BNM reserves dipped by RM160b in 2013-15, claims Mahathir

PETALING JAYA: PPBM chairman Mahathir Mohamad has alleged that Bank Negara lost US$39.6 billion (RM161.6 billion) in reserves between 2013 and 2015.

In a video, Mahathir said this was a much larger amount than the bank was said to have lost in forex trading when he was prime minister.

However, he said no royal commission of inquiry (RCI) was set up to probe the 2013-2015 losses, which took place under Prime Minister Najib Razak’s leadership.

In a Facebook live forum he also said his allegation could be verified by anyone who read the central bank’s reports.

He noted that Petaling Jaya Utara MP Tony Pua had raised the issue in the Dewan Rakyat and said the government’s response was deceptive.

“They said it was due to an external flow.”

Mahathir added the dip in Bank Negara’s reserves was not due to an external flow but due to the management of the reserves.

However, he pointed out the issue was not considered serious enough for a RCI to be set up.

A RCI recently concluded an inquiry into the alleged loss of RM31 billion in Bank Negara’s forex trading between 1992 and 1994, when Mahathir was prime minister and Anwar Ibrahim was finance minister.

The commission concluded that the two concealed facts from the federal cabinet and recommended that they be investigated for criminal breach of trust and fraud.

It also pinned the blame on Nor Mohamed Yakcop, who it said appeared to have absolute control and responsibility for the forex dealing operations.

Last night, during a Facebook talk held live, Mahathir claimed that he did not interfere with the central bank’s management of the country’s reserves.

“Managing the money so that the value does not go up or down drastically is done through forex trading,” he said.

“I was not told about what went on. I was invited to look at the trading room and found that it was filled with youngsters who were trading. I didn’t say anything because it was under Bank Negara.”

He said he was told at the time that the total loss was RM11 billion. “I did not question the report by Bank Negara.”

In the video, Mahathir also spoke on the RM2.6 billion that flowed into Najib’s personal bank account. Najib had said the money was a donation from the Saudi royal family.