BNM Forex Scandal: A Crime Against Malaysians Exposed By Lim Kit Siang

I simply do not comprehend the fuss that is being kicked up by Mahathir’s fanatics.  On one hand they want the transparency that none of us got when Mahathir was the Prime Minister; on the other they are fuming because Mahathir, Nor Mohamed Yackop and Anwar have been implicated in the findings of the Royal Commission of Inquiry (RCI) for the Bank Negara Malaysia (BNM) foreign exchange scandal of the 1990s.

Mahathir’s long-time crony Daim Zainuddin, who served as finance minister from 14 July 1984 to 15 March 1991, for having aided and abetted Nor Mohamed by leaving BNM “to its own devices”.

Let us ask the very man whose perseverance has finally paid off:

This ought to be the reaction to the RCI findings if we are to ask Lim Kit Siang

Yes. The loss of RM31.5 billion through forex gambling was and still is a crime against the Malaysian people.  And if it weren’t for Lim Kit Siang’s persistence and perseverance, we would not have gotten where we are now.

Three people have been found principally liable for the criminal breach of trust and should be probed further over their involvement and liability.  They are the former Prime Minister Mahathir Mohamad, his then-Finance Minister Anwar Ibrahim, and ex-BNM advisor Nor Mohamed Yackop.

The commission found in its 524-paged report that the Cabinet in the 1990s was not given the full picture by Anwar on the forex losses, adding that he had “deliberately concealed facts and information and made misleading statements“. It is also of the opinion that the then Prime Minister (Mahathir) had condoned the actions of the Finance Minister.

The RM31.5 billion losses, the report said, were hidden using “unconventional accounting treatments”, such as booking losses to reserves in the balance sheet and the absorption of the remaining losses by the transfer of shares from the Government to BNM as well as the creation of a “Deferred Expenditure” to be repaid in instalments over a decade.

The RCI noted that Anwar Ibrahim, the then Finance Minister, had been informed about the actual forex losses suffered by BNM. It also said that Mahathir was informed by Anwar together with then Treasury deputy secretary-general Tan Sri Clifford Francis Herbert in late 1993 that BNM had suffered estimated losses of RM30 billion on the forex dealings for 1992 and 1993.

However, in the extract of minutes from three Cabinet meetings on March 30, April 6 and 13 in 1994, Anwar had made “no mention of the actual losses of RM12.3 billion for 1992 and RM15.3 billion for 1993.”

Anwar had chaired the March 30 meeting as the deputy prime minister. The losses for 1993 were reported as RM 5.7 billion.

The RCI also noted that the prime minister, who chaired the meeting on April 6, did not correct or offer more information when the forex losses for 1993 were recorded as only RM5.7 billion.

The RCI report said as pointed out by Herbert, he had expected Mahathir to be outraged but his reaction was quite normal with him uttering “sometimes we make profit, sometimes we make losses”.

His reaction to and acceptance of the huge forex losses suggest that he could have been aware of the forex dealings and its magnitude,” said the report.

Why Did It Take So Long?

Of course supporters of Mahathir got their knickers in a knot over the RCI findings, mostly harp on the duration it took to have a RCI formed, whether it was formed to time itself with the looming general elections so that the Pakatan Harapan would be epitome of broken hopes?

Lim Kit Siang may have harped on the matter, trying to get an RCI formed since 1994, if not earlier.  Mahathir was the Prime Minister then until the end of 2003.  No one during Pak Lah’s time took up the issue as Mahathir was then breathing down Pak Lah’s neck watching the latter’s every move.  In the end, Mahathir got Pak Lah ousted for not playing his game his way.

When Najib Razak took over at the beginning of the second quarter of 2009, Malaysia’s economy had shrunk even though oil price was high.  The GDP growth rate for Malaysia in 2009 was -2.5 percent because of the global financial crisis then, hence Najib Razak’s priority then was to safeguard the economy and take measures to improve on the GDP growth.

Malaysia’s GDP growth rate for 2009 was -2.5%

And ever since then Najib had been fighting on all fronts to make sure that Malaysia goes through a sustainable growth, and that there would be enough government money to still help the people, especially those from the B40 income group.  Hence, we see various initiatives like the 1Malaysia Clinic, Kedai Rakyat 1Malaysia (which is now being revamped), BR1M, PR1MA and various other 1Malaysia initiatives.

And while all that was happening, Lim Kit Siang was still going around asking for an RCI to be formed for the BNM forex scandal.  In the run up to the 13th General Elections, Lim Kit Siang wrote this on the BNM forex scandal:

“I had estimated in Parliament two decades ago that Bank Negara lost a colossal RM30 billion from the Bank Negara foreign exchange scandal under Mahathir’s premiership. But Bank Negara claimed RM10.1 billion loss in 1992 and RM5.7 billion in 1993 while former Bank Negara Deputy Governor Dr. Rosli Yaakop estimated last year at a public forum that Bank Negara lost between USD27 to USD33 billion, which was five times more than its foreign reserves and its entire assets of USD20.7 billion in 1992.”

You can read more on what Dr Rosli Yaakop had said on the BNM forex scandal  HERE.

Lim Kit Siang also said that Malaysian voters should not only pass a verdict on Najib’s non-transformation in the past four years, but also pass judgment on Mahathir’s 22 years of authoritarian and corrupt policies when he was Prime Minister from 1981 – 2003.  He said:

“I am on public record as saying that if Pakatan Rakyat is to capture Putrajaya in the 13GE, we should re-open investigation not only on the RM30 billion Bank Negara forex scandal of 1992, there should be a Royal Commission of Inquiry into the RM100 billion losses suffered by the country in the financial scandals of the 22-year Mahathir era.”

Kit Siang added that the voters should decide whether they endorse the proposal to have a wide-ranging public inquiry into Mahathir’s financial scandals in 22 years which have cost the country RM100 billion of losses and for which the present generation of Malaysians are still paying the price – although there is totally no accountability and transparency about these glaring instances of corruption, cronyism and abuses of power for more than three decades.

He said all that HERE.  And we should not forget that Lim Kit Siang also wrote a book on the BNM forex scandal.

And finally, and only when the economic outlook had improved, did Najib Razak announced that an RCI would be formed to investigate the BNM forex scandal.

In June 2017, Lim Kit Siang even wanted the report recommending the RCI to be made public.  Finally, on 8 August 2017, the RCI commenced, and Kit Siang’s 25 years of wait ended.

Kit Siang’s hard work finally paid off

And one other Pakatan leader who had been lying very low beneath the BNM forex scandal radar is Anwar Ibrahim.  If anyone was to ask why did the government not do anything between 2004 and 2017, the answer would be why hadn’t Anwar, since 2 September 1998, asked for an RCI on the matter? Was he afraid that he might get implicated?

You and I know the answer to that now.

And what about the 1MDB scandal? Well, unlike the BNM forex scandal, the 1MDB case was investigated by the Parliament’s Public Accounts Committee, the Royal Malaysian Police, Bank Negara Malaysia and the Malaysian Anti-Corruption Commission.  Police reports were also made against 1MDB. But not a single sen had gone missing!

For the BNM forex scandal, this is the first time that it has been investigated – by the RCI, and soon by the Royal Malaysian Police.  And the first police report was made by a member of the RCI itself after the RCI findings report was published – 25 years after the whole thing happened.

So, we should all say our thank you to Lim Kit Siang for exposing this crime against ALL Malaysians. Thank you, Lim Kit Siang – for persistently asking for your good friends to be investigated.

BNM Forex: Congratulations, Lim Kit Siang

The Singapore Times report on the BNM FOREX issue

For two decades DAP’s Supremo, Emperor Lim Kit Siang, fought to bring to justice those responsible for the loss of RM30 billion (RM45.25 billion in today’s terms) through foreign gambling exchange by the Bank Negara Malaysia (BNM) back in the early 1990s.  The greed of those responsible saw the BNM increase its trading volume to USD50 million lots (RM74.46 million or RM205.65 million today) compared to the market norm then of USD5 million (RM7.45 million or RM20.56 million today) to USD10 million (RM14.90 million or RM41.12 million today), amounting to billions of Dollars per day!

BNM’s maximum exposure in the foreign exchange markets then reached as high as RM270 billion – three times the country’s GDP and more than five times the country’s foreign reserves at the time!

Imagine what would have happened had we lost all that!  But imagine what RM30 billion then could have done to arrest the massive fall of the Ringgit from RM2.4765 to the USD on 1 April 1997 to RM4.88 to the USD in early January 1998.

But despite pressing for someone to be accountable, Kit Siang is far from happy.  In September of this year he Tweeted this:

Has Lim Kit Siang accepted the loss of the RM30 billion he’s been screaming about?

Now Lim Kit Siang plays innocent saying he has nothing to do with wanting a Royal Commission of Inquiry into the BNM Forex scandal.  Is it because he and Mahathir are good friends now? Or is it because Mahathir’s involvement means that the DAP has lost one of its Malay political mules?

Best friends forever

If I recall correctly, it was Lim Kit Siang who mentioned that Mahathir has to answer for the Forex loss, and that if Pakatan captures Putrajaya, he would re-open the BNM Forex scandal.  He even asked if (former Egyptian President Hosni) Mubarak got life imprisonment, then why should Mahathir go scot-free?

Lim Kit Siang’s demands re the BNM Forex Scandal

Has Lim Kit Siang forgotten all the above?  If he has, has he gone senile due to his age? If he has problems retaining his memory, then I don’t think he ought to contest in the next general elections.

Whatever it is, the biggest winner would be Anwar. Not only does he get to see his jailor jailed, but he won’t be lonely anymore.

Let’s hope they get to share the same cell.

Bedmates

Where Should The Allegiance of the Armed Forces Lie

Malaysian Armed Forces Veterans

I received this copied in a Veterans’ WhatsApp group. I omitted some parts of the message as it was just gibberish talk:

_Copied from write up by Mej **** ***** TUDM (Rtd)_

Good afternoon to all. The fight for a free Malaysia must go on!
Let us get one thing clear – the country and the government are separate entities. Governments come and go, the country is eternal.

We owe our allegiance to the country, not to the government. Therefore, saying bad things about a bad government is not being anti-national. Most important of all, voting against a bad government is not being anti-national. A bad government does not deserve loyalty. Disloyalty to the government is not disloyalty to the country; in fact, voting out a bad government is being loyal to the country.

Clean elections
Clean government
Right to dissent
Save our economy


Fine words they are, but for someone with some legal training to write as such shows how much understanding the author has of the Federal Constitution.

Let us address this “call”:

Point 1:

“Good afternoon to all. The fight for a free Malaysia must go on!
Let us get one thing clear – the country and the government are separate entities. Governments come and go, the country is eternal.

We owe our allegiance to the country, not to the government. Therefore, saying bad things about a bad government is not being anti-national. Most important of all, voting against a bad government is not being anti-national. A bad government does not deserve loyalty. Disloyalty to the government is not disloyalty to the country; in fact, voting out a bad government is being loyal to the country.”

The country and the government cannot be separated, neither can a state be separated from its state government.  Yes, governments come and go, but a government is still a government.  Officers and men of the civil service, the Armed Forces, the Police owe their allegiance to the King and Country.  The King rules the Country, as do the Sultans their respective state, through a government that was picked by the people. Be they the Federal Government or the State Government, they administer the country and the states on behalf of the King and Sultans, as well as the Governors.  This is prescribed by Article 39 of the Federal Constitution where the Executive Authority of the Federation is vested in the Yang DiPertuan Agong by him, or by the Cabinet, or by any Minister authorised by the Cabinet.

In the case of the Armed Forces, the King exercises his power through the Minister of Defence.  Which is why the officers and men of the Armed Forces are required to salute the Minister of Defence who represents the King’s executive power over the Armed Forces, and the Prime Minister who is the King’s Chief Executive, representing the King.

Article 41 states that the King is the Supreme Commander of the Armed Forces and therefore those representing the King as prescribed by Article 39 are performing their duties on behalf of the King.

Therefore, it is imperative that the Armed Forces, as well as the civil service and the Police, remain loyal to the government of the day as the government of the day represents the King – be it bad or otherwise. Whether or nor a member of the Armed Forces, or the civil service, or the Police subscribes to the government of the day politically is a secondary matter.  The oath that was taken was to be loyal to the King and Country; therefore loyalty shall be given to the government of the day.

The Minister who represents the King in matters of defence is also made the Chairman of the Armed Forces Council which is responsible for the command, the discipline and the administration of the Armed Forces, except for matters relating to their operational use.  This is prescribed in Article 137 of the Federal Constitution.

And it is the Parliament that passed an Act to amend and consolidate the law relating to the establishment, government and discipline of the Armed Forces is made which is called the Armed Forces Act, 1972.

It is also the Armed Forces Act, 1972 that gave the powers to the Armed Forces Council to enable Brigadier-General Datuk Fadzlette Othman Merican Idris Merican be promoted to Major-General while she is being seconded to a Federal Government Department.  Section 5C of the Armed Forces Act, 1972 determines that she remains a member of the regular forces but her remuneration shall be paid by that Federal Government Department.

By the same token, even the ordinary people who are citiens of Malaysia must realise that the Federal Government represents the King, the state governments represent the resective state’s Ruler.  These are governments chosen by the people but was appointed by the Rulers to administer the country and states on their behalf.  The only way to change these governments is by a democratic process called ELECTIONS (unless you have not heard of that word before).

Point 2:

“Clean elections”

Since 1955, Pulau Pinang, Perak, Kedah, Kelantan, Terengganu, Selangor and Sabah have all seen a change in government.  If the elections were not clean, would it have been possible for the Opposition to have won cash cows such as Pulau Pinang and Selangor?

Point 3:

“Clean government”

I must admit there are bad hats in the government, be it the Federal government or the states government.  This is why we have seen people like Harun Idris, Mokhtar Hashim, Khir Toyo, Lim Guan Eng charged in court for corruption. All but Lim Guan Eng have served jail time.  Guan Eng, who said that he is not afraid to go to prison, has been delaying his corruption trial using technical issues.

Many more state excos have also been arraigned in a court for corruption.  This is not possible without agencies such as the Auditor-General’s Office and the Malaysian Anti Corruption Commission which act as checks and balances to ensure that the Federal as well as states governments are run efficiently and cleanly.

Of course there are those who have yet to face the music. For example those responsible for the Maminco scandal in 1985 that saw a loss of RM1.6 billion (about RM2.56 billion in today’s terms); the Perwaja scandal in 1982 that saw a loss of about RM10 billion (RM18.73 billion in today’s terms); the BMF scandal of 1983 that had caused a loss of RM2.5 billion (RM4.5 billion today); the 1986 Deposit-Taking Cooperative Scandal that caused a loss of RM1.5 billion (about RM2.58 billion today); the RM30 billion loss by Bank Negara Malaysis through foreign exchange gambling in 1994 (RM45.25 billion today); the Malaysia Airlines scandal of 1994 with the loss of RM9.4 billion (RM14.18 billion today); the PKFZ scandal of 1999 with a loss of RM12.5 billion (RM13.5 billion in today’s terms).

The above all happened during the tenure of a certain former Prime Minister.  The grand total of losses is RM67.5 billion (or RM101.3 billion in today’s terms).  The amount shown does not include the bailouts reported in various books, Opposition leaders’ blogs and so on.

I do hope that the cry for a clean government will also call for the arraignment for the Prime Minister during whose tenure the financial scandals happened.  Had the RM101.3 billion been put to good use during those 22 years, Sabah and Sarawak would have had SIX toll-free Pan Borneo Highways, or 1,013 80-bedded Government hospitals all over the country!

Instead, it enriched the few and killed one person.

Point 4:

“Right to Dissent”

I have not seen any Opposition-leaning media being taken off print or air, unlike during a certain 22-year period of my life.  Malaysiakini et al are still spinning their version of what they call “balanced news” (read: news the way we want you to see it).  The way these media operate reminds me of a character in Netflix’s limited series called “Godless” called A.T Grigg, a newspaper owner-editor who writes news the way he sees it, not how it truly happens.

The ISA was repealed six years ago by this present administration. Although replaced with SOSMA and POTA, it doesn’t give powers to the authorities to hold anyone without trial as the ISA did. And the ISA was being used a lot against political dissenters especially in the late 1990s during the tenure of a certain former Prime Minister.

This administration also introduced the Peaceful Assembly Act, 2012 that has allowed more freedom to assemble peacefully, unlike during those days of a certain former Prime Minister where at the slightest hint of a political dissent, you get whisked away to the University of Kamunting.

Has the author of the message been arrested yet?  Of course not.  Even when he actually committed sedition against Malaysia by encouraging Sarawak to secede from Malaysia.

How is it that a legal-trained person does not know that his act is seditious escapes me

Now, how is that seditious?  If you look at Section 2 of the Sedition Act, 1948 it tells you the following:

Section 2 defines how an act is seditious. He has committed a seditious act by definition of Section 3(1)(a)

This former Armed Forces officer also committed a crime of sedition under Section 3 (1) (b) of the same Act for encouraging Sarawak to leave Malaysia:

Section 3 (1) (b) of the Sedition Act, 1948

And you thought that the Federal Constitution protects freedom of speech?  Yes, it does.  But as with all other liberties, they are subjected to restrictions.  Article 10(1) guarantees that every citizen has the right to freedom of speech and expression, but at the beginning of the Article it also says the following:

You cannot just say anything you like although you have the freedom of speech and expression

To dissent is okay. To dissent seditiously, or criminally, or dangerously, or incitingly, is not okay.

Any legal-trained person ought to know this, right? What more a former officer of the Armed Forces!

Point 5:

“Save Our Economy”

In April 2017, the World Bank forecasted that Malaysia’s GDP would be at 4.3 percent.  This was revised in June 2017 to 4.9 percent due to an acceleration in domestic economic activities (people in Malaysia are actually spending more) by 5.7 percent year-on-year.  The GDP growth was revised again in October 2017 to 5.2 percent.

Let me quote several reports here by the World Bank.

World Bank Group lead economist Richard Record said at a media briefing on the update that Malaysia’s robust GDP growth in the first half of 2017 was largely underpinned by strong private-sector expenditure, with additional impetus from an improvement in external demand.

“Private consumption expanded firmly this year, supported by favourable income growth amid stable labour market conditions, and improved consumer confidence. Private investment also sustained rapid growth rates during the period, reflecting mainly continued capital spending in the manufacturing and services sectors,” said Richard Record.

“On the external front, gross exports rebounded strongly from the subdued growth experienced in 2016, supported by double-digit growth in commodity and manufactured exports,” he added.

Economic watchdogs are generally bullish on the Malaysian economy’s performance, buttressed by strong expansion in private consumption and private investment. In the latest update on its World Economic Outlook, the International Monetary Fund has upped its GDP growth projection for Malaysia in 2017 to 4.8 percent from 4.5 percent previously.

Apart from that, the Asian Development Bank has also upgraded its 2017 growth outlook for Malaysia to 4.7% from 4.4%, and indicated that the two-year slowdown in economic growth is likely to have bottomed out last year.

Richard Record also predicted Malaysia’s economy for 2018 and 2019.

“We are forecasting Malaysia’s GDP to grow by 5 percent next year (2018) and 4.8 percent in 2019. Our prediction reflects how we are seeing the country’s macroeconomic fundamentals’ performance and the baseline scenario,” he said.

Online economics portal ‘Focus Economics’ also said the following:

“Economic momentum remained robust in Q3 as confirmed by more complete data. Export growth expanded by a double-digit pace in September, underscoring thriving external demand for Malaysian goods. Household spending was buoyed by a low unemployment rate in September and by higher wages, which were propped up by a thriving manufacturing sector, the key driver of industrial production growth in the quarter. The 2018 budget passed on 27 October is focused on fiscal consolidation and is expected to narrow the fiscal deficit from 3.0 percent in 2017 to 2.8 percent in 2018. Despite the tightening, the budget has consumer-friendly components that will increase disposable income. These include lower income tax rates, especially for middle-income earners; higher public wages; and increased assistance spending.”

By contrast, Brunei’s fiscal deficit had hit 16 percent in 2016.

Of course, with the oil prices continue to stay below the USD70 per barrel level, Malaysia as well as other countries will continue to experience some sluggishness in the economy. However, good fiscal policies have allowed us to grow unlike a neighbour of ours that is often quoted as being a model economy.  That country’s growth have been at 2 percent in 2016, and 2.5 percent this year.

The outlook for the construction sector has taken a sharp turn for the worse, with poll respondents tipping a contraction of 4.2 per cent. The previous survey, released in June, had respondents forecasting 0.2 per cent growth in the sector.

The outlook for the accommodation and food services sector in this model country has also worsened – it is now expected to shrink 1.5 per cent, from previous estimates of a 1 per cent expansion.

Economists polled expect overall economic growth of 2.5 per cent next year for this model country, the same pace as this year.

Perhaps the author of the message we are discussing here should go down South and help revive the economy of that model country.


So, there have you.  I really do not know what the fuss is about.  All I can deduce is that the author of the message is all hot air – you can feel it blowing on your face, but there is no real substance there.  This is the same as BERSIH, and the recycling of petty but stale issues by the Opposition just so that they can remain relevant, and justify for the allowances they receive from the pockets of the rakyat.

You can express your dissatisfaction, but always do so constructively. Especially if you are a member of the Malaysian Armed Forces and Malaysian Armed Forces Veterans.

Pakatan Akan Siasat Skandal BNM Kata Lim Kit Siang

Tuan Besar Pakatan Harapan, Encik Lim Kit Siang berkata bahawa Pakatan Harapan akan menyiasat skandal forex Bank Negara Malaysia (BNM) yang berlaku semasa pentadbiran U-Turn Mahathir jika Putrajaya miliknya.

“Sekiranya Pakatan mengambil alih sebagai kerajaan persekutuan dalam pilihan raya umum yang akan datang, satu Suruhanjaya siasatan diraja mestilah ditubuhkan untuk menyiasat kerugian skandal forex Bank Negara bernilai RM30 bilion dalam 1992,” katanya.


Berita seperti inilah yang diharap-harapkan oleh rakyat Malaysia khususnya ahli-ahli DAP yang tetap di landasan perjuangan mereka.

Memetik pandangan bekas timbalan gabenor Bank Negara Dr Rosli Yaakop, Kit Siang berkata spekulasi matawang yang berlaku pada masa itu mendapat restu U-Turn Mahathir dan bekas menteri kewangan serta konco kehormat beliau, Daim Zainuddin.


Mengulas perkembangan terkini, Menteri di Jabatan Perdana Menteri Azalina Othman Said berkata Kit Siang harus menyokong usaha kerajaan untuk menyiasat skandal tersebut.


“Lim Kit Siang sebagai seorang Ahli Parlimen yang berpengalaman, seharusnya menyokong usaha Kerajaan dan bukannya mempolitikkan perkara ini,” katanya menerusi kenyataan media hari ini.

Menurutnya lagi, jika pendirian Lim kini berubah mengenai penubuhan pasukan yang dibuat semalam, maka terbuktilah bahawa Ahli Parlimen Gelang Patah itu hanya lantang demi kepentingan politik sahaja sebelum ini, dan ianya perlu dinilai secara bijak oleh ahli DAP.
“Malah kecenderungan beliau untuk berubah-ubah prinsip serta pendirian memperlihatkan sikap tidak konsistennya dan wajar dinilai oleh penyokong-penyokong DAP,” tambah Ahli Parlimen Pengerang itu lagi.
Saya boleh bayangkan betapa gembiranya Kit Siang dengan sokongan kerajaan menubuhkan pasukan petugas khas untuk menyiasat dakwaan beliau selama ini.

Penantian 24 Tahun Lim Kit Siang Bakal Berakhir

Buku bertajuk "Skandal Kerugian RM30 billion Akibat Pertukaran Matawang Asing oleh Bank Negara" yang ditulis olh Lim Kit Siang
Buku bertajuk “Skandal Kerugian Bank Negara Berjumlah RM30 billion Akibat Pertukaran Matawang Asing” yang ditulis oleh Lim Kit Siang

Pada tahun 1993, Tuan Besar Pakatan Harapan Encik Lim Kit Siang telah menyeru agar Parlimen menubuhkan sebuah Suruhanjaya Siasatan DiRaja (RCI) untuk menyiasat kerugian RM30 billion yang dialami Bank Negara akibat skandal pertukaran matawang asing.

Jumlah RM30 billion pada tahun 1994 adalah bersamaan dengan pelepasan cukai untuk 19 juta rakyat Malaysia ketika itu termasuk bayi dan kanak-kanak selama LAPAN TAHUN! Jumlah tersebut juga bersamaan dengan 1.2 juta rumah murah bernilai RM25,000, 45 universiti, empat LapanganTerbang KLIA dan lima Lebuhraya Utara-Selatan.

fullsizerender-18

Setelah 24 tahun penantian, permintaan Lim Kit Siang kini hampir menjadi kenyataan.  Kit Siang harus berterima kasih kepada Perdana Menteri Najib Razak kerana bertindak untuk mengetahui kebenaran mengenai skandal tersebut manakala kita rakyat Malaysia patut memberi penghargaan kepada Lim Kit Siang kerana berkeras meminta agar siasatan terhadap kerugian tersebut dijalankan.

Lim Kit Siang amat berdedikasi dan memberi tumpuan khusus terhadap skandal tersebut hinggakan beliau telah menulis sebuah buku mengenai skandal tersebut seperti di atas.

Surat dari Pejabat Perdana Menteri mengarahkan agar satu pasukan petugas ditubuhkan untuk meneliti kes skandal 1992 Bank Negara
Surat dari Pejabat Perdana Menteri mengarahkan agar satu pasukan petugas ditubuhkan untuk meneliti kes skandal 1992 Bank Negara

Lim Kit Siang mendakwa di dalam penulisannya bahawa kerugian akibat skandal tersebut telah mengakibatkan suatu lubang yang boleh mengakibatkan tenggelam dan musnahnya Bank Negara Malaysia (BNM) sebagai entiti pihak berkuasa dan penjaga bank-bank dalam negara.

Gabenor BNM ketika itu, Tan Sri Jaafar Hussein menafikan pada tahun 1992 bahawa wujudnya lubang tersebut.

Untuk mereka yang lahir selepas tahun 1975 dan terlalu muda untuk mengingati skandal tersebut, BNM di bawah Jaafar Hussein menjadi satu entiti yang aktif dalam pasaran pertukaran matawang asing (FOREX). BNM begitu agresif mempengaruhi pasaran pertukaran matawang asing hinggakan Pemangku Pengerusi Bank Rizab Persekutuan Amerika Syarikat, Alan Greenspan, terpaksa meminta BNM untuk menghentikan aktivitinya tersebut.

Pada tahun 1991, akhbar Reuters melaporkan:

“Sejak dua tahun yang lalu, ia (BNM) telah meningkatkan jumlah dagangan, dan tahun ini ia telah mula berniaga dalam apa yang digambarkan oleh para peniaga lain sebagai “jumlah yang benar-benar besar…”

“Biasanya, Bank Negara beroperasi dengan lot-lot bernilai AS $ 50 juta setiap lot, berbanding dengan norma pasaran sebanyak AS $ 5 juta atau US $ 10 juta dan berniaga mungkin dengan enam bank utama di Eropah dan enam di New York,” kata para pedagang.

“Seorang pedagang matawang berkata satu-satunya peniaga yang menyaingi Bank Negara ialah dana dari Jepun. Namun dana Jepun ini memasuki pasaran tidak lebih daripada sekali atau dua kali setahun, Bank Negara pula melakukan berbilion dolar sehari.”

“Teknik terkini BNM ialah dengan mengenakan bank-bank utama dengan USD50 juta setiap satu transaksi, dan mengenakan mereka sekali lagi 10 minit kemudian,” kata para pedagang.

Kemudian ia (BNM) menukar pusat dagangan dan melakukan transaksi yang serupa sekali lagi, berulang kali.”

Pada 21hb September 1990, BNM telah menjual di antara US$ 500 juta ke US$ 1 billion nilai Pound Sterling dalam masa yang tersingkat hingga mengakibatkan matawang tersebut jatuh 4 cent setiap Dollar.  Bank-bank bertindak balas dengan cuba mendahului permintaan BNM.

Pada tahun 1993 juga, menurut Lim Kit Siang, U-Turn Mahathir yang kini merupakan rakan “comolot” Lim Kit Siang, telah menafikan wujudnya “lubang” yang boleh mengakibatkan kemusnahan BNM.

Pada tahun 1993 juga, BNM telah cuba mempertahankan nilai matawang Pound Sterling dari serangan para pedagang termasuk George Soros namun usaha ini gagal.  Kegagalan ini mengakibatkan BNM mempunyai nilai tanggungan melebihi nilai aset semasa, dan terpaksa diselamatkan oleh Kementerian Kewangan pada tahun 1994.

Pada bulan April tahun yang sama, Jaafar Hussein meletakkan jawatan sebagai Gabenor BNM.

Maka tidak hairanlah BNM kemudiannya gagal mempertahankan matawang Ringgit pada tahun 1997-1998 daripada serangan George Soros akibat kekurangan rizab matawang asing disebabkan skandal tersebut, hingga menyebabkan matawang kita tidak pernah pulih sepenuhnya sejak peristiwa yang berlaku di zaman pentadbiran U-Turn Mahathir tersebut.

Menurut bekas Timbalan Gabenor Bank Negara ketika itu, Dr Rosli Yaakop, empat orang bertanggung jawab penuh dalam skandal ini.  Mereka adalah U-Turn Mahathir, konconya Daim Zainuddin yang merupakan Menteri Kewangan ketika itu, Jaafar Hussein sebagai Gabenor BNM ketika skandal tersebut berlaku, dan Nor Mohamad Yackop yang merupakan Menteri Di Jabatan Perdana Menteri yang bertanggung jawab terhadap Unit Perancang Ekonomi di bawah U-Turn Mahathir.

Menurut Rosli, pakar-pakar menganggarkan kerugian sebenar di antara US$27 billion sehingga US$33 billion iaitu lima kali ganda simpanan rizab asing dan seluruh asset BNM bernilai USD20.7 bilion dalam tahun 1992.

“Dakwaan kerugian oleh Bank Negara telah “diperkecilkan secara berskematik” (schematically understated), melalui penilaian semula pegangan emas (gold holdings) dan penilaian semula pelaburan sebut harga (quoted investment),” tambah Rosli.

Rosli membuat dakwaan-dakwaan tersebut di ‘Forum Skandal Forex Bank Negara‘, anjuran Penang Institute, di Dewan Sri Pinang, Georgetown, Pulau Pinang pada 11hb Jun 2013.

Lim Kit Siang telah memegang teguh kepada tekadnya untuk diadakan juga satu RCI supaya skandal BNM tersebut disiasat kerana rakyat Malaysia berhak mengetahui ke mana, bagaimana, dan siapa anasir-anasir yang bertanggung jawab terhadap kerugian yang terpaksa ditanggung oleh seluruh rakyat Malaysia.

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Kerugian RM30 billion yang ditanggung oleh BNM serta bantuan kewangan oleh Kementerian Kewangan adalah kerugian wang rakyat. Sayugia diingatkan bahawa 1MDB tidak melibatkan wang rakyat kerana institusi tersebut telah meminjam wang dari institusi-institusi luar negara, bukannya dari mana-mana badan kerajaan mahupun syarikat berkaitan kerajaan (GLC).

1MDB juga telah melangsaikan segala hutang jangka pendeknya dan membuat lebihan tunai sebanyak RM2.3 billion yang memberi manfaat kepada negara.

Sekali lagi, kita amat berterima kasih kepada Encik Lim Kit Siang di atas ketegasannya supaya satu RCI dapat diadakan untuk menyiasat skandal forex BNM 1990an. Kerajaan pimpinan Najib Razak telah mendengar keluhan beliau dan adalah diharap Encik Lim Kit Siang berasa amat gembira dengan usaha kerajaan ini.

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Kegembiraan Lim Kit Siang terserlah

Kelepetokrasi

KELEPET.

The word means hem or a fold on a piece of cloth or paper.  A Malay synonym would be ‘lipatan.’  To Lipat or to Kelepet would colloquially mean ‘to pillage.’

Malaysia Airlines Boeing 737-800

Malaysia Airlines has always been a favourite airline of mine.  The national flag carrier is THE symbol of Malaysia’s global reach.  However, the airline which roots can be traced back to 71 years ago has been suffering badly from an especially bad episode of mismanagement dating back from 1994.

Disguised under the New Economic Policy that was supposed to assist the Bumiputeras to be economically stronger, U-Turn Mahathir and financial henchman Daim Zainuddin selected several cronies to helm public-listed companies.  They include Amin Shah Omar Shah (who screwed up the Kedah-class NGPV programme) and Tajuddin Ramli (TR) who stripped Malaysia Airlines of its edge and finances.

TR took over Malaysia Airlines in 1994 through his company Naluri as instructed by U-Turn Mahathir and Daim, the year Jaffar Hussein resigned as the Governor of Bank Negara Malaysia after making a loss in the region of RM30 billion in US Dollars through foreign exchange gambling.

Malaysia Airlines was okay for about two years before crashing in 1997 with a net loss of RM259.85 million (RM426.15 million in today’s terms) from a net profit the year before of RM333.01 million (RM546.14 million in today’s terms).

Like the collosal losses of real money the nation had to absorb through the BMF as well as the BNM Forex scandals, U-Turn Mahathir and Daim saw it fit for Malaysia Airlines, or rather their crony Tajuddin Ramli, be bailed-out using, again, the rakyat’s money.

An infuriated Lim Kit Siang (thank you again, Uncle) released a press statement on the 20th February 2002 saying among others:

The Malaysian Airlines System (MAS) police report on January 9 and the police investigations into alleged million-ringgit  management irregularities at  the MAS  cargo division during   the tenure of  former MAS executive chairman and key shareholder Tan Sri Tajudin Ramli is  a most welcome  departure from the invariable past practice of government and  corporate cover-ups, especially  in government-owned or controlled companies, making Malaysia notorious as a country teeming with “heinous crimes without criminals” – starting with the infamous Bumiputra Malaysia Finance (BMF) scandal in the eighties. 

It has been reported that the alleged management irregularities centred on business arrangements between MAS and a Germany-based cargo handler controlled by Tajudin Ramli and focussed on contracts between MAS and ACL Advanced Cargo Logistic GmbH, a 60%-owned unit of Naluri Bhd., a listed Malaysian company in which Tajudin is the largest shareholder.  ACL operates a cargo facility in Hahn, Germany, that MAS in 1999 contracted to use as its global cargo hub.  

The management irregularities being investigated by the police can only be  the tip of an  iceberg as MAS has chalked up colossal debts of RM9.2 billion and accumulated losses of R2.5 billion, requiring repeated billion-ringgit bailouts at the public taxpayers’ expense – and the Malaysian public are entitled to demand a  full accountability as to how the national airline could end up as such a sick company, a national embarrassment and a burden on public coffers.  

It was reported that the management irregularities in the cargo division  were discovered in   an audit ordered by the government after taking control of MAS early last year  following  the scandalous RM1.79 billion buyback  bailout of Tajudin’s 29.09 per cent stake at RM8 a share when the market price was only RM3.68.

This raises the question as to why an audit was not conducted before the government’s  buyback  bailout of Tajudin’s MAS stake – which would have a very important bearing on the proper price of the government buyout. 

I am sure Uncle Ah Siang has not forgotten this episode too when he became pally with U-Turn Mahathir recently.  Surely the interest of the rakyat is paramount to the God of DAP.

Or is it still?

He continued:

On March 21 last year,  the then Finance Minister, Tun Daim Zainuddin, gave a long and most unsatisfactory reply in Parliament during question time to justify the buy-back bailout of  Tajudin’s MAS stake which took place under his watch, but he  failed to address or  answer the  two most important questions, viz:

  • Why no independent professional valuation was ever done when the government agreed to  pay Tajudin’s Naluri Bhd for the MAS stake at RM8  per share representing  a premium of  RM4.32 or 117 per cent over the closing market price at RM3.68 per share when the deal  was signed on 20th December 2000; and 
  • Why rules for the bail-out of companies established by the National Economic Action Council  in the “National Economic Recovery Plan” was violated and  Tajudin was not only spared from having to “take his appropriate hair-cuts” but was given a bonanza at taxpayers’ expense to reward for his mismanagement of MAS by  being given  117% premium for the  MAS shares over the  market price, transforming it into a personal rescue for Tajudin instead of a public rescue for MAS.  

The  current police investigations into management irregularities in MASkargo Sdn. Bhd. have again brought to the fore  the  questions concerning  prudence, propriety, responsibility,  integrity, accountability and transparency of the decision to use RM1.79 billion public funds for the buy-back bailout of Tajudin’s MAS stake.  

Last month, the government announced a RM6.1 billion MAS restructuring exercise involving assets sale to enable the national carrier to retire some of its debts and provide RM820 million as working capital, which is just a creative way for a second round of government bailout for the national airline.

Malaysia Airlines, Perwaja, Renong as well as other companies steered towards oblivion by their cronies had to be bailed out using the rakyat’s coffers, and not one person has ever been charged in a court of law for the breach of trust they committed.  This included Amin Shah Omar Shah who, prior to being given the contract to build our Navy’s vessels, had never built a single fishing boat!

Kit Siang the self-proclaimed rakyat’s champion as recent as 2012 stated in the DAP’s mouthpiece Roketkini that Mahathir cannot pretend to be ignorant of the MAS scandal.

In fact it as also reported that “Mahathir had his hand in getting Petronas to bail out his son Mirzan Mahathir’s shipping company, then Konsortium Perkapalan, which had trouble servicing US$490 million debt!”

(courtesy of Finance Twitter)
(courtesy of Finance Twitter)

Lim Kit Siang was so furious about the bailout of Konsortium Perkapalan using the rakyat’s money that on the 16th June 1998 he wrote:

But Mahathir should similarly give full co-operation to the Royal Commission of Inquiry into Nepotism, particularly as to whether there is any nepotism in the government, through Petronas, using hundreds of millions of ringgit of public funds to bail out Mirzan Mahathir’s Konsortium Perkapalan Bhd.

Just recently, a copy of a directive from the Ministry of Finance to Telekom Malaysia regarding a direct negotiation contract award totalling RM214.2 million to Mukhriz Mahathir’s OPCOM made its rounds on the Internet:

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A blog post by a Sup Torpedo wrote about this back in 2006:

Mahathir’s criticism of Scomi is justified. It has proved that Scomi does not garner very much government work and now that’s all open to scrutiny. Unlike a company called Opcom Sdn. Bhd. who had a direct nego approved by the Finance Ministry way back in 2003 when Mahathir was both Prime Minister and Finance Minister. The amount of the tender by Telekom Malaysia Berhad was two hundred and fourteen MILLION ringgit. The Ministry of Finance approved it, no doubt with the blessing of the then Finance Minister and Prime Minister, Tun Dr. Mahathir Mohamad.

Hey! What’s new?  If you look at the above letter, it was dated on the 7th October 2003.  The old fart stepped down as the Prime Minister and the Finance Minister on the 31st October 2003.

It was an eleventh-hour effort to enrich his kin – a true nepotistic egoist dictator who was afraid that money made during his 22-year dictatorship would not be enough to cover his grave.

Even in 2006, during the peak of the old fart’s attacks on his successor Abdullah Ahmad Badawi, observers such as Sup Torpedo could see that it was little about putting the interest of the rakyat ahead as compared to securing money for the Thousand-year Reich of his:

Don’t miss the wood for the trees. This fight that Mahathir got going on with Pak Lah is not about doing the right thing. It is at best about putting his old crony’s rice bowl firmly where the padi fields grow. At the very worst of motives might be the will to further advance Mukhriz’s political career and provide continuity to the old ways.

Again, what is new now? Virtually nothing, except for one little glaring fact: WHY IS UNCLE KIT SIANG SELLING HIS SOUL AND PUTTING HIS PERSONAL POLITICAL INTERESTS AHEAD OF THE RAKYAT’S BY MAKING A U-TURN ON HIS ATTACKS ON MAHATHIR?

A simple answer would be that he is nothing but the stinking, arrogant cow-dung for brain hypocrite he has always been.  Power is what he seeks for power ensures riches, just like his charged-for-corruption son.

And what of the rakyat then?

As the saying goes: “The meek shall inherit shit.”

The Bank Negara RM30 Billion Forex Losses Scandal

Kit Siang also published a book on the BNM Forex losses scandal
Kit Siang also published a book on the BNM Forex losses scandal

Yes. The year was 1994 when Lim Kit Siang found it ultra-important to publish a book on the Bank Negara Malaysia (BNM) foreign exchange scandal that caused the loss of RM30 billion (estimated to be at RM49 billion in today’s terms).

The book is called, as you would have guessed, ‘The Bank Negara RM30 Billion Forex Losses Scandal‘.

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The BNM forex scandal losses in 1991 made international headlines at the time, forcing the resignation of BNM’s governor Jaffar Hussein.

Again I should thank Kit Siang for writing all this, making it easier for me to see what he had written on the issues he raised in the past.

In 2004, Kit Siang called upon Nor Mohamed Yackop who then was sworn in as a Senator to become Finance Minister II to issue a White Paper on the matter.

Up to now, the government has failed to “come clean” on the colossal  Bank Negara forex losses  as a result of speculation in the international currency markets from 1992-1994, with the losses  cited as ranging from RM10 billion to RM30 billion. In Parliament in 1994, I had given reasons as to why the Bank Negara’s forex losses as a result of its forex speculation operations could have amounted to as high as RM30 billion, which had not been seriously rebutted by any top government leader or Bank Negara official,” he wrote on his blog limkitsiang.com.

In  April 1991, a   Reuter news agency report from London described Bank Negara as “a dominant force on the foreign exchange scene for some years” and it was  accused by some forex operators as “a market bully”.

The 1991 Reuter report states:

“Over the past two years it has stepped up its trading volume, and this year it has started dealing in what dealer described as ‘really massive amounts’… 

“Typically, Bank Negara operates in US$50 million lots, compared with the market norm of US$5 million or US$10 million and deals with maybe six major banks in Europe and six in New York, dealers said. 

“One trader said the only dealers rivaling Bank Negara would be the Japanese funds. But while these funds enter the market no more than once or twice a year, Bank Negara is coming in and doing yards (billions) of dollars a day. 

“”Its recent technique has been to hit major banks for US50 million each, then his them 10 minutes later, dealers said. 

“Then it changes centre, and does it all over again.” 

The April 1994 issue of Malaysian Business – one of the publications in the New Straits Times stable – reported  that Bank Negara’s maximum exposure in the foreign exchange markets reached as high as RM270 billion – three times the country’s GDP and more than five times the country’s foreign reserves at the time!

Kit Siang added that some Government leaders were wise after the event, and one of them was none other than Daim Zainuddin, under whose first tenure as Finance Minister from 1984-1991 the Bank Negara’s unorthodox forex speculation started, who said on April 4, 1994 that while those responsible for the huge forex losses of Bank Negara had accounted for their mistakes by resigning, central banks should never “play with fire” with such forex speculation.

It was Kit Siang who pointed out the irony.

In 1995, a book on international high finance, ‘The Vandal’s Crown‘ by Gregory J. Millman on Page 229 had this to say about the Bank Negara forex scandal:

“Using all the resources a central bank commands – privileged information, unlimited credit, regulatory power, and more – Malaysia’s Bank Negara became the most feared trader in the currency markets. By trading for profit, Bank Negara committed apostasy against the creed of central banking. Instead of working to ensure global financial stability, Bank Negara repeatedly shoved huge sums of money into the most vulnerable market situations in order to destabilize exchange rates for its own profit” (p.226) 

“(Bank) Negara operated behind a thick veil of secrecy. The bank seldom spoke publicly about its controversial trading activities. Yet it was increasingly clear to foreign exchange traders that Bank Negara’s operations in the foreign exchange markets went far beyond simple self-defense. It became the most awesome currency trader in the world.” (p. 227) 

“(Bank) Negara’s market manipulation was so egregrious that one American central banker said, ‘If they tried this on any organized exchange in the world, they’d go to jail.’ However, in the unregulated international currency markets, there were neither police nor jailers. The only rule was the rough justice of the vandals, and it was this rule that eventually brought (Bank) Negara down. 

“In 1992, (Bank) Negara took on a large pound sterling position, apparently expecting Britain to maintain the discipline required by the European Exchange Rate Mechanism. It was a bad economic and political judgement. (Bank) Negara lost approximately $3.6 billion when Britain withdrew from the ERM, letting sterling collapse. The next year, (Bank) Negara lost an additional $2.2 billion. By 1994, Bank Negara was technically insolvent and had to be bailed out by an infusion of fresh money from Malaysia’s finance ministry.”

Recently, Abdul Murad Khalid who was the Assistant Governor of BNM who resigned in 1999 revealed that the forex losses were in actual US Dollars and not in Malaysian Ringgit.

There was no control… The most important thing is that there was no investigation at all,” Murad was quoted as saying by NST.

Asked if the then Prime Minister knew about the losses, he replied: “I’m sure the governor briefed them.”

Kit Siang’s silence on this issue is indeed deafening.  The so-called champion of the rakyat now has his balls as wrinkled as his face is.  And all to achieve his personal political ambition.

In 1993, Anwar Ibrahim who was then the Finance Minister responded on behalf of his then-master, U-Turn Mahathir, to Kit Siang’s query on some “rumours about BNM losing money gambling forex“.

Anwar said that the rumour was not true at all.

When confronted, again by Kit Siang, a year later, Anwar said “the amount is not huge.”

The above engagements can be found in the Parliament Hansard.

After Murad’s revelation we know now that the amount is actually colossal.

We also know that U-Turn Mahathir as well as Daim Zainuddin were very much in the know of the losses.

And we know that Lim Kit Siang is just another opportunist snake manipulating the issue to gain support from the rakyat but now bats no eyelid to work hand-in-hand with his sworn enemy so he could come into power.

I am pretty sure he feels pleased looking at himself in the mirror every morning knowing he had blatantly lied to the people.

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wǔdǎyī!