Malaysia PM denies nepotism, fends off Mahathir

KUALA LUMPUR, Aug 7 (Reuters) Malaysian Prime Minister Abdullah Ahmad Badawi used national television on Monday to deny accusations of nepotism and to defend his squeaky-clean image, which has come under heavy attack by his predecessor.

After months of turning the other cheek, refusing to respond directly to criticism by former leader Mahathir Mohamad, the premier finally answered some of the most sensitive allegations.

Abdullah denied that his businessman son, Kamaluddin Abdullah, 38, and son-in-law, Khairy Jamaluddin, 30, had profited from government favours or abused their connections.

''I don't want to quarrel with Tun Mahathir,'' Abdullah said in the 40-minute interview to be aired later on Monday. Tun is Mahathir's honorific title, the highest in Malaysian society.

''Kamal' has never abused his ties with me. Eighty percent of his business is from overseas,'' Abdullah said in the interview with TV3, excerpts of which were made available to Reuters.

''He is not involved with other local firms or government concessions. He has never asked help from the government or anything that required a bail-out for him.'' Once the unchallenged ''Mr Clean'' of Malaysian politics, Abdullah and his cabinet have ended up facing the same kind of allegations that haunted Mahathir during his 22-year reign.

The irony is that Mahathir himself is leading the charge.

Mahathir, who at 81 years of age still has a sharp tongue and an acid wit, feels betrayed by Abdullah's decision to shelve some state projects that were proposed by the previous government. He says he wants answers, not Abdullah's downfall, but his attacks threaten to erode Abdullah's authority within the ruling party.

Mahathir has accused Abdullah's government of lacking ''guts'' and selling out Malaysian sovereignty. He has also lately attacked the business dealings of Abdullah's family members.

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