Bank Negara Governor Jaffar Hussein–The Fall Guy in Forex Scandal


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.

Image result for tan sri dato' jaffar bin husseinMaybe he can help in the investigations

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’

by malaysiakini.com
Image result for Bank Negara Governor Jaffar Hussein

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.

Image result for Bank Negara Governor Jaffar HusseinTan Sri Jaffar Hussein

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.

13 thoughts on “Bank Negara Governor Jaffar Hussein–The Fall Guy in Forex Scandal

  1. Quote:- “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

    So he learned from his late father-in-law and applied it when he was the Chairman of the Public Accounts Committee?

    The difference is his father-in-law resigned and retired, but he, Nur Jazlan, got promoted?

    Jaffar Hussein must be turning in his grave?

    • I worked closely with Tan Sri Jaffar Hussein who was the Head of the Price Waterhouse audit team on Sime Darby before he became the Maybank Chief and Bank Negara Governor. He was a close friend of the Late Tun Hussein Onn, our 3rd Prime Minister who was then with Skrine & Co together with the late James Puthucheary. I found him to be a very prudent, professionally competent and diligent man. He was certainly not a currency speculator. It is time that his name should be cleared of any wrongdoing.

  2. Resigned because of someone else mistake? The then BNM Governor should have resigned first instead of being complicit in the mistake.

    • The resignation indicated he was person with integrity eventhough not his mistake.We can not get this type of person with integrity . Look at Mara Chairman where we heard lots of issues involving him but find ways to remain as chairman. .If Umno information has low integrity what do you expect other Umno top post be . …all equally hopeless….hope Umno will diappear at this PRU14 ….

  3. We know Mahathir was responsible. BUT why? Did he profit from it? There is no inkling he did. If it was adventurism, then it was the biggest of many under Mahathir, confirming what we already know.

    Again, the distinction has to be made. 1MDB is unlike BMF or Bank Negara scandal. Mahathir did not steal from it. More important, fundamental governance was not destroyed to cover them up. It’s apples and oranges. Both are wrong, one wrong do not justify another, and Mahathir’s wrong should not stand in the way of fixing a wrong, that is 1MDb, Najib and UMNO.

  4. There is no way RM30 billion disappeared from BNM without the No.1 there, Governor Jaafar Hussein, being involved in the decision making that led to it! We are not talking about peanut sums of money. RM30 billion losses do not occur overnight either. Note also that BNM and DrM lied in Parliament about the true size of the losses and covered it up with creative accounting, until Lim kit Siang exposed it. To his credit, Jaafar took the fall. This is the problem with our top govt officers and Ministers, Najib down. They deliberately make it out that they do not understand where the buck stops and what integrity is, but want all the trappings of high office. Then comes corruption too. Nur Jazlan is defending the indefensible, after being Najib’s baruah at the PAC, and now, Home Office. He should also resign or be sacked! The icing on the cake – the BNM Chief Forex Trader who caused the rot, Nor Mohd Robokop, was punished for his humongous balls-up and cover-up, with promotion to 2nd Finance Minister, and is still there in Najib’s PMO, in EPU and Khazanah and as director in a host of GLC’s!! Only in Malaysia is abject corrupt failure rewarded with elevation after elevation! Do not be surprised if Annuar Musa replaces Isa Samad as Chairman of FGVH!

  5. The “case in point” is , BNM forex scandal should NOT have happened, because the TRUTH behind BMF scandal in early 80s was NEVER RECOVERED and lesson was NOT LEARNED.

    It was due to the rogue practices of at LEAST one or more elements of the culture of Money politics, Abuse of power, Corruption, Cronysm and Pupetry (MACCP) by those involved, largely the leaders of Umno Baru.

    Those involved or found guilty mostly got away Without punishments or with just a tap on the knuckles. Investigations were just public relation

    The leaders and those responsible had LIED to the people.

    The consequences were countless, as other scandals, including Perwaja, PKFTZ,…,…,…, 1 MDB that followed had made the Rakyat SUFFERED and the country POORER by up 1 Trillion Ringgit by today’s value.

    This, together with the entrenched culture of MACCP had dominantly led the country to this DIRE STATE of affairs.

    Despite some notable developments, TDM is held Responsible, Ulltimately.
    He was at the Helm where most of the countless scandals “flourished” during his 22 year reign. He could have the power to STOP them from RECURRING. It did NOT happen.

    To PREVENT further RECURRENCES of such Scandals, the RAKYAT (myself included) DEMAND the Power-that-be Must REOPEN with RCI into these two Cases,(BMF and BNM, …others to follow later) in point, to EXPOSE the TRUTHS.

    Swift action and heavy punishment shall be imposed on those found guilty, directly or complicitely, of misconduct or abuse of power in performing their duties.

    There shall be NO more “fall guy ” or , blame game.

  6. Dato’,

    No doubt Jaffar Hussein was likely a “very prudent, professionally competent and diligent man” and “certainly not a currency speculator” as you described from personal knowledge of the man.

    Certainly, he acted with honour when he resigned in 1994 over the billions in forex losses.

    But for Nur Jazlan to put down that resignation down as for “someone else’s mistake”. is not correct not accurate.

    It may well have been true that higher authorities had much to do with the losses, and even “protected” by then-PM Dr Mahathir, but as Bank Negara Governor, Jaffar had the responsibility to oversee the matter. If he had seen the forex deals as unwise, he should have put his foot down and said, “No!”. That was his duty.

    If his advice had not been taken seriously and/or pushed aside, then he should have resigned there and then. Not much later.

    Others may have been at fault, but so was Jaffar. He was not lily-white and free of any wrongdoing.

  7. To emphasise on “If he had seen the forex deals as unwise, he should have put his foot down and said, “No!”… If his advice had not been taken seriously and/or pushed aside, then he should have resigned there and then. Not much later.”:

    Just like acting US Attorney-General Sally Yates refusing to issue a statement backing Trump’s Muslim ban [and getting fired by Trump in short order as a result], if Jaffar had resigned promptly when the forex deals were being carried out, that would have been a red-flag notice to the nation and everyone else who may have had some interest in the matter, that the highly questionable forex deals were afoot and did not have his blessings.

  8. Quote:- “Swift action and heavy punishment shall be imposed on those found guilty”

    LOL

    The people who were supposed to take the “swift action” were the very same people, (or more likely his cronies, proxies or by some subterfuge), who committed the “mistake” in the first place.

    Quote:- “If he had seen the forex deals as unwise, he should have put his foot down and said, “No!”

    Another LOL.

    Within 24 hours of him saying “No”, he would be replaced, (ala Gani Patail), and if he refused to go, sacked and lose his pension & his Tan Sri.

    So he just “resigned” and all is well under Heaven; perhaps until now when long buried skeletons seem to be crawling, or dragged, out one by one. His bonus for “resigning”?, he now gets credited with “…to take responsibility for someone else’s mistake” and “…he acted with honour” and even turned into a scapegoat.

    As for Sally Yates, (the Acting AG), well, I may be wrong, (if so I apologize), but she was an Obama appointee and is on the way out next week anyway and so why not go out with a Bang? …. she is now an overnight sensation, a civil servant of great integrity, darling of the liberal democrats and inflicted a little dent on Trump’s oversize Ego. Perhaps she has no lose of pension or some other benefits to worry about?

  9. Would Tan Sri Jaffar have resigned if the forex speculation had turn out a profit instead of a loss. If it was not BNM business to speculate in forex, he should have stood firm and resigned rather than see through the forex speculation.

  10. “Within 24 hours of him saying “No”, he would be replaced, (ala Gani Patail), and if he refused to go, sacked and lose his pension & his Tan Sri.”

    Might well have been the case! But that would have been an even bigger Red Flag than resigning promptly, no? All the more reason for Jaffar Hussein to put his foot down.

  11. Pingback: Skandal perdagangan mata wang asing dari 1992 hingga 1993. – MediaLantang.Com

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