July 16, 2015
COMMENT: I have not known any Bank Negara Malaysia Governor who has compromised the independence of our central bank. Governors Aziz Taha and Ahmad Don resigned when former Prime Minister Mahathir Mohamad interfered in the affairs of Bank Negara. Governor Jaffar Hussein did not and, as a result, he took the fall when the Bank suffered huge foreign exchange losses in 1992 that technically bankrupted our bastion of financial integrity and independence, requiring the guarantee of the Malaysian government to continue its operations.
Governor Zeti is the first to compromise Bank Negara. Not just that, she has condoned every 1MDB decision made by the Prime Minister who is also the Finance Minister and, therefore, failed miserably as Financial Advisor to the Government and regulator of our banking system. First of all, she should not have allowed some Malaysian banks to finance 1MDB and 1MDB management to transfer massive amounts of the loan proceeds or keep them overseas. In addition, she did not take action against 1MDB for transferring money into Najib’s personal bank accounts to fund the UMNO-BN GE 13 campaign. WSJ revelations merely confirm that Governor Zeti has let the country down.
She should resign. In stead, she shamelessly clings to her job and continues to serve a corrupt and dishonest Prime Minister who should be charged for criminal breach of trust and countless abuses of power. Governor Zeti is a member of the special task force, which will likely give our Prime Minister a clean bill of health. It is plain to see that she cannot be part of the quartet since she is an interested party who has plenty to answer for failing to do her duty as bank regulator.–Din Merican
Governor Zeti should resign
by Navina Vivekanandan@www.freemalaysiatoday.com
Zaid Ibrahim has expressed his disappointment that Bank Negara Malaysia (BNM) Governor Zeti Akhtar Aziz did not resign before the damaging allegations by The Wall Street Journal (WSJ) involving the Prime Minister and 1Malaysia Development Berhad (1MDB) surfaced.
“She (Zeti) should have said ‘thank you very much, I don’t want to be part of this’. But she is a part of this (WSJ allegation),” said Zaid in an exclusive interview with FMT today (July 15). The former Law Minister felt that the highly respected governor has now jeopardised her reputation as a banking system regulator internationally.
“Why did she get embroiled in this? I’m sure she knew about this.” A total of RM2.6 billion in 1MDB-linked funds was alleged to have been deposited into the personal bank accounts of Prime Minister Najib Razak ahead of the 13th General Elections according to the WSJ report. The movement of those funds particularly since it involved billions of ringgit, should have caught the attention of Bank Negara.
All investments exceeding RM50 million per calendar year and any offshore borrowings exceeding RM100 million by resident entities, requires the central bank’s approval.
When asked for his thoughts regarding the investigations into the WSJ allegations, Zaid scoffed at it, saying he was convinced nothing would come out of it. “It is a waste of time, I feel sorry for Zeti out of the four (those heading the special task force). Zeti’s got a good name internationally.”
A special task force has been set up to look into the WSJ allegations, and apart from Zeti, include the Attorney-General; Inspector-General of Police and the head of the Malaysian Anti-Corruption Commission (MACC).