Anti-graft group: Malaysian PM must explain $700M in account

KUALA LUMPUR — Transparency International said Wednesday that Malaysia's fight against corruption can't be credible unless the truth is revealed about the $700 million found in Prime Minister Najib Razak's personal accounts.

Najib has been fighting for political survival after leaked documents in July showed he received the money from entities linked to indebted state fund 1MDB. He later said the money was a donation from the Middle East.

Jose Ugaz, the president of Germany-based Transparency International, warned Wednesday that Malaysia is facing a "corruption crisis" and that questions over who gave Najib the money, why and what happened to it must be answered.

"We want to see more progress, but that cannot happen while there are unanswered questions about the $700 million that made its way into the prime minister's personal bank account," Ugaz said at the opening of a three-day international anti-corruption conference in Malaysia's administrative capital of Putrajaya.

He slammed recent actions taken by the government, including the firing of the attorney general investigating Najib and the suspension of an investigation task force. Najib also fired his deputy, who was critical of him, and four other Cabinet ministers.

"These are not the actions of a government that is fighting corruption," Ugaz said.

If Najib fails to fully explain the money, an independent investigation free from political interference is needed to uncover the truth, Ugaz said.

"Until that happens, no claim from the government on anti-corruption will be credible," he said.

Tens of thousands of Malaysians held a mass rally in Kuala Lumpur over the weekend to demand Najib's resignation over the financial scandal.

A nation of 30 million, Malaysia is predominantly Malay Muslim, who form the core of the ruling party's support. The country also has significant Chinese and Indian minorities that have become increasingly vocal in their opposition to the government in recent years. Malaysia's ambitions to rise to a developed nation this decade have been stymied by slow-paced reforms and Najib's increasing authoritarianism.

Support for Najib's National Front has eroded in the last two general elections. The party won in 2013, but lost the popular vote for the first time to an opposition alliance.