Royal Commission of Inquiry to probe 1990s forex losses

PETALING JAYA: Yang di-Pertuan Agong Sultan Muhammad V has given his consent to the formation of a Royal Commission of Inquiry (RCI) to investigate the foreign currency transaction losses suffered by Bank Negara Malaysia during the 1990s.

The Prime Minister’s Office said in a statement that the formation of the RCI was done according to the Commission of Inquiry Act 1950 and took effect from July 15, 2017.

In line with the provisions under the Act, Sultan Muhammad V consented to the appointment of Tan Sri Mohd Sidek Hassan as the commission chairman.

Sultan Muhammad V also consented to the appointment of five RCI members – High Court judge Datuk Wira Kamaludin Md Said, Bursa Malaysia chief executive officer Datuk Seri Tajuddin Atan, Special Task Force to Facilitate Business co-chairman Tan Sri Saw Choo Boon, Malaysian Institute of Accountants member K. Puspa-nathan, and the Finance Ministry’s Department of Strategic Investment secretary Datuk Dr Yusof Ismail.

The statement said the appointments of Mohd Sidek and Saw were to ensure continuity as both of them were in the special task force set up in February to probe the forex issue.

The other members were appointed based on their qualifications and experience in areas closely related to the investigation being conducted by the commission.

The statement said the RCI will be responsible for verifying the allegations that Bank Negara had experienced significant losses resulting from foreign currency transactions in the 1990s, and its implications to the national economy.

It will investigate if Bank Negara’s involvement in the forex activities had contravened the Central Bank Ordinance of 1958 and whether there were any attempt to conceal or withhold information regarding those losses with the intention to mislead the Cabinet, Parliament and the people at the time.

The RCI will then propose actions that should be taken against the parties that were directly or indirectly involved in the case if they are found guilty of causing the losses.

The commission is expected to complete its investigation in three months effective from the date of its formation and will then present its findings to the King.

The special task force had last month presented its preliminary findings to the Cabinet, which then unanimously agreed to set up the RCI.