IN one year of federal rule since ousting Pakatan Harapan (PH) from Putrajaya, Perikatan Nasional (PN) has racked up its share of controversies as a government cobbled together by former enemies-turned-friends when the opportunity to seize power arose.

The Malaysian Insight looks back at some of these episodes that took place under Prime Minister Muhyiddin Yassin’s administration, in conjunction with the one-year anniversary of his government.

Perikatan awards top GLC positions to its MPs

To consolidate power, Muhyiddin was quick to appease his new allies by forming a bloated cabinet, of 70 ministers and deputy ministers, to ensure there were enough positions to go around for Bersatu, Umno, PAS, PKR defectors, other Barisan Nasional parties and Gabungan Parti Sarawak.

He also granted MPs from the government bench positions as heads of government-linked companies (GLC) and state-owned enterprises.

The patronage was heavily criticised by many quarters, including analysts and economists who warned that it would not bode well for good governance. Former minister Rafidah Aziz said such moves were clearly to garner support for Muhyiddin. PKR president Anwar Ibrahim questioned the academic and professional credentials of the appointments, noting that the majority of PN lawmakers had benefited.

Riza Aziz given discharge not amounting to acquittal

In May 2020, Riza Aziz, the son of former prime minister Najib Razak, was given a discharge not amounting to an acquittal by the Sessions Court for five counts of money-laundering involving US$248 million (RM1 billion) linked to sovereign wealth fund 1Malaysia Development Bhd (1MDB).

Riza had reached an agreement with the prosecution in which the federal government would recover US$107.3 million in overseas assets.

Riza, who is the co-founder of Red Granite Pictures that produced the hit movie The Wolf of Wall Street, also settled a civil forfeiture claim by the US government by agreeing to pay US$60 million in September 2017.

Musa Aman acquitted of 46 corruption charges

In June 2020, former Sabah chief minister Musa Aman was acquitted and discharged of 46 graft and money-laundering charges linked to timber concessions by the Kuala Lumpur High Court. 

The charges alleged that Musa in his capacity as Sabah chief minister and chairman of the board of trustees of the Sabah Foundation, had received US$50.1 million from eight logging concessionaires as an inducement to approve logging concessions for 16 companies.

The acquittal also means that he can no longer be tried again for the same charges.

The following month after the acquittal, the Umno man launched an attempt to topple the Warisan-led and PH-friendly Sabah government by claiming the majority support of assemblymen. This led to the dissolution of the legislative assembly and a state election in September.

Malaysia’s US$3.9 billion settlement with Goldman Sachs

In July 2020, Malaysia reached a US$3.9 billion (RM17 billion) settlement with the global investment bank over its role in the 1MDB scandal. The settlement was in exchange for Malaysia ending all criminal proceedings against the bank, which facilitated bond issues worth US$6.5 billion 1MDB and earned heftier-than-usual fees (US$600 million) from it.

The settlement amount was less than the US$7.5 billion the PH government demanded as compensation from Goldman Sachs. The ousted PH coalition said the settlement was “proof of the existence of various misconducts and corruption during that period”. Malaysian authorities had charged the bank and 17 current and former directors of its units for allegedly misleading investors.

Coronavirus-related controversies

Much of PN’s governance has been defined by its handling of the Covid-19 pandemic, as the coalition took power when the coronavirus began to sweep Malaysia. After successfully flattening the curve in the first and second wave of the virus outbreak, certain controversial decisions let loose a third wave of infections, notably after the Sabah elections in late September.

Cases were already on the rise in Sabah earlier the same month, but the Health Ministry imposed the mandatory 14-day quarantine on those returning from Sabah to the peninsula only on September 27, a day after the polls. This allowed returning politicians and campaign workers who travelled back to west Malaysia before that date to escape isolation.

One of these was religious affairs minister Zulkifli Mohamad Al-Bakri, who returned from Sabah on September 24. He subsequently tested positive for Covid-19, after carrying out a packed schedule criss-crossing the peninsula meeting members of the public and attending a meeting at the Prime Minister’s Department.

By early October, after his infection, several ministers as well as the prime minister had to undergo 14 days of home quarantine. Zulkifli apologised for his actions.

Another controversial decision was granting only three-days of observation for ministers returning from overseas. Health Minister Dr Adham Baba, who announced this in early February this year, said the decision was made for economic reasons to facilitate trade. He said this may eventually be extended to business travellers and the public.

The move received heavy criticism and accusations of double- standards. Director-general of health Dr Noor Hisham Abdullah subsequently clarified that ministers had to fulfil certain conditions, including who and how many people they met, and their mode of travel.

Adham had in the early days of the pandemic come under fire for spreading misinformation by suggesting that drinking warm water will “flush” the coronavirus down to the stomach where digestive acids would kill the virus. He was then kept out of the limelight and from making public statements for a while.

More than 1,000 Myanmar nationals deported despite court order

More recently, PN has come under fire for defying a court order to halt the deportation of 1,086 Myanmar nationals without documentation who have been held in immigration detention centres since last year.

The stay on the deportation was sought by two human rights groups who brought the matter to court, which granted the stay pending leave for a hearing. The Immigration Department’s defiance drew a storm of protests, including from the United Nations. Migrant rights groups said there were reports that those deported had included asylum seekers.

Officials, however, insist those sent back had committed offences such as overstaying their visas, and the deportation was part of their regular programme of repatriating undocumented migrants from poorer parts of Asia.

Lynas waste facility in a forest reserve

Controversy is also gathering over the finding that the Lynas rare earth plant’s permanent disposal facility (PDF) for its waste, will be built within the Bukit Kuantan permanent forest reserve, an environmentally sensitive area.

The plant’s environmental impact assessment (EIA) report states that the PDF site is within the Sg Riau water catchment area, and waste will drain into rivers that will merge with Sg Kuantan before entering the sea. However, along the way is an intake point to a water treatment plant that is the main water source for Kuantan.

According to Kuantan MP Fuziah Salleh, the area is a Rank 1 Environmentally Sensitive Area (ESA) under the Kuantan District Local Plan 2035, and should not undergo development without the requisite public consultations to amend the existing plans.

The EIA report, which was just released last month for public viewing and feedback until February 28, also warned about potential risks to Kuantan city’s 780,00 population and local fishermen along the river route. Once the period of public feedback to the EIA report is closed, it remains to be seen how the PN-led Pahang government and Lynas will regard the EIA findings. – March 1, 2021.