Malaysian Reformer Hits Back After Ouster From Cabinet 
International Herald Tribune
September 4, 1998
Thomas Fuller

Prime Minister Mahathir bin Mohamad personally took control of the economy early Friday, expelling his former deputy from the country's ruling political party and naming himself acting finance minister.

Anwar Ibrahim, who on Wednesday was dismissed by Mr. Mahathir as deputy prime minister and finance minister, was expelled from the party, the United Malays National Organization, on the grounds of "unsuitable character," party officials said.

Outside the party meeting, which lasted four hours, about 1,000 demonstrators chanted "Long live Anwar!" Mr. Anwar, who until this week was the second highest ranking politician in the country, must now wait three years before he can reapply to join the party.

On Thursday, Mr. Anwar delivered an impassioned plea for his reinstatement.

"I ask for justice and I demand justice," he said at his home here. "If the No. 2 man in this country cannot be satisfied that justice will prevail, I am sorry for Malaysia."

Mr. Anwar's ouster came after a yearlong power struggle between Malaysia's two top leaders, including disputes over the direction of economic policy.

There has been speculation that Mr. Anwar could be arrested after an affidavit was filed by the attorney general with the country's High Court on Thursday.

The affidavit included allegations that Mr. Anwar had received money illegally from a friend and supporter during Malaysia's last general election and that he was "used by undesirable elements to threaten national security," according to the country's national press agency, Bernama.

The agency did not elaborate on those allegations, but focused more on charges that Mr. Anwar had "homosexual relationships, sexual liaisons with women of various races and tried to entice people's wives." It went on to detail at least seven alleged incidents of sexual indiscretion, including one "male witness" who said he was "sodomized 15 times by Anwar."

Mr. Anwar emphatically denied the allegations. "This is part of a larger political conspiracy," he said. "There is no basis in the allegations."

Whether true or not, newspapers and television stations — always under close watch by the government — are likely to give prominence to the story, perhaps ruining Mr. Anwar's career and sapping the support of his Muslim constituents.

Saying he was skeptical but hopeful, Mr. Anwar asked the media "to give at least an opportunity to me to explain and defend my case."

Mr. Anwar's ouster comes just days after Malaysia started what has been described as a radical economic experiment. The country has set a fixed exchange rate for its currency, the ringgit, and has banned any trading of it on international markets.

On Thursday, Malaysia initiated the second part of its plan to resuscitate the country's cash-strapped companies by lowering interest rates by 1.5 percent.

These moves are in sharp contrast to the rescue efforts in place in neighboring countries, such as Indonesia and Thailand, both of which have signed on with the International Monetary Fund to help them out of the regional economic crisis.

Led by Mr. Anwar, Malaysia had pursued similar policies to those now in place in Indonesia and Thailand: Credit was kept tight and austerity measures put in place. But earlier this year, Mr. Mahathir led a campaign to ease interest rates and stimulate the economy through injections of cash.

Mr. Anwar initially opposed the pressure to lower interest rates, but eventually came around to Mr. Mahathir's position.

Before his expulsion from the party, Mr. Anwar said he remained loyal to him. "I do regard him in all sincerity as a father — although not all fathers treat their children very fairly," Mr. Anwar said.

But the former deputy prime minister said he regretted that the "instruments of government" had been used to "harass" him.

"If I continued to show my total loyalty, none of these questions would have arisen," he said. "The issue of moral conduct has never been an issue in the past."

With Mr. Anwar's removal, Mr. Mahathir, who is widely respected and admired in Malaysia for having brought prosperity to the country, has consolidated his position in government and taken full control of economic policy.

In the last few months, editors at two top newspapers and officials at the country's central bank — all allies of Mr. Anwar — have resigned or been dismissed. Earlier this year, a close friend of Mr. Mahathir's, Daim Zainuddin, was brought into the cabinet to act as economic czar, undercutting Mr. Anwar's role as finance minister.

On Thursday, Mr. Anwar urged his supporters to stay calm.

"I have urged my friends and supporters to remain calm and respect the law," he said, "even if they choose to arrest me and charge me for whatever crimes that I'm alleged to have committed."

Copyright © 2006 the International Herald Tribune