FOREX RCI | Former premier Dr Mahathir Mohamad has defended his then deputy Anwar Ibrahim in the latter's reporting to the Cabinet on the losses incurred by Bank Negara Malaysia in foreign exchange in the early 1990s.

Mahathir was responding to Anwar who, while testifying earlier today before the Royal Commission of Inquiry (RCI) tasked to probe the losses, got into a heated exchange with its chairperson Mohd Sidek Hassan.

Sidek had said that Anwar did not inform the Cabinet about the actual losses incurred then.

Mahathir, however, said Anwar had reported the RM5.7 billion figure per Bank Negara's audited report.

"That was the figure in the report. You can't expect him to question, saying he thinks someone had stolen money.

"He just made a statement based on the audited report," said Mahathir.

Mahathir was present to observe today's proceedings and had left an hour and a half into Anwar's testimony.

Anwar, earlier today, had insisted that he had informed the cabinet then of the losses.

Sidek, however, said that the cabinet was not informed of the actual figure and was instead only informed about the RM5.7 billion loss.

Sidek said Anwar was aware of the loss in 1992 but members of the cabinet were not privy of a letter written by then auditor-general Ishak Tadin about the losses.

Anwar had said that he had informed the cabinet that there were exposed positions amounting to RM9.3 billion.

In his explanation, Anwar said he had instructed the treasury to study the matter following Ishak's letter and said that the auditor-general had then agreed that the losses were to be moved to the external reserves.