PSD reviewing 'outdated' shareholdings rule after Azam scandal

 

The Public Service Department (PSD) is reviewing rules and guidelines that have been in place for more than 20 years or are no longer relevant.

This includes rules about moonlighting and shareholdings. The shareholding rule - which states that civil servants can't buy more than RM100,000 worth of shares in a single company - has been in place since at least 2002.

"(The review) is based on current needs and situation, covering various aspects of changes that have occurred in the government, economy, business, and technology," the department said.

While it did not mention any specific cases, the announcement came after MACC chief Azam Baki was embroiled in a scandal over his shareholdings in two companies as reported by Bloomberg and Malaysiakini.

The potential value of the MACC chief's shareholdings had raised questions about whether he had violated the rules in the civil service disciplinary circular, last updated in 2024.

Azam responded yesterday by saying that his shareholding did not involve paid-up capital but was instead acquired through purchases on the open market.

Millions in shares

Companies Commission of Malaysia (CCM) records revealed that Azam had at some point held 17.7 million shares in Velocity Capital Partner Berhad and around 4.52 million shares in Awanbiru Technology Berhad.

The MACC chief said he had declared all his shareholdings to the PSD and had disposed of his portfolio by July last year, though he did not mention a specific date.

Between June 1 and July 31 last year, Velocity Capital Partner shares had traded as low as RM0.06 per share and RM0.075 per share.

If Azam had disposed of his shares in the company during this period, the value of the shares could have been between RM1.06 million and RM1.327 million.

As for Awanbiru Technology, their share prices during the June 1 and July 31, 2025 period ranged from RM0.275 per share to RM0.305.

If Azam had disposed of his shares in this company during that period, the value of the shares could have been between RM1.24 million and RM1.378 million.

Calls for resignation

The revelations about Azam's shareholdings prompted calls from government backbenchers and the opposition for the MACC chief to resign, be suspended or sacked, and be investigated.

However, Prime Minister Anwar Ibrahim defended the top graft buster, saying critics must read the latter's explanation.

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This is the second time the MACC chief has been in the spotlight over his stock trading portfolio.

PM Anwar Ibrahim and MACC chief Azam Baki

In late 2021, he had come under scrutiny over shareholdings in a company that was also in excess of the RM100,000 limit.

In January 2022, Azam said he had informed the MACC Corruption Prevention Advisory Board that the shares were bought by his brother, who borrowed his name, and that he believed he did not do anything wrong.

The declaration triggered a Securities Commission probe that eventually found no evidence of proxy trading as Azam had “control” over his own trading account.

On Jan 20, 2022, Anwar, then the opposition leader, pledged to raise the matter with then-prime minister Ismail Sabri Yaakob.

This was after PKR Youth handed him a memorandum, which, among others, called for MACC chiefs to declare their assets.

Since taking power as prime minister in November 2022, however, Anwar has become a staunch supporter of Azam, once declaring that the latter was the only one brave enough to go after corrupt leaders.

Anwar has extended Azam's contract as MACC chief past retirement three times. - FMT