1993 Forex loss, 1997 Ringgit crisis; Any connection?


Prime Minister’s Office announced a Special Taskforce, as approved by Cabinet as opposed to some former Attorney General chimply formed one, to investigate the foreign exchange losses by Bank Negara Malaysia as announced in 1993.

The taskforce should comprise representatives of various government agencies as well as highly respected individuals who were experts in certain fields. The Chairman is former Chief Secretary, Tan Sri Mohd Sidek Hasan.

This Tun Dr Mahathir era PTD man better not do a Sir Humphrey Appleby to cover-up his fellow civil servant. He was given the term of reference “to make recommendations and suggestions as soon as possible for the consideration of the Cabinet for follow-up action to be taken, including the setting up of a Royal Commission of Inquiry, if necessary, based on the outcome of the probe.”

Since Mahathir is willing to be investigated, Lim Kit Siang is willing to cooperate and join Tan Sri Annuar Musa in an UMNO roadshow to explain the role of the taskforce, and Tan Sri Zeti too is willing to cooperate (Raja Petra raised of her involvement as Manager of BNM London), it should proceed.

To do a taskforce first, it is better than doing an RCI immediately. It is not just a matter of finding whose at fault but also, it is a precautionary move. Who knows Dato Abdul Murad could be setting up a trap or talking to cover himself?

The Mole commentary here cautiously warned Murad maybe under investigation for money laundering or other offenses in BNM relating to his role allegedly managing one of many Dato Seri Anwar Ibbrahim’s political war chest.

Furthermore, there must be precaution from revealing information that could jeopardise the country’s interest as the sequel commentary yesterday here.

The commentators noticed a “yuge” jump in “gold and foreign reserves from RM46.074 billion for 1992 to RM75.309 billion for 1993. It could mean there was an outstanding exposure of at least RM29.235 billion worth of foreign currency.”

Did BNM overstated the reserves?