The central bank had recorded a loss of RM33.8 billion in forex speculation from 1989 to 1993. Offset against RM2.5 billion in profit in 1990, the loss eventually worked out to RM31.3 billion.

This is based on figures audited by the auditor-general.

At a press conference today, former prime minister Anwar Ibrahim said that up to 2003, Bank Negara had to pay RM868 million per annum as a result of the loss.

He reiterated his charge that Second Finance Minister Nor Mohamed Yakcop had caused Bank Negara to incur such mammoth losses from foreign exchange speculation while serving as assistant governor in the 1990s.

He raised the issue in relation to a recent denial by ex-premier Dr Mahathir Mohamad, who argued that the losses recorded were a small portion of the profits made.

Anwar called for an independent commission to investigate the matter "to identify the real culprits" to account for the massive loss of money.

"Since the losses... are huge, it is only proper for an independent commission to investigate the matter thoroughly," he said at his residence in Kuala Lumpur's Damansara Heights.

Minister implicated

He had implicated Nor Mohamed in an interview with malaysiakini last July, saying the latter had concealed the extent of the forex losses from then Bank Negara governor Jaffar Hussein.

"On advice of Nor Mohamed, the governor submitted to me an initial report that was tabled in the cabinet and Parliament indicating that it was merely paper losses due to exchange rate fluctuations that could be salvaged. This was later unrealised an the losses recorded were phenomenal.

"The governor took responsibility for misleading the Treasury although he reiterated his views that Nor Mohamed was culpable. I accepted his resignation and through him, instructed Nor Mohamed to do likewise.

"He could have been charged in court had he not resigned and was not supposed to hold any position in the finance industry."

In 2004, however, Nor Mohamed was appointed to his cabinet portfolio by Prime Minister Abdullah Ahmad Badawi.

In addition to acting as special economic adviser to the prime minister on matters such as Malaysia Airlines, he is a director of government investment arm Khazanah Nasional.


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