THE Royal Commission of Inquiry (RCI) for the Bank Negara Malaysia (BNM) multi-billion dollar forex exchange losses scandal, in which former prime minister Dr Mahathir Mohamad is implicated, will begin hearing on August 21.

Petronas chairman Mohd Sidek Hassan is the RCI chair, who set the commission’s term of reference, or scope of investigation, and has pledged to limit the scope of questions to those facing the inquiry.

“Given the constraint of time, the commissioners shall focus on the terms of reference of the RCI and will not allow any interference or any person that is not related to the terms of references,” he told a packed courtroom at the Palace of Justice in Putrajaya today.

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.

Sidek read out the RCI’s terms of reference, which are:

- To determine the authenticity of the allegation on the foreign exchange losses suffered by Bank Negara Malaysia in the 1990s and its implications to the national economy;

- To determine whether BNM’s involvement in the foreign exchange activities which caused the losses contravened the Central Bank Ordinance 1958 or any relevant laws;

- To determine 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 will not recur.

Sidek, who is former chief secretary to the government, set future court dates as August 24, August 29, August 30, September 6, September 7, September 18, September 19, September 20. 

“The commissioners have the power to procure and receive all such evidence to examine all such persons as witnesses,” he said.

Sidek said the commission shall complete its inquiry and tender a report to the Yang Di-Pertuan Agong in three months, or on October 13, 2017.

Former BNM assistant governor Abdul Murad Khalid said in an interview with the New Straits Times in June that the central bank bank had suffered forex losses of around US$10 billion (RM42.83 billion) in the early 1990s.

BNM was reported to have lost billions of ringgit between 1991 and 1994, before it had to be rescued by the Finance Ministry.

In an interview with The Malaysian Insight, Dr Mahathir maintained that the losses were about RM10 billion and had denied knowledge of the leveraged dealings BNM was involved in.

Instead, he blamed the multi-billion dollar losses on the former BNM governor, the late Jaafar Hussein, and the assistant governor at the time, Nor Mohamed Yakcop.

Dr Mahathir also maintained that he knew little more of the financial losses that occurred between 1987 and 1992 than what was reported to Parliament.

Mahathir served as prime minister from 1981 to 2003.

Anwar was finance minister from 1991 and deputy prime minister from 1993 till his sacking in 1998. – August 8, 2017.