Malaysia minister's husband charged with corruption

[Ah Hai]

KUALA LUMPUR - A Malaysian court charged a Cabinet minister's husband with corruption on Monday, a day after the minister announced plans to resign in a scandal that has embarrassed the government.

Women's Affairs Minister Shahrizat Jalil announced Sunday that she would step down on April 8 following months of pressure over allegations her family used government funds for a cattle-rearing project to buy luxury apartments.

The so-called "Cowgate" scandal has become a political headache for Prime Minister Najib Razak, who has pledged to stamp out persistent corruption and frequent financial scandals and is due to call elections by April 2013.

Mohamad Salleh Ismail, chairman of the National Feedlot Corporation (NFC), pleaded not guilty in a district court in the capital Kuala Lumpur to four charges including criminal breach of trust, a court official told AFP.

Mohamad Salleh is alleged to have used nearly 50 million ringgit (US$17 million) of NFC funds without approval in 2009, including almost 10 million ringgit used to buy two apartments in Kuala Lumpur, the independent news portal Malaysiakini reported.

Mohamad Salleh's lawyer could not immediately be reached. The maximum penalty for breach of trust is 20 years in jail and a caning.

The NFC received a 250-million-ringgit government soft loan to accelerate beef production in Malaysia but came under fire when an auditor general's report last October pointed out it had failed in its mission.

The opposition pounced on the criticism, saying some of the money was spent on luxury condos in Malaysia and Singapore and other purchases including a Mercedes and overseas travel.

Shahrizat's three children are also high-ranking NFC officials, but Shahrizat herself has denied involvement in the scandal.

She intends to remain head of the women's wing of the ruling party, the United Malays National Organisation (UMNO).

Although elections are not due until early next year, speculation is rife that Najib may seek a fresh mandate much earlier than that.

In 2008, the ruling coalition under Najib's predecessor Abdullah Ahmad Badawi lost its traditional two-thirds majority in parliament to a resurgent opposition that capitalised on voter disgust over corruption and economic mismanagement.

- AFP/ir