THE royal commission of inquiry (RCI) into the Bank Negara Malaysia foreign exchange trading scandal has found Nor Mohamed Yakcop responsible for the billions of ringgit in losses incurred by the central bank.
 
A total of RM31.5 billion was lost by Bank Negara as a result of forex trading from 1992 to 1994, during which time Nor Mohamed was the bank adviser.
 
The RCI also found the case to have been a criminal breach of trust under Section 406 and 409 of the Penal Code.
 
Nor Mohamed managed the central bank’s portfolio from 1986 to 1993, which included overseeing the bank’s foreign reserves and regulation of internal financial markets.

The RCI also named other individuals liable for the losses.
 
“Even though he managed BNM’s reserves and was seen to have the freedom to trade in forex, he could not have possibly conducted the transactions over such a long period of time without the direct or indirect approval of higher authorities and/or individuals with power.
 
“As such, the commission has observed the joint liability of other individuals under Section 34 or Section 107 of the Penal Code, who can be tied to having shared intent, or abetment,” said the report.
 
The individuals named jointly liable include governor Jaafar Hussein, his deputy Lin See Yan, board of directors, then-finance minister Anwar Ibrahim and then-prime minister Dr Mahathir Mohamad.
 
In its 400-page report titled “Commission to investigate foreign exchange losses of Bank Negara in the 1990s”, the RCI also urged police to launch investigations into Dr Mahathir, Anwar, the BNM board of directors, the National Audit Department, and Finance Ministry.
 
“The commission is of the opinion from the facts that have been given it that there is basis to recommend that the police officially investigate  the possibility of criminal breach of trust and fraud by BNM staff, the National Audit Department, minister of finance and prime minister in hiding the forex losses from the knowledge of the Cabinet and Parliament,” it said.
 
Dr Mahathir is chairman of the Pakatan Harapan opposition coalition made up of his party Bersatu, PKR, DAP, and Amanah.
 
Dr Mahathir has teamed up with Anwar, who is serving a prison sentence for sodomy, against Prime Minister Najib Razak with the aim of defeating Barisan Nasional (BN) in the next general election.
 
The RCI report was presented to the King, Sultan Muhammad V on October 13.
 
The commission was formed to determine the reason for the central bank’s forex losses and their effects on the economy.
 
The RCI is also to determine if there were attempts to conceal the losses, including the release of statements by high-level authorities with the intention of misleading the Cabinet, Parliament, and the public.
 
Along with Nor Mohamed, Dr Mahathir and Anwar, witnesses who were called to testify at the hearings included Aziz@Abdul Aziz Abdul Manaf, Ahmad Hazzad Baharuddin, Abdul Murad Khalid, Wong Yew Sen, Essah Yusoff, Fizaman Noor Mohammed Nasir, P Kanason Pothinker, Saleha Lajim, Ishak Ismail, Khaw Lay Kuan, Lee Siew Kuan, Dr Lin See Yan, Mohd Sheriff Mohd Kassim, Clifford Francis Herbert, Anum Mohd Saaid, Dr Zeti Akhtar Aziz, Azman Mat Ali, Dr Hadenan A Jalil, Ahmad Mohd Don, Anwar , Othman Jusoh, and Daim Zainuddin. – November 30, 2017.