Dr M warns Bank Negara over the non-disclosure
Published on: Friday, May 29, 2015
Kuala Lumpur: Tun Dr Mahathir Mohamad warned Bank Negara Malaysia that it could be found guilty of trying to conceal crucial information.This follows the central bank's refusal to reveal details of a report it received from the Monetary Authority of Singapore (MAS) about an account connected to 1Malaysia Development Bhd (1MDB) in BSI Bank Ltd."Regarding Bank Negara's refusal to provide information on the report from MAS, if it is found to be protecting lies about 1MDB's money that is said to be in Singapore, then this is also a crime under the country's laws," wrote the former Prime Minister in his blog chedet.cc.
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On Tuesday, Bank Negara Governor Tan Sri Zeti Akhtar Aziz said they had received information from the MAS about 1MDB's account in BSI Bank, but refused to divulge details, citing confidentiality."The international community would not cooperate with us (in the future) if we release the information that was extended to us," she was quoted as saying.She said revealing the information would "stop all investigations if we talk about it".Zeti also cited confidentiality requirements when asked about claims that 1MDB's account at BSI Bank did not contain cash redeemed from its Cayman Islands investment.
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Whistleblower website Sarawak Report alleged in April that 1MDB issued false bank statements pertaining to its subsidiary, Brazen Sky Ltd's accounts in BSI Bank in Singapore.Citing information it had received, the website said the bank told MAS the document did not originate from them.
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Dr Mahathir also hit out at the authorities' "refusal" to take action on the police reports lodged over 1MDB's "vanished funds"."Instead, the person who lodges the police report is made a bankrupt, his house is seized and he is investigated for allegedly funding terrorism," said Dr Mahathir, referring to sacked Umno leader Datuk Seri Khairuddin Abu Hassan.He said it was "saddening" that preferential treatment existed in criminal investigations."There are journalists who are arrested under the Sedition Act, only to be released because they have committed no crime. I, too, was often raided by the Inland Revenue department when I owned a medical clinic," said Dr Mahathir.He added that civil servants living beyond their means were often probed, yet no action was taken against ministers and "certain civilians" whose lavish lifestyle was public knowledge."Malaysians are subject to the same laws. There should be no favouritism and discrimination in upholding the law," said Dr Mahathir.Criticism has been mounting over the Finance Ministry wholly owned investment vehicle, established in 2009, which has chalked up debts of up to RM42 billion, backed by Putrajaya.The Auditor-General is currently looking through 1MDB's books, with a preliminary report expected to be submitted to the Parliament in June, while Public Accounts Committee started its investigation into the company on May 19.On another note, Dr Mahathir questioned 1MDB's reason for storing its cash in Singapore instead of bringing it back, and asked if this meant the firm was involved in money laundering.According to him, the other possible reason why 1MDB claimed it was storing the funds in Singapore was because the US$1.1 billion (RM4 billion) previously invested in Cayman Islands was already gone."The question is, was 1MDB with the knowledge of its adviser involved in money laundering, until its money from the Cayman Islands needs to be stored in Singapore?" Dr Mahathir asked."Or is it because there is no cash at all stored there, that the US$1 billion is gone?"Dr Mahathir also warned that the Monetary Authority of Singapore would scrutinise money going in and out of the country for money laundering.On May 21, Putrajaya admitted that the US$1.103 billion redeemed from 1MDB's Cayman Islands account had been mistakenly described as "cash" instead of just assets by the investment firm.Explaining the matter, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah confirmed his ministry's clarification that the redemption, now parked in Singapore's BSI Bank, is in the form of "units" and not US dollars as previously claimed by 1MDB CEO Arul Kanda Kandasamy.He said that Putrajaya is also working to repatriate all its assets currently being kept in the bank in question.Stay up-to-date by following Daily Express’s Telegram channel.
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