Following the RM2.6 billion controversy, Prime Minister Najib Abdul Razak set up a political funding reform committee which was tasked to come up with a framework to govern money received by political parties.

The committee then said it required two years for the task.

Today, a noted academic and civil society leader announced that through collaboration with NGOs, they have managed to complete the duty within two months.

Universiti Malaya professor of political economy Terence Gomez, who himself was invited to sit on the PM's committee, said the committee was reacting too slowly in wanting two years to complete the reform proposal.

Hence, he said he rejected the invitation to sit on the government committee.

He said that in contrast, various NGOs together with G25, who describe themselves as a group of "eminent Malays", have completed the job within two months.

"We started in September, we have done it in two months now. We don't want to waste time.

"We don't want to wait another two years to be done. His (the PM's) own committee said it needs two years to get it done.

"We have shown them it can be done. If you look at our proposal, it's in- depth," Gomez told a media conference in Kuala Lumpur, adding that the need for political funding reform was urgent.

He hoped the proposal could be debated during next year's June Parliament session.

The press conference was in conjunction with the launching of the report 'Reforms for Transparent and Accountable Political Funding in Malaysia'.

Gomez said he participated in the NGO intiative in his personal capacity and wished to assist the government to speed up the reform.

He added that civil society had sent an official letter to Najib on Nov 27 for a dialogue on their political funding reform proposals.

If he fails to respond by Jan 15, the group will initiate a campaign to garner public support.

Among those present at the press conference today were G25 member Sheriff Kassim, Bersih chairperson Maria Chin Abdullah and Centre to Combat Corruption and Cronyism (C4) executive director Cynthia Gabriel.

The political funding reform report suggested that a brand-new Political Parties Act be enacted to tackle the current weaknesses.

EC nomination committee

The act will empower the Election Commission (EC) - under the scrutiny of Parliament - to oversee political parties instead of the Registrar of Societies (RoS) currently, which is under the purview of Home Ministry.

By enacting the act, the EC will be tasked with regulating political funding such as by imposing a cap of RM10,000 per donor per annum, a RM100,000 limit per corporation per annum or a RM500,000 limit from a group of companies owned by the same majority shareholders.

The report also proposes that political donations entering personal accounts be banned and they instead be channelled into party account for which a receipt must be issued.

The EC members, in turn, must be appointed by an Election Commission nomination committee comprising bipartisan parties, top civil servants and civil society representatives. Currently, the prime minister has the final say on the EC's composition.

The report also proposed that public financing be also allowed to fund political parties which currently solely rely on private financing.

This is to ensure a level-playing field for all political parties and reduce the parties’ reliance on corporate and business donation.

However, Gomez said the proposals have put internal party elections in the cross-hairs, adding that in Malaysia, party elections sometimes cost more than a general election.

As such, the report proposed that the EC monitor campaigning during internal party elections for funding and conduct.