Silence by PM, multiple agencies in Farhash controversy lends credibility to Bloomberg report, lawyer warns

A lawyer has questioned the Malaysian Anti-Corruption Commission (MACC) on the status of a report on Farhash Wafa Salvador's purchase of shares in a company linked to a lucrative government contract, amid a damning revelation by Bloomberg that Prime Minister Anwar Ibrahim had scuttled investigation into his former political secretary.

Haniff Khatri Abdulla was referring to the absence of any response from the anti-graft agency, more than six months after a report filed by former Umno Supreme Council member Isham Jalil. 

Isham had said the purchase of the shares by Farhash could be in violation of Malaysia's capital market laws and the government's procurement process.

"Why are they silent? There has been no statement (about) the progress of an investigation since March this year until now," he told MalaysiaNow.

"There was only Farhash's random statement that he sold the shares," he said.

Both the MACC and the Prime Minister's Office have denied the Bloomberg report, only to spark a series of calls for Anwar to sue the financial news outlet to clear his name.

In its report last week, Bloomberg quoted three informed sources as saying that Anwar had instructed MACC chief commissioner Azam Baki not to investigate Farhash over the purchase of shares in Heitech Padu.

At the centre of concerns among market players is the fact that the company was shortlisted for a lucrative billion-ringgit government job to develop a new immigration system.

"The office of the prime minister has been tainted by Bloomberg's report. This is not about Anwar Ibrahim, this is about the office of the prime minister."

Farhash, the former Perak PKR chief who was appointed chairman of tycoon Vincent Tan's 7-Eleven Malaysia Holdings just five weeks after Anwar took office, had acquired a 15.91% stake in HeiTech Padu through his company Rosetta Partners Sdn Bhd.

Farhash had said Rosetta Partners was a subsidiary of Mfivesouthsea Sdn Bhd, which he jointly owns with Kelantan's Sultan Muhammad V.

The following day, HeiTech Padu announced it had received a one-year extension of its contract to maintain the Malaysian Immigration System (MyIMMs) worth over RM13 million.

On Apr 15, the company secured a contract worth RM190 million from the Road Transport Department (JPJ), with Transport Minister Anthony Loke challenging critics of the deal to lodge a report with MACC.

Three days later, it was announced that Farhash was no longer a substantial shareholder of the company following a change in the structure of Mfivesouthsea Sdn Bhd.

Last month, Heitech hit the headlines again after it secured another RM133.73 million contract from JPJ.

Haniff said the main issue was not whether Farhash had given up his shares, but whether the purchase contained elements of insider trading.

"Did he receive information from government circles that the company would be awarded a contract?"

Giving an analogy of a rapist who marries his victim to justify the crime, Haniff said the purchase still needs to be investigated to remove any suspicion of irregularities.

Haniff said apart from MACC, the police and Securities Commission, Malaysia's capital market regulator, had also remained silent.

He said likewise, Anwar had also not honoured his promise to give an explanation after saying he would check with the Treasury on the details of the share purchase.

Haniff said the whole Heitech episode lent credence to Bloomberg's allegations.

"After six months, there is still no explanation from Anwar (on Farhash's shares purchase)," he added.

Haniff said it was crucial for Anwar to clear his name and that of the government by refuting Bloomberg's allegations in court.

"The office of the prime minister has been tainted by Bloomberg's report. This is not about Anwar Ibrahim, this is about the office of the prime minister.

"If he does not sue, the police should investigate MACC and Anwar."

Yesterday, former finance minister Daim Zainuddin called on the police to investigate Anwar for abuse of power, citing the same Bloomberg report that said the prime minister had instructed MACC's Azam to go after him and former leader Dr Mahathir Mohamad, both Anwar's political enemies.

"Under our Federal Constitution, a sitting prime minister is subject to the law just as everyone else," said the report lodged by his wife Naimah Khalid at the Petaling Jaya police headquarters.

Haniff said Anwar's failure to take the matter to court was an admission of the allegations contained in the Bloomberg report.

"So long as you don't take action, you are allowing the media, especially the international media, to make allegations that may be false and tarnish the name of our country."

He said a denial statement or a parliamentary reply was not enough to clear his name.

"This is the second time. The best form of denial is legal action," he added, referring to an earlier report by Bloomberg that Anwar had met with tycoons to discuss a proposal to build a casino in Forest City, Johor.

The prime minister has since denied the allegation but ignored calls to take legal action to clear his name.

MalaysiaNow has contacted Farhash for a response, and also reached out to MACC and the Securities Commission.

Anwar, meanwhile, dodged reporters who tried to question him on the matter during an event in Kuala Lumpur today.