Zeti willing to cooperate with task force on Bank Negara forex losses

 |Feb 23, 2017
Former BNM Governer Zeti Akhtar Aziz said she is willing to cooperate with the forex losses investigations.
Former BNM Governer Zeti Akhtar Aziz said she is willing to cooperate with the forex losses investigations.

Former Bank Negara Governor Zeti Akhtar Aziz said she was willing to cooperate with the investigation by the special task force (STF) into the alleged loss of US$10 billion by the central bank in foreign exchange trading in the 1990s.

Speaking to reporters in Kuala Lumpur after the launch of seven books on Islamic Finance published by the International Centre for Education in Islamic Finance (INCEIF) today, Zeti said the issue was never raised during her 16-year tenure as Bank Negara governor.

The investigations were all completed before my time and after the event, there was a tremendous discipline that followed.

“The central bank has in place the most rigorous risk management and governance structure to ensure something like that never happens again.

She, however, declined to comment on the issue further, saying that the investigative process should be allowed to take place first.

Former Bank Negara Assistant Governor Abdul Murad Khalid reportedly claimed that the central bank lost over US$10 billion in forex market in early 1990s.

The loss was much higher than what Bank Negara had initially admitted, which raised questions as to why no one was investigated or charged over the losses.

On Feb 15, the cabinet decided to set up the STF to conduct investigations into the alleged losses suffered by Bank Negara due to foreign exchange trading in the 1990s.

Former Chief Secretary to the Government Mohd Sidek Hassan has been appointed to head the STF.

The STF’s objective is to exhume the extent of the information of cover-up on the losses and the possibility of misleading statements on the matter delivered during parliamentary sittings, as well as suggest follow-up actions to the government, including a Royal Commission of Inquiry if necessary.