Transparency International (TI) has suggested the setting up of a Royal Commission of Enquiry on the performance of local governments.

"There is sufficient case to call for a Royal Commission of Enquiry into the situation in these local governments," said Param Cumaraswamy, TI Malaysian chapter chief.

He added that corruption in local governments have reached an 'endemic' level, and that many lay people have to bribe local government officials to run their business.

"One has to just speak to the men and women on the streets, the hawkers, shop owners... they will tell you stories of how they need to 'pay' (bribes), some regularly, to continue earning a living," he said.

Serious situation

According to Param, TI conducted a survey in the Selayang Baru district in 2001 and understood first-hand the severity of corruption among the local authorities.

"When there is rampant corruption within the licensing and enforcement machineries at a local level, how can we succeed in the fight against corruption at a higher level?" he told malaysiakini.

Param also echoed the views of Deputy Minister in the Prime Minister's Department M Kayveas who had said that the issue of corruption within local councils must be addressed in order to improve Malaysia's standing on Transparency International's Corruption Perception Index.