KUALA LUMPUR: The Royal Commission of Inquiry (RCI) into the 1990s Bank Negara Malaysia (BNM) foreign exchange (forex) scandal is being conducted at the insistence of DAP, said Umno information chief Tan Sri Annuar Musa.
Annuar said DAP advisor Lim Kit Siang had raised the need for an RCI into the scandal in Parliament in 1994, a year after news spread that the country had lost billions of ringgit in the trading.
"And 12 years later, in 2006, Lim once again raised the matter in Parliament and demanded that an RCI be formed to investigate the matter, even providing detailed facts on the losses suffered by the country.
"Lim was also the first person to give an overview of the amount of government losses in forex trading that reached half of the total reserves at that time, totaling RM60 billion.
"Therefore, the RCI is actually being conducted by the government at DAP's request and initiative who had demanded that an investigation be undertaken and the government sees that DAP's request is something that is relevant for the benefit of the people," he said on Umno Online, today.
Annuar also denied claims that the RCI was being conducted to take revenge against any individual, including former premier Tun Dr Mahathir Mohamad.
RCIs were usually formed based on the people's demands, he said, adding that the government must first study the public's sentiments and the necessity to investigate the issue, which changes from time to time.
The RCI was set up following a cabinet meeting, soon after the New Straits Times published an interview with former BNM assistant governor Datuk Abdul Murad Khalid, where he claimed that the central bank had suffered forex losses of US$10 billion in the early 1990s.
It was also reported at that time, which was during Dr Mahathir Mohamad’s premiership, BNM had ventured into speculative currency trading and forex trading with large sums of money, alarming other banking institutions worldwide.
The RCI panel, which has been given five terms of reference, has to complete its inquiry and submit its report to the Yang di-Pertuan Agong within three months by the scheduled date of October 13.
Annuar pointed out that in 1993, losses from the central bank's forex trading was more than RM30 billion, which had already been confirmed in the ongoing RCI investigation.
"The RM30 billion is a loss that the country can never redeem. It is not just losses on paper, but actual losses that have gone forever.
"This is unlike what happened to (state fund) 1MDB (1Malaysia Development Bhd), where the losses are on paper," he said, adding that 1MDB was still operational, was able to make a profit and carry out a rationalisation exercise to overcome the losses incurred.
The opposition, said Annuar, was giving the impression that 1MDB's debt could not be settled and that the people had to shoulder the burden.
"This information is incorrect. The losses are only on paper and from a business perspective, 1MDB didn't fold and is still doing business.
"The (forex trading) losses have set a world record. No other country has experienced such colossal losses which caused a deficit of half of the country's reserves," he added.
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