Reversal of Fortune

Pro-Opposition public opinion research and polling analyst Merdeka Centre opined that the Opposition is losing traction and the ruling government is gaining the trust and confidence of the Malaysian public, across the board.

Prime Minister Dato’ Sri Mohd. Najib Tun Razak’s economic transformation has started to show results, which include how the nation is moving forward with strategic projects and programs that brought forth better economic socio development across the nation.

The last quarter economic growth is recorded at 5.8%.

Strategic programs such as public affordable housing, rationalisation and targeted subsidy, public transportation, jobs for more people, economic growth and more opportunities across the board, are coming out progressively and positively affecting the rakyat.

The Opposition mainly Fourth Prime Minister Tun Dr. Mahathir Mohamad who tried to oust Prime Minister Najib with his strategy of demonisation, centred on the 1MDB financial and commercial issues made into contentious and scandalous overtones failed.

His agents in cohort with Neo Con Jewish controlled foreign media, hyped a series of stories which are a hybrid of misrepresentation of infomation, fabrication of lies and slander.

They even got the United States Department of Justice to co-operate in making media announcements on a case which is unable to be brought to justice despite the grave allegations of “Theft, criminal breach of trust, cheating and practice of kleptocracy”.

Economic sector growth

This is not with standing the Opposition failing to get their act in order despite being formed into a proper coalition Pakatan Harapan, with each component parties facing grave internal rumblings and even rebellion.

The lack of convincible economic policies if they are able to get the mandate of the rakyat to form the next Federal Government, also is glaring.

In the final analysis, it is facts that prevail over sentiments, which include psywar.

Just like the current Royal Commission Inquiry on the 1990-4 Bank Negara Malaysia forex losses. It is a huge skeletons in the closet, which Dr. Mahathir tried not be brought into the open and facts be revealed.

Dr Mahathir tried to disrupt and even torpedo the RCI to convene.

Yesterday, former Bank Negara Advisor (position now redesignated Assistant Governor) said forex trading and losses were his doing. He also said on stand he did not know whether then Prime Minister and Minister of Finance were told about the losses.

Dr Mahathir’s lawyer even inferred trying to get the Advisor to tell on stand that then the Prime Minister were not told about the forex losses.

Then Bank Negara representative to London (later became a Governor for more than 15 years) told the amount was actually bigger than what the RCI was earlier told.

New Straits Times story:

In her testimony to the Royal Commission of Inquiry (RCI) here today, Former Bank Negara Malaysia (BNM) Governor Tan Sri Zeti Akhtar Aziz conceded that the foreign exchange (forex) losses scandal of the 1990s remains a dark episode in the history of the central bank. Pix by AHMAD IRHAM MOHD NOOR

PUTRAJAYA: In her testimony to the Royal Commission of Inquiry (RCI) here today, Former Bank Negara Malaysia (BNM) Governor Tan Sri Zeti Akhtar Aziz conceded that the foreign exchange (forex) losses scandal of the 1990s remains a dark episode in the history of the central bank.

“The bank did suffer losses amounting to RM31 billion through forex trading between 1991 and 1994. This episode, that was experienced 25 years ago, is always remembered and there are ongoing efforts to stop it from happening again,” said Zeti, who was the seventh Governor of BNM from 2000 to 2016.

She also made the surprising admission that she only learned of the massive losses through the media in Jan 1994, while based in London.

Zeti had earlier explained that before her time as Governor, there was only one committee to oversee the business undertakings of the bank, inclusive of forex trading.

“During that time, only the Audit Committee existed. But from 2009 onwards, we created two more committees, which were the Risk Management Committee and the Governance Committee.

“Members of each Committee are only independent directors. That means none of us (at BNM) are represented on the board. These three committees are there to serve as the checks and balances of the bank, and from 2009 onwards, it was significantly different than it was (previously),” she said.

Zeti revealed in her earlier testimony that she was assigned as the Head of BNM’s London Representative Office in 1989 to sometime in the mid-1990s.

“My direct involvement in the Reserve Management (began) when I was assigned to the London Representative Office,” she said, adding that the London office was allocated US$200 million for investment purposes.

“The London office did not initially undertake any forex transactions, but this was later changed. However, the forex activity was to support investment activities, and not to take positions on any currencies,” she said.

Zeti added that three years later, the amount allocated to both the London and New York offices was increased from US$200 million to US$500 million. That level has been maintained to this day.

She also shared that the US$200 million allocated for the London office represented only one per cent of the bank’s total reserves at that moment.

Zeti also recalled that sometime in June 1992, former Deputy Governor Datuk Abdul Murad Khalid told the late Governor Tan Sri Jaafar Hussein of the massive forex exposure the bank was experiencing at a London apartment. Former Assistant Governor Datuk Awang Adek was also present.

“Murad did not have the full details then, but Jaafar responded by saying that this was probably gross positions that were known by the counterparties that Bank Negara traded with.

“These counterparties would not be aware of the net positions of the Bank, and he was of the view that the net position was very much less,” she said.

Zeti went on to say that she only learned of the losses in Jan 1994 through media reports, considering that she was still positioned in London at that point.

“Because I was based in London, I did not have access to that data, as the London and New York operations were separate from the headquarters in Kuala Lumpur,” she said.

In spite of the massive forex losses, Zeti nevertheless stressed that BNM did not collapse, but in fact rose stronger than ever.

“The bank did not collapse and our reserves were not depleted, despite the losses made. At its lowest, our reserves were at US$20 billion, and now it has risen to some US$100 billion from the years that the bank was declared insolvent, the 1998 Asian Financial Crisis and other myriad external economic challenges,” she added.

Zeti was the 16th witness to be called up in the ongoing RCI probe into the forex trading losses of some RM31 billion in the 1990s.

*************

Today, then Finance Minister attested to what then the Deputy Chief Secretary to Treasury told the RCI on stand yesterday that the Prime Minister was nonchallant when told about the forex losses.

That is more than RM32b in the central bank’s reserve in foreign currencies!

Dr Mahathir’s desperation is getting more chronic, now that his strategy of demonisation, co-operation with the Opposition especially Chinese Chauvinist DAP is blowing in their face, grave lack of consistency and the compulsion to lie all failed miserably, all and in sundry.

At the end of the day, it is back to reality, science and facts and moving forward.

It is by far a reversal of fortune, Prime Minister Najib is on the right track despite had to tweak the nation’s economic policies and direction with the 2014-5 global economic crisis.

 

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Published in: on September 7, 2017 at 23:59  Comments (1)  

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One CommentLeave a comment

  1. What are the result shown by 1MDB?


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