KL's central bank to open inquiry

KL's central bank to open inquiry

KUALA LUMPUR (Reuters): Malaysia's central bank will investigate its officers after a former senior official said he cooperated with ex-finance minister Anwar Ibrahim in setting up political slush funds, finance minister Daim Zainuddin said.

Daim was quoted by the Star newspaper on Sunday as saying Bank Negara would investigate its own officers following the allegations on Thursday by former assistant governor Abdul Murad Khalid. They were denied by Anwar.

Murad said he had cooperated with Anwar, who he said had kept "master accounts" worth up to 3 billion ringgit ($790 million) to fund the ex-minister's political campaign and settle allies' debts.

Murad said he had been involved in payments of more than 120 million ringgit to Anwar, his allies and organizations.