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Forex inquiry’s real purpose is to cast me in negative light: Mahathir

KUALA LUMPUR — Former Malaysian prime minister Mahathir Mohamad said yesterday the real purpose of a royal commission of inquiry (RCI) into forex losses sustained by Bank Negara Malaysia is to cast him in a negative light rather than to find out exactly how the losses came about.

KUALA LUMPUR — Former Malaysian prime minister Mahathir Mohamad said yesterday the real purpose of a royal commission of inquiry (RCI) into forex losses sustained by Bank Negara Malaysia is to cast him in a negative light rather than to find out exactly how the losses came about.

“It is about finding a way to make me look bad in the eyes of the public. That during my time, money was also stolen,” he told reporters in Putrajaya after testifying at a RCI hearing.

The RCI was created with the aim of making the accusation that money amounting to RM30 billion (S$9.6billion) was “stolen” during the Mahathir administration, he said. “That is their purpose, but I’m afraid they haven’t achieved their objective of making it look like kleptocracy.”

Dr Mahathir yesterday testified that he had not known that the central bank allegedly lost RM30 billion in forex trading, saying he believed the losses to have amounted to RM5.7 billion as reported in the bank’s audited report that was later presented to the Cabinet and tabled in Parliament.

He added that he had also been informed of the amount by then finance minister Anwar Ibrahim and a Finance Ministry official in a meeting.

The RCI is investigating the forex trading losses suffered by the central bank from 1988 to 1994.

Last month, the RCI said that based on statements given by several central bank employees, Malaysia suffered about RM31.5 billion in foreign exchange losses in the early 1990s.

Dr Mahathir was prime minister from 1981 to 2003.

In his testimony yesterday, the Parti Pribumi Bersatu Malaysia chairman asserted that as prime minister then, he had no legal authority to directly interfere with the central bank’s activities unless there was a pressing need.

“The BNM (Bank Negara Malaysia) board of directors have the responsibility to all policy and administrative issues relating to the power and dealings of BNM,” he said.

“There was no material need for me as the prime minister then to interfere.”

The nonagenarian also took aim at the RCI panel, claiming that the whole inquiry was designed to portray him as the mastermind of the scandal.

Dr Mahathir further accused the federal government of orchestrating the inquiry as reprisal for his continued criticism of Prime Minister Najib Razak and his administration.

Dr Mahathir added that Mr Najib was making himself a laughing stock by pursuing an inquiry 25 years late, and for failing to come clean on alleged kleptocracy in his administration.

“I wish to state that the main purpose the government requested the king to form the RCI is to put pressure on me, Anwar Ibrahim and the critics of Prime Minister Najib Razak in relation with the 1MDB criticism as well as other problems faced by the people and the country,” Dr Mahathir said.

“From time to time, without answering specific questions — questions raised by myself, Najib Razak has raised all sorts of irrelevant issues in order to smear my credibility — just so that the Malaysian public are distracted from the turmoil caused by Najib Razak.” AGENCIES

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