Bank Negara lauds RCI move

KUALA LUMPUR: Bank Negara Malaysia (BNM) has welcomed the government’s decision to set up a Royal Commission of Inquiry (RCI) to independently investigate the foreign exchange (forex) losses in the 1980s and 1990s.

In a statement yesterday, it said it hoped that this would put to rest the events that occurred over 25 years ago.

“The central bank will extend its full cooperation to the commission in providing information as required by the law.

“It is important to note that in any country, the legitimacy, integrity and credibility of the central bank is paramount in preserving public confidence in maintaining a sound financial system and a stable economy.”

BNM gave an assurance that the RCI probe would not distract it from discharging its duties in delivering its mandates.

The Prime Minister’s Office on Wednesday announced that it would form an RCI to investigate the billions of ringgit in forex trading losses by BNM, after receiving a report by a special task force formed to probe the issue.

It said the task force had found that there was a prima facie case to be answered by the central bank, and that the formation of the RCI was in line with public interests, as it involved national reserves.

The task force also found that the losses suffered were greater than what was presented to the Cabinet and Parliament, and facts on the actual losses had been concealed with the intent of confusing ministers and lawmakers.

Meanwhile, Penang Chief Minister Lim Guan Eng said the RCI was a good move that was supported by the people, and expressed hope all ministers and BNM officers serving at the time will be summoned to testify.

He said the RCI should not be a move against former prime minister Tun Dr Mahathir Mohamad.