Having businesses fund MP’s constituency development raises concerns, says C4

Having businesses fund MP’s constituency development raises concerns, says C4

Anti-graft group says history has shown how ties between politicians and tycoons could lead to the proliferation of rent-seeking, cronyism and patronage.

C4 said it is in the country’s best interest to ensure that politicians’ relationship with the business community is kept at arm’s length.
PETALING JAYA:
The call to have businesses contribute to an MP’s constituency development fund could have serious ethical implications, says an anti-graft group.

The Center to Combat Corruption and Cronyism (C4) said the proposal by communications and digital minister Fahmi Fadzil could ultimately lead to political patronage and the further proliferation of the rent-seeking culture.

The group said while Fahmi’s call was well-meaning, the notion of businesses “helping” MPs in their constituencies must be spelt out clearly so as not to encourage personal relationships between politicians and businesses, barring policy-related efforts that allow public participation and oversight.

“Malaysian history has shown how private connections between politicians and tycoons behind closed doors could lead to the proliferation of rent-seeking, cronyism and patronage in the solicitation of government contracts,” C4 said.

“One such instance of the ‘money politics’ scenario involves the ongoing high-profile court case of Ultra Kirana Sdn Bhd (UKSB), which admitted to paying tens of millions of ringgit to almost a dozen politicians purportedly as ‘political donation’.”

UKSB was appointed by the government in 2016 to handle the foreign visa system (VLN) for Chinese tourists and was implicated in a corruption case involving then home minister Ahmad Zahid Hamidi.

Zahid, who was charged with receiving bribes from UKSB to extend its VLN contract was acquitted of the charges after the High Court ruled that the prosecution had failed to establish a prima facie case against the Umno president.

C4 said it was in the country’s best interest to ensure that politicians’ relationship with the business community is kept at an arm’s length.

“What should no longer be delayed right now is for the Political Funding/Financing and Asset Declaration Acts to be tabled as part of the major reform agenda under the current administration,” the group said.

On Feb 3, Prime Minister Anwar Ibrahim announced that the government would be cutting the constituency development fund for MPs by nearly 70%, from RM3.8 million to RM1.3 million, due to economic constraints.

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