Protests grip Malaysia's capital as ex-PM Mahathir urges 'people power'

Former Malaysian leader Mahathir Mohamad, joining anti-government protesters for a second day on Sunday, called for a "people's power" movement to topple Prime Minister Najib Razak over a financial scandal.

"The only way for the people to get back to the old system is for them to remove this prime minister," said Mahathir, a deeply respected 90-year-old who was once Najib's patron but has since become a fiercest critic. 

"And to remove him, the people must show people's power. The people as a whole do not want this kind of corrupt leader," he told media before heading to the rally, whose numbers police estimated at 25,000 on Sunday afternoon. Najib later condemned the organizers of the protest as "haram" during an annual address on the eve of the country's Independence Day.

The protest has brought into the streets a political crisis triggered by reports of a mysterious transfer worth more than $600 million into an account under Najib's name.

Najib, who denies wrongdoing, has weathered the storm to date with some analysts suggesting the demonstrations are hampered by not having a strong leader.

The latest protests, unlike a 2012 movement, also lack the support of a party identified with the Malay majority: most protesters were from the minority ethnic Chinese and Indian communities. 

However, Mahathir — the country's longest-serving leader who stepped down in 2003 after more than 20 years in power — was a leader of the ruling United Malays National Organization (UMNO), which represents Malays.

His appearance at the anti-government rally sparked controversy in the party, with UMNO Vice-President Hishammuddin Hussein saying that by turning up unexpectedly on Saturday, Mahathir had "crossed over the line".

Another UMNO leader, Jamal Yunos, said a million government supporters would stage a "red shirts" rally on Oct. 10 that would trump the protests of the past two days. "This shows the solidarity of Malaysians, that Najib still has the majority support," Yunos said.

Mahathir’s siding with protesters sits oddly with the often-authoritarian style of his own rule, during which Malaysia became a powerhouse of economic development but also won a reputation for cronyism and dubious "mega-projects".

Najib was once a protégé of Mahathir, just as the now-jailed Anwar Ibrahim — once widely viewed as Mahathir’s heir apparent — was before him. Anwar fell from favor when he began a popular "reformasi" movement against the graft and nepotism he said marked Malaysia’s business and political worlds.

Mahathir sacked him from his posts, and charges of sodomy and corruption followed. Mahathir has always maintained that the sodomy charges were genuine and made Anwar unfit to be leader.

On Sunday, security remained tight and anti-riot trucks stood ready, but there were no reports of violence.

City authorities rejected an application by pro-democracy group Bersih for a protest permit, which had raised fears of a repeat of a 2012 rally when police used water cannon and teargas to disperse protesters.

In a sign the government was losing patience, Deputy Prime Minister Ahmad Zahid Hamidi warned organizers they could face legal action. "They must face the consequences if they dare to break the law," he said, the New Straits Times reported online.

Malaysia has been gripped since July by reports that investigators probing allegations of mismanagement and corruption at the debt-laden state fund 1Malaysia Development Berhad (1MDB) had discovered the transfer into Najib's account. Its anti-corruption agency has said the funds were a donation from an unidentified Middle East donor.

Najib, who says he did not take any money for personal gain, has sacked his deputy and ministers who had questioned him as he sought to contain the scandal. The attorney general who had been investigating 1MDB was also replaced.

The prime minister is also under pressure over his handling of the economy, which has been hit by a slump in energy prices that threaten oil and gas revenues, and Malaysia's currency plummeted this month to 17-year lows against the dollar.

Reuters