THE Securities Commission (SC) must make its findings in the Azam Baki inquiry public, given that it was a straightforward matter that the regulator should have been able to resolve, observers said.

They said the inconclusive verdict in the Malaysian Anti-Corruption Commission (MACC) chief commissioner’s inquiry may lead to some to believe that the SC had caved in to pressure by the anti-graft agency.

Others said the SC verdict is another example of why there needs to be an independent probe on Azam’s conduct.

As to how Azam was able to afford to buy the shares, they said it did not pose a problem as long as he is able to show where he got the money from.

Former MACC advisory board chairman Tunku Abdul Aziz Tunku Ibrahim said it was “sad” that the SC was not able to resolve a simple issue.

“I think if this is all the SC can come up with over what is considered to be a straightforward matter, then you know it is very sad,” he told The Malaysian Insight.

“They should be able to make a determination on the basis of the existing SC rules on the use of someone else’s trading account. If they are incapable of doing this, then there is something seriously wrong.”

The SC’s verdict may also erode investors’ confidence in its ability to regulate the share markets, he added.

The SC earlier today said that it was unable to determine if Azam breached any rules in allowing his trading account to be used by his brother.

Based on evidence gathered, the SC said it could not conclusively establish that a breach under section 25(4) of the Securities Industry (Central Depositories) Act 1991 had occurred.

Section 25 stipulates that every securities account opened with a central depository must be in the name of the beneficial owner of the deposited securities or an authorised nominee.

The SC did not state what would happen next given that its investigation was inconclusive.

Azam has come under scrutiny amid revelations that he allegedly held shares in two publicly listed companies in 2015 while he was the head of investigations at the MACC.

The shares were 2.15 million in Excel Force MSC Bhd in 2015, as well as the 1.93 million shares in Gets Global Bhd the same year and 1.02 million shares the following year. At this time Azam had been Malaysian Anti-Corruption Commission’s (MACC) director of investigations.

Azam had told the MACC advisory board, who cleared him of wrongdoing, that the shares were bought by his brother Nasir using his trading account.

The shares were subsequently transferred to his brother, he added.

Some critics also questioned how Azam could have afforded the shares as a civil servant. According to de facto law minister Wan Junaidi Tuanku Jaafar, however, the shares were said to be worth RM330,000.

Tunku Aziz said it didn’t matter how much Azam paid for the shares as long as he was able to account for how he paid for them.

There is also no prohibition in law that prevents a civil servant from owning shares, but it does bring into question Azam’s judgment, he said.

“I’m not saying he is guilty but I’m questioning his judgment. Letting his brother use his account is stupid. People will say he’s using his brother to cover up his actions. That is the impression.

“When you are in that position, there are ethical and moral considerations. These are all part of the whole equation and what integrity is all about.

“Some of the people high up in government tend to forget that integrity is no longer the luxury of the virtuous few, it has become a critical requirement in both government as well as in corporate life.

“They are giving their detractors and enemies an opportunity to question their integrity.”

Make findings public

Cynthia Gabriel, executive director of the Center to Combat Corruption & Cronyism (C4 Center) urged the SC to make its findings public.

“We urge SC to make public its inquiry findings and how it arrived at this uncertain conclusion.”

She also once again urged Prime Minister Ismail Sabri Yaakob to convene an independent panel to look into the issue.

“(This) vindicates further our position from the onset that only a full and independent probe will suffice to also establish potential breaches of public servants asset declaration laws and circulars, as well as source of funds.

“We are deep-diving into further darkness and Ismail must act immediately to convene a high-level independent probe to investigate the Azam-gate fiasco,” she said.

Meanwhile, Kota Kinabalu MP Chan Foong Hin called the SC’s conclusion in the inquiry puzzling, especially since Azam had confessed to his brother using his trading account.

“The SC decision is puzzling and this is why a parliamentary special select committee should have been allowed to question all relevant parties including Azam on this issue,” he said.

Chan, who is a member of the Parliamentary Select Committee on Agencies, is among four opposition lawmakers who opposed the hearing involving Azam being postponed.

A select committee hearing into the Azam debacle was to be held tomorrow but was postponed by chairman Abdul Latiff Abdul Rahman following a letter from Azam.

In his letter to Latiff, Azam said the hearing was in breach of the Dewan Rakyat’s Standing Orders.

The MACC chief also said he had filed a civil suit over allegations that had been made against him and that he was under investigation by other agencies.

SC under pressure from MACC?

Thomas Fann, chairman of the Coalition for Free and Fair Elections (Bersih 2.0), questioned whether the investigation by the SC was inconclusive as the regulator is facing pressure from the MACC.

“With the allegations that were hurled at the SC for conflict of interest within their ranks soon after they said they will be investigating Azam, many in the public are already suspecting that the SC is under pressure to close this case.

“It is important for the SC to reveal exactly why their investigation is inconclusive to avoid public suspicion of pressure brought to bear on them.”

Tunku Aziz was of the same view as Fann, saying that public perception into the matter casts a bad light on the SC.

“Given the fact that they themselves are being probed by the MACC on allegations of corruption, then you know it creates some kind of suspicion.

“In the mind of the people, maybe they (SC) are dragging their feet because they don’t want to upset the MACC. These are all little things that could lead to imputation of improper motives.

“When people put two and two together, they begin to wonder what is going on,” he said.

On January 11, five days after the SC announced that it was investigating Azam, the MACC confirmed that it had received a report from Rakyat Malaysia Prihatin, a civil society who claimed that it has evidence of alleged graft involving senior SC members, its board members and politicians.

An RMP representative said the group has referred three cases to MACC.

The first involves an SC top management member’s son, who holds the highest position in a company investigated by the SC; the second involves a conflict-of-interest issue; and, the third involves high-ranking officials who allegedly accepted bribes for turning a blind eye to probes into public companies that committed trading offences. – January 18, 2022.