VZCZCXRO0029
PP RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHKL #0598/01 1981058
ZNR UUUUU ZZH
P 171058Z JUL 09
FM AMEMBASSY KUALA LUMPUR
TO RUEHC/SECSTATE WASHDC PRIORITY 2997
INFO RUCNASE/ASEAN MEMBER COLLECTIVE PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RHHMUNA/HQ USPACOM HONOLULU HI PRIORITY

UNCLAS SECTION 01 OF 03 KUALA LUMPUR 000598 
 
SIPDIS 
SENSITIVE 
 
FOR EAP/MTS AND INR 
 
E.O. 12958: N/A 
TAGS: PGOV KDEM PHUM KJUS MY
SUBJECT: MALAYSIAN ANTI-CORRUPTION COMMISSION UNDER FIRE 
AFTER DEATH OF WITNESS 
 
REF: A. KL 588 - BY-ELECTION AND POLL A BOOST FOR NAJIB 
     ¶B. KL 78 -- NAJIB LEADS TAKEOVER OF OPPOSITION STATE 
     ¶C. 08 KL 1116 -- MALAYSIA PASSES ANTI-CORRUPTION 
        BILLS 
 
Summary and Press Guidance 
-------------------------- 
 
¶1. (SBU) The Malaysian Anti-Corruption Commission (MACC) 
ramped up their anti-corruption activities this week by 
focusing on opposition politicians in the opposition-held 
Selangor, Malaysia's wealthiest and most populous state.  The 
opposition has cried foul over the investigations, claiming 
that the anti-corruption body set up this year has been used 
as a tool by the Prime Minister and his ruling Barisan 
National (BN) coalition to harass and intimidate members of 
the opposition.  On July 16, a political secretary to a 
senior opposition politician mysteriously fell to his death 
from the 14th floor of the MACC building, shortly after an 
8-hour interrogation by government officials.  This death has 
created an uproar in opposition circles, resulting in an ad 
hoc protest on July 17 that resulted in several injuries and 
arrests.  Opposition leader Anwar Ibrahim is organizing a 
further protest meeting for July 19. 
 
¶2. (SBU) Recommended Press Guidance.  We recommend that if 
asked, the Department "expresses hope for an impartial and 
thorough investigation."  End Summary and Press Guidance. 
 
Background on Selangor and the MACC 
----------------------------------- 
 
¶3. (SBU) Following the landmark general elections in March 
2008, the opposition coalition Pakatan Rakyat (PR) took 
control of five of Malaysia's thirteen states.  In February 
2009, three state assemblymen in the state of Perak switched 
allegiance from the PR to the BN, effectively yielding 
control of that state to the BN in a move widely perceived as 
a hostile takeover led by future PM Najib Tun Razak (ref B). 
There has been general speculation among the opposition that 
the BN's next takeover target would be Selangor, Malaysia's 
wealthiest and most populous state. 
 
¶4. (SBU) The Malaysian Anti-Corruption Commission (MACC) is 
an investigative body within the Prime Minister's Department 
whose purpose is to investigate officials for graft and abuse 
of power.  Since its implementation in January 2009, the MACC 
has proven to be an effective tool for the ruling BN 
coalition while drawing the ire of critics for its apparent 
political bias, as the vast majority of investigations have 
been conducted against opposition figures. 
 
The MACC Targets Opposition Politicians in Selangor 
--------------------------------------------- ------ 
 
¶5. (SBU) The MACC began investigating seven members of the 
Selangor state assembly on July 13, acting on accusations 
that they were hoarding state funds meant for projects within 
their constituencies.  Selangor Chief Minister Khalid Ibrahim 
and the DAP leadership criticized the investigation, claiming 
they were baseless and an attempt to politically undermine 
the opposition's leadership in Selangor.   On July 15, the 
MACC continued their investigation by raiding the office of 
Selangor DAP Executive Counselor (or Exco, equivalent to a 
state cabinet minister) Ean Yong.  The officers seized 
several computers during the July 15 raid, and requested 
Ean's political secretary Teoh Beng Hock to appear at the 
MACC headquarters for further questioning.  The MACC 
officials classified Teoh as a witness and not a suspect. 
 
Death of a Political Secretary 
------------------------------ 
 
¶6. (SBU) The MACC's probe was thrown into turmoil upon a 
janitor,s discovery of the deceased body of Teoh on July 16 
on the roof of an adjacent building to the state MACC 
headquarters.  Teoh's interrogation began at 5 pm on July 15, 
and MACC officials acknowledge that it did not end until 3:45 
am the next morning.  The MACC officials claim that Teoh 
decided to rest instead of going home, and that he was last 
seen sleeping on a couch in the visitors lounge at 6 am. 
Exco Ean claimed that he attempted to check in on Teoh at 
midnight, but that he was denied access to Teoh.  Initial 
reports indicate that Teoh died from a long fall, but the 
cause remains unknown.  Family members adamantly maintained 
that suicide could be ruled out, pointing out that Teoh was 
scheduled to obtain his marriage certificate on July 17. 
 
KUALA LUMP 00000598  002 OF 003 
 
 
 
Protests Ensue 
-------------- 
 
¶7. (SBU) Public reaction, at least among the political 
opposition, has been swift and harsh.  At a candlelight vigil 
on July 16 and an ad hoc protest the next day, angry crowds 
called PM Najib a murderer, and yelled for the BN to "go to 
hell."  As opposition leader Anwar Ibrahim and several key 
opposition leaders met with MACC officials at their 
headquarters on July 17, an angry mob clashed with police, 
resulting in several injuries and six arrests, including an 
opposition MP and a Selangor state Exco.  The mob dispersed 
after Anwar emerged from the meeting and told the crowd to go 
home for the time being, vowing that the PR leadership would 
continue to pursue the case. 
 
Opposition Statements 
--------------------- 
 
¶8. (SBU) Opposition leaders have universally condemned the 
MACC and are demanding it be held accountable for the death 
of Teoh, maintaining that he was in their custody at the time 
of his death.  Lim Guan Eng said, "Unless the MACC can clear 
its name, the public may suspect that Teoh was mistreated and 
the MACC had a hand in his sudden death.  There must be full 
transparency and accountability."  Opposition leader Anwar 
Ibrahim called for a high level independent probe into the 
incident, describing it as "part of a pattern of government 
harassment and systematic attack on the PR."  Islamic Party 
of Malaysia (PAS) urged that all MACC officers involved be 
suspended or remanded for investigation, and also requested 
an Independent Commission of Inquiry.  Selangor Chief 
Minister Khalid Ibrahim called Teoh's death "a direct 
consequence from the investigations of the MACC, which has 
been selectively picking on our (opposition) officers, 
elected representatives, and state agencies in Selangor." 
 
Government / BN Reactions 
------------------------- 
 
¶9. (SBU) Official government reactions and key BN figures 
have given more mixed statements regarding Teoh's death.  Not 
surprisingly, leaders from both Chinese parties in the BN, 
the Malaysian Chinese Association (MCA) and Gerakan, have 
expressed anger over Teoh's death and have called for an 
independent inquiry.  More surprising is that UMNO Youth 
Leader Khairy Jamaluddin called upon a Royal Commission to 
investigate the MACC, the first time an UMNO Youth Chief has 
taken a position that could put him squarely at odds with the 
government.  Veteran UMNO leader Tengku Razaleigh also 
criticized the MACC, noting "the strange circumstances of Mr. 
Teoh's death put the credibility of the government and our 
investigative and law enforcement agencies under a 
microscope." 
 
¶10. (SBU) Other government officials are urging for patience 
and giving the MACC the benefit of the doubt.  Deputy PM 
Muhyiddin Yassin called on everyone to allow the police to 
conduct their investigation before jumping to conclusions. 
(Note: PM Najib is out of the country until early next week. 
End Note.)  Muhyiddin stressed, "We are not looking to 
cover-up.  We want a transparent investigation," but ruled 
out an independent commission to investigate the death.  Home 
Minister Hishamuddin Tun Hussein has also said, "There will 
be a thorough investigation carried out."  Minister in the 
Prime Minister's Department Mohd Nazri Aziz was quick to 
defend the MACC and cautioned against blaming the MACC in 
Teoh's death.  Nazri implied Teoh's death was a suicide 
because he "jumped out of the building", adding "he should 
have gone home" after the interrogation ended at 3:45 am. 
 
What's Next 
----------- 
 
¶10. (SBU) Although four government pathologists have already 
examined Teoh's body, CM Khalid said that a pathologist 
appointed by the Selangor state government would help the 
police with their investigation into the death of Teoh. 
Opposition leader Anwar Ibrahim has called for a massive 
rally to take place on Sunday afternoon, July 19, in Selangor. 
 
Some Additional Background on the MACC 
-------------------------------------- 
 
¶11. (SBU) As one of his final acts as Prime Minister, PM 
Abdullah pushed an updated anti-corruption bill through his 
 
KUALA LUMP 00000598  003 OF 003 
 
 
BN dominated parliament late last year (ref C).  The MACC 
officially became the law on January 1 2009.  The intent of 
the MACC is to increase "the integrity and capability of the 
body to combat corruption more effectively, efficiently, 
pro-actively and with transparency."  The appointment of the 
members lies solely with the Executive branch, which raised 
concerns that the MACC would be beholden to the Prime 
Minister and his ruling UMNO party.  MACC Chief Commissioner 
Ahmad Said Hamdan stated that the Commission will not 
hesitate to take action against any political party, 
including UMNO, involved in corruption. 
 
Post Actions 
------------ 
 
¶12. (SBU) Ambassador Keith called the operations center on 
the evening of July 16 (local time) to report the incident. 
Emboffs have been in touch with their contacts and will 
continue to monitor the situation closely. 
KEITH