LIVE REPORT | Former prime minister Dr Mahathir Mohamad is set to testify before the royal commission of inquiry (RCI) into billions of ringgit in losses incurred by Bank Negara Malaysia in foreign exchange decades ago.
Coming before him in the proceedings today was his former finance minister Daim Zainuddin, who is testifying as the 23rd witness.
Malaysiakini brings you the live updates from the hearing as it proceeds.
3.50pm: Speaking to reporters later, Mahathir is asked whether he agrees that Najib should be called to appear before the RCI as he was part of the Cabinet then.
"He should, he should! He should explain why he didn't raise this question, he's only raising it now.
"Before that, there was no mention about this. He was smiling and approving all the things," says Mahathir.
3.40pm: Hearing is postponed and will reconvene tomorrow.
3.30pm: Gurdial asks Mahathir about the call by DAP supremo Lim Kit Siang – then opposition leader – for an RCI to be formed in 1993 to probe into forex losses.
Mahathir admits that the Cabinet had discussed and rejected the suggestion.
3.15pm: Sidek claims that Anwar had known about the actual losses then.
"Had you known about it, would you have agreed with Anwar about not informing it to the cabinet?"
Mahathir, however, says that the question was hypothetical as he did not know about it.
Countering Sidek, Haniff points out that Anwar had disagreed that he had known about the actual losses. But Sidek insists that Anwar knew about it.
"The fact is he knew the actual losses...He was given those documents."
Conducting officer Julia Ibrahim then says that a document had shown Anwar taking note of losses amounting to RM15 billion.
To this, Sidek promptly says that he rests his case, followed by Haniff who says the same thing too.
3pm: Noting how Mahathir, in his time as prime minister, was observant of even the most minute detail of his administration, Suhaimi says he could not understand why Mahathir did not seem to care about the forex losses.
Mahathir says, however, that he had overlooked many things during his time as premier.
"Among them is choosing the wrong person," says Mahathir who did not specify whom he meant.
As his lawyer Haniff starts to interject, Sidek told him off for doing so.
"I know you are a protective counsel, but you cannot act like you're the chairman."
Haniff, however, says he has no wish to take over Sidek's role.
"I know, but you cannot be interjecting everyone.
"I wish to employ you as my lawyer," Sidek finally quips, after Haniff decided to interject again, to laughter from those present in the court room.
Meanwhile, Kamaluddin asks Mahathir whether the finance minister then was wrongly appointed or otherwise. Mahathir, however, does not give a direct answer.
"The finance minister left Umno, I couldn't forecast that. Everything looked good, what he wanted to do, I couldn't predict," says Mahathir.
2.50pm: Suhaimi cites a 2012 report in (now defunct) The Malaysian Insider which quoted Anwar as saying that Mahathir had purportedly said not to touch former Bank Negara advisor Nor Mohamed Yakcop, in light of the forex losses.
Anwar's lawyer Gurdial Singh Nijar (photo) objects to this, pointing out that the article in question was never put to Anwar.
"The conducting officer as a lawyer knows, if he wants to attribute he must refer the document to Anwar.
"Justice cannot be served by ambush," stressed Gurdial.
To this, Suhaimi says they will be recalling Anwar.
Mahathir's lawyer Mohamed Haniff Khatri Abdulla says the RCI must first recall Anwar and verify what he had said.
Defending himself, Suhaimi points out that this is not a court of law and that he can put anything before a witness.
"I agree that it's not the court of law, (but you) have to be fair, when Anwar was here you hid it (the article). We don't know whether Anwar said this or not," Gurdial counters.
2.25pm: Conducting officer Suhaimi Ibrahim says he had expected that Mahathir would have been more concerned about what was happening in relation to the forex losses then.
Mahathir says that the foreign press was never friendly during his time as prime minister.
"They always criticised me, so I never take heed of their reports. I prioritised reports by my officers."
When asked whether he had depended on the then finance minister, Mahathir says that he had depended on officers responsible, which included the finance minister and the governor.
Asked later whether he had sanctioned Bank Negara's decision to go actively into forex trading, Mahathir says there was no need to do so as Bank Negara had "full authority."
Suhaimi: What about the finance minister?
Mahathir: Finance minister, maybe, but I wasn't the finance minister.
1.10pm: Hearing is adjourned and will continue at 2.15pm.
12.50pm: Mahathir takes a swipe at Prime Minister Najib Abdul Razak, claiming that the formation of the RCI is to pressure him, Anwar Ibrahim and critics of the 1MDB scandal.
"In other words, the government is trying to deflect the rakyat's attention from the negative image faced by Najib's kleptocratic leadership which has become a laughing stock in the whole world."
Mahathir says his claim is based on chronological facts which had served as a basis for asking the Yang di-Pertuan Agong to form the RCI.
12.35pm: Mahathir responds to former deputy secretary-general with the finance ministry, Clifford Francis Herbert, who had claimed that Mahathir said "sometimes we make profits, sometimes we make losses" when purportedly informed about the forex losses.
"Although I can't remember whether I said that or that I said 'sometimes we make or lose', I don't think it's strange if I said that because, in the 1980s, Jaffar informed me that forex trading during the time had helped in balancing the country's reserves."
Mahathir, however, claims that he was not explicitly informed about the RM30 billion losses.
"What is sure, if I had said that, this has convinced me that RM30 billion was not mentioned to me.
"If that was mentioned, it's impossible for me to have said that," he says.
12.20pm: Mahathir admits that he was once invited by Jaffar to Bank Negara's trading room in the late 1980s.
"During my time as prime minister, I went there only once because Jaffar wanted to show the forex trading room.
"I was only there for half an hour. I was there to fulfill his invitation.
Citing a meeting with Jaffar, Mahathir says he was informed verbally by the then governor that Bank Negara could strengthen the country's reserves and currency through forex trading.
Jaffar's decision to go actively into forex trading, says Mahathir, was not made to his knowledge.
12.15pm: Mahathir takes the stand.
Reading his witness statement, Mahathir states that Bank Negara had operated independently as a body created under the Central Bank of Malaysia Ordinance and had its own structure and was led by the governor.
"The governor had the duty to report Bank Negara's activities from time to time to the board of directors.
"As prime minister, I was never involved in Bank Negara's administration and I believe that I was not permitted under the law to get involved in its policies and affairs."
Mahathir, however, says this does not mean that the governor, then, never talked about Bank Negara in general terms.
"But all discussions were just normal ones without details in relation to Bank Negara's specific activities," he says.
11am: Daim insists he would have stopped the central bank's forex activities if he had known about the losses incurred.
Sidek, earlier, cites former auditor with the Auditor-General's Office P Kanason who questioned the legality of the central bank's forex activities.
"Kanason took the trouble, he took his responsibility seriously....Kanason who was so small in the scheme of things.
"You, (then a) minister, so good, (but) didn't know. I find that very odd."
Daim, however, argues that he could not agree as he "did not know anything", to which Sidek (photo) retorts back with "but everyone knew!"
To this, Daim says he would have stopped the forex activities if he had known.
"If I knew, I would have stopped it, no way I would have allowed this to happen. I would have sacked (those responsible)," he stresses.
10.40am: Daim insists that Bank Negara was independent, and he was thus not informed much about its dealings.
RCI chairperson Mohd Sidek Hassan, however, says that although the central bank is independent, it is required by the law to keep the minister in charge informed.
"But that is on their part, not my part to do so," Daim argued.
Citing his time as former chief secretary to the government, Sidek agrees that he did not expect to know everything.
"But those (things) that affect and impact the nation, I expect to be informed. If they choose not to inform, what can I do, but if they are written in the papers?"
Daim, however, insists that there was no market talk on the matter at the time.
Meanwhile, panel member Tajuddin Atan points out that Daim must have realised the trend and changes in relation to forex trading.
"You say you got no knowledge, does that mean that the governor's direct Iine of reporting goes above you, to the prime minister?"
Daim, however, says that that would have been insubordination on the part of the central bank.
10:38am: Former deputy prime minister Muhyiddin Yassin arrives at the Palace of Justice and quickly makes his way into the courtroom.
Mahathir arrives five minutes later, and he is directed straight to the witness holding room.
10.20am: Daim, who was Anwar's predecessor and finance minister from 1984 to 1991, says Bank Negara started becoming active in forex trading in 1988.
Daim also confirms he never discussed the central bank's forex activities with the then prime minister.
Jaffar, he says, never discussed in detail with him about the forex dealings.
9.30am: Othman says a meeting held in November 1994 attended by then Bank Negara deputy governor Treasury secretary-general Clifford Herbert, (Othman says he could not recall who was then the deputy governor), and former Bank Negara assistant governor Abdul Murad Khalid, decided the sale of government-owned shares were to be done "secara senyap-senyap" (discreetly).
Othman (photo) and panel member Kamaluddin Md Said get into a heated exchange after the latter prodded him about the decision that was purportedly made discreetly.
Kamaluddin: So the decision was made discreetly?
Othman: Maybe, from the discussion held at the time.
Kamaluddin: I'm not interested to hear about maybes.
Othman: But I'm basing this on my memory.
Kamaluddin: This is whether you know or not.
Othman: It's just based on my memory.
When Othman says he is unsure about the details related to then Bank Negara governor Jaffar Hussein's appointment as governor, Kamaluddin raises his voice and says that Othman should have known this.
Othman, however, retorts by saying he cannot remember everything that had happened decades ago.
9am: The RCI opens with former deputy secretary of the finance department in the Ministry of Finance Othman Jusoh. He is the 22nd witness.
Daim, who was Mahathir's finance minister during the material period, comes next.
Mahathir has not arrived at the complex, and is scheduled to testify at 11am.
The Pakatan Harapan chairperson is scheduled to be the 24th witness, after the 21st witness Harapan de facto leader Anwar Ibrahim testified on Sept 7.
Mahathir's lawyer Mohamed Haniff Khatri Abdulla last week confirmed his client would be testifying today. Haniff accepted Mahathir's subpoena on Tuesday.
Mahathir had his witness statement recorded by four police personnel appointed by the RCI on Friday.
The former prime minister had been present as an observer twice during the proceedings.
Proceedings thus far have seen most of the witnesses stating they did not discuss the forex losses with Mahathir.
Testifying before the RCI, former Bank Negara advisor Nor Mohamed Yakcop stated he never discussed the forex transactions from 1986 to 1993 with both Mahathir and Anwar.
A former forex dealer with the central bank also stated Mahathir never entered Bank Negara's forex dealing room.
The forex scandal occurred between the late 1980s and early 1990s when Mahathir was prime minister.
Certain quarters have accused Prime Minister Najib Abdul Razak of taking political revenge against his nemesis and deflecting attention from the 1MDB scandal.
