In a statement posted on his blog, the former prime minister quoted parts of the report titled “Directorate of Intelligence” dated March 5, 1985, to prove his innocence.
Noting that the CIA report was not a specific report or finding by the US on the BMF issue but a normal information paper for the US government at that time, Dr Mahathir said:
“The CIA report itself acknowledged that the prime minister then was not in any way, personally or directly linked to the Bumiputra Malaysia Finance (BMF) issue.
“This can be found at page 4 of that report under the sub-heading ‘Assessing the Political Damage’, which states: ’Thus far no direct links have been established between Mahathir and the corruption at BMF…’”
In defending himself, Mahathir also noted several points made in the CIA report, referring to the exact page in the document where that particular point had been made:
* That as early as July 1983, Mahathir had announced that BMF’s handling of its financial lending was imprudent, and that he had also pledged action would be taken upon investigation;
* That a committee of inquiry (Special Investigation Committee) was set up to look into the BMF issue. Records show that the Special Investigation Committee, headed by the then auditor-general Ahmad Nordin, had forwarded the necessary recommendations for further action.
Mahathir said: “There certainly was no cover-up in any way. Whether the necessary authorities brought any party to the courts is for them to answer. The government carried out its duty as properly as it was required to do in the circumstances then.”
Mahathir also said in his statement that the outcome of the BMF issue was generally received well by people, including the opposition and other political groups.
It was earlier reported that the CIA document claimed that although “no direct links” had been established between Mahathir and the BMF scandal, “the hint of association” had damaged the administration of Mahathir.
It also said the most damaging aspect of the scandal was the “alleged connection of (now defunct Carrian group and former chief executive officer) George Tan to Umno officials”.
The BMF scandal made the headlines in the early 1980s, after it was revealed that the bank’s Hong Kong-based subsidiary had provided “bad” loans to several shady companies, including units of Carrian Holdings Ltd.
Hundreds of millions of dollars were lost overnight when the Carrian group collapsed in 1983, in Hong Kong’s largest bankruptcy. A Bank Bumiputra auditor checking on the scandal was murdered, and the government pumped in billions of ringgit to support Bank Bumiputra.
Those responsible were charged in courts both in Malaysia and Hong Kong.
BMF chairman Lorrain Esme Osman lived in exile until his death in London in 2011.