YANG di-Pertuan Agong Sultan Muhammad V has given his consent for the establishment of a Royal Commission of Inquiry (RCI) to investigate Bank Negara Malaysia’s (BNM) foreign exchange (forex) losses in the 1990s.
The Prime Minister’s Office (PMO) said yesterday the RCI was set up according to the Commission of Inquiry Act 1950 and had come into effect on Saturday.
The commission will complete its investigation within three months, with a full report on the investigation to be presented to the king.
“The Yang di-Pertuan Agong gave his consent to the appointment of the commission’s membership and its job scope,” PMO said in a statement yesterday.
The commission will be chaired by Petroliam Nasional Bhd chairman Tan Sri Mohd Sidek Hassan.
Its members will comprise High Court judge Datuk Kamaludin Md Said, Bursa Malaysia Bhd chief executive officer Datuk Seri Tajuddin Atan, Special Task Force on Facilitating Businesses co-chairman Tan Sri Saw Choo Boon and Malaysian Institute of Accountants and Malaysian Institute of Certified Public Accountants member and former Ernst & Young partner Pushpanathan S.A. Kanagarayar.
Finance Ministry strategic investment division secretary Datuk Dr Yusof Ismail will be the commission’s secretary.
“The appointment of Sidek and Saw as chairman and member of the commission is to ensure continuity in the investigation as both of them were in the special task force which was formed to investigate the forex losses.
“The other members were chosen after taking into account their qualifications and experience in areas closely related to the investigation,” the statement read.
The role of the RCI will be to:
DETERMINE the validity of the allegations on the forex losses suffered by BNM in the 1990s and its implications to the nation’s economy;
DETERMINE whether BNM’s involvement in the foreign currency transaction activities had led to the losses and if they were against the Central Bank Ordinance 1958, or any relevant law;
DETERMINE whether or not some facts and actual information pertaining to the forex losses were concealed and the cabinet, Parliament, as well as the public, had been given misleading information;
RECOMMEND appropriate action to be taken against parties involved directly and/or indirectly, if they had caused BNM’s losses and had concealed facts and actual information regarding the losses; and,
RECOMMEND measures to ensure no recurrence of such losses.