Bank Negara’s loud and ominous silence over the RM32 million Bank Rakyat loan scandal echoes the Prime Minister’s lack of commitment to principles of accountability and integrity necessary towards establishing a sound financial system. The United Nations Institute for Training and Research had described a “sound financial management” as the aggregate set of practices and procedures which allow for the accurate, transparent, and effective handling of all government monies and government contracts.
Clearly both Prime Minister Datuk Seri Najib Tun Razak and Bank Negara have failed miserably, if this test of a sound financial system is applied by their refusal to come clean on the RM 32 million Bank Rakyat loan scandal exposed by former UMNO Minister and ex-Bank Rakyat Chairman Tan Sri Sababaruddin Chik in “The Malaysian Insider”. Sabbaruddin continued to reiterate that the Board of Directors of Bank Rakyat had initially rejected the easy repayment option over 10 years, without any interest on a RM32 million loan, to businessman Deepak Jaikishan.
However Bank Rakyat was forced to accept the repayment of the RM32 million loan in 120 post-dated cheques to be cashed in by the bank over a 10-year period, without any interest following the political interference of Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hasan Malek. Sabbaruddin is correct to say that ten years to pay off a debt without interest, means that Bank Rakyat will be the big loser in the end.
Is this easy repayment option without interest available to other ordinary Malaysian who borrow from banks? Would Hasan Malek apply political interference on behalf of ordinary borrowers to allow repayments without interest over a 10 year period?
This is a clear abuse of power and possible corrupt practice when a Minister refuses to sign the letter to extend Sabbaruddin’s tenure as Bank Rakyat Chairman after April 8 this year, because of Sabbaruddin’s opposition to the RM32 million easy repayment without interest scheme. Bank Negara should launch a full investigation to protect is credibility and integrity as a professional regulator for public interest, not for the private and political interest of cronies and BN leaders.
Bank Negara should also come clean and fully account for any other similar sweetheart deals of giving mega-loans to VIPs of dubious financial standing. Failure to do so would only lend suspicion that BN leaders are running the country not for public good but for the private benefit of their cronies. Further it would also compromise Bank Negara’s international reputation of ensuring a sound financial system when loans can be given out based solely on political patronage and pay-offs.