RCI chairman Mohd Sidek Hassan said members of the tribunal were appointed by the king.
“We take cognisance that the RCI was constituted by the Yang di-Pertuan Agong and we will continue,” he said.
Sidek said lawyers for concerned parties could be present during the proceedings but any questions raised must be relevant to the terms of reference of the RCI.
Earlier, Dr Mahathir’s lawyer Mohamed Haniff Khatri Abdulla and Sivarasa Rasiah, who appeared for Anwar, informed the tribunal that Sidek and Saw Choo Boon be disqualified as they were also members of a special task force.
The scandal happened during the tenure of Dr Mahathir as prime minister, while Anwar was the finance minister between 1993 and 1998.
Both lawyers said the task force had indicated there was a prima facie case into the foreign exchange losses suffered by the central bank in the 1980s and 1990s.
Sidek, who led the task force, was also reported to have said that its investigation found that the figure was greater than what had been disclosed by Bank Negara.
Haniff said in the interest of justice they should recuse themselves from the RCI.
“You cannot have members playing two roles in the task force and the RCI. There must be public confidence in the tribunal,” he said.
He said the tribunal was set up by the Cabinet led by Prime Minister Najib Razak who had a motive against Dr Mahathir.
Haniff also wanted the RCI to allow lawyers to play an active role in protecting the interests of concerned parties, including that of Dr Mahathir.
Sivarasa said Sidek had proposed the setting up of the RCI as there was a prima facie case into the losses suffered by the bank.
He said his client was also an interested party as he was the finance minister.
Conducting officer Suhaimi Ibrahim said the applications were baseless as the RCI was formed merely to investigate the financial losses.
“The tribunal is on a fact finding mission. It is not a trial where two disputing parties are appearing,” he said.
Suhaimi said the Federal Court had ruled that the findings of a RCI shall not be subjected to judicial review.
“The question of a breach of natural justice does not arise. The proceeding must go on without delay,” he said.
Suhaimi said any questions to be posed to witnesses must be through the RCI chairman.
The Prime Minister’s Office issued a statement on July 18 that the Yang di-Pertuan Agong had consented to the formation of the RCI.
Apart from Sidek and Saw, who is Special Task Force on Facilitating Business co-chairman, others in the tribunal are High Court judge Kamaludin Md Said, Bursa Malaysia Berhad chief executive officer Tajuddin Atan, and member of the Malaysian Institute of Accountants and the Malaysian Institute of Certified Public Accountants, Pushpanathan S A Kanagarayar.
The RCI’s scope of inquiry is to:
- Determine the authenticity of the allegation on the foreign exchange losses suffered by Bank Negara Malaysia (BNM) in the 1990s and its implications on the national economy;
- Determine whether BNM’s involvement in the foreign exchange activities which caused the losses contradicted with the Central Bank Ordinance 1958 or any relevant laws;
- Determine whether there were elements of hidden facts and information relating to foreign exchange losses suffered by BNM and misleading statements given to the cabinet, parliament and the public;
- Recommend suitable actions to be the taken against those found to be directly and/or indirectly involved in causing the losses and hiding the facts and information on the losses, and;
- Recommend appropriate measures to ensure the incident will not recur.
Sidek announced hearings would be held on a staggered basis from Aug 21 to Sept 21.
Haniff later told reporters he had instructions to file a judicial review to challenge the composition of the tribunal. Sivarasa said he would take instructions from his client on this development.