The Malaysian Insight

BANK Negara Malaysia Governor Muhammad Ibrahim should be nervous. Very nervous, really.

The reason: comments by Daim Zainuddin suggest clearly that the new Pakatan Harapan government believes that much was wrong with the central bank’s decision to pay RM2 billion for a tract of land owned by the government.

The hasty deal ‎was to help the Najib Razak administration pay debts incurred by 1Malaysia Development Bhd.

In an interview with The Straits Times, Daim said: “‎There is reason to question the speed, rigour and motivation for such a deal.

“The land deal is a good example of why the independence of BNM, its government process and the appointed stewards of critical institutions are absolutely paramount for the current administration.”

His words carry power, and an ominous warning.

Not only is Daim chairman of the Council of Eminent Persons, but more importantly, as noted by the Singaporean publication, he spends two hours with Prime Minister Dr Mahathir Mohamad ‎after dinner most nights, discussing the laundry list of problems and potential minefields inherited from the Najib administration.

These meetings end with the usual refrain of Dr Mahathir telling Daim to go “find solutions for this or that”.

Increasingly, it is becoming clear to Daim and others in Dr Mahathir’s inner circle that the only way forward is to make examples of some of the individuals behind the more brazen cases of rampant abuse of public funds and dodgy deals.

Only by doing so are they confident that the new government will be able to strike fear in government officials at all levels.

BNM’s Muhammad has maintained in press statements that the RM2 billion land deal was done at arm’s length.

“It was purchased at market value and it was an arm’s length transaction.”

An arm’s length deal is where both buyer and seller act in their own interest, and are not under any duress by the other party.

The problem for the BNM governor is that it is easy to issue press statements.

It is a completely different proposition facing Daim and the Council of Eminent Persons, especially when the former finance minister is on record saying there is reason to question the “speed, rigour and motivation” for the land deal.

Muhammad should be nervous. – June 4, 2018.