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PKR de facto leader Datuk Seri Anwar Ibrahim said he chose to cooperate with the special task force investigating Bank Negara Malaysia’s foreign exchange losses suffered in the 1990s as he was pleased with its chairman Tan Sri Mohd Sidek Hassan and his committee.
In a statement yesterday, the former deputy prime minister said he had during the hearing last Thursday explained:
► The moment he assumed the position as finance minister, the Treasury’s chief secretary Tan Sri Zain Azraai Zainal Abidin raised matters concerning forex trading by BNM.
“Since 1989, the American Treasury, Bank of England and International Monetary Fund had raised their concerns on BNM’s role in such trading,” Anwar said.
► During a briefing, former BNM governor Tan Sri Jaafar Hussein stressed the central bank’s role was valid and it was to strenghten the ringgit’s position in the market.
► Problems began to arise towards the end of 1991 and beginning of 1992 when it was reported there were problems in the Zurich market.
The matter, Anwar said, was raised with Jaafar, but Jaafar reiterated his earlier stand and said the managing director of BNM was Tan Sri Nor Mohamed Yakcop.
Anwar said:
► When a 1991 BNM draft audit was presented, the Treasury had raised its concerns.
► Jaafar admitted the total amount was more than expected.
“Given the fact that I and the Finance Ministry were not informed about the matter, the governor explained to the press that it was a “paper loss”.
“I had to face questions in Parliament on the matter by then opposition leader Lim Kit Siang. The government reiterated BNM’s explanation but I stressed I had ordered BNM to stop the forex trading.
► Trading continued up to 1993 and by then losses were estimated to be between RM9 billion and RM10 billion.
“Jaafar then confessed that Nor Mohamed had not given an accurate report to him and he had accepted Nor Mohamed’s resignation as the person responsible. Jaafar also took full responsibility, although I believe he was ill-informed by Nor Mohamed.”
► Tan Sri Ahmad Don who took over as BNM governor in 1994, stopped the forex trading.
“The final loss estimated to be between RM15 billion and RM30 billion was dependent on how BNM audited and recorded cuts in contingency fund, reserve fund, insurance fund and inflation cost to defend the ringgit.
“After I was jailed in September 1998, Nor Mohamed was appointed as the prime minister’s economic adviser and later finance minister II in 2008. This despite the Finance Ministry setting conditions that he cannot be involved in any financial institutions.
“During the meeting with this special forex committee, I have asked for proper documentation and reports to be supplied to ensure the hearing went on well.
“My recommendations have not been heeded and while I commend the chairman of the committee to allow my lawyer R. Sivarasa to sit in during the hearing, this decision has been set aside by an officer of the ministry.”
Source : @ Malay Mail Online
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