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Malaysia Becoming a Pariah State, Says Ex PM and Arch Critic

Monday, October 12, 2015
MALAYSIA'S former prime minister Mahathir Mohamad has branded the country he led for 22 years a "pariah" state where people have lost trust in their government.

"In the eyes of the world Malaysia has become a pariah state, a state where anyone can be hauled up and questioned by the police, detained and charged through abusing laws of the country," Dr Mahathir wrote in his latest blog.

Intensifying pressure on Prime Minister Najib Razak to resign, Dr Mahathir said the government's refusal to properly investigate a corruption scandal "has intensified the lack of confidence and distrust of people in government."

Dr Mahathir, 91, made the comments after the office of Malaysia's attorney-general last week declined to act on a recommendation by the country's central bank to begin criminal proceedings against a debt-ridden state investment fund for allegedly breaking foreign exchange rules.

The 1Malaysia Development Berhad (1MDB) fund was founded by Mr Najib, who retains oversight of it through chairmanship of an advisory board.

Dr Mahathir questioned whether Mr Najib was involved in the attorney-general's decision to rebuff a confidential report by Bank Negara Malaysia central bank saying the fund had breached rules that govern the movement of cash overseas for investment.

"By dismissing this case suspicions will remain in the minds of the people," said Dr Mahathir, who has waged a relentless campaign for Mr Najib's resignation.

The stand-off between the government and central bank comes amid the biggest political controversy to engulf Mr Najib, 62, an English-educated son of a former prime minister who has had close ties to successive Australian governments.

Mr Najib has refused to explain how $US700 million ($956 million) turned up in his personal bank accounts before national elections in 2013 or what happened to the money.

He denies any wrongdoing, or taking money for personal gain.
Malaysia's anti-corruption agency has said the money was a donation but did not specify the purpose of the contribution or identify the alleged donor, who it said was based in the Middle East.

The scandal has prompted a crackdown on Mr Najib's political opponents, including officials in the long ruling United Malays National Organisation (UMNO).

Pressure on the Prime Minister intensified last week when the sultans of Malaysia's nine states urged a proper investigation into the scandal that was "adversely affecting the world's view of Malaysia" and its economy.

The US Federal Bureau of Investigation is said to have opened an investigation into money-laundering allegations related to the fund, but Malaysian police later said it had not been contacted by the FBI.

Investigations are on-going into 1MDB in at least four countries, including Singapore and Switzerland.

Despite the ringgit currency plunging to 17-year lows, Mr Najib appears to have the support of a majority of UMNO divisions which have benefited from entrenched money politics and the party's largesse.

Critics accuse Mr Najib's supporters of stirring racial sentiments among the majority Muslim Malays to shore up his support.

Dr Mahathir ruled Malaysia from 1986 to 2003.

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