VZCZCXRO9046
OO RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHKL #0572/01 1850918
ZNY CCCCC ZZH
O 030918Z JUL 08
FM AMEMBASSY KUALA LUMPUR
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1304
INFO RHEHNSC/NSC WASHDC IMMEDIATE
RUCNASE/ASEAN MEMBER COLLECTIVE PRIORITY
RUEKJCS/SECDEF WASHDC PRIORITY
RHHMUNA/CDR USPACOM HONOLULU HI PRIORITY

C O N F I D E N T I A L SECTION 01 OF 02 KUALA LUMPUR 000572 
 
SIPDIS 
 
FOR EAP/MTS AND INR 
 
E.O. 12958: DECL: 07/03/2028 
TAGS: PGOV PREL PINR MARR KDEM KJUS MY
SUBJECT: ANWAR IMPLICATES DPM NAJIB IN MURDER CASE 
 
REF: A. KUALA LUMPUR 570 - GOM DELIVERS PROTEST TO USG 
     ¶B. KUALA LUMPUR 563 - ANWAR ON OFFENSIVE 
     ¶C. KUALA LUMPUR 557 - ANWAR TAKES REFUGE 
     ¶D. KUALA LUMPUR 73 - PROSECUTOR DOWNBEAT ON MURDER 
        CASE 
     ¶E. 07 KUALA LUMPUR 291 
 
Classified By: Political Section Chief Mark D. Clark, reason 1.4 (b and 
 d). 
 
Summary 
------- 
 
¶1.  (C) A private investigator's legal deposition, revealed 
by Opposition leader Anwar Ibrahim on July 3, implicates 
Deputy Prime Minister Najib in the high-profile Altantuya 
murder case.  The deposition, based primarily on statements 
reportedly made by Altantuya and murder defendant Razak 
Baginda, indicates that Najib had an affair with Altantuya, 
Altantuya assisted Najib in the controversial purchase of 
French submarines, and Najib attempted to intervene on Razak 
Baginda's behalf at the time of his arrest.  The investigator 
claims that this information was suppressed by police and 
ignored by prosecutors.  Anwar's revelation of this 
information comes as he launches a political offensive 
following recent sodomy allegations, which he believes were 
instigated by Najib.  Meanwhile, Anwar and the Opposition 
coalition are set to begin a series of nationwide rallies, 
including a major gathering on July 6 near Kuala Lumpur.  The 
national police chief announced the military would join the 
police in tackling illegal assemblies in an emergency 
situation, a role the military last played during the 1969 
politically-inspired race riots.  Najib and the government of 
Prime Minister Abdullah will need to respond, both to Anwar's 
explosive revelations, but also to the Opposition leader's 
political offensive, including plans to hold nationwide 
rallies.  End Summary. 
 
Explosive Revelations 
--------------------- 
 
¶2. (SBU) On July 3, as the next step in his energized 
political offensive, former DPM and de facto opposition 
coalition leader Anwar Ibrahim released a statutory 
declaration (similar to a deposition in the U.S. system), 
made by private investigator P. Balasubramaniam on July 1, 
linking Deputy Prime Minister Najib to murder victim 
Altantuya Shaariibuu (ref e) and implicating Najib in efforts 
to subvert the investigation of the case.  (Najib's advisor 
Razak Baginda and two members of Najib's security detail are 
currently on trial for murder in this case.)  Anwar produced 
the explosive affidavit during a press conference on July 3, 
with Balasubramaniam standing by his side. 
 
¶3.  (SBU) Balasubramaniam bases his statement on 
conversations he had with Razak Baginda and with Altantuya; 
on events he witnessed acting as Razak Baginda's 
investigator; and his experiences under arrest and in the 
courtroom at the opening stage of the murder trial.  Among 
other things, the affidavit includes the following damaging 
allegations against Najib and others: 
 
-- Najib and Altantuya had an affair and that Najib 
introduced her to Baginda.  (Note: Najib has repeatedly 
denied knowing Altantuya.  End note.) 
 
-- Najib, along with Razak Baginda, was with Altantuya in 
Paris in connection with the negotiations for the purchase of 
French submarines, and that Altantuya believed she was due 
$500,000 for her services. 
 
-- Najib asked Razak Baginda to take care of Altantuya, as 
Najib did not want Altantuya harassing him. 
 
-- Najib, in a text message, told Razak Baginda he would meet 
with Inspector General of Police Musa Hassan to resolve the 
issue of Razak Baginda's impending arrest for murder. 
 
-- Police omitted the above information that Balasubramaniam 
provided during his seven-day interrogation regarding the 
murder, and that prosecutors never addressed any questions to 
him during his court appearances. 
 
¶4.  (SBU) Anwar stated it was evident the police and 
prosecution team, especially IGP Musa Hassan and Attorney 
General Abdul Gani manipulated the case to protect the DPM 
and hide any linkages of the DPM to Altantuya.  He declared 
that the declaration further confirmed a clear and consistent 
pattern of manipulation of the criminal justice system since 
¶1998.  Anwar continued by saying he is worried the IGP and AG 
will again manipulate evidence and statements during the 
probe into alleged sodomy charges against Anwar (ref A - C). 
 
¶5.  (SBU) Anwar's incendiary revelations follow a statutory 
declaration by controversial blogger Raja Petra in which he 
alleged that Najib's wife, Rosmah, was present at scene of 
Altantuya's murder.  In addition, on July 1 Anwar publicly 
accused Najib and Rosmah for being behind the current sodomy 
allegations against Anwar, which is now under police 
investigation. 
 
Taking the Campaign Against Najib on the road 
--------------------------------------------- 
 
¶6.  (SBU) On another front, Anwar starts a nationwide tour 
with a rally in Penang on July 5 followed by an appearance at 
a rally in Shah Alam on July 6.  The Opposition hope to use 
the Shah Alam rally, originally intended as a protest against 
the fuel price hikes,  as a show of support for their cause 
against the government.  Anwar and other Peoples Alliance 
(opposition coalition) leaders are urging their supporters to 
attend and hope for a massive turnout (a minimum of 50,000 
people) in order to send a message to the government and add 
credibility to Anwar's claims that he can bring down the 
government through the defection of enough government MPs by 
his announced target of September 16. 
 
Police-Military Joint Exercise to Maintain Public Order 
--------------------------------------------- ---------- 
 
¶7.  (C) At a joint press conference between the Inspector 
General of Police Musa Hassan and Armed Forces Chief Abdul 
Aziz Zainal on July 2, Musa Hassan stated that the 
cooperation between the security forces is crucial because 
political parties, NGOs, and individuals were organizing more 
illegal assemblies.  They announced the police and armed 
forces began a joint training exercise to maintain crowd 
control and public order.  Musa said the police and military 
would work together to tackle illegal assemblies only if 
absolutely necessary and in the event of a declared 
emergency.  The tabletop command post exercise began July 2 
is expected to run until July 7.  Another joint exercise is 
planned in September (coinciding with the deadline Anwar set 
to bring down the ruling government).  The last time joint 
police and military force was used to maintain public order 
was during the politically motivated 1969 race riots.  In 
1974, a contingent of rangers was deployed to university 
campuses to control student protests (coincidentally led by 
then student activist Anwar Ibrahim).  Police chief Musa 
Hassan stated use of military forces during a public 
disturbance would only take place after consultation with the 
Home Ministry and Defense Ministry.  A senior military staff 
member told the DATT that the military is not anxious to take 
on police roles, but is closely watching events. 
 
Comment 
------- 
 
¶8.  (C) Anwar and Najib have entered a very high stakes 
political game.  The risks to both men are tremendous, and 
not limited to their political careers.  Najib will be 
damaged by the latest serious allegations, coming on the 
heels of other statements implicating him and his wife in the 
murder, and the existing widespread public belief that the 
ongoing Altantuya murder trial has been the subject of 
political manipulation.  Najib and the government of Prime 
Minister Abdullah will need to respond, both to Anwar's 
explosive revelations, but also to the Opposition leader's 
political offensive, including plans to hold nationwide 
rallies. 

KEITH