The Malaysian Insight

SELANGOR Bersatu today lodged a police report on Bank Negara Malaysia’s (BNM) loss of RM160 billion in international reserves from 2013 and 2015 as revealed by former prime minister Dr Mahathir Mohamad.

Selangor Bersatu chairman Abdul Rashid Asari said the reports were made after a check on BNM’s website found Dr Mahathir’s claims to be true.

“In our checks, from 2009 to 2013, BNM’s highest amount of international reserves recorded was on January 31, 2013 at US$140.2 billion or equivalent to RM588.8 billion.

“However, the amount had dropped drastically to only US$101.9 billion or RM427.98 billion as at November 2017 with a reduction of RM160.86 billion,” said Rashid, who is also Bersatu vice-president at a press conference at its office in Shah Alam today.

Dr Mahathir had accused Putrajaya of “discrimination” over its pursuit of BNM forex losses which occurred under his administration when the central bank had lost more between 2013 and 2015 due to the ringgit’s fall.

The Pakatan Harapan (PH) and Bersatu chairman had asked why Prime Minister Najib Razak’s administration was more concerned about the forex losses of RM31.5 billion some 30 years ago, when the amount of international reserves lost in the three-year period recently was larger at US$39.6 billion or RM160 billion.

Rashid said that BNM’s reserves that was lost during Najib administration was seven times higher compared to the loss of US$5.7 billion (RM23.9 billion) during Dr Mahathir’s administration in the early 1990s.

“Some say that the reserves has been used to keep the ringgit currency from falling further.

“That is was about the same time Najib had received a RM2.6 billion donation into his personal account, which was first disclosed by The Wall Street Journal in July 2015 causing the erosion of international public confidence in the country and the main cause of the ringgit falling.

“The question is if BNM has used the reserves to defend the ringgit at that time, how is the action different from the losses in forex transactions in the early 90’s?” said Rashid.

Selangor Bersatu information chief Sallehudin Amiruddin said that so far seven police reports have been lodged nationwide on the issue.

In its annual report, BNM recorded its international reserve at RM441.9 billion (US$134.91 billion) for 2013. By 2015, the reserves had dropped to RM409.1 billion (US$95.3 billion).

Last year, the central bank reported the figure at RM423.9 billion (US$94.5 billion).

In 2013, the exchange rate was RM3.27 per dollar. It fell to RM4.44 last November, its lowest level since the Asian financial crisis. The ringgit has since rallied to close at RM4.09 on Friday.

BNM’s forex trading losses were the subject of a RCI which has recommended Dr Mahathir, former finance minister Anwar Ibrahim and former BNM adviser Nor Mohamed Yakcop be investigated for criminal breach of trust.

Dr Mahathir had said the RCI was aimed at damaging his name ahead of the general election next year and had questioned why the government did not investigate the 1Malaysia Development Berhad (1MDB) scandal. – December 20, 2017.