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RCI should quiz Pak Lah on Nor Yakcop's ministerial appointment
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COMMENT | I understand that the Royal Commission of Inquiry (RCI) into the Bank Negara foreign exchange (forex) losses continues its proceedings today, with Dr Mahathir appearing as a witness.

I gave evidence at the previous session of the proceedings, on Sept 7, 2017. I was troubled by the line of questioning that the chairperson of the commission, Mohd Sidek Hassan, seemed to be focusing on.

I am in particular troubled by the manner in which the chairperson was harping on the initial figures for the forex losses in the draft audit report by the auditor-general, which was brought to my attention then and which I had referred back to Bank Negara for their views.

Mohd Sidek appeared to have concluded that as I knew of the figures in the draft report, that should have been placed before the cabinet. The chairperson ought to know that it is standard cabinet practice to only consider and discuss the final report signed off by the auditor-general, which I had duly presented.

The cabinet does not discuss draft reports and auditee’s responses, which are still in the process of being discussed with the auditee, as was in that case. I presented the final report to cabinet after the auditor-general had signed off on it as I was duty bound to do.

Likewise, my statements to Parliament were based on the contents of the final reports signed off by the auditor-general and the governor of Bank Negara and briefings by officials on them.

It would have been completely unreasonable for me, to challenge the agreed findings of the then auditor-general and Bank Negara’s internal auditors; or to expect me to have done so.

Mohd Sidek’s harping on the draft report by the auditor-general raises questions as to whether this commission, or at least its chairperson, had a preconceived version of the facts to present in their report. I hope that this is not the case.

Mohd Sidek ought to know that the then deputy finance minister, Donald Lim Siang Chai, when answering in Parliament on Sept 7, 2012, in respect of the BNM forex losses of the early 1990s, affirmed that the losses for the year 1993 were RM5.7 billion, exactly as I had announced in 1994.

He did not deem fit to revisit those figures, despite Bank Negara having done its audit of 2007. It was not an issue then. As a minister reporting to Parliament, quite properly, he stuck to the version signed off by the auditor-general.

I am also troubled by the fact that the commission seems uninterested in the issue I raised as to why Nor Mohamed Yakcop, despite being asked to resign in 1994 as an adviser of Bank Negara (equivalent to the post of assistant governor today) for the forex losses debacle, was then appointed by former prime minister Abdullah Ahmad Badawi to the post of finance minister in 2004.

Surely the public would wish to know what interest Abdullah and his family had in pursuing such an inappropriate appointment.

When I concluded my evidence, I politely cautioned the commission that it could be seen to be playing out political agendas for others. While I agreed to cooperate fully with the inquiry, it ought to have taken place much earlier. It could have taken place soon after Dr Mahathir Mohamad left the government in 2003.

Why is it being done 14 years later – is it because a desperate prime minister and cabinet now face Mahathir's and my trenchant criticism? The members of the commission must remain mindful of this current context in which they are asked to do their work.

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