An inquiry into central bank losses during ex-premier Mahathir Mohamad's tenure aims to hobble and divide his opposition coalition ahead of new polls
As speculation mounts that Malaysia’s parliament could soon be dissolved to pave the way for elections, the findings of a government task force into foreign exchange losses at the national central bank could have seismic ramifications for a political opposition already in disarray.
A Royal Commission of Inquiry (RCI) was formed in July to investigate multi-billion-dollar losses suffered by Bank Negara Malaysia between 1991 and 1993 during the premiership of Mahathir Mohamad, who now spearheads the Pakatan Harapan (PH) opposition alliance against the long-ruling United Malays National Organization (UMNO) party and Barisan Nasional (BN) coalition he formerly led.
Following a nine-day hearing on foreign exchange losses now estimated to stand at 32.1 billion ringgit (US$10.2 billion), the commission recommended that Mahathir and jailed opposition leader Anwar Ibrahim, who served as finance minister from 1991 until 1998, be investigated for a criminal breach of trust.
The RCI’s findings have since been tabled at the country’s parliament but not yet been debated. Police have set up a special investigation team. The report recommends the pair be investigated under Sections 417 or 418 of the penal code, which carry maximum sentences of five and seven years respectively.
While the outcome of the RCI remains to be seen, charges brought against either figure would be widely viewed as a politically motivated attempt to exact revenge on opponents of Prime Minister Najib Razak, whose tenure has been dotted with controversies involving massive graft and money-laundering allegations.
Nile Bowie is a writer and journalist with the Asia Times covering current affairs in Singapore and Malaysia. He can be reached at nilebowie@gmail.com.
As speculation mounts that Malaysia’s parliament could soon be dissolved to pave the way for elections, the findings of a government task force into foreign exchange losses at the national central bank could have seismic ramifications for a political opposition already in disarray.
A Royal Commission of Inquiry (RCI) was formed in July to investigate multi-billion-dollar losses suffered by Bank Negara Malaysia between 1991 and 1993 during the premiership of Mahathir Mohamad, who now spearheads the Pakatan Harapan (PH) opposition alliance against the long-ruling United Malays National Organization (UMNO) party and Barisan Nasional (BN) coalition he formerly led.
Following a nine-day hearing on foreign exchange losses now estimated to stand at 32.1 billion ringgit (US$10.2 billion), the commission recommended that Mahathir and jailed opposition leader Anwar Ibrahim, who served as finance minister from 1991 until 1998, be investigated for a criminal breach of trust.
The RCI’s findings have since been tabled at the country’s parliament but not yet been debated. Police have set up a special investigation team. The report recommends the pair be investigated under Sections 417 or 418 of the penal code, which carry maximum sentences of five and seven years respectively.
While the outcome of the RCI remains to be seen, charges brought against either figure would be widely viewed as a politically motivated attempt to exact revenge on opponents of Prime Minister Najib Razak, whose tenure has been dotted with controversies involving massive graft and money-laundering allegations.
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