Malaysia PM widens probe into corruption

Ninety-two-year-old Malaysian Prime Minister Mahathir Mohamad held his first cabinet meeting yesterday as officials widen a probe into corruption linked to the previous government with raids on sites linked to the head of a Muslim pilgrimage fund.

Mahathir led an opposition coalition to a shock victory in elections this month after campaigning on rising living costs and a promise to clean up corruption and yesterday vowed to cut the national debt of 1 trillion ringgit ($251.67 billion).

He has barred former premier Najib Razak and his wife, Rosmah Mansor, from leaving the country, and ordered the anti-graft agency to investigate the disappearance of billions of dollars from state fund 1Malaysia Development Berhad (1MDB).

Investigators have already searched Najib's home and several properties, seizing cash, jewellery and luxury items estimated to be worth millions of dollars.

The Malaysian Anti-Corruption Commission (MACC) will finish taking a statement from Najib, who ruled the country for almost a decade, today.

In a separate development, police on Tuesday raided five sites linked to Abdul Azeez Abdul Rahim, the former government-appointed chairman of Tabung Haji.

New Finance Minister Lim Guan Eng said yesterday that he has asked for Pricewaterhouse Coopers to be appointed for a review and audit of 1MDB.

Mahathir, who was also prime minister for 22 years from 1981, said after his first cabinet meeting his government would try to cut the national debt, which he put at 65 percent of GDP, by reviewing projects and a 10 percent reduction in cabinet ministers' salaries.