The federal government has been accused of hypocrisy following a minister's claim that it would consider laws on foreign funding for local NGOs while failing to name those who "donated" RM40 million to Sabah Umno.

NONE In a press release today, DAP publicity chief Tony Pua ( left ) said that the federal government has no locus standi to propose such laws until it comes clean on the source of the funds.

Last week, de facto Law Minister Mohd Nazri Abdul Aziz told Parliament that the RM40 million in Singaporean currency that businessman Michael Chia was carrying when he was arrested at in Hong Kong on August 14, 2008 was meant for Sabah Umno liaison body.

Nazri said that this was the findings of the Malaysian Anti-Corruption Commission (MACC). He said investigations also showed that there was " no element of corruption " involved and that the funds were not meant for Sabah Chief Minister Musa Aman's personal use.

Pua pointed out that Nazri's reply to Parliament had unearthed more questions such as why the sum had to be "imported" in such a manner and in Singaporean currency.

Current laws enough

He also questioned if the sum may also be from foreign sources which seeks to compromise the country's security.

"What begs belief is the fact that Nazri has the cheek to put forward such a (law) when Umno itself has been one of the biggest, if not the biggest, recipient of dubious foreign funding," said Pua.

Pua, who is also the Petaling Jaya Utara MP, said there is currently enough laws to deal with illicit foreign funds by means of the Anti Money Laundering and Anti-Terrorist Financing Act 2001.

NONE Yesterday, Nazri ( right ) said the federal government was mulling a law to prevent foreign intervention through funding of local groups.

"The influx of foreign funds for such purposes will cause us to become agents of foreign powers and we will be forced to create lies to destabilise the country. That is very bad.

"What if Israel is one of that foreign powers when all this while we are seen as a country with a strong anti-Israel stance? We have to make sure things like this will not happen in our country," he said.

The federal government has been on a warpath against several local NGOs and Malaysiakini , accusing them of acting as proxies for their foreign funders.

Human rights watchdog Suaram has been the main target. It is believed that the federal government is attempting to discredit Suaram because of its role in the French investigations into alleged corruption in Malaysia's acquisition of two French submarines .