January 31, 2017
The Late Bank Negara Governor Jaffar Hussein –The Fall Guy in the Forex Scandal
COMMENT: The truth will always haunt those who abuse power, even if it can take ages before it is exposed. The Bank Negara forex scandal is just a case in point.
The government of the day must open investigations to uncover the facts of the case and those behind this scandal including bank officers in the Bank Negara Investment Department which managed the bank’s reserves who were protected by the former Prime Minister, Tun Dr. Mahathir bin Mohamad should be asked to testify before a Commission of Inquiry. Those who were entrusted with the management of 1MDB too should be treated in a similar fashion. –Din Merican
Nur Jazlan: Father-in-law quit for ‘someone else’s mistake’
Nur Jazlan Mohamed has claimed that his father-in-law, a former Bank Negara Malaysia (BNM) Governor, the late Jaffar Hussein, had resigned for “someone else’s mistake”.
The Deputy Home Minister’s remarks came in light of former BNM assistant governor Abdul Murad Khalid’s claims that the central bank had lost US$10 billion in the foreign exchange market during former Prime Minister Dr Mahathir Mohamad’s era.
Murad said despite the heavy losses, there was no investigation into the matter. Jaffar, who served as the central bank’s governor from 1985 to 1994, resigned on April 1, 1994. He passed away four years later, in 1998.
His resignation followed his admission that Bank Negara had lost RM5.7 billion the previous year. “After 22 years, my late father-in-law’s story comes out. He resigned to cover someone else’s mistake,” tweeted Nur Jazlan.
The tweet was accompanied with news paper clippings, one on Murad’s revelation last week and an Utusan Malaysia report on the day Jaffar resigned, quoting the former governor as saying he made a mistake, posted side by side.
Commenting further on his father-in-law’s resignation “to take responsibility for someone else’s mistake”, Nur Jazlan said this was rare in both politics and government in Malaysia, even today.
“Such misdeeds are usually brushed over for unity and stability’s sake to preserve the present order until exposed years later for expediency,” he added
Apart from Murad’s claims that Bank Negara had lost US$10 billion during Mahathir’s tenure as premier, declassified reports by the US Central Intelligence Agency (CIA) suggested that Mahathir’s government was also aware of Bumiputera Malaysia Finance’s (BMF) dubious dealings in the 1980s.
Mahathir had responded to the BMF allegations by accusing the CIA of conspiring against him.He also wrote a blog post to point out differences between the BMF and 1MDB scandals, such as that the CIA report on the BMF scandal did not implicate the Prime Minister.