20000320

Malaysia turns up heat on opposition supporters

KUALA LUMPUR: Malaysia tightened the screws on opposition supporters as the southwestern state of Malacca blacklisted 20 local contractors accused of helping the opposition in general elections last November.

The move closely followed a stern warning by the authorities to two Malaysian banks that they will lose government business if their staff openly supported the opposition or leaked transactions involving government officials and institutions.

Local newspapers on Sunday quoted Malacca chief minister Mohamed Ali Rustam from Prime Minister Mahathir Mohamad's ruling coalition as saying the contractors had given financial aid to the opposition during the polls.

"It is only fair that priority is given to companies that support the government," said Mohamed Ali who spearheaded the move against opposition supporters.

The blacklisted building contractors will be excluded from tenders for state-funded projects and contracts.

The opposition slammed the government for carrying out a witchhunt after the elections, in which the Barisan Nasional coalition won more than its targeted two-thirds majority.

But the opposition, galvanised by the outrage over the sacking and jailing of former finance minister Anwar Ibrahim more than doubled its seat total and the conservative Islamic Parti se-Malaysia (PAS) won two state assemblies.

Lim Kit Siang, national chairman of the Democratic Action Party and who was opposition leader until last year, charged the government of carrying out an act of "vendetta" against opposition supporters.

"It is post-election vendetta and is against the spirit of democracy and national unity," Lim told Reuters.

MOVE FOLLOWED WARNING TO BANKS

Mahathir said on Thursday that some bank staff had posted confidential financial transactions involving officials and institutions on the Internet to suggest government wrong-doing.

He said the only way for the government to act was not to deal with such banks.

The national Bernama news agency on Friday named the two banks as Bumiputra Commerce Bank and Bank Islam Malaysia Bhd, both of which are government-controlled.

"Instead of a witchhunt the whole thing should be investigated fairly," Lim said.

Bumiputra Commerce Bank has pledged to investigate charges against its employees.

"As good conduct and integrity is of utmost importance in serving our customers, we will investigate any complaint against any of our employees irrespective of position," the Star newspaper quoted a bank statement as saying.

Chief minister Mohamed Ali had said that 10 million ringgit ($2.6 million) would be transferred out by end of this month from one of the two banks in Malacca identified as being hostile to the government.

Malaysian bank employees have objected to the government punishing financial institutions which have staff who openly support the opposition.-Reuters