Lack of transparency dents credibility of Najib-led government

The Malaysian government, led by Prime Minister Najib Razak, has a difficult job managing public calls for transparency over the 1Malaysia Development Berhad (1MDB) issue and upholding its credibility in an increasingly critical public domain.

Recent strong-arm moves by the government, including the suppression of the media, sacking of dissenters within the Cabinet, and implementation of changes that have stalled the official investigations, not only give the perception of governmental interference over the 1MDB issue; they also heighten other challenges the government will have to contend with.

These include protests by civil society groups demanding transparency and accountability, and the potential for factional splits within United Malays National Organisation (UMNO).

Calls for more transparency over allegations that tarnish Mr Najib’s credibility have largely not been met. Instead, the government has responded to the increased public scrutiny with the temporary suspension of printing permits in Malaysia of two print publications by The Edge and an online blocking of Sarawak Report.

Unfortunately, these moves have been perceived as impeding transparency over 1MDB. This may further tarnish Mr Najib’s credibility, and by extension, his government.

Civil society groups in Malaysia have criticised the government for trying to curb public debate via social media, instead of being more transparent in its investigation.

The Malaysian authorities have also issued an arrest warrant for Ms Clare Rewcastle Brown, founder of Sarawak Report. Ostensibly, the government is seeking to deter further negative speculation on the 1MDB issue.

Ironically, the attempt to remove the messenger without rebutting the message with a clear and unambiguous response may be counterproductive, as it could trigger unnecessary public attention on the content of Sarawak Report.

It is also a futile attempt as Internet-savvy users have the technical know-how to access blocked websites through proxy servers. Such actions by the government reinforce a public perception that there is an element of truth to the scandal, and gives the impression that the government is withholding facts from the public.

Indeed, this 1MDB saga and how it is played out reflects the ongoing tensions between Barisan Nasional’s (BN) Old Politics of communal-based, money politics characterised by authoritarian restrictions and coercive laws, versus the New Politics, which advocates good governance and pluralistic democratic participation based on social justice and multi-ethnicity.

By holding on to the practices of Old Politics in handling the 1MDB debacle, the Najib-led government is going against the tide of public opinion which calls for more accountability and transparency in governance.

Public displeasure against the government has grown, not abated. The opposition and civil activists will continue to mount their criticism ofMr Najib and his government. The upcoming Bersih 4.0 rally at the end of this month could amplify the increasingly negative public sentiments.

CONSOLIDATING POLITICAL LEADERSHIP

By removing dissenters within the government, including Deputy Prime Minister Muhyiddin Yassin, Mr Najib has consolidated his political leadership, for now.

Initial speculation that Mr Muhyiddin, who remains UMNO deputy president and commands overwhelming support in his home state of Johor, would lead an UMNO factional break-out appeared to have fizzled out after he expressed solidarity with the party. With the majority of UMNO divisions rallied behind him, Mr Najib appears to have the unified front he was seeking.

The recent official explanation from the Malaysian Anti-Corruption Commission (MACC) that the money transferred to Mr Najib’s personal bank accounts was a political donation, and not from 1MDB, offers a plausible enough counter-narrative for Mr Najib’s supporters today compared to a month ago, where none was forthcoming. Now that there is something tangible to coalesce around, and given the shift in power dynamics, it may be in UMNO’s collective interest to close ranks.

However, UMNO’s show of solidarity for Mr Najib may be tenuous and conditional. Mr Najib’s move has served to sharpen lines within the party.

One indication of this divide is that after his ouster and proclamation of party support, Mr Muhyiddin has continued to highlight the worry that negative public perception is a serious enough issue that, if left unaddressed, would lead to BN’s fall at the next general election. Support can be shifted from Mr Najib to the faction within UMNO sharing Mr Muhyiddin’s sentiments, should there be damaging revelations in the future.

Further, Mr Najib’s co-option of the Public Accounts Committee (PAC) members into his Cabinet, and replacement of the special task force’s head have indefinitely frozen the 1MDB probes by these groups, whose function was to secure government accountability. Notably, the MACC’s explanation about the money transfers into Mr Najib’s account came only after the move to stall the probes. Even so, the MACC itself was not immune from change — senior officers who accused the police of harassment were abruptly transferred out, only to be reinstated after public outcry.

The nature of these changes and their outcomes can feed into a perception of governmental interference into the 1MDB investigation.

EROSION OFPUBLIC CONFIDENCE

Public perception of political leaders is a barometer by which the overall trustworthiness of a government is measured. Government trustworthiness is related to perceptions of policy effectiveness, transparency of information, and public accountability.

As a political leader, Mr Najib falls under public scrutiny not only because the debt-ridden 1MDB was his brain-child, but also as he concurrently holds the Prime Minister and Finance Minister posts, and is the chairman of 1MDB’s advisory board. Therefore, public accountability over 1MDB’s troubles falls heavily on his shoulders.

While Mr Najib has continuously maintained that 1MDB funds were not misappropriated, and the allegations are political sabotage, his government’s recent actions appear to have created a public perception of silencing criticism and impeding further official investigations into 1MDB. Such actions potentially create information gaps that can fuel public distrust.

Short of a massive governmental crackdown, local news outlets and online social media are likely to continue to magnify criticism on the Najib-led government’s handling of 1MDB, and keep pushing for more transparency.

Governmental moves that reinforce negative perceptions lead to an erosion of public confidence in the long run, and the consequent oppositional challenges run contrary to the political stability Mr Najib ultimately seeks.

About the author

Saleena Saleem is an associate research fellow and David Han Guo Xiong is a research analyst with the Malaysia programme at the S Rajaratnam School of International Studies (RSIS), Nanyang Technological University. This commentary first appeared in RSIS Commentaries.