KUALA LUMPUR (June 26): Any decision on the establishment of a Royal Commission of Inquiry (RCI) into allegations of “corporate mafia” activities and related matters will depend on the outcome of ongoing investigations by the relevant authorities, said Law Minister Datuk Seri Azalina Othman Said.

The Minister in the Prime Minister’s Department (Law and Institutional Reform) said the authorities are currently probing the matter to establish the full facts.

“It is important that the investigation process be given adequate space to proceed independently, transparently and comprehensively in accordance with the law and established procedures,” she said in a written parliamentary reply on Thursday (JUne 25).

Azalina was responding to Kota Melaka member of Parliament Khoo Poay Tiong, who asked about the government’s stance on calls for an RCI into alleged corporate mafia activities and a separate share ownership controversy involving former Malaysian Anti-Corruption Commission (MACC) chief commissioner Tan Sri Azam Baki.

The corporate mafia allegations were previously raised in a Bloomberg report in early February, which alleged the use of pressure tactics and alleged collusion in corporate takeovers involving companies listed on Bursa Malaysia. Both the MACC and Azam have denied the claims.

DAP, the largest party in the unity government, has called for a full investigation into the matter through an RCI.

Separately, Azam was also embroiled in controversy following Bloomberg reports on his shareholding in financial services firm Velocity Capital Partner Bhd (KL), which allegedly breached civil service shareholding rules.

A three-member task force led by Attorney General Tan Sri Mohd Dusuki Mokhtar was formed to investigate the matter and submitted its findings to the Cabinet. The report, however, has not been made public and no action has been announced.

Azam retired on May 13 after his contract was not extended.

In her reply, Azalina reiterated that the government takes all allegations involving corporate mafia activities seriously, particularly those that could affect public institutional integrity.

She stressed that any subsequent action must be guided by investigative findings to ensure decisions are based on facts, justice and the rule of law.

Azalina also noted that the establishment of an RCI is governed by the Commissions of Enquiry Act 1950 (Act 119).

Under current procedures, a Cabinet memorandum must first be prepared by the relevant ministry. If approved by the Cabinet, the prime minister will seek the consent of the Yang di-Pertuan Agong.

If approved, the RCI’s terms of reference, membership and duration will be set and gazetted before it begins its work.

Azalina said the commission’s report will then be submitted to the Yang di-Pertuan Agong before being tabled to the Cabinet and undergoing other formal processes.

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