Prime Minister Dr Mahathir Mohamad has confirmed the government will set up a Royal Commission of Inquiry (RCI) to probe claims of judicial misconduct revealed by Court of Appeal judge Hamid Sultan Abu Backer.

"We are setting up an RCI and it is up to them to look into the allegations made by the judge," he told reporters today.

However, he said the terms of reference for the RCI have yet to be decided.

Yesterday, Malaysiakini quoted high-level government sources as saying that the cabinet has decided to form the RCI and Mahathir was to make the announcement.

Hamid had made his allegations last week claiming instances of interference and detailed a plot by members of the judiciary to defraud the government.

He had called for an RCI to investigate the matter, and had refused to provide information when approached by Malaysian Anti-Corruption Commission officers.

Instead, he said he would only speak on the matter with members of a special task force that would set up the RCI he demanded.

RCIs are formed by the Yang di-Pertuan Agong in accordance with the Commissions of Enquiry Act.