KUALA LUMPUR (Feb 10): Public servants may hold shares in companies beyond the prescribed limits, but only with the approval of the Chief Secretary to the Government (KSN), said Deputy Law Minister M Kulasegaran.

Kulasegaran noted that a 2024 government circular regulates the shareholding capacity of public officials.

“Nevertheless, a written explanation can be requested by the KSN if the threshold is exceeded. This means the matter ultimately depends on whether the KSN grants approval,” Kulasegaran said when winding up the debate on the motion of thanks for the royal address in the Dewan Rakyat on Tuesday.

The deputy minister was responding to questions from several Members of Parliament seeking clarification on allegations involving Malaysian Anti-Corruption Commission (MACC) Chief Commissioner Tan Sri Azam Baki holding shares exceeding the allowable limit in Velocity Capital Partner Bhd (KL:VELOCITY).

Bloomberg reported that Azam Baki was listed as holding 17.7 million shares in Velocity Capital, as disclosed in the company’s annual report lodged with the Companies Commission of Malaysia (SSM) on Feb 3 last year. Based on the company’s closing share price on Tuesday, the stake is worth about RM800,000.

In the 2024 government circular on the conduct of public officials that Kulasegaran cited, it is stated that civil servants may hold shares in Malaysian-incorporated companies, but only if the holdings do not exceed 5% of the company's paid-up capital or RM100,000 in value, whichever is lower. Public officers are also required to declare their assets periodically.

Kulasegaran did not confirm whether Azam Baki’s shareholding in Velocity Capital had received approval from the KSN. However, he said the investments in question were reported to the relevant authorities at the time they were made last year. Hence, the issue of non-disclosure does not arise at present, he added.

He also said that while no one is above the law, allegations must be evaluated based on the law and through proper investigation.

“We must uphold the principle of ‘innocent until proven guilty’. We should not jump into an issue based on a single allegation or news report. This matter requires investigation,” he said.

Responding to calls by MPs for Azam Baki to be placed on garden leave, Kulasegaran said the decision ultimately rests with the prime minister and the Cabinet, adding that a decision is expected to be made in due course.