‘Realistic’ law on political financing better than nothing: experts

KUALA LUMPUR – Politicians, political parties, and other stakeholders should come to terms with supporting a “diluted” version of the proposed political financing law, which is better than not having any legislation altogether, experts say.

Research director of independent institute Bait Al Amanah, Benedict Weerasena, said this is to ensure safeguards were put in place ahead of the enhancement or consolidation of existing laws in the future.

We might have to settle for a diluted version of the bill, similar to how we settled for the anti-hopping law.

“Everything that we wanted, in a realistic situation, was difficult to consider because you have so many different politicians from so many parties with vested interests.

“So why don’t we settle for the non-negotiable as a starting point, or we will end up the next five years debating repeatedly over the devils in the details ‘on what we want, or what you want.

“It needs to be a small step ahead, a diluted version first, a pragmatic solution for the next year or so, and move towards a more ideal situation soon.”

Weerasena said this during a conference on the Political Financing Act (PFA), which was co-hosted by the Institute for Democracy and Economic Affairs (Ideas), and the Malaysian Bar Council.

The conference, titled Political Financing Act: Current Status, Challenges and the Way Forward, is a day-long event featuring reform advocates and academicians discussing the topic.

Also present were political scientist Wong Chin Huat, of the Jeffrey Sachs Center on Sustainable Development at Sunway University Malaysia, and political economy professor Edmund Terence Gomez, who spoke about the importance of transparency in political financing as means to combat corruption.

Keeping transparent

Gomez said the implementation of political financing legislation must cover all angles, including thorough institutional reforms, as well as having internal mechanisms to prevent abuse towards opposition parties.

However, Gomez pointed out certain concerns regarding transparency in political funding. For example, donors of opposition parties fear they would be penalised if their contributions and identity were made public.

This is why he suggested that the Election Commission (EC) be made fully independent.

He added that the EC could oversee the monitoring and financing of political parties, as well as have mechanisms for the disclosure of businesses involved, which could be kept confidential unless intervention was needed.

Gomez noted that this was not a new matter as such recommendations were thoroughly discussed in the past decade.

In echoing Gomez, Wong also said the implementation of the PFA is a “two-step process” that must be based on a realistic approach.

Wong explained that the issue of public funding should also be included in the first step of the process as that would help level the playing field for opposition parties.

The second step includes reforms in three main institutions, namely the AGC, the Malaysian Anti-Corruption Commission (MACC), and the Inland Revenue Board, said Wong.

It is because these institutions can be easily used if you want to go after businesses or politicians.

However, Wong said reforms can also take place at the state level, instead of stakeholders merely pressing the federal administration.

“We have 13 state governments, including those under PH (Pakatan Harapan), and they can do things,” he said.

“So, if we see the federation as multiple entry points, hope is everywhere, and all of these things can be done before GE15 (15th general election), before respective state elections.”

Holding political parties accountable

Also at the event, Centre to Combat Corruption and Cronyism (C4) executive director, Cynthia Gabriel, said legislation on the matter was crucial in weeding out illicit funds from the political system. 

Cynthia cited the case of former prime minister Datuk Seri Najib Razak, who claimed a well-heeled middle eastern individual had given “donations” to the tune of billions in his trial on the SRC International and 1Malaysia Development Bhd (1MDB) scandal.

The Arab donor experience for Najib and 1MDB can reoccur over and over again if we don’t have enough enforcement and regulation to actually pry open sources of funds.

Petaling Jaya MP, Maria Chin Abdullah, who was also in attendance at the event, said the PFA alone was not sufficient to hold the government accountable.

“It comes with the anti-hopping law and election reforms. At least these are the minimal reforms that we must see happening in our system,” she said.

Cynthia and Maria were speaking on the challenges of implementing the PFA along with Bar Council constitutional law committee chairperson, Andrew Khoo, at the conference today.

Maria also said that corruption remains endemic within the country and stifles socioeconomic progress, especially within poor communities.

– The Vibes, June 24, 2022.