Yesterday, the three-day-old business news portal KiniBiz carried the report “Syed Mokhtar eyes Malaysia Airlines” by Jose Barrock, reporting that Syed Mokhtar Albukhary is proposing to the federal government to take over national investment arm, Khazanah Nasional Berhad’s 69.3 per cent equity interest in Malaysia Airlines which includes as part of the deal a long-term fuel subsidy by the government for as many as 60 years.

Malaysians await the full disclosure of this latest development in the byzantine government-corporate nexus, with a “source close to Syed Mokhtar” denying that there is such a proposal to take over MAS with “two separate sources” confirming that such a deal is being contemplated.

This report has, however, brought to the fore as priority issues in the impending 13th General Elections public concerns about good governance in Malaysia whether about past financial scandals arising from privatisation as a whole and specifically about the ailing national airline; Syed Mokhtar’s far-flung business empire and his mega-debts creating genuine fears whether they will require a massive bailout using taxpayers’ money and the history of corruption, cronyism and abuses of power in the long list of bailouts of Umnoputras at the public expense in the past few decades.

The 13th General Elections is the most appropriate time to revisit these issues of public concern about accountability, transparency and good governance.

Although the the Prime Minister, Datuk Seri Najib Razak, has given priority to accountability, transparency and good governance in his Government Transformation Programme (GTP) and National Key Result Areas (NKRAs), they remain at the level of sloganeering and lip-service as nothing has basically changed in these areas or Malaysia’s corruption ranking as reflected in the annual Transparency International (TI) Corruption Perception Index (CPI) under Najib would not be the worst as compared to all the previous five Prime Ministers – Tunku Abdul Rahman, Tun Razak, Tun Hussein, Tun Mahathir and Tun Abdullah.

The continuing Malaysian Airlines System (MAS) scandals under Najib’s premiership is a case in point.

Up to now, Najib has failed to give a frank and honest answer whether Malaysians are still paying for the RM100 billion financial scandals perpetrated in the 22 years of Mahathir premiership with the decision by his government in 2011 to write off Tan Sri Tajuddin Ramli’s RM580 million judgment debt in a “out-of-court” settlement between Danaharta and other GLCs with Tajuddin with regard to all suits pending between them.

Before the “out-of-court” settlement for the Malaysian Government to write-off Tajuddin’s RM580 million judgement debt, Tajuddin had claimed in affidavits in court that former premier Mahathir had made him buy MAS in 1994 to help bail out Bank Negara after the central bank suffered massive foreign exchange losses due partly to speculation in foreign exchange markets as a “national service” with an “Overriding Agreement” to indemnify him against any losses suffered.

Although this has been denied by Mahathir, it has still to be established who is telling the truth – Mahathir or Tajuddin; an answer which is relevant and pertinent to the question who must bear responsibility not only for some RM10 billion MAS losses – RM1.8 billion losses resulting from the government’s buy-back of Tajuddin’s 29.09 per cent stake in MAS at RM8 per share representing a premium of RM4.32 or 117 per cent over the market price at RM3.68 per share when the deal was signed on 20th December 2000 followed by MAS police reports from 2002 that Tajuddin had caused the national flag carrier to suffer losses in excess of RM8 billion.

I had estimated in Parliament two decades ago that Bank Negara lost a colossal RM30 billion from the Bank Negara foreign exchange scandal under Mahathir’s premiership. But Bank Negara claimed RM10.1 billion loss in 1992 and RM5.7 billion in 1993 while former Bank Negara Deputy Governor Dr. Rosli Yaakop estimated last year at a public forum that Bank Negara lost between USD27 to USD33 billion, which was five times more than its foreign reserves and its entire assets of USD20.7 billion in 1992.

What is the truth?

Barry Wain, in his book “Malaysian Maverick”, estimates that Malaysia lost RM100 billion just in four financial scandals during Mahathir’s premiership.

In the forthcoming general elections, Malaysian voters should not only pass a verdict on Najib’s non-transformation in the past four years, but also pass judgment on Mahathir’s 22 years of authoritarian and corrupt policies when he was Prime Minister from 1981 – 2003, as with Mahathir campaigning even more conspicuously than Najib in the run-up to the next general elections, both Najib’s policies and Mahathir’s legacies have become central issues in the 13GE.

I am on public record as saying that if Pakatan Rakyat is to capture Putrajaya in the 13GE, we should re-open investigation not only on the RM30 billion Bank Negara forex scandal of 1992, there should be a Royal Commission of Inquiry into the RM100 billion losses suffered by the country in the financial scandals of the 22-year Mahathir era.

Let the 13.3 million voters in the 13GE decide whether they endorse the proposal to have a wide-ranging public inquiry into Mahathir’s financial scandals in 22 years which have cost the country RM100 billion of losses and for which the present generation of Malaysians are still paying the price – although there is totally no accountability and transparency about these glaring instances of corruption, cronyism and abuses of power for more than three decades.

Let me assure Mahathir that I do not want to see him suffer the fate of Mubarak or Gadafi.

I do not even want to see Mahathir in jail but there must be full accounting for the RM100 billion losses from the financial scandals during the 22-year Mahathir era, a dark era in Malaysian history which saw key national institutions in the country like the Judiciary, the civil service, Attorney-General’s Chambers, the Police, the Anti-Corruption Agency , the Election Commission compromised and subverted to serve the behests of one man, the Prime Minister and from which disaster Malaysia has not yet fully recovered.

Only then can Malaysia start afresh on a new page – to build a great Malaysian nation which is united, harmonious, competitive, progressive and prosperous.

Source : Malaysia Today

Kit Siang Demands An RCI On The Bank Negara Forex Losses

“If Pakatan Rakyat forms the federal government in the next general election, there should be a Royal Commission of Inquiry into the RM30 billion Bank Negara forex losses scandal in 1992, as well as into all the other financial scandals during Mahathir’s 22-year premiership. Barry Wain, in his book “Malaysian Maverick”, estimates that Malaysia lost RM100 billion just in four financial scandals during Mahathir’s premiership. But this is what Mahathir does not want and most afraid of.”

“I am not suggesting that Mahathir should face jail sentences for the financial scandals in his 22-year premiership, but at minimum, Malaysians are entitled to know the truth about these financial scandals, which would serve as painful national lessons to prevent their recurrence. But clearly, this is what Mahathir would not want and would do his utmost to prevent, including outclassing himself in the wild and preposterous statements about Pakatan Rakyat in the run-up to the next general election.” – Lim Kit Siang (3rd June 2012)

The Bank Negara forex losses in the past two years are equal to about eight Bumiputra Malaysia Finance scandal losses
Speech by Parliamentary Opposition Leader, DAP Secretary-General and MP for Tanjung, Lim Kit Siang, at the DAP Seremban Ceramah held at CRC Hall, Seremban on Sunday, 3rd April 1994 at 8pm

The government and country must take a very serious view of the Bank Negara forex losses ranging from RM16 billion to RM20 billion in the past two years, as they amount to about eight Bumiputra Malaysia Finance (BMF) scandal losses.

The Bank Negara Governor, Tan Sri Jaffar Hussein, has taken the proper and honorable step to resign to accept full responsibility for the Bank Negara forex losses, but no ‘lesson’ would be learnt from the colossal Bank Negara forex losses unless there is a full investigation into the causes and circumstances of the losses as well as the full chain of accountability of all those who must bear responsibility- including the Finance Minister, Datuk Seri Anwar Ibrahim himself.

Parliament and the nation have the right to know what actually went wrong with the management of Bank Negara and the overall supervision by the Finance Minister to allow the Bank Negara to commit colossal foreign exchange losses ranging from RM16 billion to RM20 billion in the past two years.

UMNO Youth leader and Malacca Chief Minister, Tan Sri Abdul Rahim Tamby Cik, said that Bank Negara’s RM5.7 billion forex losses last year was caused by managerial errors of judgment and has nothing to do with the Finance Minister, Datuk Seri Anwar Ibrahim.

Call on Anwar Ibrahim to declare whether he agrees with Rahim Tamby Cik that as Finance Minister, he should not be held responsible for the Bank Negara forex losses.

I call on Anwar Ibrahim to publicly state whether he agrees with Rahim Tamby Cik, that as Finance Minister, he should not be held responsible for the Bank Negara forex losses.

I am not very sure that I can agree with this position as after the public uproar over the 1992 Bank Negara forex losses, which ranged from RM10.1 billion to RM14 billion, Anwar Ibrahim gave an undertaking in Parliament during the emergency DAP debate last April that he would be calling up weekly reports from Bank Negara on its forex dealings.

In his reply on my motion on the Bank Negara forex losses last year, Anwar declared that the RM2.7 billion contingent liability for 1993 provided in the 1992 Bank Negara Report did not mean that the bank would lose this amount in forward foreign exchange commitments, and that Bank Negara might end with a gain or a neutral position.

It is now clear that this RM2.7 billion contingent liability for 1993 has not only been confirmed, but that even bigger forex losses had been suffered in 1993, amounting to RM5.7 billion. Furthermore, there is in another contingent liability of RM 1.4 billion for next year- which means Bank Negara can suffer another RM1.4 billion forex losses apart from the forex losses in 1992 and 1993.

If for the past year, Anwar Ibrahim had been calling up weekly reports from Bank Negara with regard to its foreign exchange dealings, can Rahim Tamby Cik claim that the Finance Minister need bear no responsibility for the RM5.7 billion forex losses for 1993 and another RM1.4 billion forex losses for nest year?

The Bank Negara forex losses will also be a test case of the meaning of accountability, in particularly Ministerial accountability and responsibility, and this is why the Government should agree to a full parliamentary debate on the Bank Negara forex losses nest week.

Source : Malaysia Today

Subscribe To Our Telegram Channel :
The Coverage Malaysia