Nor must come clean on forex losses

Guan Eng says the federal minister who was also a Bank Negara official must explain the bank's forex losses 20 years ago.

GEORGE TOWN: The DAP has called on federal minister Nor Mohamad Yakcop to come clean on the Bank Negara foreign exchange (forex) scandal that shook the nation some 20 years ago.

Party secretary general Lim Guan Eng said the Minister in the Prime Minister’s Department must fully account for the forex losses of RM15.8 billion during 1992-93 period, but the actial loss is estimated to reach RM30 billion.

Lim said public interest demanded voters to be fully informed on what type of person or government that they were voting for when the nation suffered the largest financial losses in its history.

“Nor must fully explain the scandal.

“Failing to do so would show that the BN government was only giving lip service to public accountability and transparency,” insisted Lim, the Penang Chief Minister.

According to the Bank Negara’s financial report, recalled Lim, the central bank recorded losses of RM10.1 billion in 1992 and RM5.7 billion in 1993.

However, the Bagan MP said in a reply to his parliamentary question two weeks ago, Deputy Finance Minister Donald Lim only admitted to the RM 5.7 billion in losses in 1993.

He said this raised questions on the RM10.1 billion losses in 1992 or even a total loss of up to RM30 billion estimated by Bank Negara ex-senior officer Rosli Yakcop, who had worked as a deputy manager under Nor.

Lim said Nor was identified as the principal forex trader for the central bank with huge bets of hundreds of millions of USD at single bets.

“So far he has refused to explain his role or why he gambled with the nation’s treasury so recklessly in the largest financial scandal in Malaysian history,” blasted Lim in a blog posting.

He also rebuked the Barisan Nasional federal government for practicing double-standard.

At one hand, he said BN government has been protecting Malaysian forex currency speculators like Nor while on the other hand hitting out at major international currency players like George Soros.

He chided the Putrajaya administration for sending the wrong message by not only failing to punish those responsible for such huge losses or at least demand full accountability, but amazingly promoted speculators like Nor to a full federal minister.