Malaysia's Anwar to be held in custody: lawyers

By Jalil Hamid and Niluksi Koswanage

KUALA LUMPUR (Reuters) - Malaysian opposition figure Anwar Ibrahim will be remanded in police custody for a sodomy case, his lawyers said on Wednesday, setting the stage for a political showdown that could alarm foreign investors.

"The excuse is they need to take further statements," Sankara Nair, one of Anwar's lawyers, told reporters. "They are detaining him further."

Nair said it was unknown how long Anwar would be held.

In a replay of events a decade ago when he was jailed for sodomy and corruption, Anwar was arrested by police earlier on Wednesday on a sodomy complaint brought by a former aide.

Sodomy, even between consenting adults, is a crime punishable by up to 20 years in prison in mainly Muslim Malaysia.

Anwar's supporters have painted the arrest as a political conspiracy designed to hinder the opposition's rise, and indicated the move could set off street protests.

The ruling Barisan Nasional coalition is still trying to recover from a disastrous showing in a March general election, when it lost its two thirds parliamentary majority and ceded five states to the opposition.

The government has denied the sodomy allegation was a political conspiracy.

"The purpose of the investigations is not to fix someone but is to really help him clear his name," Domestic Trade Minister Shahrir Samad said.

A senior police official, who declined to be identified, confirmed that Anwar would be held in custody.

The authorities sealed off roads to the police headquarters where Anwar had been taken, while a water cannon was on standby, as the authorities braced for a possible repeat of 1998 protests when Anwar's arrest brought tens of thousands onto the streets.

About 400 Anwar supporters had stood outside the police headquarters carrying banners demanding his release.

"Don't provoke the people ... why are police trying to test the people's patience?" Azmin Ali, a leader of Anwar's People Justice Party, said. "I am giving a very strong reminder to the police, don't provoke us."

Anwar was expected to be charged with sodomy, William Leong, another of Anwar's lawyers, said earlier on Wednesday.

Leong said the authorities had acted extraordinarily by arresting Anwar instead of allowing him to voluntarily assist police with their investigations.