PKR has shown documents that a unit under the Prime Minister's Office, under then premier Dr Mahathir Mohamad, had prepared for a US$60 million loan from the World Bank.

NONE According to the publicly available World Bank document dated March 3, 1999, the Economic Planning Unit had prepared for the social-sector loan as early as July 26, 1998.

Revealing this at a press conference at PKR headquarters today, party chief of strategy Rafizi Ramli (right) said this is proof that Mahathir had lied when he said he had rejected any financial assistance from the bank.

"The agreement was signed by the government, whose prime minister and finance minister at the time was Mahathir, at a time when (PKR de facto leader and former deputy prime minister and finance minister) Anwar Ibrahim was in jail with a bad back and a black eye. His involvement would have been impossible," he said.

"It would have been impossible for the EPU to make an application for a loan without Mahathir's instruction. While (Mahathir) was attacking Anwar and calling him a foreign agent, he (was) quietly (asking for) money from the World Bank.”

azlan Mahathir had challenged Anwar to swear on the Quran to prove that he (Dr M) had asked the World Bank for money during the 1998 financial crisis,

According to a document, the loan was preceded by six months of preparation with the appraisal mission departing on Nov 30, 1998 and negotiations kicking off on Jan 2, 1999. The loan came into effect on May 30, 1999.

Bailout of son?

PKR also produced other documents which showed that initial preparations for loans, amounting to about US$700 million in total, had taken place in October 1998.

Rafizi said Mahathir should instead be focusing on whether or not taxpayers’ money had been used “to bail out his son's company”.

"At his age, he should focus on cleaning up his image by explaining his role in the bailout of his son Mirzan's company in 1998.

"How (is it that) Mirzan, who was almost bankrupt, now has so much money that the company he is involved in can buy over Philippines liquor conglomerate San Miguel?”

                                               

The company is taking over oil and gas downstream businesses in Malaysia, he added.

Dr M again denies having sought World Bank funds