Tag Archive for: Corruption

South Africa’s power failures are a symptom of a deeper disease

It’s been so bad that it has even flickered across Western screens recently as one of those brief human-interest stories. The lights have gone out in South Africa.

Eskom, the state-owned power utility, has imposed severe ‘load-shedding’ on the country, switching off parts of the grid for many hours a day because of ‘severely constrained’ generation capacity.

For those who are living it, there’s little opportunity to skim to the next story. It’s less a human-interest piece than a slug in the solar plexus, materially and emotionally. That’s the mild version. The growing number of doomsday prophets see it as the apocalypse, or part of it—the beginning of South Africa’s long-expected death spiral.

Certainly, an already-bilious economy has taken a sickening hit. Five percent was lopped off GDP growth by load-shedding in 2022—and halfway through 2023, there were already more power cuts than in all of last year. The economy contracted in the last quarter of 2022 and narrowly avoided a repeat in the first quarter of this year. Forecasts for 2023 range between 0.1% and 0.3% growth.

There has been no shortage of mellifluous masterplans and roads to recovery. Following on from President Cyril Ramaphosa’s declaration of a ‘national state of disaster’ in February, government ministers and Eskom executives have become expert in the art of death by PowerPoint, if nothing else. The latest magic bullet is the announcement of a number of cooperative deals with Chinese power companies. Most South Africans have taken such assurances with a spadeful of salt.

But the notion that Eskom has inaugurated the country’s end times is simplistic. South Africa’s power crisis is more a national analogy than an apocalypse, the manifestation of a deeper malaise that has metastasised and is becoming more visible to the naked eye. The cancer in the body politic is catching up with it.

The roots of Eskom’s troubles lie in the period shortly after the end of apartheid. In the 1990s, as access to the grid was ramped up in formerly segregated black areas, Nelson Mandela’s government was warned repeatedly that electricity demand would outstrip supply by 2007 if new power stations weren’t built. Nothing was done; instead, a ban was placed on the construction of generators until 2004. And, lo and behold, the country plunged into its first round of load-shedding in late 2007. Within three months, US$6 billion had been wiped from the economy’s bottom line.

Superficial improvement after 2008 disguised an ongoing slide in the background. Poor planning was—or, more precisely, continued to be—conjoined to a haemorrhaging of human resources and systemic corruption. An urgent emphasis on racial transformation displaced a critical bloc of experienced managers and technicians, substituting it not with the most capable black alternatives but with the most politically connected.

The effects were both linear and exponential. The ability to maintain and build infrastructure plummeted in keeping with the loss of corporate memory and experience, while sleaze magnified the impacts. In 2011, a turbine at a major power station blew apart when an automatic cut-off system failed and there was no one in the control room to flick the switch manually; 600 megawatts of capacity, enough to power a city of half a million people, was sliced off the grid. Three years later, a furnace at the same plant exploded when a basic ignition sequence was mistakenly reversed.

Those were just two of the more spectacular incidents that highlighted the unremitting corrosion of operational capacity occurring beyond public view. Meanwhile, corrupt coal contracts leached hundreds of millions from Eskom’s coffers and resulted in the delivery of substandard product, damaging generators and causing more load-shedding. Stop-gap, emergency measures like diesel generators cost the utility nearly five times more per kilowatt hour, produced less electricity and opened a door to yet further corruption.

Construction of two new showpiece power plants began in 2007, but they are still not fully functional, 15 years down the track, and are billions over budget. One was completed in 2019, five years late, but was knocked out of action shortly after by a blast that resulted from ‘management failures’.

Ramaphosa’s accession to the presidency in 2018, replacing the notoriously corrupt Jacob Zuma, raised hopes of a turnaround at Eskom and elsewhere, but his redemptive impact has been indiscernible. Eskom’s latest CEO, Andre de Ruyter, resigned in early 2023 after blowing the whistle on criminal syndicates that had effectively taken over power stations and whose reach extended from the lowliest employees to the deputy president. De Ruyter has also alleged that the intelligence service was deployed against him when he was investigating the rot. Unsurprisingly, he hasn’t been thanked by the government, but instead threatened with legal action for publishing a tell-all book—a mere fleabite after having survived an attempted arsenic poisoning the day after he tendered his resignation.

Eskom is a microcosm of South Africa’s failures because its flaws are paralleled in every sector, at every level of society. The problem begins at the top but doesn’t end there. Just as Mandela’s administration was warned time and again of the power-deficit bear-trap—and then fell right into it—the African National Congress has ignored the lessons post-liberation Africa had taught ad nauseum, beginning in the 1960s.

As the inheritor of the last country to free itself of white rule, the ANC was not short of poor examples. It abdicated the opportunity to lead, instead submitting itself as a vehicle for instant gratification: it rewarded comrades from the struggle with patronage (the first priority) while splurging in the early days on populist promises (a subsidiary concern), just as Robert Mugabe and others had done to its north. In the process, both elements, patronage and populism, corrupted the process of Africanisation, prioritising speed and political orientation over capacity. Layers of perverse incentives have multiplied, creating a socioeconomic ‘operating system’ that rewards criminality, small and large, and penalises the diligent, black and white.

But this is not simply a tale of malfeasance, lawlessness and the gradual erosion of the common good. That would be to mistake symptom for cause, just as it would be to place the country’s woes at Eskom’s doorstep. Significant philosophical threads run through it all. A vast overestimation of apartheid’s capitalist fat reserves is one of them. Power stations weren’t built, the comrades were allowed to loot, and poorly equipped managers were appointed to complex roles because it was assumed that there was more than enough to go around—that the coffers could comfortably absorb the losses. It’s the same outlook that led to de Ruyter—against a backdrop in which Eskom’s debt had ballooned from US$2 billion in 2007 to US$25 billion in 2020—being told by a senior minister ‘to be pragmatic … to enable some people to eat a little bit’.

An unwillingness to engage with the mechanics of development is another attitudinal root. In the minds of many, the road to economic transformation has always been redistributive rather than cumulative and generational. But South Africa’s economy has never been large enough to reproduce white wealth via transfer, nor do such methods address the challenge of sustainability. Indeed, they war against it.

It’s been said that Eskom is too big to fail. The same words have been used on many occasions of South Africa. But with size comes momentum. The disease that has ravaged it is too extensive for it not to fail. Measured against even the most modest hopes that greeted the advent of the ANC’s rule, that has, in fact, already happened. The questions that remain are about the shape, rate and magnitude.

Australia needs a national integrity watchdog with more teeth

Australia needs a national integrity commission—but not the one proposed by the government.

The push to establish such a watchdog at a national level has had a complicated history in Australia. While the states have had integrity commissions for many years, it wasn’t until 2016, and again in 2017, that the Senate considered setting up a national commission. The result was the National Integrity Commission Bill 2017, which has not been enacted.

An outline of proposed reforms was released by the government at the end of 2018. The government recently admitted it had decided to delay plans for the commission until the political environment was more conducive. Recent events, on both sides of politics, at state and federal levels, highlight the need for a wide-ranging commission operating beyond the parameters set out in the government’s proposed model.

The need for a national integrity commission is growing. According to Transparency International’s  corruption perceptions index, between 2012 and 2019 Australia dropped eight places worldwide on perceived levels of public-sector corruption. The report points out that reducing big money in politics and promoting inclusive political decision-making are essential to curb corruption. The proposed commission will be hard pressed to address that challenge or to help Australia adopt Transparency International’s seven recommendations to prevent opportunities for political corruption and to foster the integrity of political systems.

As it’s envisaged, the commission will be hamstrung, especially in relation to political corruption. It will be required to conduct public-sector investigations, including in matters involving politicians and their staffers, in private, without the power to hold public hearings or to make findings of corruption. This is a privilege not afforded to law enforcement officials, who will fight for their reputations in the court of public opinion.

The government’s reform paper asserts that law enforcement agencies require special attention and rules because of the coercive powers they wield, and therefore their matters can be heard publicly. The proposal’s separation of law enforcement from other public-sector agencies results in different investigation and hearing processes.

For those in the public sector division, which includes members of parliament, this approach overlooks the privileged position and coercive powers wielded by politicians and members of parliament through their roles in policy development, legislative action and funding decisions. Corruption in this environment can have a corrosive effect on the very fabric of our democracy.

The ability of politicians to hide misdeeds will also be enhanced by the commission’s being required to give effect to the powers, privileges and immunities of the parliament and its committees. These privileges place MPs above all other public servants.

The commission will not have the right to investigate questionable politically motivated decisions, no matter how egregious, because of three factors—a narrow definition of ‘corrupt conduct’, the protection afforded by parliamentary privilege, and the inability of the public to refer complaints directly to the commission. It’s not hard to conceive of circumstances where an investigation into say, misdirection of funds, employment decisions or voter manipulation could occur and be nominally caught by the bill’s provisions, only to be effectively hidden from investigation by the broad scope of parliamentary privilege.

The bill rightly recognises that some activities deserve special attention and protection. Legal professional privilege is a bedrock of our legal system and deserves such consideration. The bill proposes that where legal professional privilege is claimed, consideration must be given to that claim by the integrity commissioner. In contrast, the parliament’s privileges committee adjudicates on the rules it sets for all MPs, with no independent oversight.

There’s a strong case for both legal professional privilege and parliamentary privilege to be subject to independent review. This review function should not rest with the integrity commissioner, who could be seen as having a real or perceived conflict of interest in relation to the commission’s investigations. Instead, an independent adjudicator, such as the courts, should be brought into the process. This would mirror current arrangements for legal privilege and criminal investigations.

Political misdeeds should also not be hidden from view through agency funding measures. Funding arrangements can support the activities of those with political favour and hinder those without. This has led to Australia’s anti-corruption chiefs seeking a new ‘independent funding system so they can investigate misconduct by governments without risking political interference from budget cuts’.

Corruption by its nature is hidden from view and conducted in secret. Investigating it requires substantial resources, deploying all the tools available in the investigators’ toolkit. This is time-consuming and expensive and deserves appropriate funding.

An important feature of our democratic system is that no one person is judge, jury and executioner. Parliamentary privilege, however, makes parliament its own judge and jury on privilege matters and the arbiter of any investigation that the relevant committee determines impinges on that privilege. A national integrity commission should never affect the rights and privileges of parliament in relation to the freedom of speech, debates and proceedings there. However, it should be free, with appropriate judicial oversight, to investigate criminal behaviour and to make its findings public. Politicians in Australia’s democracy are at the top of the public service pyramid, not divorced from it.

Australia must toughen up as well as step up in Papua New Guinea

Papua New Guinea’s legal system, especially its supreme and national courts, is a true success story. The PNG judiciary is competent, is unaffected by political influence, and resolutely upholds the constitution and the fairness of national elections.

On many occasions since PNG achieved independence in 1975, the courts have declared bills passed by the national parliament to be unconstitutional or illegal.

Australia has played a positive role in helping fund judicial and legal training in PNG, and Australians continue to serve on the bench of the National Court of Justice. Australian lawyers regularly travel to PNG to appear before the courts on a whole range of commercial, and some criminal, matters and do so with absolute confidence in the integrity of the judiciary. The impartiality of the courts is made even more important by the absence of juries in the justice system.

It is therefore galling that the new complex for the supreme and national courts in Port Moresby is being built by a company wholly owned by the government of the People’s Republic of China.

China Railway Construction Engineering Company got the job for around US$190 million in a tender process in which a respected and experienced Australia–New Zealand construction company lodged a significantly lower bid.

This signature project was approved in 2014, before Australia launched its step-up program.

A close inspection of PNG national government tenders across the board reveals an alarming situation that Australia must address in the name of transparency, and to advance the legitimate interests of Australian companies and their PNG partners.

The lion’s share of tenders for state-funded and partner-funded capital works in PNG now goes to PRC-owned companies. China Railway is the most prolific, but it’s not the only one. Most of these contracts have been awarded through a selection process that lacks transparency.

Some funding for roads and other construction and repair work comes from the PRC government—by way of loans that are generally not on favourable terms. Almost none of it is in grant form. On the other hand, Australia’s development assistance to PNG is provided almost entirely as grants. It defies comprehension that PRC companies can bid for some projects funded by Australia.

Australia’s development assistance to PNG is around $600 million a year, easily the largest of any country. A further $440 million was provided during the current financial year as a concessional loan, the initial repayment on which has already been deferred.

Australia also provided $20 million from its project aid budget to the struggling PNG Treasury—in cash that is non-repayable and to be used for recurrent spending. This is a wholly undesirable step. Given the parlous state of PNG’s finances and economy, it will make little difference.

How much more will Australia be asked to provide beyond the appropriate constraints of a development assistance program?

We may be able to do little about the contract process that results in Australian and even PNG companies being excluded from projects such as the courts complex and road construction work.

But a window of opportunity is about to open, and Australia must take it—robustly and urgently.

Legislation to establish the long-promised, and long-delayed, PNG anti-corruption commission is now very close to becoming a reality. Earlier this month, the Independent Commission Against Corruption Bill had its second reading in the parliament and it is expected to pass the final hurdle in August.

Australia must use all its influence with the PNG government to ensure that the new commission is focused on weeding out corruption and misuse of funds at all levels of public administration.

We should offer to second experienced investigators, and perhaps even commissioners, to the new PNG entity to help ensure maximum effectiveness.

The commission’s membership must be dominated by PNG lawyers, accountants and probably judges, but we are in a position to offer substantial assistance.

Many of PNG’s laws have historic links to Australian laws, especially the criminal code. We have played a constructive role in training members of the legal profession, accountants, auditors and even investigative police personnel.

Australia’s Pacific step-up initiative is not without its imperfections. The rushed sea cable between Solomon Islands and PNG to boost internet services may not be perfect; nor may other programs that we have funded and are currently developing, such as rural electrification. Progress on the latter program, very worthy though it is, has been slow, and the cost of internet services facilitated by the cable might be too high for many Papua New Guineans.

But at least we have stepped up.

If we’re to ensure that our development assistance is used properly, and that Australian companies investing and operating in PNG are treated fairly, we must work with PNG to ensure its anti-corruption commission delivers what has been promised.

The chair of the PNG parliamentary committee that scrutinised the bill stressed that it must address the ‘cancer of corruption’ in public and political life.

Australia needs to work with PNG, especially with leaders such as deputy prime minister and attorney-general Davis Steven, who are genuine about reducing corruption and abuse.

That means we shouldn’t be afraid to toughen up our message to our closest neighbour as a matter of urgency.

The mainstreaming of corruption

As we’ve seen in recent years, domination by a populist party can lead to the deep polarisation of an electorate. But it also erodes the ethical fabric of political life. Unable to defeat populists through the usual methods, traditional parties have begun to emulate their opponents, leaving voters with no alternative but to embrace cynicism.

In many countries, even supporters of anti-populist parties have begun consciously accepting pathological behaviour, rule-breaking and even illegal acts on the part of their chosen political representatives. Following Gresham’s law, which holds that bad money drives out the good, opposition forces increasingly feel compelled to scheme and cheat in order to win.

As a result, politicians with scruples will find themselves at a disadvantage. With more and more voters concluding that populists must be beaten at their own game, opposition parties are faced with a choice between upholding their ethical standards and saving liberal democracy.

Under these conditions, politicians don’t have to worry about losing their supporters’ trust if they break the law in service to the party. But this tends to favour the populists already in power. Hence, Poland’s ruling Law and Justice (PiS) party and Fidesz in Hungary have enjoyed an unprecedented degree of immunity from political scandals.

Distinguishing between corruption in the name of the party and corruption in the interest of the individual is key. In Poland, PiS chairman Jaroslaw Kaczynski condones outright nepotism and institutional corruption, but condemns other forms of self-dealing. PiS officials are routinely hired by state-owned enterprises, but with the understanding that they will donate a share of their earnings to the party. And Kaczynski himself has reportedly pursued a deal with an Austrian businessman to build two skyscrapers on land owned by a PiS-connected firm.

By contrast, when it was revealed that Polish Prime Minister Beata Szydlo had paid her ministers bonuses equivalent to 10 months’ salary, Kaczynski demanded that the money be donated to charity and pushed through legislation to cut parliamentary and top government salaries. Polish MPs now earn about €1,800 net per month (members of the European Parliament earn nearly €8,800), which is good for the party image, but not good for preventing corruption. More recently, Kaczynski forced the resignation of a long-time political ally, the marshal of the sejm (parliament), Marek Kuchcinski, following revelations that he had used a government plane for private travel.

Kaczynski understands that PiS supporters will accept ‘institutional’ corruption that benefits the party, but not corruption that benefits the individual. When a politician embezzles money or misuses government resources (as Kuchcinski did), voters can see that such acts don’t benefit them. But when a politician is found to have offered bribes or awarded cushy jobs in exchange for donations to the party, voters can see how those corrupt dealings might advance the ‘greater good’.

The University of Warsaw’s Przemyslaw Sadura and I have just published research into Polish voters’ attitudes, one month prior to Poland’s 13 October parliamentary election. Our findings reveal the extent to which cynicism has taken hold of the Polish electorate. Consider, for example, the following representative responses from a PiS voter:

Should politicians like Kaczynski be forgiven for engaging in corruption to some degree?

– Not necessarily. If we’re talking about individual material benefit, then no, he’s finished.

What if it weren’t to benefit himself, but his mother?

– If it were for the party, for the greater good, then yes, I’d be inclined to forgive him.

For the party, not for himself?

– Yes.

Individual corruption may be bad not only because it violates moral standards, but also because it damages the image of the party.

It’s easy to imagine that hardline supporters of US President Donald Trump or British Prime Minister Boris Johnson would offer similar responses. Across the West, political cynicism is upending the rules of politics and creating two separate ethical spheres. Acts that voters would regard as unacceptable in most other domains of life suddenly become virtuous in a partisan political context.

Politicians like Hungarian Prime Minister Viktor Orban and Kaczynski started their careers in the mainstream and embraced populism as a tool to realise their political ambitions. But politicians who have been populists from the outset have proven even more scandal-proof. Trump and Matteo Salvini of the League party in Italy, for example, actually derive legitimacy from scandal. By antagonising elites, the media, foreign institutions (above all European) and the judiciary, and by violating norms with abandon, they have claimed the mantle of ‘authenticity’. Political scandals, no matter how numerous, don’t undermine such figures; on the contrary, they make martyrs of them.

By definition, opposition parties have fewer opportunities to engage in public corruption. But if they can find a way to overthrow ruling populists by taking the low road, the evidence suggests that their supporters won’t judge them too harshly for it.

Pakistan’s soft coup

Pakistan’s prime minister Nawaz Sharif was ousted from office on 28 July for the third time, not because he lost an election but because of the intervention of non-parliamentary institutions in the political process. He was dismissed by the president in 1993 on corruption charges, was overthrown by a military coup in 1999, and has now been forced to quit by judicial order. This latest episode resulted from allegations which emerged from the so-called Panama Papers leak that his family members had illegally amassed wealth and used those assets to buy properties abroad.

In light of those allegations, the Pakistan Supreme Court determined that Sharif was ‘not honest and reliable enough’ to hold office. The court ordered that he swiftly stand trial before an accountability court to determine the validity of the corruption allegations made against him.

While on the face of it that decision seems to uphold the norms of accountability even for the highest in the land, the picture looks much murkier when one scrutinises the decision carefully. First, the criterion applied to remove Sharif from office, namely, that he was ‘not honest and reliable enough’, is far too broad to be of legal value and could be used to define most, if not all, Pakistani politicians. The second reason why the decision appears suspicious is the selectiveness with which it was applied.

However, the most important critique of the Supreme Court’s decision is that it has the potential to derail Pakistan’s fragile democracy by intervening in the functions of elected institutions. The court’s action reinforces the dangerous precedent that non-elected bodies have the power to remove governments from office even if the latter have the confidence of the national assembly.

In a country such as Pakistan, which has been under direct military rule for half its life, such intervention can send jitters not only among the political class but also among intelligent observers of the political scene. Sharif himself was forced out of office and eventually into exile in Saudi Arabia by the then army chief, General Musharraf, in 1999. In a remarkably double-faced gesture, Musharraf, now in self-imposed exile in the UAE to escape a treason trial, congratulated the Supreme Court for its ‘brave decision’ to oust Sharif from power.

Some observers see that as an indication of how the army top brass views this episode. Sharif has had a rather rocky relationship with the army generals since his return to power in 2011. He never forgot the army’s betrayal of 1999, and the generals didn’t trust him because of his independent streak, especially in matters of foreign policy. The military brass were particularly wary of him because they saw him as being too accommodating towards Pakistan’s regional adversary India, a suspicion reinforced by his personal bonhomie with Indian prime minister Narendra Modi.

Many people in Pakistan and abroad view the Supreme Court’s decision to remove Sharif from office as a joint conspiracy of the court and the military high command. That suspicion is strengthened by the fact that last April when the Supreme Court appointed a joint investigation team (JIT) to examine allegations against Sharif it included representatives of the Inter-Services Intelligence (ISI) and of Military Intelligence in the team.

The inclusion of two military members in the six-member JIT immediately raised hackles within Pakistan’s political circles for two reasons. First, the military representatives had no expertise in matters of financial irregularities, unlike other members of the JIT. The second and related reason was the fact that the ISI is seen as the arm of the military that engages in controlling the terrorist groups that owe their origins to its support since the 1990s. It is also seen as the branch of the military that engages in subverting political institutions, threatening political activists and journalists, and in general using muscle power to control dissident elements within the country. The inclusion of the military representatives in the JIT was seen as a sign that the Supreme Court was colluding with the military to remove Sharif from office.

Also throwing suspicion on the impartiality of the judgement was the Supreme Court’s decision to investigate allegations against Sharif at the behest of Imran Khan, the cricketer turned politician who sees himself as the nemesis of the Sharif family. Khan is reported to be close both to elements in the military and to the Taliban in Pakistan. The latter group is based largely in the Khyber Pakhtunkhwa province, which borders Afghanistan and is governed by Khan’s party. Since Khan is seen to benefit most from Sharif’s ouster and since he is supposedly close to the military, it has convinced observers that this affair is a command performance undertaken at the GHQ’s orders.

How this drama unfolds between now and the parliamentary elections scheduled for 2018 is likely to decide the fate of Pakistan’s fragile democracy. The PML, Sharif’s party, has the numbers in parliament to continue to hold office until the next elections. The big question is whether a combination of military machinations and unruly street demonstrations, which have become the hallmark of Imran Khan’s political tactics, will allow the PML to govern effectively in the run up to the next elections. It cannot be ruled out that if the military high command comes to the conclusion that the PML is likely to be returned to power it may abort the entire process either by direct intervention or through proxies creating mayhem in the country.

1MDB and political corruption in Malaysia: a game of hide-and-seek

Image courtesy of Flickr user Alexander Synaptic.

The 1 Malaysia Development Berhad (1MDB) scandal has allegedly seen US$3.5 billion in tax dollars misappropriated by elites, revealing high levels of political corruption in the country. The issue is hidden by the dominance of race and religion in political debate.

All eyes have been on Malaysian Prime Minister Najib Razak who remains unaccountable for the 1MDB scandal, which the FBI states has ‘defrauded the Malaysian people on an enormous scale’. In a classic strategy of divide-and-conquer, Najib and his supporters have disguised economic issues as racial ones by reigniting a historically entrenched resentment between the Malay Muslim community and ethnic minorities. The manoeuvre has ultimately shifted attention away from failings of governance in Malaysia.

Since the 1MDB scandal surfaced, racial and religious issues have been at the forefront of Malaysian politics. Consequently, a country once known for its ‘harmonious diversity’ is now headed by a Prime Minister who depends on divisiveness to stay in power.

Malaysia is a multi-racial society where the ethnic majority is the Malay Muslim community. The Chinese and Indian ethnic minorities first arrived in Malaysia in the 19th century and practice Buddhism, Hinduism and Christianity. Enshrined welfare policies provide tertiary education and cheaper housing for the Malay Muslim community, which allowed for them to break out of poverty and join the ranks of prosperous Chinese Malaysians.

However, Malaysia’s ethnic minorities still struggle to buy homes and access higher education. Malays suffer too. Welfare has been ineffective in reducing poverty for Malays who still constitute 70% of the poorest Malaysians. Still, backed by nationalist politicians and the Malay majority vote, discriminatory welfare policies remain a means for financing benefactors and affirming Malaysia’s status as a Muslim country.

The overarching objective of welfare was to make Malaysia a cosmopolitan society that still incorporated the best aspects of local culture. This objective was misinterpreted as pro-Malay politicians used the introduction of discriminatory welfare to affirm Malays as the ‘true owners’ of Malaysia. This narrative has facilitated the rise of pro-Malay policies which include the introduction of barriers preventing ethnic minorities from working in the civil service. Over time, Malays have been encouraged to gain a tertiary education and attain high levels in government while minorities are pushed into low level positions.

Criticising Malay supremacy is taboo in Malaysia. In a country where welfare and political authority are increasingly perceived to be an unchecked inalienable right of Malays, a protest by ethnic minorities to hold Najib accountable for financial corruption may constitute a threat to Malay political authority.

That’s what happened last year when 200,000 Malaysians—most of whom were Chinese Malaysians—protested in Kuala Lumpur to demand transparency and accountability of Najib and his government. The movement was orchestrated by an organisation called Bersih. The protest was declared an illegal act of sedition and Bersih’s website was blocked. Najib publicly stated that Bersih protestors threatened the Malay Muslims’ right to welfare and that a demonstration of ‘Malay pride’ was required to counter the threat.

Fuelled by Najib’s message, the pro-Malay Red Shirts movement took to the streets to denounce Bersih. Unlike Bersih, the Malaysian government declared the Red Shirts’ protest legitimate. Politicians seeking to avoid scrutiny continue to promote the narrative that pro-democratic movements threaten Malay Muslims’ rights to welfare, as well as legitimising pro-Malay movements and punishing anti-corruption initiatives.

That sense—that power is slipping into the hands of minorities—exacerbates racial divisiveness in Malaysia. Red Shirts now target Chinese and Indian neighbourhoods as venues for mass gatherings, igniting fears of ethnic violence. When questioned, one protestor stated the Red Shirts’ protest ‘shows support for Najib and reaffirms that the official religion of this country is Islam. Malays are the rightful owners of this country.’ Malaysian diversity—once an asset for sustaining a cosmopolitan society—is now the government’s tool for cultivating problems around social cohesion and security.

More recent cases such as the Mara property scandal, where government officials pocketed (Malaysian Ringgit) RM13 million, reveal that despite wide criticism, corruption still exists as a pervasive part of Malaysian politics. Unpunished corruption provides a breeding ground for deeper levels of misappropriation, to the detriment of the Malaysian people.

The decision to delegitimise anti-corruption initiatives and support a Malay nationalist counter-movement creates a politically explosive environment where entrenched resentment between racial groups fosters violence and stagnates economic growth. Hidden behind the chaos are anonymous elites hoarding growing piles of missing tax money. In the ultimate game of hide-and-seek, politicians continue to shield their wrongdoings behind scapegoats like minorities and protestors, while angry citizens continue to look for an all-elusive justice.