Ex-BNM assist governor among 2 Aussie firms & 6 charged with bribery in banknote scandal!

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Ex-BNM assistant governor charged

By LISA GOH and NURBAITI HAMDAN lisagoh@thestar.com.my 

KUALA LUMPUR: Former Bank Negara assistant governor Datuk Mohamad Daud Dol Moin, 58, has claimed trial at a Sessions Court here to two counts of accepting bribes amounting to RM100,000 from a businessman to help procure a contract from the central bank.

The contract was to print RM5 polymer bank notes by Note Printing Australia Ltd.

Dressed in a dark suit, he calmly pleaded not guilty when the charges were read out to him at about 11am yesterday.

He was accused of receiving two bribes of RM50,000 from Abdul Kayum Syed Ahmad at Dome Restaurant, Bangsar Shopping Centre, on Dec 1, 2004, and Feb 16, 2005.

If convicted under Section 11(a) of the Malaysian Anti-Corruption Commission Act, he can be jailed up to 20 years and fined five times the bribe amount, for each charge.

Out on bail: Mohamad Daud (centre) being escorted out of the court Friday. — Bernama

 

According to the Malaysian Anti-Corruption Commission, the contract was worth about RM95mil.
DPP Manoj Kurup prosecuted while lawyers Collin Goonting and J.D. Goonting stood for the accused.
The prosecution suggested a bail of RM100,000, with one surety and the defence lawyers had no objections.

Bail was granted and judge Rosbiahanin Arifin fixed Aug 2 for mention.

Mohamad Daud, who joined Bank Negara in 1975 and retired as the assistant governor on May 1, 2009, was then taken to the Shah Alam court complex for another charge.

In SHAH ALAM, businessman Abdul Kayum claimed trial at the Sessions Court to two counts of bribing Mohamad Daud with RM100,000 as an inducement to secure a contract for the printing of the RM5 polymer notes in December 2004.

Abdul Kayum, 62, pleaded not guilty before judge Asmadi Hussin. He was charged under Section 11 (b) of the Anti-Corruption Act and faces a maximum 20 years' jail and fines five times the bribe amount.

The offences were allegedly committed at the EON Bank, Jalan Taipan in Subang Jaya on Nov 24, 2004 and Feb 15, 2005. He was arrested on July 5 last year.

DPP Manoj offered bail at RM100,000 but defence counsel Gurbachan Singh asked for RM15,000.
He said Abdul Kayum was now unemployed and had a wife and three schoolgoing children.

The court fixed bail at RM50,000 with one surety and set Aug 2 for mention.

Meanwhile Bank Negara has made it clear that it does not condone any misconduct by its employees.
“The central bank upholds the highest standards of integrity and professionalism in carrying out its roles and functions.”

In a statement late yesterday evening, Bank Negara also said it had been cooperating fully with the Malaysian Anti-Corruption Commission and other agencies in their investigations.

Two banknote firms and six ex-employees charged

SYDNEY: Two banknote firms linked to Australia's central bank and six of their former employees were charged with bribing Asian officials to secure contracts to print their currencies.

Australian Federal Police said the charges against the men and currency companies Securency International and Note Printing Australia (NPA), relate to alleged bribes given to officials in Indonesia, Malaysia and Vietnam.

Police said that during the period 1999 to 2005, the senior managers from Securency and NPA were believed to have utilised international sales agents to bribe foreign public officials in order to secure banknote contracts.

The Reserve Bank of Australia (RBA) said it deeply regretted that the governance arrangements and processes in the companies at that time were not able to prevent or detect the alleged behaviour.

Governor Glenn Stevens said controls at both firms had been overhauled since the scandal broke two years ago, adding that all those charged no longer worked with the companies and the use of sales agents had stopped.

Securency, which is partly owned by the RBA and produces polymer banknotes used in more than 30 countries, said it had been charged with three counts of conspiracy to influence foreign officials.

The company said it was cooperating fully with authorities and considering its legal position.

NPA, a wholly owned RBA subsidiary responsible for running the printing works where Australia's banknotes are printed, made no immediate comment.

Police said that, in Indonesia, a foreign official allegedly received a bribe to ensure a joint venture banknote contract for Securency and NPA, while in Malaysia a bribe was allegedly used to win a contract for NPA.
In Vietnam, an official allegedly received a bribe paid in the form of a university scholarship to secure a banknote contract on behalf of Securency.

Police Commander Chris McDevitt said the six Australians charged, aged between 50 and 66, had been chief executives, chief financial officers or sales agents for Securency or NPA. - AFP