PETALING JAYA: As debate grows over the proposed Political Financing Bill, watchdog groups say it must introduce strict limits, independent oversight and real penalties other than just transparency requirements.
Coalition for Clean and Fair Elections (Bersih) chairman Muhammad Faisal Abdul Aziz said the Bill should be more than a mere disclosure law.
He called for the setting up of an autonomous commission to regulate political financing.
“The commission should consist of six to 12 MPs reflecting party balance in the House, excluding members of the administration.
“The final appointment should be made by the Yang di-Pertuan Agong to ensure funding is regulated independently.
“The main goal of political financing reform is to set limits on political donations. There must be a cap on donations.
“In the long run, it aims to reduce a political culture that depends too heavily on money,” he added.
Malaysia Corruption Watch president Jais Abdul Karim said transparency alone is insufficient.
“If the Bill only requires parties to declare donations without imposing limits, enforcement mechanisms and structural safeguards, it will simply legitimise the existing system rather than reform it.
“The Bill must incorporate three core elements – prevention, enforcement and governance reform.
“There should be clear caps on individual and corporate donations, strict prohibitions against proxy or layered contributions, and restrictions on donations from government-linked companies or active government contractors.
“Mandatory independent audits and strong investigative powers must also be embedded within the law, accompanied by meaningful penalties, including disqualification from office for serious violations,” he said.
Jais questioned whether the Bill could eradicate the culture of political donations being treated as “investments” for influence.
“Realistically, no single law can entirely eliminate such a culture. However, it can significantly disrupt it. That culture persists because there are no meaningful limits, weak audit trails and minimal consequences.
“To address this, the Bill must introduce safeguards such as cooling-off periods to prevent major donors from receiving government contracts within a specified timeframe, and prohibitions against appointing major contributors to strategic public positions.
“Public and accessible reporting systems are also essential to enable civic oversight,” he said.
