KUALA LUMPUR – Malaysia is expected to “pay the price” for former federal territories minister Datuk Seri Tengku Adnan Tengku Mansor’s discharge not amounting to an acquittal (DNAA), said the head of a foreign equities research house, citing the recent Fitch downgrade as an example.
Credit Suisse Malaysia managing director Stephen Hagger said in a note to clients yesterday that Adnan’s case “appeared clear cut” as property developer Datuk Tan Eng Boon pleaded guilty to an alternative charge of abetting the Putrajaya MP and was fined RM1.5 million.
The prosecution applied for the DNAA on Monday at the Kuala Lumpur High Court, citing “new developments”, but added that it will not know “how long the investigation may take”.
Judge Mohd Nazlan Mohd Ghazali granted the order.
“It is the third such case this year, with Najib’s stepson and a former Sabah chief minister both walking free, despite seemingly iron-clad evidence,” Hagger said.
Hagger was referring to DNAAs accorded to Riza Aziz, the stepson of former prime minister Datuk Seri Najib Razak, in the SRC International Sdn Bhd trial linked to the 1Malaysia Development Bhd (1MDB) scandal, and former Sabah chief minister Tan Sri Musa Aman, over 46 charges of corruption and money laundering linked to timber concessions in the state.
The DNAAs were granted shortly after Perikatan Nasional, under Prime Minister Tan Sri Muhyiddin Yassin, formed the government on March 1.
“It is impossible to prove that a phone call has been made, but it is no secret that any fragile coalition government will have to keep doing backroom deals to stay in power. Sadly, the country will pay the price for this, with the recent Fitch downgrade being one such example,” Hagger said.
Fitch Ratings had on December 4 downgraded Malaysia’s sovereign rating from A- to BBB+, with an improved outlook from negative to stable citing the impact of Covid-19 on the country’s fiscal position and the ongoing domestic political uncertainty.
“Prospects for a further improvement in Malaysia's governance are uncertain in Fitch's view,” the agency said in a statement that day.
Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz had said that he was “disappointed” the ratings decided to focus on the country’s political situation rather than acknowledge Putrajaya’s efforts in mitigating the effects of the pandemic.
“By honing in on Malaysia’s fiscal position and political situation, Fitch’s decision does not give due justice and credit to our crisis response efforts.” – The Vibes, December 11, 2020
