By Siva Sithraputhran
KUALA LUMPUR (Reuters) - A senior Malaysian opposition politician, who made a series of revelations on alleged government wrongdoing, was arrested on Wednesday for disclosing bank details related to a high-profile corruption case involving the family of a former minister.
The charges against Rafizi Ramli, head of strategy for the opposition Pakatan Rakyat party, adds to a tense political atmosphere ahead of elections that must be held by early next year and which are expected to be closely fought.
He pleaded not guilty to charges under the Banking and Financial Services Act in the Shah Alam sessions court. He faces the possibility of a three-year jail term which may scupper his chances of standing for parliament.
A court hearing has been set for September 10.
Rafizi, speaking to Reuters after posting bail, questioned the government's commitment to whistleblower protection laws it introduced in 2010 as part of efforts to tackle corruption.
"This government isn't serious about protecting whistleblowers, in fact it wants to persecute them," he said.
"Those reforms are just gloss."
Rafizi is a senior member of the main opposition party led by Anwar Ibrahim, who himself is facing public order charges over a protest march this year that could disqualify him from parliament.
"He has built powerful enemies and now they are using what is at their disposal," Anwar said in a statement.
Police and prosecutors were not available for comment.
Rafizi's revelations on alleged wrongdoing are believed to be among the reasons why Prime Minister Najib Razak has put off the election, which many pundits had predicted he would call earlier in 2012.
Najib is trying to revive the fortunes of the long-ruling Barisan Nasional coalition after it got a bloody nose in 2008 elections, slumping to its worst-ever performance and losing its two-thirds majority in parliament for the first time.
The charges against Rafizi are related to his revelations of alleged financial impropriety at National Feedlot Corporation, a publicly funded cattle-rearing project, which is suspected to have enriched the family of former Women, Families and Communities Minister Shahrizat Abdul Jalil.
She resigned from her post and Malaysia's anti-corruption agency later cleared her of wrongdoing but the assets of the company remain frozen and her husband has been charged with criminal breach of trust.
Malaysia's central bank had earlier investigated Rafizi for disclosing banking details of the company and its directors.
Rafizi has also brought to media attention alleged irregularities in the award of a 960 million ringgit ($310 million) contract to a consortium led by George Kent (M) Berhad to extend a rail transit project.
Rafizi said his arrest which came not long after news of George Kent's win suggests the government wants to divert attention away from project by putting the National Feedlot Corporation back in the spotlight.
The consortium led by George Kent beat contenders including Balfour Petty PLC despite not being the lowest bidder.
(Editing by Stuart Grudgings and Robert Birsel)
