KUALA LUMPUR (March 5): The Democratic Action Party (DAP) said on Thursday the government needs to fully investigate allegations of ‘corporate mafia’ with a royal commission of inquiry.

The party’s central executive committee has decided to take serious note of the allegations on the Malaysian Anti-Corruption Commission (MACC) being used as a tool to achieve personal interests, DAP secretary general Anthony Loke Siew Fook said in a statement following a meeting on March 4.

“The government needs to address this issue effectively to defend the credibility of the MACC through the establishment of a royal commission of inquiry to thoroughly investigate the allegations and recommend measures to prevent abuse of power within the institution,” he said.

The decision is significant, as the 30-member committee is DAP’s highest decision-making body responsible for setting internal directions and policies. DAP also holds the largest number of federal seats in the administration of Prime Minister Datuk Seri Anwar Ibrahim.

A royal commission of inquiry has broad powers, including to summon any persons in Malaysia to testify and compel the production of documents. The panel, formed by the Yang di-Pertuan Agong, is usually held only to investigate high-profile matters of public interests.

The ‘corporate mafia’ allegations came into the spotlight in a Bloomberg article Who’s Watching Malaysia’s Anti-Corruption Watchdog? and centre around takeover of companies listed on Bursa Malaysia in collusion with high-ranking officials from MACC.

The article alleges a takeover scheme through the use of intimidation by MACC to pressure executives and shareholders to resign or sell their shares at heavily discounted prices to a group of connected businessmen. MACC and its chief commissioner Tan Sri Azam Baki have denied the allegations.

DAP has also urged the government to re-table the Federal Constitution amendment to limit the prime minister's term to 10 years in the next parliamentary session following the Dewan Rakyat’s failure to pass the bill earlier this week, Loke said.

Datuk Fahmi Fadzil, the government’s spokesperson, said on Wednesday that the proposed bill will be retabled at the next sitting in June.

The committee’s meeting also decided to support the government's decision to refer the bill separating the roles of the Attorney General and Public Prosecutor to the special select committee, Loke said.

Loke also said the party is committed to improving the accountability and transparency of the appointment process for both positions through DAP representatives Ramkarpal Singh and Syahredzan Johan in the parliamentary committee, he added.

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