Published: Wednesday November 11, 2009 MYT 2:19:00 PM
Updated: Wednesday November 11, 2009 MYT 7:38:29 PM

ACA cleared Anwar over master account allegation (Update 3)

By M. MAGESWARI

mages@thestar.com.my

KUALA LUMPUR: The then Anti-Corruption Agency (ACA) investigations into the allegations that former deputy prime minister Datuk Seri Anwar Ibrahim had masterminded 20 master accounts running into RM3bil showed them to be “baseless and unsustainable.”

Former ACA director of investigations Abdul Razak Idris said this in High Court on Wednesday.

He said the agency initiated investigations under his direct supervision in relation to the allegations contained in a statutory declaration made by former Bank Negara assistant governor Datuk Abdul Murad Khalid in 1999.

Razak was testifying on the first day of hearing of Anwar’s RM100mil defamation suit filed in 2003 against the New Straits Times Press (M) Bhd and its former group editor-in-chief Tan Sri Abdullah Ahmad over an article with the headline “Anwar’s link to US lobbyist” on March 2, 2002.

The article also touched on the allegation by Murad on the financial links between Anwar and the Asia Pacific Policy Centre headed by Douglas H. Paal.

In their statement of defence filed on Feb 5, 2004, the defendants said the article was published on an occasion of qualified privilege.

“The agency investigated the statutory declaration thoroughly, including going to Singapore and to the United Kingdom to obtain evidence,” said Razak during his examination-in-chief by Anwar’s lead counsel Karpal Singh.

“But the investigations resulted in no case against Anwar or anyone pertaining to the allegations. I concluded that all the allegations were baseless and unsustainable and I consequently ordered the investigations closed,” he said.

To a question by Karpal, Razak said the agency had no jurisdiction to go to United States to record statements from a foreigner.

Cross-examined by Nad Segaram on what exactly he was looking for in his investigations, Razak replied: “I was looking for 20 over master accounts which was to run more than RM3bil, masterminded by Anwar.

“It was quite a massive investigation. I can’t tell you in detail.”

Earlier, Anwar, 62, testified that the article had defamed him and exposed him to hatred: “I was made to be seen in the eye of the public as a person of no integrity, moral and dignity.”

Examined by Karpal, the Opposition leader and PKR adviser said the words, among others, had portrayed him as disloyal to Malaysia, dishonest, corrupt and an American agent.

During cross-examination, Anwar denied giving any donations to the Asia Pacific Policy Centre when he was Finance Minister.

The sole defence witness, Datin Rose Ismail, who was then NSTP managing editor, testified that she wrote the article as she felt it was her duty to do so for the benefit of the Malaysian public.

Rose disagreed with Karpal’s suggestion that she was reckless in writing the article without taking steps to check the accuracy of Murad’s allegations.

Judicial Commissioner Harmindar Singh Dhaliwal will hear closing arguments on Thursday.