Based on the latest Malaysian Corruption Barometer 2014 survey, it is very sad to find out from the survey that political parties, being the driving force of democracy, are perceived to be the most corrupt institution in Malaysia. The apex of any fight against corruption has to do with “tone at the top” and the political integrity among all the political leaders must be highly secured and maintained in this country.

Today the issue of lack of transparency and accountability in terms of political financing in Malaysia is a cause for concern, where the government must come up with a practical formula or mechanism to regulate and channel political financing. In Malaysia, political candidates are often too dependent on political financiers for campaign supports which is not transparent, unhealthy and can lead to corrupt practices.

Laws to govern political financing must be implemented immediately as political parties are seen as the most corrupted among top six key institutions in the country.

Hence, Transparency International-Malaysia (TI-M) strongly urges for reforms in political financing for political parties to be more transparent and accountable in how they receive and spend political donations for both political divide. Political contributions should be channeled into party accounts and not individual accounts. Furthermore, all contributions must be recorded and audited to show transparency.

The main problem is that the Election Commission (EC) does not have a strong or effective mechanism, including enforcement capabilities to ensure transparency and accountability in the funding processes during elections.

On May 5, 2011, TI-M has submitted its 22-point memorandum on reforms of political financing in Malaysia to Prime Minister Najib Abdul Razak based on its comprehensive research on the state of political financing in Malaysia from 2009 to 2010.

The aim of TI-M is to ensure that the proposed 22 reforms which leads to improve transparency, integrity and accountability in political financing which focused on three key areas: (a) Institutional reforms, (b) Legislative reforms and (c) Media reforms.

Our earlier TI-M political funding research included interviews with past and present politicians including Dr Mahathir Mohamad and Tengku Razaleigh Hamzah, surveys with the Election Commission, Malaysian Anti-Corruption Commission (MACC),  politicians, academicians, political analysts, companies, civil society, journalists and the general public.

TI-M conducted conferences, workshops and state level consultations on reforms in political financing in Malaysia.

Below is the list of recommendations made by TI-M which hope it would be implemented by the government?

a) State funding

State funding is crucial for improving transparency, accountability and fairness in political financing, and to ensure that political parties and candidates have sufficient resources to run viable campaigns. It is recommended that the federal government provide funding for Parliamentary elections and the state governments for state level elections. A formula could be worked out based on the following factors - urban, rural and number of voters.

b) Regulation of reporting of political financing

(i) The Election Offences Act 1954 should be amended to require party election expenses to be independently audited by certified auditors before submission to the EC.

(ii) The Elections Act 1958 should be amended to empower the EC to carry out investigations and verify financial reports of candidates.

c) Full disclosure of political party and candidate financing

(i) Political contributions should be channeled into party accounts and not individual accounts.

(ii)Political parties should be required by law to make full public disclosure of the amounts and sources of their financing and expenditure. There must be public disclosure and access to political party accounts,

d) Regulating political donations

(i) There must be limits on contributions by Malaysian individuals and organisations or companies to political parties. Ideally, companies should be prohibited from making political donations. This is the best means to curb the capacity of those with private agenda to influence election outcomes.

(ii) A list of non-permitted donors should be prepared. These should include  government-linked corporations, non-citizens and foreign organisations.

e) Equal and fair coverage by and access to public media

Provide fair and equal coverage for all campaigning political parties during election campaign periods. Political parties and candidates should have access to all public (taxpayer supported) media, including TV, radio, national news agency and websites.

 

All political parties to set an example if they are serious and sincere in fighting corruption. Integrity and trust must be the founding principles of political parties in Malaysia.

AKHBAR SATAR is president, Transparency International Malaysia, which is an independent, non-governmental and non-partisan organisation committed to the fight against corruption.

Website: www.transparency.org.my