SHOCKING TESTIMONIES
He did the trade based on Nor Mohamed’s instructions
A FORMER BANK NEGARA DEALER TELLS THE ROYAL COMMISSION OF INQUIRY THAT HE EXCEEDED THE FOREX TRADING LIMIT BY A WHOPPING US$770 MILLION ON THE INSTRUCTION OF THE THEN CENTRAL BANK ADVISER
A FORMER BANK NEGARA INTERNAL AUDIT DEPARTMENT MANAGER SAYS THERE WAS A WRITTEN POLICY AT THAT TIME ON FOREX TRADING BUT IT WAS NOT COMPREHENSIVE
A FORMER CENTRAL BANK FUND MANAGER SAYS ITS EXTERNAL RESERVE COMMITTEE
DID NOT LOOK AT FOREX TRADING IN TOTALITY, ALTHOUGH OVERSEEING SUCH TRADING TO DEEPEN EXTERNAL RESERVES
WAS THE PANEL’S PRIMARY AGENDA
NST TEAM PUTRAJAYA news@nst.com.my
AFORMER Bank Negara dealer told the Royal Commission of Inquiry (RCI) proceedings on the 1990s Bank Negara Malaysia (BNM) foreign exchange (forex) scandal yesterday that he had conducted the highest overnight trading at US$800 million (RM2 billion at the exchange rate of RM2.50).
Fizaman Noor Mohammed Nasir, 53, said he did the trade on the instruction of the BNM adviser at that time, Tan Sri Nor Mohamed Yakcop, although it had surpassed the limit of US$30 million a day.
“The amount given to one dealer was limited at US$30 million, thus an amount that exceeded the capped amount was done at the management position level. I did it on the instruction of Nor Mohamed,” he said.
However, he did not specify the exact date and year he entered into such trading.
He added that discussions regarding forex trading with Nor Mohamed were done based on the foreign currency market situation at that time.
Although analysis showed a lacklustre market condition, all decisions to do trading or otherwise lay in the hands of Nor Mohamed, he added.
“We dealers only received instructions to sell or buy,” said Fizaman.
Earlier, former BNM Internal Audit Department manager Wong Yew Sen told the panel that Nor Mohamed had given miscalculated views to the External Reserve Committee (ERC), which led to the alleged losses.
Conducting officer Datuk Suhaimi Ibrahim also asked Wong on whether he was aware of a letter from the AttorneyGeneral’s Chambers issued in the 1990s informing then-BNM governor, adviser and the auditor-general that trading for profit would violate Section 31(a) of the Central Bank of Malaysia Act 1958.
Wong replied he was unaware of it and that he also did not know of anyone in BNM or any other quarters who had personally benefited from the forex trading, which had led to such big losses suffered by the central bank.
Based on the report titled “Audit Report on Foreign Exchange Fizaman Noor Mohammed Nasir
Operation Division of Banking Department and Processing Section of Accounts Department as at Dec 31, 1992, dated Jan 21, 1994”, Wong said there was a written policy in BNM at that time regarding forex trading, but it was not comprehensive.
“There is a check-and-balance system pertaining to foreign currency trading by BNM, but only at the dealers’ level and not outlined clearly for the deputy manager’s level and above.
“I do not know if there is any adjustment being made on BNM’s financial annual statement for the purpose of covering up the central bank’s losses in the forex trading,” he added.
Wong said based on available documents, BNM suffered forex transaction losses of RM8.5 billion in 1992.
Based on the audit report, the other reserve account was reduced by RM9.3 billion due to the forex activity worth RM8.5 billion that was charged to the said account, he added.