UPDATE 1-Malaysia forms special committee to probe anti-corruption chief, says communications minister

Malaysia's government will ​form a special committee to investigate allegations ​against the country's anti-corruption chief, the communications ‌minister said ​on Friday, following a media report alleging a breach of shareholding laws.

The task force will be led by the country's Chief Secretary to the Government ‌Shamsul Azri Abu Bakar, Communications Minister Fahmi Fadzil said during his weekly press conference. Earlier this week, Bloomberg cited a corporate filing from last year as saying that Malaysia's Anti-Corruption Commission (MACC) chief Azam Baki held 17.7 million shares ‌in a financial services company that were currently worth about 800,000 ringgit ($205,000), well above the 100,000 ringgit ‌limit allowed for public servants.

Bloomberg in a later report on Thursday said that MACC officials were also helping a group of businessmen to seize control over companies, citing internal documents and interviews with witnesses. Reuters has not independently verified the report. "After the investigation is completed, ⁠it ​will be reported back to the ⁠Cabinet for any follow-up action. This is an effort to ensure the aspects of transparency and integrity of the investigation process," Fahmi ⁠said.

Fahmi did not specify which allegations would be investigated. Azam said earlier that he was willing to be investigated by a ​government committee amid calls for him to step down, adding that he had "nothing to hide" as ⁠all his financial and asset declarations have been made according to public service laws.

"I am confident that the truth will prevail through ⁠a ​fair and independent process," he said in a statement. The report prompted opposition lawmakers and civil society groups to renew demands for Azam's resignation and call for major reforms to the anti-graft agency, including the removal ⁠of the prime minister's power to appoint the MACC chief.

Azam's trading activities faced similar scrutiny in 2022 over allegations ⁠that he owned ⁠millions of shares in two publicly listed companies in 2015 and 2016. The securities regulator said at the time it was unable to determine whether he had broken the ‌law.

($1 = 3.9030 ‌ringgit)