Wednesday, September 20, 2017

Losses acknowledged but strangely, not in the know

This morning a person quite in the know of the BNM forex trading loss debacle expressed his disgust of Tan Sri Hadenan Jalil's statement to the RCI. Sundaily dated September 7th 2017 here has a little snippet:
Meanwhile, former auditor general Tan Sri Dr Hadenan A. Jalil testified that while he was the secretary in the Finance Department, Treasury denied to ever having a discussion about the foreign exchange losses sustained by BNM between 1990 to 1994.

"I at no time as the secretary in the Finance Department, Treasury held any discussions about the forex losses sustained by BNM with the Prime Minister then."
This Protasco's Chairman (read here) is a £@€#-ing liar and a fake (read here).

The person messaged that the statement made lost trust with the auditing profession. Hadenan should have then joined P Ramlee to be Auditor in the movie Ali Baba Bujang Lapok.

He should be the right choice for a role in a Tun Dr Mahathir's film production as a crooked auditor. Without telling much, he said the auditor in the movie helped pull off the biggest robbery by counting the amount robbed instead of defending the stolen money from the rakyat.

Apart from being Chairman of Tun Daim's former company, he was Chairman of Swiss-based ICB Group. At the same time, he received a comfortable pension from government.

The person highlighted that the more relevant point not picked up by the media of the Monday RCI is that both Tun Daim and Tun Dr Mahathir acknowledged the losses. Thereon, one can argue over the amount and who were guilty of wrongdoings and covering up.

As far as the RM32.5 billion loss, this blogger believe the figure could still be underestimated. BNM and these old timers may still be hiding more from the public.

They reason is they #taktau.

They could deviously hiden from the public the share transfer of TNB and Telekom shares belonging to the rakyat. A source claim it was done in a manner to create a false impression to show foreign reserve rose.

Using a line heard repeatedly at the RCI, former Deputy Finance Secretary at the Finance Department of MoF, Datuk Othman Jusoff, 69 could not remember who directed him to do so.

If they had not acknowledge the losses, it means RM5.7 billion was declared and the balance from the RM32.5 billion could have disappeared under the comfort of OSA.  

The key points of the Monday RCI was well summarised by Singapore's Strait Times below:

These were among the key points that emerged yesterday at the Royal Commission of Inquiry into the massive losses at Bank Negara Malaysia (BNM) in the 1990s caused by aggressive currency trading.

1. Former premier Mahathir Mohamad claims he had no knowledge of the extent of BNM’s foreign-exchange trading, and had no legal power to interfere in the bank’s operations.

2. Tun Daim Zainuddin, Finance Minister from 1984 to 1991, claims that despite being the minister-in-charge of BNM, he was never informed about the bank’s decision to be an active currency trader, and would have stopped it if he had been told.

3. Tun Dr Mahathir, Prime Minister from 1981 to 2003, says he did not know the extent of the losses at the time. He denies a claim he was told in 1993 that the figure amounted to RM30 billion, and says he was only told it was “around RM5 billion or RM5.7 billion”.

4. The commission’s chairman, Tan Sri Mohd Sidek Hassan, expresses doubt about this, as RM5.7 billion were the losses attributed to 1993 and computed and reported only the following year.

5. The commission expresses several times that the prime minister and finance minister are to manage the country and economy, and it seemed there was “no one taking accountability or ownership from minister upwards”.

6. Finance Ministry’s former deputy finance secretary, Datuk Othman Jusoff, told the inquiry that shares in utility companies Tenaga Nasional and Telekom Malaysia were transferred from the government to BNM at par value, to be sold into the market for profit to cover the forex losses.

Shannon Teoh

Tun Daim gave his statement earlier and the media highlighted his denial of knowledge. He left in 1991 but he acknowledged hearing about it in 1988.

Sundaily reported:

BNM’s forex trading was rubbish, says Daim (Updated)

Posted on 18 September 2017 - 12:44pm
Last updated on 18 September 2017 - 03:20pm

G. Surach

PUTRAJAYA: Former Finance Minister Tun Daim Zainuddin told the Royal Commission of Inquiry (RCI) investigating Bank Negara Malaysia's (BNM) foreign exchange (forex) losses in the 1980s and 1990s that he had never spoken to then-Prime Minister Tun Dr Mahathir Mohamad about the central bank's forex dealings.

Appearing as the 23rd witness in the proceedings today, he said then-BNM governor, the late Tan Sri Jaffar Hussein, had never discussed with him in detail about forex dealings by BNM’s trading arm.

However, he acknowledged that BNM became active in forex trading from 1988 onwards.

Daim, who served as Finance Minister between 1984 and 1991, arrived at the Palace of Justice at 9.45am before taking the witness stand at 10.20am.

Describing BNM foreign exchange (forex) trading during that period as "rubbish", Daim stressed that he would have stopped it if he had known about it.

Speaking to reporters after taking the stand before the Royal Commission of Inquiry, Daim said it was not the central bank's role to trade in forex.

"In hindsight, I think it's damn stupid. Forex trading is a very volatile business and those in charge of the reserves should be more careful in taking care of it.

"BNM's role is to protect our currency and reserves," he told the commission.

Questioned by RCI chairman Tan Sri Mohd Sidek Hassan on whether the Finance Minister could access BNM's reports as the Treasury secretary-general is a member of the BNM board, Daim said no one had informed him.

"The onus was on BNM to inform the ministry of the trading," he said.

However, Sidek chided Daim and questioned how he was unable to know the central bank's dealings when earlier witness, former senior auditor Kanason Pothinker, had more knowledge of the matter.

He was so much smaller (in rank and file than you), yet he knew, Sidek said.

"And you as a minister who was so good, didn’t know. I find that so odd. Don’t you agree ?" he asked.

In response, Daim insisted that he was not informed.

"How can I agree or disagree when I wasn’t informed. If I know these things, no way would I have allowed this to happen.

"I would have sacked them. How do I act when I do not know (what is going on) ?" he retorted.
More reports here, here, here and here.

He could not plead ignorance, without someone to blame or be responsible, because the law is clear stated as below:

Was Hadenan the incompetent Secretary General of Ministry of Finance incapable of assisting, updating and monitoring the Ministry accordingly?

Mahathir testimony was after Daim. He had been politicising the RCI from the onset and tried to detour it through his lawyer, Pashtun Hanif Khatri. In his testinony, he was endlessly in-denial and doing political spinning.

Sundaily reported below:

BNM began active forex trading without my knowledge: Dr M

Posted on 18 September 2017 - 07:53pm
Last updated on 19 September 2017 - 09:09am

G. Surach

PUTRAJAYA: Former premier Tun Dr Mahathir Mohamad testified that he was briefed in detail about the Bank Negara Malaysia (BNM) foreign exchange (forex) trading losses only months after the matter was tabled to the cabinet in 1993.

"Regarding the testimonies of Witness 14 (former Finance Ministry secretary-general Tan Sri Clifford Herbert) and Witness 21 (former Finance Minister Datuk Seri Anwar Ibrahim) which stated that they briefed me about the losses, this is true but they only briefed me of the losses months after Witness 21 tabled the losses to the cabinet," he said when reading his witness statement during the Royal Commission of Inquiry (RCI) into the forex losses at the Palace of Justice (PoJ), here, yesterday.

The losses amounting to some RM5.7 billion back in 1993, he said was all that he was informed of, adding that he had no recollection of the alleged losses of RM31 billion as claimed by former BNM assistant governor Datuk Abdul Murad Khalid.

During the RCI sessions earlier, Anwar and Herbert had both stated that Mahathir, who was then prime minister, had been briefed before Anwar had tabled a report on the losses to the cabinet in April 1993.

Mahathir then addressed Herbert's testimony which stated that he (Mahathir) had said "sometimes we make profits and sometimes we make losses" when briefed of the losses.

"I do not remember exactly what I said, but I might have said that or I might have said 'sometimes we win, sometimes we lose'.

"I probably would have only said this because (former BNM governor Tan Sri) Jaffar Hussein had already told me of BNM's forex trading which had in the late 1980s were profitable and increased the central bank's reserves,"he said.

Mahathir also defended his decision to appoint Tan Sri Nor Mohamed Yakcop as economic adviser to the government, despite allegations that Nor Mohamed was one of the major players behind the 1990s forex scandal.

"The economy was in a challenging position and I needed someone with the know-how to help us weather it.

"He (Nor Mohamed) was the one," he added.
There are many more reports but the Bernama report below is more glaring:

Dr M: I’m only human, some things did escape my scrutiny

(Bernama) – “If you want to say that I am a perfectionist, yes I admit, but I am also human, sometimes I overlooked (something),” former prime minister Tun Dr Mahathir Mohamad told the Royal Commission of Inquiry (RCI) into Bank Negara Malaysia’s (BNM) foreign exchange (forex) losses in the early 1980s today.

Dr Mahathir said that in reply to Conducting Officer Datuk Suhaimi Ibrahim, who suggested that Dr Mahathir was a perfectionist and meticulous person who would pay great attention to a problem, but had failed to pay attention to the huge losses suffered by the BNM.

“No matter how careful I am in handling everything, there are things I had overlooked. For example, I appointed the wrong person,” he said without naming the person.

At this juncture, RCI panel member, High Court Judge Datuk Kamaludin Md Said told Dr Mahathir that the issue in question concerned the losses suffered by the BNM.

Kamaludin also asked Dr Mahathir whether he had wrongly appointed the then Finance Minister, to which he answered: “He seemed nice at first, but what he had in mind, I didn’t know.”

To Suhaimi’s question that Dr Mahathir should have given more attention to the BNM losses as it was also reported in the foreign media, the former premier said he did not give attention to foreign media reports as they were keen on criticising him.

“I take note of the reports (on BNM losses) from my officers. I stood by the reports from my officers, including the Finance Minister and the Governor (of BNM),” he said.

Earlier in his witness statement on Tan Sri Clifford Francis Herbert’s claim that he and the then Finance Minister Datuk Seri Anwar Ibrahim had met with Dr Mahathir in his office in early 1993 to report on BNM losses of RM30 billion, Dr Mahathir said he could not recall the amount of RM30 billion being mentioned.

“What I can recall was the amount of RM5 billion being mentioned. This was because when it was brought to my attention, I already knew that the BNM forex losses for the year 1992 was RM5.7 billion as informed to the Cabinet earlier by Datuk Seri Anwar Ibrahim, and as I much as I could recall, was also tabled in Parliament.

“What I am sure of is that there was no written document showed or given to me pertaining the matter,” he said.

Dr Mahathir said all problems pertaining to the BNM forex transactions had been tackled by the central bank between 1992 and 1994 by introducing various regulatory measures as well as by formulating the Central Bank of Malaysia Act 2009.

On former BNM governor Tan Sri Jaffar Hussein, Dr Mahathir said Jaffar was personally known as a credible, trustworthy and reasonably prudent person.

He is also known as a strict, straightforward person and I have full confidence in his integrity and transparency, Dr Mahathir said.

“All the forex losses suffered by BNM between 1992 and 1994 cannot tarnish the good deeds and contributions made by Jaffar, who had served tirelessly in the interests of the country,” he said.

He said Jaffar’s move in taking responsibility and stepping down as the BNM governor in 1994 was indeed a prudent decision.

On Anwar’s statement about the Cabinet meetings held on March 30, 1994, and April 6, 1994, Dr Mahathir said as far as he could remember, there were no facts given by Anwar in both meetings that differed from the BNM annual financial report tabled to be Cabinet and in Parliament.

“I strongly believed that since the actual losses suffered by BNM was not identified then, except for the amount stated in the central bank’s annual financial report tabled to the Cabinet and in Parliament, Anwar had not hid from the Cabinet meetings any information given officially to him by the BNM,” he said.

The hearing continues tomorrow.

The RCI is chaired by Petronas chairman Tan Sri Mohd Sidek Hassan.

Other members of the panel are High Court judge Datuk Wira Kamaludin Md Said, Bursa Malaysia chief executive officer Datuk Seri Tajuddin Atan, Special Task Force on Facilitating Businesses co-chairman Tan Sri Saw Choo Boon and Malaysian Institute of Accountants member K. Puspanathan.
He's human?

A human should have a heart and know shame.

The old man went rambling about the RCI was formed to tarnished his name, in which it has long been tarnished but tolerated, till he went over board to sabotage a government institution and the country in order to serve his greed for power, wealth and vengance.

He rambled over the BNM problem is solved as though solving it was able to recoup back the lost money.

And, he further rambled about calling for another RCI. An RCI could be followed by investigation by authorities or PAC and maybe court charges. But a case cleared by investigators, PAC and not brought to court has no relevance for an RCI.

He even tried to tell RCI that how to do their job by requesting for Dato Murad to be recalled.  He is no more PM and should not return as PM again.

Senility or dementia was taking effect.

All of them can claim ignorance. Generally, Malaysians knows that it is near impossible for Daim and Mahathir to not know what was happening and not be aware of such a humongous loss.

Attempt by Anwar Ibrahim's lawyers to claim absence of two witness as gap in the evidence is also irrelevant to the public.

Daim was in the know but may not have been aware of the humongous losses later. He was no more MOF then. However, he is in the know it was Mahathir's idea and he cannot do anything about it.

And, he is scared of Mahathir's vindictiveness, and sensitive nature. Mahathir can be sadistically cruel in abusing power on those he dislike and suspicious off. In the later years, Mahathir did use the instrument of the state on Daim and his boys.

Contrary to his denial, Mahathir was likely to be directly involved. It is a matter of proving. 

He visited the foreign exchange dealing rooms of BNM in London and Kuala Lumpur. Someone (name withheld out of respect) introduced him to a trading system and he was excited of the opportunity for quick money presented.

If Mahathir actually directed Tan Sri Nor Mohamed Yakcob to use the trading system, it would have been the dumbest move. System trading is for few "dollars" of trade to ride on the trend but not for market moving size trade.

Most likely Mahathir did not. The foreign exchange trading loss could be just a charade. The trade could be fictitous and the RM32 billion could be stolen!

For them to claim they intend to Selamatkan Malaysia, best advise in French would be Fook Them!!!

* Updated and Edited 7:00 PM

2 comments: said...

mathir anwar daim
- org punya 1mdb kes - semua diaorg tahu
- sendiri punya BNM kes - tak tahu menahu??
unbelievable.. but i like what they are doing..
congrat.. they digged their own grave.. eventhough they wont be charged..
but because of this, mathir anwar daim mustapha
rakyat now knows they are without doubt covering and lying..

Unknown said...

Would like to hear comments from Tajudin Atan, a former and perhaps a successful forex trader of a bank during those times.

My Say