The Malaysian Insight

THE High Court judge will decide on Thursday if Dr Mahathir Mohamad has grounds to have two members of the Royal Commission of Inquiry (RCI) challenged after Putrajaya objected to the application, lawyer Haniff Khatri said.

The two are chairman Mohd Sidek Hassan and member Saw Choo Boon, who have refused to recuse themselves from the inquiry into Bank Negara’s foreign exchange trading losses.

Haniff, who is representing Dr Mahathir, said judge Azizah Nawawi had allowed both parties to argue their case in a one-hour session in her chambers at the Jalan Duta Court Complex today.

Putrajaya, through its counsel led by Amerjeet Singh, objected to the application on the grounds that the RCI was not open to judicial review.

The court last week dismissed Dr Mahathir’s application to discharge two members of the RCI set up to investigate Bank Negara’s foreign exchange trading losses amounting to billions of ringgit about two decades ago.

RCI chairman Sidek Hassan, who is Petronas chairman, said he would continue to perform his duty.

“We have conferred and we take cognisance that the RCI is already constituted and consented to by the Yang di-Pertuan Agong. Therefore, we are of the position that we shall continue,” said Sidek.

Haniff had made an oral application to have Sidek and Saw dismissed.

Dr Mahathir was objecting to their sitting on the RCI on grounds that they were also on the special task force that probed the case and recommended that the RCI be set up.

Haniff said members of the recommending body should not be members of the RCI deciding on the case.

He said the RCI’s composition was important and must be resolved to ensure a fair hearing.

Also sitting on the RCI are High Court Judge Kamaludin Said, Bursa Malaysia CEO Tajuddin Atan, Special Task Force to Facilitate Business co-chairman Saw Choo Boon, Malaysian Institute of Accountants member K. Pushpanathan and Finance Ministry strategic investment division director Yusof Ismail.

The RCI’s terms of reference are to determine the authenticity of the allegation on the foreign exchange losses suffered by BNM in the 1990s and its implications to the national economy; whether BNM’s involvement in the foreign exchange trading which caused the losses contravened the Central Bank Ordinance 1958 or any relevant laws; whether there were hidden facts or information relating to foreign exchange losses suffered by BNM and misleading statements given to the cabinet, parliament and the public; to recommend suitable actions to be taken against those found to be directly or indirectly involved in causing the losses and hiding the facts and information on the losses; and to recommend appropriate measures to ensure the incident does not recur.

Lawyer R. Sivarasa held a watching brief for Anwar Ibrahim, who was finance minister and deputy prime minister at the time while Tan Hock Chuan held a watching brief for BNM.

The RCI has decided on a 10-day hearing and will reconvene on August 21. It expects to deliver a report to the Yang di-Pertuan Agong by October 13. – August 15, 2017.