Thursday, April 27, 2017

Anwar statement on Forex loss tallies, More questions ...


Dato Seri Anwar Ibrahim was called in by the special taskforce enquiring on the foreign exchange speculation losses by Bank Negara Malaysia in 1994.

He issued a statement relating to the enquiry. Bit late but understandably he is in prison.

Anwar quoted few personalities that has passed on. Unless his statement in the enquiry differs from the released statement, it generally tallies with what were already known.

Anwar denied being aware of the losses but did express concern on the riskiness of the operation to Bank Negara Governor then, the late Tan Sri Jaafar Hussein twice.

He said he was not told the real situation. Jaafar only admitted later of not knowing the real situation too.

The officer in charge, now Tan Sri Nor Mohamed Yaacob did not give the true situation of the Bank's trading operation to the Governor.

Who gave him the go ahead to undertake such massive speculative operation? If he never did, it could be considered a criminal offense.

Will he reveal there exist person when called in by the Special Taskforce? More so, if is another Keling.


The statement with our comment, as a former foreign exchange dealer with some familiarity with the issue in hand and some inside track, below

KENYATAAN MEDIA 

Berkenaan Kerjasama Saya Dengan Pasukan Petugas Khas Forex 

Saya memilih untuk bekerjasama dengan Pasukan Petugas Khas Forex selaku mantan Menteri Kewangan 1991-1998. Saya berpuas hati dengan ruang yang diberikan oleh Pengerusi Tan Sri Sidek dan jawatankuasa.
Dalam kesempatan singkat pada 20hb April lalu, saya telah jelaskan antara lain bahawa: 

1. Sebaik menyandang jawatan Menteri Kewangan, Ketua Setiausaha Perbendaharaan (Tan Sri Zain Azraai Zainal Abidin) ada menyentuh urusan dagangan matawang oleh Bank Negara Malaysia. Menurutnya, sejak 1989, Perbendaharaan Amerika (Fed); Bank Pusat England dan IMF telah memaklumkan bahawa penglibatan BNM dalam urusan tersebut dianggap membimbangkan. 
Comment: True, the concern by the Fed was as far back as 1989. But IMF?  
It is not their area of operation so why IMF. Guess only Anwar is that close with IMF. 
Berikutnya, dalam taklimat Gabenor Bank Negara Malaysia (BNM) Tan Sri Jaafar Hussein, beliau menafikan keterlibatan BNM sambil menekankan bahawa penglibatan BNM adalah sah sekadar mempertahankan kedudukan ringgit dalam pasaran. 
Comment: It is an open secret which the whole foreign exchange market knows but those benefitting from the business would not say openly. 
Jaafar did commented to press, in Forex Club dinners and at an International Cambiste conference for traders in Kuala Lumpur of "active reserve management". In market parlance, trading but to common folks, compulsive gambling. 
2. Masalah mula dikesan laporan yang membimbangkan dari media antarabangsa dan pasaran Zurich, sekitar akhir 1991 dan awal 1992, dan perkara tersebut dikemukakan semula kepada Gabenor BNM. Tan Sri Jaafar memberikan keterangan yang sama dan memaklumi bahawa Pengarah Urusan tersebut di BNM adalah Tan Sri Nor Mohamed Yakcop. Namun, manakala deraf awal audit BNM 1991 dibentangkan, Perbendaharaan melahirkan kebimbangan. Gabenor BNM akui jumlah terlibat adalah lebih besar dari yang dijangka. 
Memandangkan saya dan Kementerian Kewangan tidak dimaklumkan mengenai hal tersebut, Gabenor sendiri yang menjelaskan kepada media dengan menyebut "kerugian atas kertas".  
Comment: True, the international media was tipped off and were on the prowl. More so, negative news were surfacing on Malaysia and beginning to be the target of international media.  
Later years, British press painted the then Prime Minister as Mr 10%. 
Berikutnya saya terpaksa menangani permasalahan tersebut di Parlimen, terutama persoalan-persoalan yang dibangkit Ketua Pembangkang ketika itu, YB Lim Kit Siang. Kerajaan memberikan penjelasan BNM sambil menjelaskan keutuhan ekonomi. Namun, saya menegaskan arahan agar BNM menghentikan dagangan Forex tersebut. 
Comment: True, it happened amd Anwar's reply in Parliament was made the butt of opposition jokes. 
3. Dari perkembangan tahun berikutnya, 1993, ternyata urusan tersebut diteruskan; dan jumlah kerugian ketika itu, dianggar sekitar RM9 bilion hingga RM10 bilion.

Should Nor Yakcop remain in 
Khazanah Nasional?
Gabenor BNM membuat pengakuan kepada saya bahawa Tan Sri Nor Mohamed Yakcop tidak memberi laporan tepat kepadanya dan beliau telah menerima perletakan jawatan Tan Sri Nor Mohamed Yakcop sebagai petugas yang bertanggungjawab. Tan Sri Jaafar sendiri mengambil tanggungjawab sepenuhnya, walaupun saya akui kewibawaannya dan percaya bahawa beliau tidak diberikan keterangan lengkap oleh Tan Sri Nor Mohamed Yakcop. 
Comment: This is confirmation that Nor Yakcop was the person in charge.  
It begs the question as to if he did not give true picture to his boss, who Nor Yakcob report to?  
If none, was he a rouge trader like the imprisoned Nick Leeson that did illegal trade at Baring Brothers which did not conform with bank policies and procedures? 
The operations were not authorised! 
4. Tan Sri Ahmad Don yang mengambil alih tugas Gabenor BNM pada tahun 1994 telah bertindak menghentikan dagangan tersebut, dan mula membayar kerugian sekitar RM500 juta setiap tahun. Pengurusan BNM bertambah mantap, diperkemas dengan laporan dasar yang lebih teratur kepada Menteri Kewangan. 
Jumlah kerugian akhirnya dianggar sekitar 15 hingga 30 bilion ringgit tertakluk kepada cara BNM mengaudit dan mencatat potongan 'contingency fund', 'reserve fund', 'insurance fund'; kos membendung inflasi dan mempertahan ringgit. 
Comment: True, Jaafar and Ahmad Don were used to cover-up this financial scandal. Re-read past posting  here.
Do include currency swap cost and ascertain the accounting treatment of the "borrowing" foreign exchamge transaction. 
Do verify actual foreign exchange reserves of the time and bring in Ahmad Don as we were reliably informed that it was wiped out! 
George Soros got wind of it and exploited to the hilt. BNM was incapable of defending the ringgit in the infamous attack in 1997. 
5. Setelah saya dipenjarakan pada September 1998, Tan Sri Nor Mohamed Yakcop telah dilantik sebagai penasihat ekonomi kepada Perdana Menteri. Dan lebih serius lagi apabila beliau dilantik Menteri Kewangan Kedua pada 2008; walaupun ketika diberhentikan pada tahun 1998, Kementerian Kewangan telah mengemukakan syarat bahawa beliau tidak boleh lagi terlibat dalam mana-mana institusi kewangan negara. 
Comment: Nick Leeson lost his job and was imprisoned. Our own Nick Leeson rose and still around in government and corporate. He was awarded Tan Sri ship.  
Words on the "street" is he is still on.the prowl for questionable deals and mentioned by not to disclosed sources that he id the biggest money launderor in town with operations out Dubai.  
6. Dalam pertemuan dengan Pasukan Petugas Khas Forex ini, berulangkali saya tegaskan keperluan dibekalkan dengan laporan dan dokumen untuk memastikan perjalanan lebih telus dan teratur. Perkara ini belum dilaksanakan. Saya juga perhatikan masalah wujud manakala keputusan Pengerusi membenarkan peguam saya, R Sivarasa, hadir untuk saya rujuk, tetapi keputusan ini diketepikan oleh seorang pegawai di Kementerian Kewangan. 
Comment: Yes, the report and documents need be made known for public viewing.
However, the Special Taskforce may recommend to government whether to proceed for further investigation. If there is ground for prosecution, it will only be made known in court. 
Why should Sivarasa be around?
This is not a criminal investigation. More so, it is dangerous to teach Pattaya Pete boss new tricks 
Anwar Ibrahim
26 April 2017

Mahathir behind?


Was Tun Dr Mahathir behind yet another financial scandal and mother of all losses?

Is this another of his signature scandal cover-up?

Mahathir has expressed willingness to be called in. His motive is clearly for politics to potray he is unafraid.

Unfortunately, his mental seemed to fail him in courts and RCI enquiries. He maybe unfit to do so.

The Special Taskforce need to create a red-colured polical rally with a podium to enable him to be in his elements.

He need to be able to recall his past misdeeds despite the likelihood he will go "deny everything Baldrick" and play the no proof line.

When his memory is working, enquire if he had amended laws to decriminilise the offenses done by Nor Yakcop in retrospective.


Also enquire of a proprietary program trading introduced by a late former Deputy Minister that came from a banking family.

The tip came from former bankers close to a former BNM Governor family.

Just asking in the same manner he ask questions as his way of making various allegations against Dato' Najib on 1MDB.

If he does not answer, will it mean he is guilty too?

Though useful as a tool to guide traders' decisions, program trading triggerred stop losses in the Futures and Options market that led to the accelerated market freefall in the Black Monday crash on Wall Street in 1987.

It is unsuitable for size operations in which every trade will move market.

It makes it difficult to get out of position taken, especially large losing ones like a USD200 million Swiss Franc trade BNM reportedly did.

It need traders able to move steps ahead of the market. The one person capable of doing so on the ringgit market is a member of the Special Task Force.

Get his expert opinion ...

2 comments:

SnapShot said...

http://theunspinners.blogspot.my/2017/04/mahathir-anwar-cover-up-kerugian-forex.html

Anonymous said...

Whatever he's rich. All money changer clearing house goes to his outfit. All his anak keponakan position in investment banking all over from malaysia to Singapore. All gomen deals international he make sure secured. What a big deal he got.

My Say