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Against rules to use RM2.6b for elections, says Mahathir

KUALA LUMPUR — Former Malaysian Prime Minister Mahathir Mohamad yesterday said that if the United Malays National Organisation (UMNO) had used the nearly US$700 million (S$963 million), or RM2.6 billion, reportedly transferred to Prime Minister Najib Razak’s bank accounts for political purposes ahead of the 2013 general election, then it would have breached existing rules governing limits on poll spending.

KUALA LUMPUR — Former Malaysian Prime Minister Mahathir Mohamad yesterday said that if the United Malays National Organisation (UMNO) had used the nearly US$700 million (S$963 million), or RM2.6 billion, reportedly transferred to Prime Minister Najib Razak’s bank accounts for political purposes ahead of the 2013 general election, then it would have breached existing rules governing limits on poll spending.

“If the present UMNO needs (that money) for the election, this definitely violates rules and regulations of the electoral law,” Dr Mahathir said, explaining that every candidate must declare his expenditure to election regulators so as to avoid the possibility of corruption.

Dr Mahathir added that though he did not spend much money on polls during his time as UMNO president, that never prevented Barisan Nasional from securing two-thirds of the federal seats up for contest in the five general elections in which he led the coalition.

Under Malaysian law, candidates are permitted to spend no more than RM200,000 when contesting a federal seat.

“The question I wish to ask is whether the Inland Revenue Board has acted on the RM2.6 billion that was in Datuk Seri Najib’s personal accounts,” Dr Mahathir wrote on his blog yesterday.

Early last month, the Wall Street Journal (WSJ) reported that in March 2013, up to US$700 million was allegedly transferred from companies linked to state investment firm 1Malaysia Development Bhd (1MDB) into two AmBank accounts under Mr Najib’s name.

Subsequently, in a leaked video that surfaced last Wednesday, Mr Muhyiddin Yassin, UMNO’s deputy president, was apparently seen recounting to guests at his home how Mr Najib had purportedly admitted that US$700 million had been transferred from 1MDB to his personal accounts.

The secret video recording surfaced only a day after Mr Muhyiddin was unceremoniously sacked from his post as Deputy Prime Minister.

Mr Najib is facing a political crisis over 1MDB, which is not only under an investigation by a special task force over the WSJ’s allegations but also being audited by the parliamentary Public Accounts Committee over its RM42 billion debt.

Mr Najib has denied taking any funds from 1MDB for personal gain, but has not commented directly on the fund transfers.

Dr Mahathir also rejected claims that it is UMNO’s practice to place money from political donations in the personal accounts of trustees.

Dr Mahathir said that while he was UMNO president, he was one of three trustees who ensured that all political donations were deposited into a bank account that was held in trust for the party.

“Not a single sen from donations for elections was deposited into my account,” he said. “I am prepared for all my personal accounts of 22 years to be vetted by impartial parties to verify if my claim is true or otherwise,” he wrote in a blog post yesterday.

He said he later ensured that all the money, shares and other title deeds in UMNO’s possession were transferred to his successor Abdullah Ahmad Badawi. AGENCIES

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