Malaysian Government must institute its own inquiry into the allegation of payment of US$10,000 in gold coins to a Malaysian Minister to direct bullion trades in Malaysia

by Parliamentary Opposition Leader, DAP Secretary-General and MP for Tanjung, Lim Kit Siang, in Petaling Jaya on Wednesday, July 20, 1994:

Malaysian Government must institute its own inquiry into the allegation of payment of US$10,000 in gold coins to a Malaysian Minister to direct bullion trades in Malaysia

Prime Minister, Datuk Seri Sr. Mahathir Mohamed, said yesterday that Standard Chartered Plc in the United Kingdom can investigate allegations of payment of US$10,000 in gold coins to a Malaysian Minister and that the Malaysian Government would await the outcome of the investigation before making any further comment.

The Malaysian Government must institute its own inquiry into the allegation of the payment of US$10,000 in gold coins to a Malaysian Minister to direct bullion trades in Malaysia – and not just await investigations by Standard Chartered Plc.

As the bullion trade is under the direct responsibility of Bank Negara, such an investigation should also be extended to inquire into all bullion transactions by Bank Negara.

If any Minister is implicated in the allegation, it is the Finance Minister – whether the present Finance Minister, Datuk Seri Anwar Ibrahim or his predecessor, Tun Daim Zainuddin.

Both Anwar Ibrahim and Tun Daim Zainuddin should therefore make statements to clear the air with regard to the allegation of missing gold coins.

Reuter had reported from London on Monday that two executives at Standard Chartered Plc’s Mocatta bullion division had resigned as a result of the bank uncovering payments offered to officials in Kuala Lumpur and Manila to direct bullion trades via Mocatta.

Yesterday, Standard Chartered Bank Malaysia said in a statement that Standard Chartered Plc’s new management team appointed in the first half of 1993 identified a small number of unusual transactions in Mocatta, Hong Kong.

It said that subsequent investigations revealed discrepancies, in expense claims – and the reasons given for the expenses included gifts to individuals in certain countries to facilitate business, “a practice contrary to bank rules and procedures”.

An AFP report on the missing gold coins quoted the London Financial Times as saying they were given to an unnamed Minister in Malaysia as a “trade sample”.