Federal Territories Minister Isa Samad has resigned after he failed to quash corruption charges levelled against him.

Prime Minister Abdullah Ahmad Badawi said he received Isa's resignation yesterday.

He said Isa's resignation would send a message to the ruling Umno that he would act against corruption in the party, although he stressed that cases would be dealt with by internal party machinery.

"I believe the action does send a message to Umno members, that is, when action has to be taken, it will be taken in a fair and just manner," he told reporters.

Isa, 56, had been asked to resign after Umno earlier this month upheld a finding by its disciplinary board that he had bought votes to win one of the highest leadership positions in the party during internal elections last year.

In the race for the three vice-presidential posts in the party, Isa garnered the highest number of votes, effectively claiming the party's third most powerful post.

Earlier this year the Umno disciplinary board found Isa guilty of the charges and suspended him.

Pak Lah's last chance

However Isa, who has denied the allegations, retained his cabinet post and filed an appeal in July to the supreme council, Umno's highest decision-making body.

It announced on Oct 7 that Isa's six-year suspension would be cut to three years, due to Isa's "good conduct since his suspension" and his more than 20 years of service in Umno, but that he would have to step down.

Abdullah launched a campaign against graft after he took power in October 2003, surprising critics who were sceptical of his pre-election promise to be ruthless with corrupt officials.

Abdullah has made fighting corruption and improving governance rallying cries for his administration, and parliamentary opposition leader Lim Kit Siang said Malaysians would be looking for appointments of ministers who have clean images.

A possible cabinet reshuffle "may be his last chance to exert himself and ensure the import of his vision of a clean, corruption-free and accountable government into his administration," said Lim.

While Abdullah has remained tight-lipped about his plans, observers say the time is ripe for a reshuffle, which is expected to come as the leader marks his second year in office on Nov 1.

The prime minister also annnounced the interim appointment of Women, Family and Community Development Minister Shahrizat Jalil in place of Isa.