MORE BLAME PILED ON EX-GOVERNOR

Former PM, finance minister put blame on the late Tan Sri Jaffar Hussein

FORMER prime minister Tun Dr Mahathir Mohamad and former finance minister Tun Daim Zainuddin yesterday shifted the blame to former Bank Negara Malaysia (BNM) governor, the late Tan Sri Jaffar Hussein, for the foreign exchange (forex) trading losses suffered by the central bank in the 1990s.

Both claimed ignorance or memory failure on details surrounding the losses that occured when they were in power.

Daim, who took the stand before Dr Mahathir confused the five-man RCI panel comprising High Court judge Datuk Wira Kamaludin Md Said; Bursa Malaysia Bhd chief executive officer Datuk Seri Tajuddin Atan; Pemudah cochairman Tan Sri Saw Choo Boon; Malaysian Institute of Accountants member K. Pushpanathan and chaired by Petronas chairman Tan Sri Mohd Sidek Hassan.

Daim testified steadfastly that he was not informed and wasn’t aware of the losses.

In his written statement and cross-examination, he said BNM was mandated to act independently without the supervision of the Finance Ministry. He was briefed by Jaffar in a limited capacity, and some documents were not available to him as they were protected by the Official Secrets Act.

Sidek was confounded how an ex-finance minister did not know of BNM’s activities as the central bank was under the ministry.

Daim was adamant that he was oblivious to the forex losses.

He even said he was not aware of foreign media reports on BNM’s then aggressive forex trading stance.

This was rather farfetched given that even low-ranking officers not directly involved in forex trading had testified to the RCI that their first point of reference of the scandal was the multitude of foreign reports at the time.

Daim said BNM was independent of the government and not told how to handle its trading.

This passing of the buck to BNM and subsequently to the long departed Jaffar was later echoed by Dr Mahathir in his highly-anticipated testimony.

Dr Mahathir, famous for his attention to detail during his 22 years in office, had curiously admitted under oath during his testimony that he was not really aware of BNM’s undertakings in the early 1990s.

He said he had “appointed the best people” to manage the country” and expected them to be “responsible in their duties”.

He said he believed there was no foul play in the forex losses, merely miscalculation on BNM’s part.

The finger pointing to BNM and Jaafar is a recurring theme throughout the RCI.

Despite multiple allegations towards Tan Sri Nor Mohamed Yakcop, who was then adviser to the governor (a position now known as assistant governor) in charge of forex trading, it was still Jaffar who was blamed because as governor, he had the ultimate say on what transpired in BNM.