[ Laman Ehwal Semasa ReformIS ]
Date: 05 Aug 1999
Time: 05:11:36
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More Malaysian businessmen may be charged in suspected Anwar purge
KUALA LUMPUR, Aug 5 (AFP) - More prominent Malaysian business chiefs could face charges in court over the next few weeks in what is emerging as a major push to stamp out alleged corruption in the private sector, analysts say.
On Wednesday Tony Tiah Thee Kian, the chairman and managing director of brokerage TA Enterprises Bhd., was charged with abetting a local businessmen to commit fraud along with the company secretary Kimmy Khoo.
Two businesmen with links to former deputy premier Anwar Ibrahim -- KFC Holdings (M) Bhd. managing director Ishak Ismail and Abrar Corp. chairman Wan Muhamad Hasni Wan Sulaiman -- were earlier charged with breaching securities laws.
While analysts agree that some form of clean-up is good for the corporate sector, they are cautious about the motives behind the government's campaign, with some noting strong political overtones.
Some analysts believe that laying charges against leading executives is aimed at restoring investor confidence in the local market.
Others see the anti-corruption push as a way of purging the corporate sector of Anwar's supporters before a forthcoming general election, in order to cut off any funding for the opposition parties.
Another theory is that the government really wants to clean up the corporate sector to show people that it is sincere in undertaking reform without the need for Anwar's "reformasi" movement, analysts say.
Anwar was sacked and arrrested last September and is now serving a six-year jail sentence after being convicted in April of corruption -- abusing his official position to cover up accusations of sexual misconduct.
He returned to the dock again in June to face a new charge of sodomy.
A regional analyst based in Singapore said there was a strong likelihood of charges being levelled against other corporate figures in the near term.
"It is all open to different interpretations. I can't really say who is right or wrong. Only those people up there know the real intentions behind the corporate manoeuvres," he told AFX-Asia, an AFP-affiliated financial news wire.
"If one is talking about cleaning up the system, it should involve keeping the good people and kicking out the bad ones regardless of their political leanings.
"But from what can be seen, the cleaning up being done does seem to be done within the lines of who is supporting who," he said. "I wouldn't be surprised if charging the big guys is a subtle way of telling the others to resign or face possible court charges."
The analyst said a move to purge the corporate scene of Anwar's supporters could be seen as an attempt to ensure his power base was removed and to prevent any possible comeback.
"It would also be aimed at reducing the visibility of the opposition and ability to get funding and mass support from corporate figures," he said.
The analyst said the move could indicate that Prime Minister Mahathir Mohamad planned to call a general election soon.
Although an election is not due until June next year, Mahathir is widely expected to call a snap poll amid signs of economic recovery.
A senior analyst with a local brokerage said the charges against the corporate figures should be seen as an attempt to regain investors' confidence in the country.
"Malaysia has always had poor marks when it comes to implementation of laws. When it comes to the law itself, we are very good. Now it is time we show that we can implement the laws we have in place," he said.
The move could also be read as a way of publicising the allegedly corrupt practices of well known people connected to Anwar, he said.
"Whichever way one looks at it, it has a political slant. Of course in Tiah's case, I don't know. He is not known to have close links with Anwar but in the case of KFC and Abrar, they are known to be close to Anwar," he added.