BNM Forex Scandal: RCI

I believe many who started working life at Bank Negara Malaysia (BNM) prior to the nineties may feel very sad and shocked at what was uncovered  by the Royal Commission of Inquiry of the BNM Forex scandal. None of us could have imagined that BNM, which was once the epitome of financial discipline and integrity had gone down this far under PM Mahathir.

The Royal Commission of Inquiry has found out that BNM lost RM31.5 billion in transactions between 1992 and 1994. It was not a loss from the Bank’s normal function to defend the Ringgit, but a result of heavy speculative transactions on the foreign exchange market, an activity out of bound for any central bank to participate in.

It is an irony that the very person who instilled this highest form of discipline at BNM was non other than Tun Ismail Mohamad Ali, brother in law of Tun Mahathir  himself. But he was no nonsense Governor who  later headed PNB,  another institution best known for its outstanding success in mobilizing Bumiputera savings and Investment.

But for BNM, it had a sad outcome. One of Tun Ismail’s successors had to resign under  strong pressure in the eighties when the higher authority interfered with its functions. At that time Tun Daim Zainuddin was the Finance Minister.

It is now very sad to see a  former colleague Tan Sri Nor Mohamad Yackop finding himself in the centre of controversy for recklessness or even possible criminal breach of trust. Was he really that reckless or at fault or was it a case of just blind loyalty of following orders and  protect the boss at all cost, a phenomenon prevalent in the government at that time and even now. Knowing Tan Sri Nor Mohamad  during our student days and working life, it is hard to believe that he could be that reckless or having any criminal intent.

As to what really happened, only Allah and  he knows for sure. Hopefully, the truth, the whole truth and nothing but the truth will come out in the upcoming   police investigation.

 

Wallahua’lam

DAH IKHWAN

About DAH IKHWAN

Born in Kuching in 1948. Obtained Bachelor of Economics (Hons), U Malaya, and MBA, U Leuven, Belgium. Worked in senior management positions in Government Service until retirement in 2003. Business entrepreneur in the last 20 years and active in social organisations, besides being on the Board of government agencies, GLCs and member of top level advisory councils of the Government. Social and political research, analysis and writing are my hobbies.
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One Response to BNM Forex Scandal: RCI

  1. Mujibir says:

    Saudara Dah Ikhwan. Macamana dengan kerugian Forex pada tahun 2013 hingga 2016 yang jauh lebih tinggi dari yang berlaku pada tahun 90an. Juga minta pandangan saudara dgn jawapan Menteri kewangnan kedua yang mengatakan satu kes adalah kerugiaan Forex dan satu kes lagi hanya alairan keluar Forex?

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