Malaysia’s Anticorruption Agency Investigates Former Finance Minister Daim Zainuddin for Abuse of Power

Malaysia’s anticorruption agency, the Malaysian Anti-Corruption Commission (MACC), has officially confirmed its investigation into Daim Zainuddin, a former finance minister and close ally of ex-Prime Minister Mahathir Mohamad. The inquiry is centered on allegations of abuse of power and money laundering, with media reports indicating that the MACC has seized the Ilham Tower, a 60-story building in Kuala Lumpur, as part of its investigation.

In response to the allegations, Daim Zainuddin, 85, released a statement denying any wrongdoing and criticized the investigation as a “political witch-hunt” orchestrated by the MACC and Prime Minister Anwar Ibrahim. Anwar, who assumed office last year, has pledged to combat high-level corruption and address it “without fear or favor.” However, critics have accused him of selectively targeting political opponents.

The MACC maintains that it acted independently and initiated the investigation in February based on information from the Pandora Papers, a substantial leak of financial records in 2021 exposing offshore assets of global politicians and public figures. The leaked documents indicated that Daim, along with associates and family members, held assets valued at least £25 million ($31.82 million).

Daim was asked to declare his assets in June, with five extensions granted by the MACC, the latest being on November 14. The agency emphasized that Daim has the opportunity to clear his name in a court of law.

Daim Zainuddin, a two-time finance minister, held the portfolio from 1984 to 1991 and later from 1999 to 2001. Although retired from active politics, he remains influential and played a pivotal role in leading a government advisory council upon Mahathir’s return to the prime minister’s position in 2018. Daim also led negotiations to renegotiate various deals with China, including the East Coast Rail Link project, as part of the Belt and Road Initiative.