Forex RCI: Bank Negara incurred losses of RM31.5b

Forex RCI: Bank Negara incurred losses of RM31.5b

Posted on 30 November 2017 - 01:27pm
Last updated on 30 November 2017 - 05:02pm

Aiezat Fadzell
newsdesk@thesundaily.com

KUALA LUMPUR: The Royal Commission of Inquiry (RCI) has found that Bank Negara Malaysia (BNM) incurred losses amounting to RM31.5 billion, in the foreign exchange (forex) scandal.

The commission also established that Tan Sri Mohamed Nor Yakcop was in charge of BNM's forex dealing operations at the time.

RCI concluded that the incident involved a criminal breach of trust under Sections 406 and 409 of the Penal Code.

"Although he (Mohamed Nor) had dominion over BNM's funds and seemed to have to have a free hand in forex dealings, he could not have carried on for such a long time without the direct or tacit approval of his superiors and/or other persons in authority.

"Therefore, the commission assessed the joint liability of these persons which could fall either under Section 34 or Section 107 of the Penal Code and explained as having the common intention or abetting," the report said, adding that other parties had to share the blame as well.

The other individuals according to the RCI includes former prime minister Tun Dr Mahathir Mohamad, the then BNM governor Tan Sri Jaafar Hussein, BNM deputy governor Tan Sri Lin See Yan, BNM board of directors and former finance minister Datuk Seri Anwar Ibrahim.

Lawmakers today were given the 524 pages RCI report on the losses suffered by BNM due to forex trading in the 1990s.

The report also suggests more investigations are needed, to determine Mahathir's role in the scandal.

Despite Mahathir's testimony, the RCI report suggests that the former prime minister may possess more information than he previously claimed to know.

"The conclusion that he (Mahathir) could have been aware of the actual losses is not without merit,"

"Despite his denials, the commission is of the opinion that a thorough investigation should be carried out to determine the extent of (Mahathir's) involvement and liability on the matter," the commission said.