Monday, January 8, 2018

THE 160 BILLION LOSS

As posted by Dr. Mahathir Mohamad at Che Det on January 02, 2018

1. It is obvious that Johari Ghani, the Second Minister of Finance wants desperately to stop the debate on the huge loss suffered by the Malaysian financial reserve.

2. I too would like to close the debate, but I cannot allow Johari Ghani’s failure to explain the losses suffered by Bank Negara of 39.6 billion USD between 2013 and 2015 to remain a mystery.

3. The large loss may be due to normal management. But big sums must have been involved for the total to be so big. It cannot be just because Bank Negara followed the trend in the out flow of funds from Malaysia.

4. Actually Bank Negara’s duty is to halt the out flow, not to enhance the out flow.

5. The only reason for Bank Negara to liquidate its holding of foreign currency in its reserves is to support the Ringgits’ value by buying it.

6. It must have failed repeatedly despite depleting much of the reserves. Even today the Ringgit is lower than the fixed rate of 3.80 to 1USD, and more if compared to the strengthened Ringgit at 3.00 to 1 USD when it was floated.

7. During the currency crisis we stopped buying Ringgit because it did not work. We stopped when it was reported we lost 11 billion Ringgit but between 2013 and 2015 you did not stop until the loss amounted to 39.6 billion USD equal to 160 billion Ringgit.

8. Call it by any name, the fact remains that the management of our reserves lost more than 7 times the amount we lost 30 years ago. And the loss was due to trading USD for Ringgit. If it is not due to trading, then what caused the reserves to lose? This YB Johari Ghani has not answered.

9. While the losses 30 years ago have been recovered, the 160 billion loss between 2013-2015 have not been fully recovered.

10. Yet the Government seems quite happy to brush aside the loss of 160 billion Ringgit, but finds it necessary to set up enquiries on the alleged loss of 30 billion Ringgit 30 years ago. If as Prime Minister then, I was culpable, then Najib as Prime Minister during 2013-2015 is equally culpable.

11. But of course in the Malaysia of today there is no equality before the law. Indeed a Minister like YB Mr Johari Ghani can lie as sycophants in the Government are above the law.

12. That is what kleptocracy is about.

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