Kit Siang: Pakatan will probe Dr M's forex scandal

DAP supremo Lim Kit Siang today said it will re-open investigations into a RM30 billion financial scandal which Bank Negara allegedly lost through speculations in the foreign exchange (forex) if Pakatan Rakyat capture Putrajaya.

"If Pakatan forms the federal government in the next general election, there should be a royal commission of inquiry into the RM30 billion Bank Negara forex losses scandal in 1992, as well as into all the other financial scandals during former prime minister Dr Mahathir Mohamed's 22-year premiership," Lim sad in a statement today.

Citing former Bank Negara deputy governor Rosli Yaakop at a forum yesterday, Lim said the speculation which cost massive losses to Bank Negara, was done with the blessings of Mahathir and then finance minister Daim Zainuddin.

"I had estimated in Parliament two decades ago that Bank Negara lost a colossal RM30 billion. But Bank Negara claimed an RM10.1 billion loss in 1992 and RM5.7 billion in 1993.

"Rosli said yesterday that Bank Negara claims of losses were "schematically understated", hidden through revaluation of Bank Negara's gold holdings and revaluation of quoted investments," he said.

‘Scandal contained criminal elements'

Lim added that Rosli revealed his call in Parliament for a royal commission of inquiry then was ignored as an investigation would be "politically disastrous" as it involved powerful individuals.

"Rosli said certain people would have been in jail as criminal elements existed in the forex scandal. The criminal elements were negligence, overstepping of power, falsification of accounts, "creative accounting", misinformation, breach of trust and corruption," he said.

For this reason as well as several other financial scandals, Lim (left) said Mahathir has been actively issuing "wild and preposterous" statements to demonise Pakatan to prevent it from capturing federal power in order to protect his alleged past misdeeds.

"Yesterday, former Egyptian President Hosni Mubarak was sentenced to life imprisonment for complicity in the killing of protesters during last year's uprising.

"I am not suggesting that Mahathir should face jail sentences for the financial scandals in his 22-year premiership but at minimum, Malaysians are entitled to know the truth about these financial scandals which would serve as painful national lessons to prevent their recurrence."