Malaysia to formulate political funding law: Mahathir

Kuala Lumpur : Malaysian Prime Minister Mahathir Mohamad on Monday said the government will draw up a political funding law to reduce corruption.

At a press conference after chairing a Special Cabinet Meeting on Anti-Corruption in Kuala Lumpur, Mahathir said the government would look into international models to prevent personal gain for donors, Efe news reported.

He cited Germany as a model to examine, and the US as one to avoid.

"In some countries the government provides the funds to all the political parties. That is done, I think, in Germany. We have to study whether that is something that we can do," he said.

"But, on the other hand, we see the US where they have a system of lobbyists... the lobbyists are paid money to lobby and to influence the government to do certain things for certain people who have paid the money.

"That, to us, is corruption. We will not allow that in Malaysia. So we are going to formulate a law for the financing of political parties which will not involve giving favours to the donor."

Mahathir won the polls on May 9, defeating former leader Najib Razak, accused of diverting money from the 1MDB state fund, which he denies.

Najib was last week arrested and charged with three counts of criminal breach of trust and one count of abuse of power in connection with funds from SRC International, a former subsidiary of 1MDB, which he founded.