Mahathir outlines differences between BMF, 1MDB scandals

Former premier Dr Mahathir Mohamad has outlined the differences between the BMF scandal during his tenure, and the current 1MDB imbroglio.

In a blog post, he said the BMF issue did not involve allegations of direct impropriety by the government in power.

“In contrast, the 1MDB issue is directly linked to impropriety by the present government.

“The BMF issue was not directly linked to me as the prime minister then. Whereas, the 1MDB issue is directly linked to Najib (Abdul) Razak, the prime minister now. He is in fact at the centre of the scandal,” he added.

Mahathir said he pointed out the clear distinctions between the two in order to put the point across that he did not have a 1MDB-like scandal when he was prime minister.

Najib, on the other hand, has denied abusing public funds for personal gain and blamed such allegations on Mahathir and those whom he accused of conspiring to topple him from power for their respective political agendas.

On the BMF issue, Mahathir said that the Central Intelligence Agency (CIA) report was by a US agency, and was not a specific report or finding by the US on the BMF issue.

In contrast, he noted that on the 1MDB issue, the US Department of Justice (DOJ) released the necessary report as contained in the cause papers filed in a court of law in California, with specific findings linking the 1MDB issue to Malaysian Official 1 (MO1).

Minister in the Prime Minister's Department Abdul Rahman Dahlan had confirmed that MO1 was Najib, but argued that since he was not named, therefore Najib was not being investigated.

Special investigation committee

Meanwhile, Mahathir also recounted that a special investigation committee was formed on BMF and its report was made public.

“In contrast, on the 1MDB issue, Najib's government is yet to set up any proper independent investigation committee, free of its control. Even the existing auditor-general's report on 1MDB has not been made public and has been put under OSA (Official Secrets Act),” he added.

The BMF issue, said the former premier, resulted in various actions taken both in Hong Kong and Malaysia, against several individuals involved.

However, he noted that in the 1MDB issue, the necessary authorities such as the police, have yet to conclude their investigations despite international counterparts in the US, Switzerland and Singapore having done so to the extend of charging individuals in court.

“But, the Malaysian Anti-Corruption Commission (MACC) investigation papers have been dismissed by the new attorney-general who himself was appointed in place of the previous attorney-general who was removed, allegedly for health reasons but without a report by a Medical Board,” he added.

Mahathir also claimed that the outcome of the BMF issue was generally received well by the society, including the opposition and other political groups.

To lend credence to his argument, the former premier cited an article in The New York Times published on Jan 8, 1985, titled “Malaysia discloses details of bank scandal”.

“On the 1MDB issue, the attorney-general actually stopped further investigations, which he is not empowered to do. The opposition parties are not satisfied with the outcome of the scandal involving 1MDB,” he added.

As for the declassified CIA report, which mentioned the BMF scandal, Mahathir said the report had acknowledged that the then prime minister was not directly linked to the issue.

He quoted Page 4 of the report, where purportedly under the sub-heading “Assessing the Political Damage”, it was stated: “Thus far no direct links have been established between Mahathir and the corruption at BMF…”

'There was no cover up'

Mahathir claimed the CIA report also mentioned that as early as July 1983, he had expressed his view that BMF's handling of its financial lending was imprudent, and that he had also pledged action to be taken upon investigations.

“This was in spite of the fact that the BMF issue related to the affairs of a bank, and not the government per se,” he said, adding that the abovementioned part was on page 7 of the CIA report.

Apart from this, Mahathir said the report also noted that a committee was set up to look into the BMF issue.

“Records show that the special investigation committee, headed by Ahmad Nordin (then auditor-general) had forwarded the necessary recommendations for further action.

“There was no cover up of that report. It was made public. It was certainly not put under OSA. The release of that report to public, is also acknowledged by that CIA report at page 2 in para 4.

“In fact, that report had prompted the police to carry out the necessary investigation into the recommendations of that special investigation committee.

“There certainly was no cover up in any way. Whether the necessary authorities brought any party to the courts is for them to answer. The government carried out its duty as properly as it was required to do in the circumstances then,” he added.

Yesterday, Communications and Multimedia Minister Salleh Said Keruak criticised Mahathir for claiming that the declassification of the CIA report was politically motivated.- Mkini