and business leaders around the world. In it, Daim, his family and associates were reported to have amassed at least 25 million British pounds (US$32 million).

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At the time Malaysia’s parliament refused a motion by Anwar – who was then the opposition leader – to debate on the matter.

Anwar’s 25-year struggle for the premiership ended in November 2022. He became Malaysia’s 10th prime minister after cobbling together a unity government following the stalemate that emerged after that year’s general elections.