A government-appointed committee yesterday proposed a new law in Malaysia to regulate political financing, and that would include a ban on donations from foreign sources.
Mr Paul Low, Minister in the Prime Minister’s Department who heads the National Consultative Committee on Political Financing, said it will submit its proposal to the Cabinet in two weeks’ time.
This is the first step towards regulating political donations following an uproar over revelations of a massive cash transfer made to Prime Minister Najib Razak’s personal bank accounts in the run-up to the last general election in 2013.
Key among the recommendations for the new Political Donations and Expenditure Act is the ban on cash donations from foreign sources to a political party or politician. “We do not want outside influence on local political institutions as a means to safeguard the nation’s sovereignty,” said Datuk Low.
Datuk Seri Najib was found to have received US$700 million (S$954 million) in his bank accounts in early 2013. The Wall Street Journal has alleged that the money was from debt-laden state fund 1Malaysia Development Berhad.
But Malaysia’s Attorney-General Mohamed Apandi Ali cleared the Prime Minister of wrongdoing in January, saying the money was a donation from the Saudi royal family.
Another recommendation by the committee is for political donations worth more than RM3,000 (S$990) per year to be declared. The funds must be deposited into specially designated bank accounts with the party’s records audited. Read more