Was the forex “gambling” loss by Bank Negara Malaysia announced in 1993 linked to the attack on the ringgit which Tun Dr Mahathir blame on George Soros?

  • Was there any manipulations of BNM’s account by government and bank officials then?

Those are among the questions asked in this blog’s posting on February 24th 2017 here. There are many more in the posting and the various links.

And, the questions and information on the humongous loss, as claimed by former BNM Adviser, Dato Abdul Murad Khalid, of USD10 billion does not end there.

Still few more being held back.

  • For instance, is there any truth that the real loss was more than US$13 billion and equivalent to RM70 at today’s exchange rate plus interest cost etc.?
  • Another one, BNM was rumoured to have done USD/Ringgit swaps by the billions. Was it another mechanism used to artificially prop up the foreign exchange reserve?

If so, more reason to believe George Soros cannot be blamed for attacking ringgit. Mahathir was creating a political diversion.

Well, the public has their own expectation but this blog is looking for more than who, what, why, when and how.

The implication of the losses has to be made known and not swept under the carpet as typical of Mahathir-era scandals.

The carpets looking more like the Himalayas.

Most important, the guilt of Tan Sri Nor Mohameed Yakcop for busting every prudent limit in managing foreign exchange exposure or “gambling” is taken.

He should have been reprimanded or charged for laws he had broken decadrs ago. Nothing less should be expected.  

So who the duck gave him the go ahead?

It can’t be late Tan Sri Jaafar Hussein. 

He has got bosses.

More so, he is a public accountant, a former banker, auditor, public companies directors, etc. The most unlikely person to indulge in such risky venture.

More so, it is not BNM role to generate profit from operation.

It can’t be then Minister of Finance, Dato Seri Anwar Ibrahim. 

He is a political animal and politics is his prime consideration. Thus will not give go ahead to ventures that could jeopardise his political career.

Anyway, he know nuts about finance then. It took him three months to understand and brave enough to sign for the normal operatiom to rollover issuance of Treasury Bill.

Though it happened during his time as Minister of Finance, apparently it may not be him.

It can’t be earlier Minister of Finance, Tun Daim Zainuddin. 

BNM or precisely, Noor Mohamed Yakcop only went crazy from 1991 to 1993. Daim ended his first term as Minister of Finance in March 1991.

Daim is a market player and do creative manouvre is instinctive. However, his earlier experience in business made his appreciate and respect risk.

He does not take risk unnecessarily and without calculation.

Market player in him will control and minimise (if not zero-rise) risk. It cannot be him.

If it is not Jaafar, or Anwar or Daim, who then gave Nor Yakcop the free hand  to take risky positions on the country’s rather paltry foreign exchange reserve then?

  • Questions need be ask as to what basis did Nor Yakcop made his “investment” decisions?
  • Back in 1987, Wall Street made a large single day fall and futures and options market went berserk because of program trading. Did BNM used program trading meant for smaller lots to trade our foreign exchange reserve?

Being professional

The Chairman of the Special Taskforce have made an announcement:



The role of the task force is to do preliminary investigation, and recommend further action to the government.

Although Tan Sri Zeti claimed an internal inquiry had been done, it is quite certain nothing was done because no one was reprimanded or no criminal charges made.

In fact, Tan Sri Nor Mohamed Yakcop was given bigger role by Mahathir.

Under Tun Abdullah, he was made Minister, MP and continued in important roles with government with Khazanah, 1MDB and other outfits till today.

Many suspicions of corruptions and improprieties were committed by Nor Yakcop, including two of his former political secretaries in a row are charged with corruption.

The Chairman and selected members of the taskforce are civil servants, and professionals. There is no reason to say they will be or do a cover-up for Nor Yakcop.

There is reason to believe members of the task force knows that “Nor Mohamed akan kena“. He should “kena”.

He “patut kena”. 

The little worry inside is the Chairman is closely associated with Tan Sri Rafidah Aziz, a key “man” to Mahathir, thus do not know where he is.

There are many Mahathir admirers among the members. Will they objective and carry out their role with fear or favour?

There is a former foreign exchange trader among them. He is the only one who understand the nitty gritty and technicality. And it is believed he is close to Nor Yakcop since his trading days.

Able person. He has work experience with two banking organisations, fund management outfits, and also a boutique banking with link to Nor Yakcop. Believe to be a professional, fair and firm in his decisions.

However, it is a tough and difficult decision to make on a person who had open the path to his present position today. If he cannot do it, he should recluse himself.

Missing from the task force is a professional accountant or auditor. This is where they are needed and not be automatic choice for corporate CEOs, especially GLCs.

It was reported that the task force met yesterday. The findings and recommendation will be submitted to the cabinet in three months.

We are awaiting ….

– http://anotherbrickinwall.blogspot.my