DAP to ask for special debate in Parliament on Bank Negara’s RM 5.7 billion forex last year

by Parliamentary Opposition Leader, DAP Secretary-General and MP for Tanjung, Lim Kit Siang, in Petaling Jaya on Saturday, 2 April 1994:

DAP to ask for special debate in Parliament on Bank Negara’s RM 5.7 billion forex last year

Bank Negara Governor Tan Sri Jaffar Hussein has resigned in the form of early retirement by the end of this month to take responsibility for a second year of massive Bank Negara forex losses last year.

This is the right, proper and only honorable course of action open to Tan Sri Jaffar Hussein after two years of colossal Bank Negara forex losses.

The Finance Minister, Datuk Seri Anwar Ibrahim, is however still answerable to Parliament for Bank Negara’s colossal forex losses, particularly after his assurance in Parliament last April that he would be assuming detailed monitoring of Bank Negara’s forex operations.

DAP will ask for a special debate in Parliament when it meets on April 11 on Bank Negara’s RM 5.7 billion foreign exchange losses last year, for MPs and Malaysians are entitled to answers to the following questions:

*Why Bank Negara’s contingent liability of RM 2.7 billion for 1993 had not only been confirmed; but the losses had ballooned to RM 5.7 billion;

* The full extent of the Bank Negara’s forex losses in 1992 and 1993;

*In his press conference statement two days ago, Jaffar said that “there is, at this time, no more contingent liability on the Bank’s forward foreign exchange transactions” and that “an unfortunate chapter in the Bank’s history is now closed.” Jaffar’s statement that there is now no contingent liability on Bank Negara’s forward foreign exchange transactions is however not borne out by the 1993 Bank Negara Report. This is because Note 12 of the 1993 Bank Negara Balance Sheet refers to a RM 1.4 billion contingent liability “being the net liability on forward foreign exchange transactions”. What is the reason of this contradiction?

*The real reason for Bank Negara’s colossal forex losses in1992 and 1993 which could range from RM 15.8 billion to over Rm 20 billion.

Anwar should set an example of Ministerial accountability and transparency by presenting a White Paper on Bank Negara’s forex losses on the first day of Parliament to enable a full debate to take place.