Upon reading the news report below, we double checked with a high level police officer on the seriousness of police to investigate the BNM forex loss:
BNM forex scandal: 27 people summoned so farThe answer was an affirmative: Yes, bro.
https://www.nst.com.my/news/crime-courts/2018/02/335529/bnm-forex-scandal-27-people-summoned-so-far#cxrecs_s
As a former currency dealer and in another career in financial market, suffered from BNM forex loss from massive and reckless position-taking, which led to the 1997 financial crisis related to the failed massive position taking, we were elated to hear police is getting down to the bottom of it.
It was obvious from the the RCI proceedings that all those called in collaborated to not speak up and intentionally pretend to #taktau. Also, it proves government is serious and not merely pursuing the RCI for political mileage.
From the report, police is also investigating the sales of TNB, Telekom, MISC and MAS shares ownership and sale of Tenaga Nasional Berhad (TNB), Telekom Malaysia Berhad (TM), Malaysian Airlines System Bhd (MAS). It was done discreetly in 1993 and 1994 to absorb the loss and revive the financial status of BNM.
Of all these, MAS is of special interest.
Salvaging sovereignty
The BNM forex loss affected our foreign reserve and sources claimed it was completely wiped out. It would have made the central bank insolvent and as good as compromising our sovereignty.
Countries that do not operate central banks lose control over their monetary policies and in countries like Indonesia (before) and African countries, their development inhibited.
The likes of Tan Sri Tajuddin Ramli and KWAP to come forward to salvage the situation should have been appreciated and recognised by both the public and government, but Tajuddin was vilified for this national service.
It does no matter that Tajuddin is seen as a friend of Tun Daim and today, Tun Daim had to follow Tun Dr Mahathir to bat for PPBM.
Truth and justice only matters. In life and also death, politics is not a priority, but righteousness and doing good is a bigger priority.
Although it was revealed in court proceeding that Tajuddin was doing national service and instructed by Tun Daim to buy the MAS shares, thus government was obliged to buyback the overvalued sales of MAS to him at RM8 per shares, Mahathir did not take it kindly.
At the time he bought MAS shares, the market price of around RM3 per share and the price for a controlling interest in MAS should be about RM5 per share
Read Sundaily report July 6th, 2006: Tajudin alleges secret deal with Dr M and Daim
For invoking this pre-sales gentleman agreement, Tajuddin incurred the wrath of Mahathir, who "stole" the proceeds from the sales by forcibly taking over his holding company, Naluri Berhad and Celcom Berhad.
Without understanding the real situation and was beholden to the advice of then MOF II and the trader responsible for the collosol losses, Tan Sri Nor Mohamed Yakcop, Tun Abdullah Badawi went on witch hunt.
However, all their legal effort came to naught. The arbitration in Geneva did not favour MAS.
Tajuddin has withdrew his counter lawsuit against government and Khazanah to seek for peaceful global resolution.
Despite that agents of Nor Yakcop has not given up and at times, willing to ignore government directive.
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| Preposterous and unsubstantiated claim by Dato Ramli Yusof and then PAS's Salahuddin Ayub |
They continued to mislead the public into blaming Tajuddin as the cause for the losses of MAS and subsequently led to its current predicament.
Other company shares sold by BNM did not suffer the same misfortune.
However, it is debatable to entirely blame it on Tajuddin.
Though the profitability of MAS then was initially erratic at the initial stage of Tajuddin management, they did not lost money operationally.
Read: https://bigdogdotcom.wordpress.com/2011/08/13/malaysian-insider-sinister-agenda-to-divert-away-from-share-swap-deal/
MAS lost money due to forex translation losses arising from the sharp fall in ringgit exchange in 1997. The recent RCI revealed that BNM lost RM31.5 billion and shares in GLCs held under the name of BNM had to be sold to revive BNM.
After the sales, Khazanah led by Bina Fikir's Tan Sri Azman Mokhtar, Dato Danny Yusof and the Bumiputera Merchant Bankers "mafia"screwed up the turnaround strategy and entertained Nor Yakcop continuous effort to cover-up and put the blame on others.
Intrigues behind the sales of MAS
For police to consider, there are many intrigues in the sales of MAS shares to Tajuddin.
The decision to sell MAS shares to Tajuddin came out of no where. There was no rumour heard then and it was announced and consumated in weeks of the RM1.8 billion deal to buy MAS.
A "very big" deal of such size then would have taken at least six months to put together, finalise and complete the documentation. However, it was done in a matter of 3 months.
When asked by the reporters then of the collateral for the loan, Tajuddin told the press that he was the collateral.
On top of that, court documents submitted revealed that Tajuddin was given waiver by government from the single customer limit usually imposed by BNM on borrowers.
The loan for RM1.792 billion was the biggest single loan given by Malaysian Bank at the time, let alone loan given to individual.
In addition, there was waiver on the stamp duties for loan agreement and transfer of shares. And, to add to the intrigue, the document said Tajuddin had not requested for the waivers.
The special facilitation only leads to the need for police to investigate and called in the various people linked to the sales of MAS.
It was not a viable deal and the likelihood is Tajuddin could be forced upon by the Mahathir to take up the financial burden to bailout BNM and clean the financial faeces left behind by Mahathir and Nor Yakcop.
Tajuddin may have been driven out of patriotic duty to help the government and as his gratitude for the opportunities he had been given, though most of his business ventures came from his own foresight and desire to be part of nation building.
MAS could have been transformed and taken to new height with such ventures like the takeover of the Hahn airport near Frankfurt and various synergies with other ventures initiated by Tajuddin.
However, it was sabotaged within MAS and insecure politicians fearing the success and glory of others would overshadow them.
The police investigation should set the record straight once and for all as to who is the guilty party in causing the near demise of MAS.
The names are many, including senior executives, politicians, senior government officers, and even royalties, whose been ripping off MAS through kickback and self award of contracts.
However, one has to pursue it one at a time and focus on the root cause first. This was a case of economic devastation as a result of gambling with public money and subsequently, hide the true story.
1MDB pales in comparison to.the amount loss from forex trading and its allegations still not substantiated and supported by any legal evidence and proceeding.
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BNM forex scandal: 27 people summoned so far
By NURUL HIDAYAH BAHAUDIN -
February 14, 2018 @ 8:38pm, NSTP Online
Federal Commercial Crime department director Datuk Seri Amar Singh said police will call up more individuals to have their statements recorded to assist the investigation into the case.
“Out of the 27 people, 19 are BNM staff, five are from the Finance Ministry while three are civilians, including a former minister.
“At the same time, we will summon even more witnesses to provide their statements to assist the probe,” he told a press conference at Bukit Aman today.
Amar said trhe police are focusing their investigation on four main thrusts, including the possibility that several elements were used to ‘hide’ the actual losses suffered by BNM during the period.
“We are also investigating the possibility of misleading statements presented to the cabinet, parliament as well as the public over the actual scale of the losses, done with the aim of exerting influence to compel the financial institution’s annual account to be gazetted by parliament.
“At the same time, we are also probing as to whether those with interests in the matter are purposely masking the scale of the losses.
“We are also investigating whether the transfer of ownership and sale of Tenaga Nasional Berhad (TNB), Telekom Malaysia Berhad (TM), Malaysian Airlines System Bhd (MAS) and Malaysian International Shipping Corporation (MISC) shares, were done discreetly to BNM in 1993 to absorb some of the losses incurred over the forex losses, with the aim of hiding the losses and balancing the numbers,” he said.
He said the investigation is still ongoing, with relevant parties expected to be summoned to complete the probe soon.
“We will ensure that the investigation is conducted professionally and fairly, in accordance with the law,” he said.
On July 15, the Yang di-Pertuan Agong had consented to the establishment of a Royal Commission of Inquiry (RCI) to probe the losses incurred by BNN in the forex market in the 1990s.
The RCI convened for 10 days from August 21.
Following the RCI, the commission’s secretary, Datuk Dr Yusof Ismail lodged a police report after finding elements of breach of trust, fraud and other offences possibly committed by those involved in the trading.
Police then launched an investigation by setting up a special team to probe the case in accordance with Section 409, 417 and 418 of the Penal Code.