by Parliamentary Opposition Leader, DAP Secretary-General, MP for Tanjong and Assemblyman for Kampong Kolam, Lim Kit Siang, in Petaling Jaya on Thursday, Jan. 8, 1987:
Call on Bank Negara Governor to explain whether it is true that the Government initiated a $ 300 million plan to bail out the co-operative Central Bank
It is the most regrettable that the Bank Negara Governor, Datuk Jaffar Hussein, has cancelled in the last minute, the appointment to meet DAP MPs today. The appointment was made about two weeks ago, and the reason given was that the Bank Negara Governor would not meet any member of any political party over the co-operative issue.
Various government leaders and departments had been ‘passing the buck’ over the co-operative financial scandal, and now, the Bank Negara’s latest position of not evade public accountability for their actions. Does the Bank Negara Governor not realise that the Prime Minister and Finance Minister are themselves politicians?
As the Bank Governor had to make a last-minute cancellation of the appointment with DAP MPs, I can only conclude two things: Either the Bank Negara Governor had been instructed by the Cabinet not to meet DAP MPs, probably at the instigation of MCA and Gerakan Minister; or the Bank Negara Governor realizes that the Bank Negara’s actions on the co-operative scandal to date is not something he could justify.
I feel sorry for the Bank Negara Governor that he should lack the confidence to meet DAP MPs, as this reflects poorly on the Bank Negara’s handling of the $ 1.5 billion co-operative finance scandal.
From some statements from MCA Ministers and Deputy Ministers, it is clear that they are shifting the whole responsibility to Bank Negara, as if Bank Negara is an independent body separate from the government.
Another reason why Bank Negara Governor has decided to cancel the meeting with DAP MPs is that he must have realized that I will be raising the co-operative Central Bank issue with him. I had spoken a few times in Parliament on the CCB scandal, where about $ 300 million loans had been given out to 20 individuals without proper collateral and which is not being serviced.
I call on Bank Negara Governor, Datuk Jaffar Hussein, to clarify whether the Bank Negara and Government had initiated a $ 300 million plan to rescue the CCB, and if so, why the Government is prepared to commit $ 300 million to bail out CCB but not prepared to come out with $ 600 million to bail out 588,000 depositors.
The CCB Board is being reconstituted under the pressure of Bank Negara, and is to hold its first meeting on Monday on 12th January. The members of CCB as well as the general Malaysian public are entitled to know the government and Bank Negara’s actions on CCB as public money is involved!