Malaysia cross-party alliance demands removal of PM

Yahoo – AFP, M Jegathesan, 4 March 2016

Malaysian PM Najib Razak has been under fire over allegations that billions of dollars

 were stolen from a state firm he founded, and his own admitted acceptance of a

murky $681 million overseas "donation" (AFP Photo/Mohd Rasfan)

Leaders from across Malaysia's political spectrum joined forces Friday to call for the removal of scandal-hit premier Najib Razak, in a sharp escalation of a festering corruption crisis.

"We call upon all Malaysians, irrespective of race, religion, political situation, creed or parties, young and old, to join us in saving Malaysia from the government headed by Najib Razak," read a joint statement endorsed by heavyweights from the ruling party, opposition, and civil-society groups.

The alliance brought together previously bitter political foes and was led by 90-year-old former premier Mahathir Mohamad, who has spearheaded calls to remove Najib over allegations of corruption and misrule.

 Former Malaysian prime minister Mahathir 

Mohamad (C) speaks during a press 

conference with members of the opposition

 party in Kuala Lumpur on March 4, 2016

(AFP Photo/Mohd Rasfan)

"We must rid ourselves of Najib as prime minister," Mahathir, who quit the Najib-controlled ruling party earlier this week in protest, said at a Kuala Lumpur press conference.

The call is the biggest challenge yet to Najib and gives voice to a growing sense of public disgust with his tenure.

'Badly tarnished Malaysia'

Najib, 62, has been under fire for a year over allegations that billions of dollars were stolen from a state firm he founded, and his own acceptance of a murky $681 million overseas payment.

Reports have also emerged of the luxurious lifestyles, lavish spending and jet-set travel arrangements of his family.

Even before the graft allegations emerged, Najib had faced mounting criticism for eroding civil liberties, allowing multi-racial Malaysia's ethnic divisions to widen, and poor economic stewardship.

Najib denies wrongdoing, saying the corruption accusations are part of an unspecified political conspiracy.

Responding to the fresh call for his removal, a Najib spokesman said it revealed "political opportunism and desperation" by Mahathir and others, and that only elections could change the leadership.

Najib has curbed investigations into the scandals and purged his ruling United Malays National Organisation (UMNO) of critics, essentially shutting off internal party challenges.

Whistle-blowers have been arrested, while media outlets reporting on the allegations have been muzzled, raising concerns over rights and freedom speech.

"Today Malaysia is badly tarnished," the joint statement said, calling for political reforms.

Those present included former deputy premier Muhyiddin Yassin, whom Najib sacked last year after he urged a probe into the funding questions.

Former Malaysian prime minister Mahathir Mohamad (C) reads a citizens' declaration

 during a press conference with members of the opposition party in Kuala Lumpur on

March 4, 2016 (AFP Photo/Mohd Rasfan)

They also included top leaders of Malaysia's opposition parties and of an electoral-reform movement that staged huge demonstrations last year over the scandals.

Critics say perhaps billion of dollars were skimmed from state investment firm 1Malaysia Development Berhad (1MDB) in complex overseas transactions.

1MDB, established in 2009 by Najib, denies wrongdoing.

But US authorities are reportedly looking into 1MDB-related fund flows, while Swiss, British, Singaporean and Hong Kong authorities also are scrutinising them.

Swiss authorities said recently up to $4 billion may have been stolen from Malaysian state firms and that they were investigating possible fraud and money-laundering.

Najib at first hotly denied allegations that the mysterious $681 million payment was transferred to his personal bank accounts in 2013.

But the government now claims it was a gift from the Saudi royal family, most of which was returned.

The Saudis are yet to officially confirm that claim, which is broadly ridiculed in Malaysia as far-fetched.

A Wall Street Journal investigative report this week said the money originated from 1MDB, not the Saudis.

The anti-Najib group's statement repeated allegations that perhaps billion of dollars

 were skimmed from the Najib-linked company, 1Malaysia Development Berhad (1MDB),

in an array of complex overseas transactions (AFP Photo/Manan Vatsyayana)

'Momentum is building'

Wan Saiful Wan Jan, head of Malaysian think tank IDEAS, said pressure on Najib was increasing.

"The momentum is building against Najib and is stronger than before. It can possibly snowball into bigger pressure, but the resistance from the government and UMNO will be strong as well," he said.

Najib has weathered the pressure by rallying loyal UMNO leaders and using the party's tight grip on the country to secure his position.

The new movement announced no plans for public protests and its future strategy was not clear.

The escalating crisis has brought warnings that fears of political instability could impact foreign investment just as the Malaysian economy's reliance on energy exports is being strained by low oil prices.

UMNO has dominated Malaysia since independence in 1957 by championing the rights of Muslim Malays, Malaysia's majority ethnic group.

But voters have increasingly rebelled against its divisive racial politics, authoritarian tactics, corruption, and an electoral system seen as tilted in its favour.

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