FOREX RCI | A former foreign exchange (forex) dealer with Bank Negara claimed to have handled up to US$800 million a day in trading under the instruction of then Bank Negara assistant governor Nor Mohamed Yakcop.
Fizaman Noor Mohammed Nasir, however, said the dealing was done under a management position.
Fizaman worked as a forex dealer with Bank Negara's banking department between 1989 and 1998.
At the Royal Commission of Inquiry (RCI) hearing into Bank Negara's forex losses this afternoon, conducting officer Suhaimi Ibrahim asked Fizaman how he could exceed the forex trading limit.
"The US$30 million limit is for the dealer position. The US$800 million deal was for the management position, under Nor Mohamed's instructions.
"Without instructions, we, dealers, would play by our own rules," Fizaman explained.
He revealed that under a management position, dealers have no right to refuse to engage in a particular deal.
Suhaimi, meanwhile, pointed out how Fizaman admitted that losses were incurred during the dealings.
"If you knew there were many losses, why were there no discussions (to overcome the problem)?" he asked.
Fizaman replied that a dealer could merely provide his or her views.
"We try to advise through economic sense and on how things can improve.
"(But) what's decided after that is not our task. Even if the market view is negative, the ultimate decision is made by Nor Mohamed," he said.
In his witness statement, Fizaman explained that transactions for the dealer position are recorded on a blotter before they are given to the chief dealer to be signed.
For the management position, transactions are similarly recorded in a blotter and filed under management.
"The blotter is the final report, it is always kept in the dealing room. I don't know any other reports beyond that," said Fizaman who was the sixth witness in the proceedings.
Forgetful witness
Earlier, the RCI's fifth witness, Essah Yusoff, who was a Bank Negara fund manager and secretary of the external reserves committee (ERC), said that she was responsible for preparing the limit for dealers.
Most of the time, however, Essah mainly said she "she could not remember" to the various questions posed by the RCI panel.
RCI chairperson Mohd Sidek Hassan even took a dig at Essah, noting how she "somehow cannot remember".
Meanwhile, commenting on the matter, former prime minister Dr Mahathir Mohamad's lawyer Mohamed Haniff Khatri Abdulla said this was understandable as it was an event which had occurred almost 30 years ago.
"Do you remember what actually happened three days ago, five years ago?
"They (the witnesses) tried to recall what they could. They couldn't remember the minor details, even with the report in front.
"(As such), there couldn't be a conclusion that there was excessive losses more than what was declared," Haniff told reporters after today's proceedings ended.
The RCI is expected to complete its probe within three months from the date of its establishment on Aug 21 and thereafter submit its report to the Yang di-Pertuan Agong.
It has been tasked with determining the veracity of allegations surrounding the forex losses incurred by Bank Negara and its implications on the national economy, among others.
Mahathir and the opposition have accused Prime Minister Najib Abdul Razak of attempting to exact political revenge against the former premier and deflect attention from 1MDB by dredging up old issues. - Mkini
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