The Malaysian Anti-Corruption Commission (MACC), has launched an investigation into former Finance Minister Daim Zainuddin, a close ally of former Prime Minister Mahathir Mohamad, for alleged abuse of power and money laundering.

The MACC confirmed in a statement on December 30, 2023, that it had seized Ilham Tower, a 60-storey building in Kuala Lumpur, as part of its probe into Daim. The agency also stated that it had opened the investigation in February based on information from the Pandora Papers, a massive leak of financial records that revealed offshore assets held by politicians and public figures worldwide.

In a statement on January 2, Daim, 85, denied any wrongdoing and accused the MACC and Prime Minister Anwar Ibrahim of conducting a “political witch-hunt” against him. He also claimed that he has not been informed of the specific allegations against him despite repeated inquiries to the MACC.

Anwar, who took office last year, has vowed to root out corruption at the highest levels of government. However, his anti-corruption efforts have been criticized by some who accuse him of targeting political rivals.

The MACC maintains that its investigation into Daim is an independent exercise conducted in accordance with the law. The agency stated that it had asked Daim to declare his assets in June and had granted him five extensions to do so, the most recent on November 14, 2023. It added that Daim has the opportunity to clear his name if the case goes to court.

Daim has served as finance minister twice, from 1984 to 1991 and from 1999 to 2001. Despite stepping away from active politics, he remains an influential figure in Malaysia. In 2018, Mahathir appointed Daim to lead a government advisory council tasked with scrutinizing government policies and the management of state-linked firms. Daim also played a key role in renegotiating several deals with China, including the East Coast Rail Link project, part of Beijing’s Belt and Road Initiative.

The ongoing investigation into Daim has sparked debate about the extent of Anwar’s commitment to fighting corruption without political bias. Whether the MACC can effectively investigate Daim while maintaining its independence remains to be seen.