Najib quells dissent in Umno… for now

Datuk Seri Najib Razak showed yesterday that he remains Umno's point person to lead the party and the Barisan Nasional (BN) government despite facing strident public criticism over Putrajaya's handling of 1Malaysia Development Bhd (1MDB), which is saddled with a RM42 billion debt.

Despite the absence of a few party leaders, the Umno president quelled whatever internal dissent brewing over 1MDB, which the opposition claimed could dent the country's finances if the government-owned company defaults on its mountain of debt.

All 160 of the 191 division chiefs, who had showed up at the meeting with Najib, said they were confident over their president’s handling of the issue that has taken prominence after criticism from former prime minister and party president Tun Dr Mahathir Mohamad in recent months.

Their confidence in Najib was no different from his Cabinet's support last week although Umno deputy president and deputy prime minister Tan Sri Muhyiddin Yassin had asked for a thorough probe to look into any irregularities, a forensic audit and no bailout using public funds for the government firm which has RM51 billion of assets but little cash flow.

“That is what we were concerned with, if there is misappropriation. If there is wrong judgment in investing, it is still acceptable,” said Datuk Seri Ismail Sabri Yaakob on behalf of the division chiefs.

“But we cannot compromise is when there is misappropriation or abuse of power. So he promised no one will be protected and this what the divisions chiefs want,” said Ismail Sabri, who is a party Supreme Council member from Najib's home state, Pahang.

According to one division chief, Datuk Bung Mokhtar Radin, all those at the Umno meeting were satisfied with Najib’s explanation of 1MDB, the audit reports on its accounts and the company’s finances.

“He said 1MDB actually has more assets than debts in the bank. So if we compare, the company still has more assets.

“After the audit is done, the company will be shown to be profitable,” said Bung Mokhtar, who is Kinabatangan division chief in Sabah, a key Umno vote bank.

Najib yesterday repeated his promise made to the Cabinet that Putrajaya would protect no one found guilty of fraud or mismanagement of the company, which is wholly owned by the Finance Ministry.

He also said the accounts will be vetted by the auditor-general and the Public Accounts Committee (PAC) to probe into whether there has been any wrongdoing.

Criticism towards 1MDB and Najib’s handling of the economy within Umno has been spurred mostly by supporters of Dr Mahathir and former finance minister Tun Daim Zainuddin.

The criticism appeared to have tarnished Najib’s image in public and party leaders were concerned that if left unchecked, it would lead to an erosion of support ahead of the next federal election due in 2018.

“With his explanation, we are confident of explaining the 1MDB issue to the public and the grassroots,” Ismail Sabri said in a press conference after the meeting in the party headquarters in capital city Kuala Lumpur.

There was also speculation whether the 1MDB saga had caused a rift between Najib and his deputy Muhyiddin, as the latter was conspicuously missing at the meeting.

Two days ago, Muhyiddin had come out with his own statement on 1MDB, saying there would be no public bailout of the company and that its directors must explain some of the company’s business deals which had not profited the government.

Ismail Sabri brushed off suggestions that there could be an ulterior motive behind Muhyiddin’s absence, saying the deputy prime minister had prior commitments

Party insiders have also said that grassroots members were worried over media reports on Najib and his wife Datin Seri Rosmah Mansor’s wealth, which were turning supporters away from the party.

The issue was highlighted by American daily The New York Times and one story was also translated into Bahasa Malaysia and spread in social media and in Pakatan Rakyat (PR) media.

“There is no issue with his wealth,” said Bung Mokhtar.

“His siblings are all in business so the wealth comes from these businesses.”

With more than two-thirds of the party’s division chiefs showing up for the meeting, and most of its vice-presidents, such as Datuk Seri Hishammduddin Hussein and Datuk Seri Ahmad Zahid Hamidi there, it would seem that Najib has cemented his hold on the party once again.

One vice-president Datuk Seri Shafie Apdal was also absent but Ismail Sabri said many Sabah Umno division leaders were away at a training retreat.

But there are those such as Datuk Seri Idris Haron, who doubted that the 1MDB controversy and stories of Rosmah’s jewellery could have impacted on Najib’s standing in Umno in the first place.

For Idris, who is also Malacca chief minister, it would take more than 1MDB and gossip about Rosmah to fuel a big enough rebellion to dethrone the president.

Najib’s challenges, he said, paled in comparison with what Dr Mahathir had to go through in 1987, when the latter almost lost the presidency to former finance minister Tengku Razeleigh Hamzah.

“Umno has been through worse. We even fought till we got de-registered (in 1987),” said Idris.

“So we will overcome this as well.” – March 9, 2015.