Kit Siang demands an RCI on the Bank Negara Forex losses
“If Pakatan Rakyat forms the federal government in the next general election, there should be a Royal Commission of Inquiry into the RM30 billion Bank Negara forex losses scandal in 1992, as well as into all the other financial scandals during Mahathir’s 22-year premiership. Barry Wain, in his book “Malaysian Maverick”, estimates that Malaysia lost RM100 billion just in four financial scandals during Mahathir’s premiership,” said Lim Kit Siang.
THE CORRIDORS OF POWER
Raja Petra Kamarudin
“If Pakatan Rakyat forms the federal government in the next general election, there should be a Royal Commission of Inquiry into the RM30 billion Bank Negara forex losses scandal in 1992, as well as into all the other financial scandals during Mahathir’s 22-year premiership. Barry Wain, in his book “Malaysian Maverick”, estimates that Malaysia lost RM100 billion just in four financial scandals during Mahathir’s premiership. But this is what Mahathir does not want and most afraid of.”
“I am not suggesting that Mahathir should face jail sentences for the financial scandals in his 22-year premiership, but at minimum, Malaysians are entitled to know the truth about these financial scandals, which would serve as painful national lessons to prevent their recurrence. But clearly, this is what Mahathir would not want and would do his utmost to prevent, including outclassing himself in the wild and preposterous statements about Pakatan Rakyat in the run-up to the next general election.” – Lim Kit Siang (3rd June 2012)
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The Bank Negara forex losses in the past two years are equal to about eight Bumiputra Malaysia Finance scandal losses
Speech by Parliamentary Opposition Leader, DAP Secretary-General and MP for Tanjung, Lim Kit Siang, at the DAP Seremban Ceramah held at CRC Hall, Seremban on Sunday, 3rd April 1994 at 8pm
The government and country must take a very serious view of the Bank Negara forex losses ranging from RM16 billion to RM20 billion in the past two years, as they amount to about eight Bumiputra Malaysia Finance (BMF) scandal losses.
The Bank Negara Governor, Tan Sri Jaffar Hussein, has taken the proper and honorable step to resign to accept full responsibility for the Bank Negara forex losses, but no ‘lesson’ would be learnt from the colossal Bank Negara forex losses unless there is a full investigation into the causes and circumstances of the losses as well as the full chain of accountability of all those who must bear responsibility- including the Finance Minister, Datuk Seri Anwar Ibrahim himself.
Parliament and the nation have the right to know what actually went wrong with the management of Bank Negara and the overall supervision by the Finance Minister to allow the Bank Negara to commit colossal foreign exchange losses ranging from RM16 billion to RM20 billion in the past two years.
UMNO Youth leader and Malacca Chief Minister, Tan Sri Abdul Rahim Tamby Cik, said that Bank Negara’s RM5.7 billion forex losses last year was caused by managerial errors of judgment and has nothing to do with the Finance Minister, Datuk Seri Anwar Ibrahim.
Call on Anwar Ibrahim to declare whether he agrees with Rahim Tamby Cik that as Finance Minister, he should not be held responsible for the Bank Negara forex losses.
I call on Anwar Ibrahim to publicly state whether he agrees with Rahim Tamby Cik, that as Finance Minister, he should not be held responsible for the Bank Negara forex losses.
I am not very sure that I can agree with this position as after the public uproar over the 1992 Bank Negara forex losses, which ranged from RM10.1 billion to RM14 billion, Anwar Ibrahim gave an undertaking in Parliament during the emergency DAP debate last April that he would be calling up weekly reports from Bank Negara on its forex dealings.
In his reply on my motion on the Bank Negara forex losses last year, Anwar declared that the RM2.7 billion contingent liability for 1993 provided in the 1992 Bank Negara Report did not mean that the bank would lose this amount in forward foreign exchange commitments, and that Bank Negara might end with a gain or a neutral position.
It is now clear that this RM2.7 billion contingent liability for 1993 has not only been confirmed, but that even bigger forex losses had been suffered in 1993, amounting to RM5.7 billion. Furthermore, there is in another contingent liability of RM 1.4 billion for next year- which means Bank Negara can suffer another RM1.4 billion forex losses apart from the forex losses in 1992 and 1993.
If for the past year, Anwar Ibrahim had been calling up weekly reports from Bank Negara with regard to its foreign exchange dealings, can Rahim Tamby Cik claim that the Finance Minister need bear no responsibility for the RM5.7 billion forex losses for 1993 and another RM1.4 billion forex losses for nest year?
The Bank Negara forex losses will also be a test case of the meaning of accountability, in particularly Ministerial accountability and responsibility, and this is why the Government should agree to a full parliamentary debate on the Bank Negara forex losses nest week.
If there is any Chief Minister of Mentri Besar who should be subject to an adult of his integrity, Rahim Tamby Cik should take the lead
Rahim Tamby Cik is not the greatest champion of accountability in Malaysia.
The Prime Minister, Datuk Seri Dr, Mahathir Mohamad, announced in Sabah yesterday that an audit would be carried out on the past Parti Bersatu Sabah government and directed all Ministers and Assistant Ministers of the new Sabah Barisan Nasional Government to declare their asstes to him.
There should not only be an audit of the PBS Sabah Government, but also an audit to all Barisan Nasional State Governments as well.
Rahim, for instance, has still to explain his enormous wealth and assets which are disproportionate to his known sources of income.
If there is any Chief Minister or Menteri Besar who should be subject to an audit of integrity, Rahim should take the lead.
