By Jalil Hamid
KUALA LUMPUR (Reuters) - Malaysia's main opposition leaderAnwar Ibrahim, taking refuge at the Turkish embassy aftersaying his life was in danger, filed a defamation suit onMonday over fresh accusations that he committed sodomy.
The sensational developments, almost a repeat of thecountry's worst political crisis 10 years ago, is furtherroiling waters muddied since polls on March 8 that dealt PrimeMinister Abdullah Ahmad Badawi's National Front coalition theworst electoral drubbing in Malaysian history.
The key stock index fell 0.7 percent at the midday break onthe news that can only add to an uncertain outlook and willlikely cloud policy-making at a time when rising food and fuelprices are stoking public discontent.
Investors have been dumping the ringgit as well. "Ongoingpolitical upheaval is weighing on the ringgit," said financialmarkets consultancy IDEAglobal.com. "Thus U.S. dollar buyingremains attractive as investors have been shipping outinvestments to elsewhere in Asia."
Malaysian Second Finance Minister Nor Mohamed Yakcop playeddown those concerns. "At the end of the day, what matters isthe economic fundamentals despite the challenges," he toldreporters. "I am confident we will do very well."
Anwar, 60, fled to the Turkish embassy in a Kuala Lumpursuburb on Sunday morning, 12 hours after the accusationssurfaced, saying he had received death threats.
His wife, Wan Azizah Wan Ismail, said Anwar would leave theembassy if the prime minister personally guarantees his safety."He will cooperate with the police," she said. "These are alllies. We have been through this before."
Home (Interior) Minister Syed Hamid Albar said Anwar's lifewas not in any danger. "He should be able to discern betweenreality and play-acting," he told reporters at parliament."Anwar went into the Turkish embassy on the pretext of talkingto the ambassador, but he never came out."
On Monday, Anwar's lawyers filed a defamation suit againsthis aide-turned-accuser, 23-year-old Saiful Bukhari Azlan, oneof the lawyers said. It asserts the police report filed againsthim was an abuse of due process of law.
Anwar said he fled to the embassy at the invitation of theTurkish ambassador. His aides said other embassies made similaroffers but Anwar chose Turkey because he is an economic adviserto the Turkish government.
INTERFERENCE
Foreign Minister Rais Yatim said he would summon theTurkish ambassador on Monday for what he said was interferencein Malaysia's internal affairs.
The latest developments echo, albeit less acutely, the kindof crisis the country endured a decade ago.
Anwar was sacked as deputy prime minister in 1998 in themidst of the Asian financial crisis after leading a "reformasi"(reform) movement against then premier Mahathir Mohamad. He wasthen jailed for sodomy and corruption. The Supreme Courtoverturned the sodomy conviction in 2004.
Anwar has seen a revival of his fortunes after theopposition alliance won control of five of Malaysia's 13 statesand denied the National Front coalition its traditionaltwo-thirds majority.
In April, he became eligible again to seek political officeafter the expiry of a five year-ban on holding office over thecorruption conviction.
Anwar maintains he has lined up enough defections from theruling coalition -- he needs 30 -- to bring down Abdullah'sgovernment and said he would do so in mid-September.
The father of six children said in a statement the chargeswere "completely fabricated" and politically motivated.
"I have been told that my assassination has not been ruledout as a means to subvert the people's will and bring an end tothe transformational changes taking place in Malaysia," headded in the statement.
Prime Minister Abdullah said the government was notinvolved.
The new sodomy allegations were disclosed late on Saturdayafter Anwar's private assistant, identified by his party as23-year-old Saiful Bukhari Azlan, lodged a police complaint.
Federal criminal investigation chief Bakri Zinin said thealleged victim had been taken to hospital.
So far, the streets have been quiet. Police have warnedAnwar's supporters against holding any public protests. Hissacking in 1998 brought tens of thousands onto the streets.(Additional reporting by Faisal Aziz; Editing by Bill Tarrantand Sanjeev Miglani)
