QUESTIONS over the 1990s foreign exchange (forex) losses by Bank Negara Malaysia (BNM) are expected to be answered today as the Royal Commission of Inquiry (RCI) begins its probe into the controversy in a first hearing at the Palace of Justice, Putrajaya.
The commission will be chaired by Petroliam Nasional Bhd (Petronas) chairman Tan Sri Mohd Sidek Hassan.
Other panel members are High Court judge Datuk Wira Kamaludin Md Said, Bursa Malaysia Bhd chief executive officer Datuk Seri Tajuddin Atan, Special Task Force to Facilitate Business (Pemudah) co-chairman Tan Sri Saw Choo Boon, Malaysian Institute of Accountants member K. Pushpanathan and Finance Ministry Strategic Investment Division director Datuk Dr Yusof Ismail who is also the commission’s secretary.
The members were selected based on their qualifications and experience in fields closely related to the investigation.
The commission was set up in line with the Commission of Enquiry Act 1950 (Act 119).
The RCI was set up following a cabinet meeting soon after the New Straits Times published an interview with former BNM assistant governor, Datuk Abdul Murad Khalid, in which he claimed that the central bank had suffered forex losses of US$10 billion in the early 1990s.
BNM was reported to have lost billions of ringgit between 1991 and 1994, before it became technically bankrupt and had to be rescued by the Finance Ministry.
It was also reported that during Tun Dr Mahathir Mohamad’s premiership, BNM had ventured into speculative currency trading and forex trading with large sums of money, alarming other banking institutions worldwide.
On April 27, former deputy prime minister Datuk Seri Anwar Ibrahim, who was also the finance minister from 1991 to 1998, said the country had lost between RM15 and RM30 billion.
Universiti Utara Malaysia political analyst Dr Mohd Azizuddin Mohd Sani said if there was fresh evidence, the government had the right to re-open the case regardless of statutory limitation period.
“Remember the RCI probing into the Project IC (identification card) case in 2012?
“It was an old issue at the time but it was re-opened anyway. So the question here is not about the case is old or new or what’s the motive. It’s about finding out what really happened and it’s about justice.”
The RCI was announced on June 21 after a Special Task Force (STF), also headed by Sidek, concluded that a prima facie case existed to merit in-depth investigations by establishing an RCI.
On July 18, the Yang di-Pertuan Agong Sultan Muhammad V gave his consent for the RCI to be formed.
The commission, however, has yet to announce its list of witnesses, but many speculated that Dr Mahathir, Anwar and Nor Mohamed would be among the first to be called.
However, Universiti Malaya political analyst Dr Awang Azman Awang Pawi clarified that on the first hearing, no witnesses would be called yet as the commission would need to discuss on the probe’s objectives and directions.
He also said the RCI did not have the power to prosecute anyone, although it could issue arrest warrants to compel the attendance of witnesses under Section 8 (d) of the Commission of Enquiry Act 1950 (Act 119).
“The first hearing would also discuss in length on who the commission should summon.
“If there is no consensus (among RCI members), the names (to be summoned) will not be announced at the early stage in order to avoid prejudice and biasness.
“The RCI can only give recommendations for further action.
“It is up to the Attorney-General to decide whether or not to proceed with the prosecution,” he said.
Dr Mahathir’s lawyer Haniff Khatri Abdulla said the former premier’s lawyers would be attending today’s hearing on his behalf.
Haniff said his client was currently overseas and would exercise his rights under Section 18 of the same act, which states that anyone who is implicated, subjected to inquiry, or needed to the proceeding is entitled to be represented by an advocate.