Dr M, Anwar could face the music
RCI into Bank Negara Malaysia forex losses recommends formal investigations be carried out into possible offences of CBT, cheating
KUALA LUMPUR: The Royal Commission of Inquiry ( RCI) into Bank Negara Malaysia ( BNM) foreign exchange dealings in the 1990’s believes the then- prime minister had condoned the actions of the then-finance minister which led to the central bank incurring losses of RM31.5 billion.
The commission was also of the view that the then- finance minist er had del iberat ely concealed facts and information and made misleading statements to the Cabinet on the matter.
“The commission is of the opinion that there were deliberate concealments as the Annual Reports of BNM did not state the actual losses incurred from the forex dealings from 1992-1994,” the five- man commission led by former chief secretary to the government, Tan Sri Mohd Sidek Hassan said in its 524-page report tabled in Parliament yesterday.
It said the then-prime minister was also informed by the fi nance minister, together with the Treasury’s deputy secretarygeneral in late 1993 that BNM suffered estimated losses on forex dealings for 1992 and 1993 of RM30 billion.
During the periods mentioned in the report, Tun Dr Mahathir Mohamad was prime minister while Datuk Seri Anwar Ibrahim was deputy prime minister as well as fi nance minister.
The findings of the commissioners, who also included Datuk Wira Kamaludin Md Said, Datuk Seri Tajuddin Atan, Tan Sri Saw Choo Boon and Pushpanathan S. A. Kanagarayar, were presented to the Yang di- Pertuan Agong Sultan Muhammad V.
The commission opined that there was evidence from the inquiry suggesting a possible offence of criminal breach of trust (CBT) of BNM’s fund under Sections 406 and 409 of the Penal Code by the persons directly involved in the forex dealing operations, principally
The commission is of the opinion that there were deliberate concealments as the Annual Reports of BNM did not state the actual losses incurred from the forex dealings from 19921994. RCI report on BNM forex dealings in 1990’s
Tan Sri Nor Mohamed Yakcop who appeared to have absolute control and responsibility for the forex dealing operations.
The report said although he had dominion over BNM’s funds and seemed 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.
The commission said it assessed joint liability of these persons which could fall under Section 34 or Section 107 of the Penal Code and explained as having common intention or abetting.
“The persons falling under this category would be the deputy governor, the governor, the BNM board of directors, the minister of fi nance and the prime minister,” it said.
Following an open inquiry of 25 witnesses and various documentary evidence the commission was definitive that BNM had incurred losses of RM31.5 billion due to forex dealings in 1992, 1993 and 1994.
“The huge los ses had a significant negative impact on the country’s economy whereby, it had deprived the country of development opportunities,” the report said, adding that it had also impaired BNM’s ability to fulfi ll its mandated role as the countrty’s central bank.
PUTRAJAYA: The secretary of the Royal Commission of Inquiry which probed the foreign exchange losses suffered by Bank Negara ( BNM) in the 1990s yesterday lodged a police report in connection with the commission’s recommendations.
Datuk Dr Yusof Ismail, who is also the secretary of the Finance Ministry’s Strategic Investment Division, lodged the report at the Putrajaya Police Headquarters at 4.10pm.
Speaking to reporters afterwards, Yusof said the report was lodged to enable the police to carry out official investigations into criminal breach of trust, cheating and other offences that might have been committed by parties named in the commission’s report.
Asked whether the names of former prime minister Tun Dr Mahathir Mohamad and Datuk Seri Anwar Ibrahim, who was the Finance Minister then, were named in the police report, Yusof sald no specific parties were named.
“Based on the commission’s report, we find many parties were involved like BNM, the Finance Ministry and the National Audit Department.
“I also attached the full report of the RCI’s findings, both the Bahasa Malaysia and English versions, to guide the police in their investigations.
Yusof said based on his exchange with the officers receiving the report, he was made to understand that the investigations would be carried out by the Dangi Wangi Police Headquarters in Kuala Lumpur.
Asked why the report was only lodged today when it had been ready some time back, he said it was on ‘embargo’ before it was tabled in Parliament.
Earlier yesterday, the 524page report was tabled in the Dewan Rakyat . It found that there was basis for the police to commence investigations among others to determine whether Dr Mahathir had condoned the actions of the finance minister then (Anwar) which led to the central bank incurring losses of RM31.5 billion. — Bernama