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Ordinary Malaysians sense rank and privilege may no longer protect the rich as Abdullah cracks down on corruption

The arrest of a prominent tycoon on corruption charges is being seen as a watershed in Malaysian political life as Prime Minister Abdullah Ahmad Badawi  seeks to curtail the crony capitalism associated with the two decades in power of his predecessor, Mahathir Mohamad.

Ordinary Malaysians were shocked yesterday to see television pictures of wheelchair-bound former steel magnate Eric Chia Eng Hock  being hauled into court.

The close associate of Dr Mahathir was charged in Kuala Lumpur's Sessions Court with the misappropriation of M$76.4 million (HK$156.4 million).

Most Malaysians had not expected Mr Abdullah, who took over the leadership in October, to act against prominent tycoons like Chia.

They had seen Mr Abdullah's vow to crusade against corruption as merely lip service ahead of a general election this year.

But perceptions had rapidly changed with Chia's arrest, analysts said.

'Abdullah is no longer seen as a 'lame duck' but a man to be taken seriously, especially over his campaign to end corruption and cronyism in high places,' one analyst said.

Chia, the former managing director of Perwaja Steel, the giant public corporation founded by Dr Mahathir in 1982, was arrested on Monday and charged with misappropriating the money from Perwaja in 1994.

Chia resigned from Perwaja in 1996 after  it was declared insolvent under the weight of about M$10 billion in accumulated loses and debts.

He was investigated at the time but no action was taken. He was so well entrenched with the political elite that he openly provoked investigators, daring them to charge him.

Mr Abdullah said in a Monday night TV interview: 'I have been told by my officers about this arrest ... if an offence relating to corruption is found to have been committed, certainly the authorities will take action according to the law.'

The arrest of Chia comes as Malaysians assess Mr Abdullah's first 100 days in office and his impact on society at forums and in the media. Even some government critics have been won over.

'His decisions clearly reflect the aspirations of the ordinary people,' said social scientist  Chandra Muzaffar,  head of think-tank Just World Trust.

'He promised to eradicate corruption and enhance transparency, and people are convinced he is doing just that.'

Dr Chandra said Mr Abdullah had taken other concrete measures to combat corruption, such as the cancellation of the M$14.5 billion double-tracking rail project and the setting up of an independent commission to check police abuse.

'Abdullah has proven that he is a competent leader and courageous enough to make bold decisions,' Dr Chandra said.

Ronnie Liew,  an opposition party leader, said the arrest was a signal to all the 'rich, powerful and corrupt' people that their days are numbered.

Chia told reporters he was leaving the case to the 'people and God' to judge. Prosecutors allege he dishonestly transferred the money to a dummy company in Hong Kong and later had it moved to Japan, the Virgin Islands and finally into a numbered Swiss bank account.

The charge carries a maximum sentence of 20 years, a possible fine and a whipping. Chia was released on bail and the case is expected to go to trial in August.



Tycoon's arrest a political landmark