Anwar, Sidek get into heated debate on actual losses suffered

FOREX RCI | PKR de facto leader Anwar Ibrahim and Mohd Sidek Hassan, the chairperson of the Royal Commission of Inquiry (RCI) probing the foreign exchange losses incurred by Bank Negara, got into a heated exchange after the latter insisted that Anwar had known about the actual losses incurred by the central bank and did not inform the cabinet then.

Testifying as the 21st witness before the RCI today, PKR de facto leader Anwar Ibrahim insisted that he had informed the cabinet then of the losses.

Sidek, however, said that the cabinet was not informed of the actual figure and was instead only informed about the RM5.7 billion loss.

"You were aware of the loss in 1992 but members of the cabinet were not privy of the letter," said Sidek in reference to a letter written by then auditor-general Ishak Tadin about the losses.

Sidek insisted that the losses were not explained to the cabinet and that Anwar had decided to disclose a different figure.

Anwar, however, said the figure he explained to the cabinet was based on discussions with Bank Negara.

"We mentioned what was explained by the central bank, included paper loss, forward positions.

To this, Sidek said that they were "not talking about numbers".

"You were managing the economy. What you're talking now is about the treatment.

"You knew it! But you chose not to inform the cabinet," exclaimed Sidek.

To this, Anwar said that Sidek was "insinuating".

"This is not a court of law... Don't politicise it," Anwar told Sidek.

Sidek, however, insisted that he was not politicising the matter, adding that he used to be a civil servant.

Anwar also said that he had informed the cabinet that there were exposed positions amounting to RM9.3 billion.

In his explanation, Anwar said he had instructed the treasury to study the matter following Ishak's letter and said that the auditor-general had then agreed that the losses were to be moved to the external reserves.

"I'm saying I'm duty bound to go by the books. For you to accuse I misled Parliament, it's unfair," Anwar insisted.

RCI member Saw Choo Boon, meanwhile, pointed out that the audited figure of RM5.7 billion was as such as Bank Negara no longer had the capacity to absorb it in its reserves.

"The only way to treat it is to put it as a deferred expenditure under asset in Bank Negara's annual report," said Saw.

Anwar had earlier recounted a statement made on September 21, 2012, in Parliament by then deputy finance minister, that the losses were RM5.7 billion.

"In 2012, officially it was still RM5.7 billion like what was said by then finance minister in 1994, Anwar Ibrahim, that is," said Anwar, to laughter from those present in the court room.

He also stressed that the figure was verified by the then auditor general.

"I cannot use assumptions. I can only explain to Parliament based on audited accounts."

Anwar later said that he did not want to argue with Sidek on the actual losses, stating that the matter was overtaken by events.

To this, Sidek insisted that the issue was not overtaken by events.

"I'm sure you are smarter than that," Sidek quipped, to Anwar who shot back with: "Are you suggesting the auditor-general was complicit in crime?"

Questioned later by former premier Dr Mahathir Mohamad's counsel Mohamed Haniff Khatri Abdulla, whether cabinet members including Prime Minister Najib Abdul Razak, then, were misled, Anwar said no one had asked for an explanation.

"Even though it was a paper loss, if the minister was not stupid, he would have understood," added Anwar.

Meanwhile, Anwar said Mahathir did not give any instruction whether to proceed with forex trading or otherwise.

This is after Anwar and former deputy secretary-general with the finance ministry Clifford Francis Herbert briefed Mahathir about the losses.

Herbert had testified that Mahathir had purportedly seemed indifferent when he was informed about the foreign exchange losses incurred by Bank Negara which Herbert claimed amounted to RM30 billion. -Mkini