MALAYSIA:ANWAR IBRAHIM, the Malaysian opposition leader, was released on bail yesterday after pleading not guilty in court to a charge of sodomy, which he claimed was brought in a government attempt to derail a political comeback.
Mr Anwar, who plans to stand in a byelection in late August to return to parliament after a decade's absence, said a prosecution claim that he engaged in sodomy with a young male aide was "malicious".
Sodomy is illegal in Malaysia, even between consenting partners, and carries a maximum penalty of 20 years' imprisonment.
Mr Anwar welcomed the court's decision to grant him bail.
There had been fears among his supporters that the court would deny bail, which would have forced him to suspend campaigning for the August 26th byelection in his former parliamentary constituency.
Although Mr Anwar is expected to win the byelection in what is seen as a safe seat, a conviction for sodomy would ban him from parliament.
The opposition has complained that the byelection was scheduled by the government for a weekday instead of the usual weekend polling day, in what they claim is an attempt to reduce the margin of support for Mr Anwar.
Mr Anwar has accused the government of bringing the sodomy charge against him in an effort to disrupt his plans to call a vote of no confidence against the government of Abdullah Badawi in mid-September.
An opposition coalition, led by Mr Anwar, scored significant gains at a general election in March, bringing it within 30 seats of taking power from the National Front government that has led Malaysia since independence from Britain in 1957.
Mr Anwar said that he held Mr Abdullah "personally responsible" for bringing the sodomy charge against him and alleged the prime minister was trying to deflect attention from his leadership problems in the wake of the government's electoral setback.
Mr Abdullah has denied that the sodomy charge was fabricated. Polls suggest a majority of voters believe the allegations against Mr Anwar to be politically motivated.
There are indications that the government's vigorous pursuit of the case is costing the prime minister popular support, with his approval ratings falling to their lowest since he took office in 2003.
Analysts said the charges against Mr Anwar would add to the political uncertainty that has scared off foreign investors.
The political uncertainty surrounding the trial and speculation on the future of the prime minister have hurt the stock market and the currency, the ringgit, which yesterday hit a six-month low against the dollar. "There is a risk that the political situation deteriorates significantly in the coming weeks," Credit Suisse analyst Stephen Hagger said.
- Financial Times service; Reuters