Government seeks to annul Mahathir suit on forex RCI’s findings

Government seeks to annul Mahathir suit on forex RCI’s findings

The government wants to strike out Dr Mahathir Mohamad’s suit on the grounds a Royal Commission of Inquiry’s (RCI) findings cannot be reviewed by the courts.

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KUALA LUMPUR:
The government is seeking to strike out former prime minister Mahathir Mohamad’s lawsuit to nullify the Royal Commission of Inquiry’s (RCI) findings on the Bank Negara Malaysia forex losses.

Lawyer Ilyanie Noor Khuszairy said, in the government’s application filed on Dec 19 last year, the government was seeking to strike out Mahathir’s suit on the grounds that the RCI decision was non-justiciable and that the suit did not disclose any reasonable cause of action.

If a matter is non-justiciable, it means the court has no judicial authority over it.

High Court judge Azizah Nawawi set April 19 to hear the government’s bid to strike out the suit filed by Mahathir last December.

Mahathir had claimed the decision by the five-member panel was null and void as it excluded legal documents of witnesses and notes of proceedings.

He added that the RCI report also failed to include written submissions and legal authorities submitted by lawyers after the hearing.

Mahathir also claimed the RCI was formed for an ulterior motive, as he was now with the opposition

He named as defendants the five RCI members, Prime Minister Najib Razak, the cabinet and government in the lawsuit.

The RCI in the report tendered to Parliament in November, concluded there were elements of hidden facts and information relating to forex losses suffered by Bank Negara and that misleading statements had been given to the cabinet, Parliament and the public.

The report said Bank Negara suffered a total loss of RM31.5 billion between 1992 and 1994.

The commission proposed that the police open investigations into possible criminal breach of trust or cheating by various parties, including Mahathir and then finance minister (1991-1998) Anwar Ibrahim.

Special mention was made of ex-Bank Negara adviser Nor Mohamed Yakcop, whom the report named as “principally liable for criminal breach of trust”, while Daim Zainuddin, another former finance minister (1984-1991), was said to have aided and abetted Nor Mohamed.

The RCI, held over nine days from Aug 21 to Sept 19 last year, saw a total of 25 witnesses, including Mahathir, Anwar and Daim.

The RCI’s scope of inquiry was to:

  • Determine the authenticity of the allegation on the foreign exchange losses suffered by Bank Negara Malaysia (BNM) in the 1990s and its implications on the national economy;
  • Determine whether BNM’s involvement in the foreign exchange activities which caused the losses contradicted with the Central Bank Ordinance 1958 or any relevant laws;
  • Determine whether there were elements of hidden facts and information relating to foreign exchange losses suffered by BNM and misleading statements given to the cabinet, parliament and the public;
  • Recommend suitable actions to be taken against those found to be directly and/or indirectly involved in causing the losses and hiding the facts and information on the losses, and,
  • Recommend appropriate measures to ensure the incident will not recur.

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RCI says Dr M helped in concealing RM31.5bil forex losses

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Anwar: My cabinet briefing on RM5.7b forex losses based on audited report

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