An open letter to BNM Governors

Dear Board of Directors of BNM, please do not ignore these questions which clear the air on BNM’s integrity and independence, and thus about our financial and economic future.

KJ John, TMI

THERE is an appointed Board of Directors for Bank Negara Berhad. But BNM is not just any company, like every other Sendirian Berhad, or a private Company Limited.

BNM is a statutory authority and must act at one-arms- length from the government of Malaysia.

The value of the ringgit can be altered, or reviewed, or revalued by the BNM; by simply their actions, inaction, or poor or bad intentions/decisions. Therefore, BNM cannot be managed like any other company but must be “governed” like exactly the way the Cabinet governs the country.

BNM is a statutory body established as part and parcel of the post-WW scenario of one of two global institutions (apart from UN) set up to moderate and generate growth and development of a medium of exchange, through a basket of currencies which define and dictate values of exchange rates worldwide.

BNM was set up by the Act 701 of Parliament called Central Bank of Malaysia Act 2009. It clearly states that they have two levels of “governors;” with all formally appointed Assistant Governors also sitting as ex-officio members of the Board of Directors.

Bank Negara’s new acquisition

Recently, it was reported in Sarawak Report that BNM paid RM2billion for 55.79 acres of land in KL, which average to RM823 per square foot. The average price of land in the golden triangle in KL is about half that price.

My questions to the BNM Governors, including the one Deputy who resigned without fully explaining his real reasons, are the following:

1. What is the current zoning for the land?
2.  Did BNM pay actual market rate based on current zoning or from future potential zoning?
3. Who was the agent for the land which was transacted between BNM and the seller?
4. What is the real basis, for the Government of Malaysia to sell to BNM at market potential price, if they were in fact owners of the land?
5. Is it true that BNM wanted to acquire this land from the time when Zeti Aziz was Governor of BNM? Why then was it only secured now?
6. Did we forget BNM’s history about why Aziz Taha resigned, and did we forget why both Ahmad Dom and Fong Weng Phak also resigned for similar reasons of “wrong interventions by the Minister, or Prime Minister”?
7. Is that also not the same reason Zeti Aziz refused to continue as Governor of BNM?

Independence of BNM Board

Dear Board of Directors of BNM, please do not ignore these questions which clear the air on BNM’s integrity and independence, and thus about our financial and economic future. The answers to these questions will also define the future value and appreciation of the Ringgit and, whether our future loans and bonds are well received, or costs of services are priced otherwise.

My advice to the Board of Directors who sit as Board Members are to be even more responsible and accountable than those who are politicians. Most of your elders refused to collude with such misplaced interests, and chose not to be partisan because of national interest. They have set a good example.

For now, all Malaysians will have to wait for the answer to the question of whether we have wait for the collapse of our currency value before we get to hear all the truth.