Six appointed to Bank Negara forex task force

Former chief secretary to the government Sidek Hassan today announced the names of six individuals appointed to the task force formed to investigate the foreign exchange (forex) scandal involving Bank Negara in the 1990s.

According to his statement, the task force will comprise:

• Malaysian Anti-Corruption Commission (MACC) deputy commissioner Azam Baki;
• Federal police Commercial Crimes Investigation Department director Acryl Sani Abdullah Sani;
• Securities Commission chairperson Ranjit Ajit Singh;
• Pensions fund KWAP chief executive officer Wan Kamaruzaman Wan Ahmad;
• Pemudah co-chairperson Saw Choo Boon; and
• Lawyer Jahaberdeen Mohd Yunoos.

The director of the Ministry of Finance's Strategic Investment Division Yusof Ismail has been made the task force's secretary, and will head its secretariat.

Sidek, who was appointed to head the task force by the cabinet on Feb 22, said that the terms of reference for the task force is to investigate the losses from currency speculation engaged by Bank Negara at the material time.

The task force will also investigate if there were attempts to cover up the losses and mislead Parliament, and recommend further action to be taken, if needed.

He said that the task force will ascertain if Bank Negara had followed laws and regulations in its conduct of those transactions, and looked into organisations and individuals linked to the management of the transactions and if any untoward activities took place.

Sidek called upon all those with information about the scandal to contact the task force with any information that might help the investigation.

"We aim to complete the investigation and present our findings to the cabinet in three months. This will include a recommendation on whether a Royal Commission of Inquiry should be formed to investigate these claims in greater detail," he concluded.

The Bank Negara forex scandal took place in the late 1990s, when Dr Mahathir Mohamad was then PM, where the central bank allegedly lost a lot of money while speculating in foreign currency.

The actual quantum of funds lost was the result of much speculation, as well as the conduct of Bank Negara officials who managed the transactions.

Some have even alleged that there were attempts to cover up the losses.

It has recently became the subject of discussions and headlines as the matter was resurrected in what can be seen as political attacks against Mahathir, who is now a member of the opposition.

In what seems to be a tit-for-tat move, the scandal was resurrected by BN supporters after Mahathir attacked the administration of Prime Minister Najib Abdul Razak, in particular his vocal criticism against the 1MDB scandal which is being investigated overseas for fraud, graft and money laundering.

Najib has denied any wrongdoing in the matter and related cases, and has been absolved form such by attorney-general Apandi Ali. -Mkini