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Speaking at the Shorenstein Award’s nineteenth annual discussion, which was held virtually due to COVID-19, Wright detailed the 1MDB story and its beginning with an unknown Chinese-Malaysian Wharton graduate named Jho Low, who allegedly set in motion a fraud of unprecedented scope and magnitude. An epic true-tale of corruption and greed involving heads of state and Hollywood stars and enabled by a raft of Western institutions, the story is the subject of Wright’s coauthored bestseller Billion Dollar Whale, based on his years of reporting on the scandal for the Wall Street Journal.  Mr. Low, who was indicted by U.S. authorities and by prosecutors in Malaysia, remains at large. He has denied any wrongdoing.

Wright’s exposure of the scandal has reverberated around the world. It was read by millions of people in Malaysia and sparked popular revulsion with the corrupt government of Prime Minister Najib Razak, leading to his shocking election loss in 2018. Wright’s revelations also shook the global financial system, underpinned investigations by law enforcement and regulators in six countries, and unveiled flaws of China’s Belt and Road signature program.

Accountability Journalism in Asia

“Tom Wright’s work represents the essence of accountability journalism,” said Jay Hamilton, the Hearst Professor of Communication, Chair of the Department of Communication, and Director of the Journalism Program at Stanford, who also serves as a member of the selection committee for the Shorenstein Journalism Award. “Wright takes the time, often enumerated in months or years, to discover facts about how institutions are operating. When his work is published, the world changes, debates ensue, individuals lose jobs or an election, policies are corrected, and there are people, often in Asian governments and Western companies, who wish they had done a better job of keeping their corruption secret.”

Wright is honored with the Shorenstein Journalism Award for his stellar reporting done over 25 years, mainly in South and Southeast Asia. A theme running through Wright’s work is the blight of corruption in Asia, abetted by Western organizations. In 2008, his investigation revealed how Indian wind turbine producer Suzlon, backed by U.S. investors, was hiding technology defects that made its turbines unsafe, leading to a collapse in the company’s shares. In 2011, he broke new ground reporting about the Obama administration's multibillion-dollar civilian aid program in Pakistan. He was one of the first journalists to arrive at the scene of the raid in which Navy SEALs killed Osama bin Laden. And in 2013, Wright spearheaded the coverage of the Rana Plaza factory disaster in Bangladesh, which killed over 1,000 people, exposing how international garment manufacturers turned a blind eye to safety violations to keep costs down.

A Triumph for Impunity

Five years after the 1MDB story came to light, however, almost no one has gone to jail. In Malaysia, Najib Razak was sentenced to 12 years in jail but is now in the process of appealing the case and continues to campaign in the meantime. In July 2020, Goldman Sachs reached a $2.5 billion settlement with the Malaysian government to resolve all criminal and regulatory proceedings in the country involving the firm, and on October 19, 2020, a day before the Journalism Award discussion, it was announced that the firm had reached a $2.2 billion settlement with the U.S. Department of Justice. While the penalties will cost the firm about two-thirds of a year’s profits, Goldman will avoid the harshest sanctions that prosecutors had sought. And while a Singapore-based Goldman subsidiary tied to the misconduct was expected to plead guilty, no one at the parent firm will face criminal charges.

“I don't think any of this is going to deter the kind of behavior that enabled this scandal,” said Wright. “Goldman just had a record-profit quarter and, astoundingly, in my view, there is no criminal liability […] We’re seeing democracy challenged around the world and, having spent so long on the 1MDB scandal, I feel very strongly that this kind of enabling behavior by Western institutions in foreign countries with poor rule of law is one of the reasons why democracy is so badly rooted in these places. Western institutions need to be held accountable for their actions in these countries.”

The Role of International Media in Exposing Global Corruption

Wright’s discussion was followed by a conversation with Meredith Weiss, professor and chair of Political Science at the University at Albany, SUNY. Weiss has published widely on the politics of identity and development, electoral politics and parties, organizational reform, and subnational governance in Southeast Asia, with particular focus on Malaysia and Singapore. Her current research projects include studies focused on “money politics” and on democratic representation and political elites in Southeast Asia, as well as a monograph on Malaysian sociopolitical development.

In their conversation, Wright and Weiss addressed issues including the implications of current political trends in Southeast Asia for supporting or dismantling systems for accountability or anti-corruption, China's role in enabling corruption, how an international media outlet like the Wall Street Journal was able to carry forward the 1MDB story, the role of investigative journalism in battling endemic corrupt practice, and how the shifting media landscape — especially in the context of social media, changes in media freedom around the world, and the rise of “fake news” — affect this role in shedding light on corruption.

“It’s very important that journalists don't become pulled into the latest political trend,” said Wright. “And it's a very difficult fine line to balance. I think investigative journalism is in trouble. By the way, journalists don't call themselves ‘investigative journalists’ — we are just journalists who do our work, and if we're lucky enough to come across a big story, then so be it. But you need bosses [like I had at the Journal], who give you the space to do that kind of work, even though you don't necessarily sell more newspapers and more online subscriptions because of it.”

A Higher Standard

There have been some positive changes following the lessons learned from the IMDB scandal, such as pilot projects in the United States and in London to stop cash purchases from shell companies. Yet it is still too easy to get around such measures, said Wright. He concluded the discussion on a rather somber note, recognizing that the prospects for large-scale change are not bright. “If you've lived and worked in Asia, you know you can shake a stick in any direction and you’ll find corruption. What I learned through the process of working on the 1MDB story was just how complicit foreign institutions are in all of this. I guess I had a naive view, thinking that they had a higher standard of behavior. What I learned was that they only have a higher standard of behavior when there are rules in place to stop them from behaving badly. Maybe things can change, but I don't feel so optimistic about it.”

“Win support from the people,” Yuhua Wang, Assistant Professor of Government at Harvard University, repeated the words from one of Xi Jinping’s speeches that was given to justify China’s massive anti-corruption campaign. The exact scope and motivations for President Xi Jinping’s anti-corruption campaign is, as yet, unknowable, Wang stated; but clearly, a major public aim of CCP Chairman Xi Jinping was to build regime support by cracking down on bad actors in the government.

Prof. Yuhua Wang gave a talk titled “Why Xi Jinping’s Anti-Corruption Campaign has Undermined Chinese Citizens’ Regime Support?” at the Stanford China Program on November 12^th, 2018, based on a national-level survey analysis that he had conducted with his co-author, Prof. Bruce Dickson at George Washington University. Rather than focusing on Xi’s motivations for undertaking his crackdown, however, Wang and Dickson tried to measure the impact of Xi’s anti-corruption campaign on public perception of the central government and the Chinese Communist Party (CCP). Did the campaign, in other words, shore up public support for China’s central government and Party, as Xi hoped it would – or did it, in fact, undermine regime support?

Professor Wang first offered some background on how this anti-corruption campaign got started around 2012-2013, shortly after Xi Jinping became Chairman of the CCP. A staggering 261 vice-ministerial officials and 350,000 officials had been investigated to date; and, even those at the highest levels of China’s leadership – former Politburo and Politburo Standing Committee members, for instance –were not immune from scrutiny. And, equally unprecedented, media coverage of these corruption cases – from Bo Xilai to Zhou Yongkang and Xu Caihou – were extensive, exposing their lavish lifestyles and illicit dalliances on social and traditional media. Wang speculated that such lurid publicity most likely shocked the public, potentially turning citizens against even the central government, which consistently enjoys significantly higher levels of public trust than local governments in China. He decided, therefore, to explore with his co-author what the effects of such exposés might be on public perception of the central regime.

Replicating the same questionnaire and sampling design, Wang and his co-author took a national random sample in two waves – one before the anti-corruption campaign in 2010 and a second one during the campaign in 2014. They interviewed approximately 4,000 people across 25 provinces in China in order to measure potential shifts in people’s attitudes towards the regime over those four years. The findings were, indeed, illuminating:

First, Wang stated, increasing frequency of corruption investigations in a locality was correlated with a greater drop in popular regime support (defined as trust in central government or support for the CCP) in that locality. Higher volume of corruption investigations in a locality was also negatively correlated with people’s perception that government officials were generally honest and clean. The corrosive effects of the campaign, furthermore, proved strongest on those who had initially believed in the integrity of government officials; but for those who were already cynical about official corruption, the campaign had a smaller effect. Lastly, higher the survey respondent’s use of social media like WeChat, stronger the negative effects on his/her support for the regime. The authors also took into account how the chilling effects of the campaign may be negatively impacting local economies and how that slowing economy may actually be the primary cause behind decreasing public regime support. To account for this potentially confounding effect, Wang looked for evidence as to whether the campaign had contributed to a slowdown in China’s economy by 2014. Perhaps because 2014 was still early on in the campaign, he stated that they found no evidence of slower GDP growth rate, growth rate per capita GDP, etc., in the regions where they had undertaken their surveys.

Overall, Wang’s research calls into question whether Xi Jinping’s anti-corruption campaign is, in fact, advancing one of his main goals– i.e., to increase people’s faith in the central regime – or whether it is actually proving counterproductive to his aim. In fact, Wang’s research seems to indicate that the more Chinese citizens are exposed to evidence of government corruption, the more the central regime appears to suffer a loss in credibility. Wang was careful to point out, however, that they were barred, due to political sensitivity, from asking any questions regarding respondents’ attitudes towards Xi Jinping himself. Thus, it is still an open question whether popular support for Xi Jinping himself is increasing even though public trust in the regime might be decreasing.

The recording and transcript are available below.  

STANFORD, CA, May 21, 2019 — Stanford University’s Walter H. Shorenstein Asia-Pacific Research Center (APARC) announced today that the esteemed journalist Maria Ressa is the recipient of the 2019 Shorenstein Journalism Award. Ressa, the cofounder, CEO, and executive editor of the Philippine news platform Rappler, has been a highly-regarded journalist in Asia for more than thirty years and commended worldwide for her courageous work in fighting disinformation and attempts to silence the free press. Presented annually by APARC, the Shorenstein award is conferred upon a journalist who has contributed significantly to greater understanding of Asia through outstanding reporting on critical issues affecting the region. Ressa will receive the award at a ceremony at Stanford in fall quarter 2019.

Ressa spent nearly two decades at CNN, where she was lead investigative reporter focusing on terrorism in Southeast Asia and served as the network’s bureau chief in Manila, then Jakarta. She then became head of news and current affairs at ABS-CBN, the largest media network in the Philippines. Her work aimed to redefine journalism by combining traditional broadcast and new media for social change. In 2012, Ressa launched Rappler, turning it into one of the Philippines’ most influential news organizations and integrating data, content, and new technologies to promote public service journalism and civic engagement. With a commitment to editorial independence, Rappler has often produced critical coverage of Philippines President Rodrigo Duterte’s controversial policies and actions. In response to these reports, Duterte and his government have repeatedly targeted Rappler and Ressa with threats and lawsuits. Ressa has been arrested twice in recent months.

“Maria Ressa is a champion of digital journalism innovation, and a paragon of protecting democracy and speaking truth to power,” said Gi-Wook Shin, Shorenstein APARC director. “For decades, before she became internationally acclaimed for her brave fight to ‘hold the line,’ Maria’s work had provided deep insights into the complexities of Southeast Asia based on her nuanced knowledge, investigative skills, and the ability to draw upon them to connect with audiences around the world. We are honored to recognize her with the Shorenstein Journalism Award.”

Ressa has taught courses in politics and the press in Southeast Asia for her alma mater, Princeton University, and in broadcast journalism for the University of the Philippines. She is the author of two books: From Bin Laden to Facebook (2012), which traces the spread of terrorism from the training camps of Afghanistan to Southeast Asia and the Philippines, and Seeds of Terror: An Eyewitness Account of Al-Qaeda’s Newest Center of Operations in Southeast Asia (2003), which documented the changing tactics of Al-Qaeda and its next-generation roots in the Muslim strongholds in the Philippines and Indonesia.

The Shorenstein Journalism Award, which carries a $10,000 cash prize, honors the legacy of APARC’s benefactor, Mr. Walter H. Shorenstein, and his twin passions for promoting excellence in journalism and understanding of Asia. APARC recently introduced a new selection committee for the award that presides over the judging of nominees and honoree selection. “We are grateful to the Shorenstein family for its support of our Center and its mission, and to our selection committee members for their expertise and service,” noted Shin. “Our sincere thanks also to the members of the award’s previous jury for their contributions over the years.”

The independent selection committee for the Shorenstein Journalism Award, which unanimously chose Ressa as the 2019 honoree, includes Wendy Cutler, Vice President and Managing Director, Washington, D.C. Office, Asia Society Policy Institute; James Hamilton, Hearst Professor of Communication, Chair of the Department of Communication, and Director of the Stanford Journalism Program, Stanford University; Raju Narisetti, Director of the Knight-Bagehot Fellowship in Economics and Business Journalism and Professor of Professional Practice at Columbia Journalism School; Philip Pan, Asia Editor, The New York Times; and Prashanth Parameswaran, Senior Editor, The Diplomat.  

“Maria Ressa is recognized around the world as a stellar leader in accountability journalism,” said committee member James Hamilton. “As an investigative reporter at CNN, she shed light on terrorism’s threats in Southeast Asia. In cofounding and leading the online news outlet Rappler, she’s brought attention to contentious politics and policies in the Philippines even as she endured politically motivated arrests for her coverage.”

Ressa has earned multiple honors and awards by professional peers and international press freedom organizations, including the Golden Pen of Freedom Award from the World Association of Newspapers and News Publishers, the Knight International Journalism Award of the International Center for Journalists, the Gwen Ifill Press Freedom Award of the Committee to Protect Journalists, the Free Media Pioneer Award from the International Press Institute, the National Democratic Institute’s Democracy Award, and the 2018 Time magazine Person of the Year.

Seventeen journalists have previously received the Shorenstein award, including most recently Anna Fifield, the Washington Post’s Beijing Bureau Chief and long-time North Korea watcher; Siddharth Varadarajan, founding editor of the Wire and former editor of the Hindu; Ian Johnson, a veteran journalist with a focus on Chinese society, religion, and history; and Yoichi Funabashi, former editor-in-chief of the Asahi Shimbun.

Information about the 2019 Shorenstein Journalism Award ceremonies featuring Ressa will be forthcoming in the fall quarter.

Find out more at aparc.fsi.stanford.edu/events/shorenstein-journalism-award.

Media Contact:

Noa Ronkin
Associate Director for Communications and External Relations
Shorenstein APARC
noa.ronkin@stanford.edu