End the business of political contracts

(The Edge) - The news that Umno has been ordered by the High Court to pay an election merchandise supplier RM218 million for campaign paraphernalia for the 2004 general election is indeed stunning.


As the online news site Malaysiakini describes it, the amount is the highest ever that the party has been ordered by a court of law to pay.

The circumstances surrounding the case are deeply disturbing on a number of counts. Firstly, the plaintiff had obtained millions of ringgit of supplies from various companies based on its alleged links with an “influential” politician. This implies that a contract is seen as unnecessary when people in power are believed to be backing a project. The question that reverberates through this episode is, what has become of the basic rules of doing business?

Secondly, some politicians had acknowledged receiving the campaign materials for “free”, and said that it was normal for them to receive such gifts from supporters at election time. This situation leaves ample room for vested interests to influence politicians, and clearly poses an ethical issue that is crying to be addressed.

Thirdly, Umno treasurer Datuk Seri Abdul Azim Mohd Zabidi’s response to the judgment reflects a serious lack of accountability in political affairs. His argument that Elegant Advisory, which had supplied the election materials, had sued the wrong body, since it was the Barisan Nasional (BN) and not Umno that had contested in the election does the party no service. It is not an answer that is expected of the party that calls the shots in the ruling coalition. (Abdul Azim has applied to set aside the judgment as well as to strike out the main suit, on the basis that he had not been served the writ of summons.)

Fourthly, it is disturbing that the supplier’s attempts to obtain a response from BN leaders were met with silence and denial, and that even overseas sub-contractors had failed to get satisfactory replies to their repeated queries to high-level sources. The damage to the country’s reputation from this caper is not to be taken lightly.

Clearly, the need for the business of politics to be cleaned up is imperative. Each of the mistakes that has been made in this case has a clear remedy. There must be no room for “contracts” that are based on the backing of important individuals. The onus of killing this culture of patronage lies primarily with company boards that receive such “offers”.

Political parties have to open their accounts to public scrutiny so that anyone can verify who is paying for what. Politicians must also learn about honour, that forms the basis of their moral authority to lead. Ultimately, leaders must recognise that the time for a national rejuvenation is at hand. They ignore the opportunity at their own peril.