Former economy minister Rafizi Ramli is flabbergasted by MACC chief commissioner Azam Baki’s explanation of his previous shareholdings.

Rafizi (above, right) said Azam’s explanation that his share purchases did not involve paid-up capital gives the impression that he does not understand shares, despite heading an agency tackling many white-collar crimes involving complex share and financial transactions.

“Perhaps, it is better for Azam to take leave first to return to class and understand shares.

“I’m worried about how he will steer MACC, which has to investigate all sorts of misconduct involving shares,” he said in a short video on his social media accounts today.

Yesterday, Azam said he has divested all shareholdings since last year, following media reports that he held shares in Awanbiru Technology Berhad and Velocity Capital Partner Berhad far in excess of limits imposed on civil servants.

The 2024 Public Officers’ Conduct and Disciplinary Management Circular stipulates that civil servants are not allowed to purchase shares exceeding five percent of paid-up capital or RM100,000 at current value.

However, Azam countered that his shareholding did not involve paid-up capital but was instead acquired through purchases on the open market.

In addition, he said the shareholdings had been declared to the Public Service Department (PSD).

“If anyone says it still falls under paid-up capital, I bought it at a rate of 1.25 percent of the total shares offered to the public,” he said.

Private firms and public-listed companies

Responding to Azam, Rafizi asserted that any share is paid-up capital, whether it is purchased on the open market or not.

“For private limited companies, the company issues shares to partners who hold the shares. When partners buy shares, it means they inject paid-up capital into that private limited company.

“For larger companies, they are allowed to issue shares to raise paid-up capital on the open market, namely Bursa Kuala Lumpur.

“When Azam bought shares in these publicly listed companies through the open market, it means he owns part of these companies and his shares have become the paid-up capital of these companies.

“How do you not understand even that, Tan Sri?” he said, referring to Azam by his honorific.

He added that the limit imposed on civil servants is clear and makes sense.

This is because a civil servant with large shareholdings in a company raises questions about how he obtained the money to purchase shares on a civil servant’s salary.

“Even more dangerous, a conflict of interest arises because public decisions or enforcement could be influenced by his interests in specific companies or industries,” the Pandan MP said.

The PSD has said, without mentioning any specific cases, that it will review its rules about moonlighting and shareholdings.

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