Anwar: Nor Mohamed was banned from handling national finances

Nor Mohamed Yakcop, who resigned from Bank Negara Malaysia (BNM) after the bank suffered severe losses in foreign exchange (forex) trade, was appointed as finance minister II despite a ban imposed on him, said PKR de facto leader Anwar Ibrahim.

He said this was part of his testimony to the taskforce investigating the scandal, which first broke in 1991, when Anwar was finance minister.

"After I was jailed in September 1998, Nor Mohamed was appointed as prime minister's economic advisor, and even more serious is the fact that he was appointed finance minister II, even though when he was removed (sic)..., the Finance Ministry imposed a condition that he cannot be involved in any national financial institution," Anwar said in a statement, relating his testimony.

Nor Mohamed, who was the head of BNM's forex trade operations in the early 1990s, resigned in 1994 following losses.

Ahmad Don, the BNM governor who took over after Nor Mohamed's resignation, estimated the losses to be as high as US$30 billion.

In 1998, then prime minister Dr Mahathir Mohamad turned to Nor Mohamed in 1998 during the Asian financial crisis, where he reportedly helped devise a controversial currency control largely credited to have stabilised Malaysia's economy amid regional turmoil.

He then became prime minister's special economic advisor and finance minister II under PM Abdullah Ahmad Badawi.

Despite widely blamed for the forex scandal, he is now deputy chairperson of sovereign wealth fund Khazanah Nasional.

Anwar said he told the forex taskforce that the then BNM governor, the late Jaafar Hussein had in 1993 said "Nor Mohamed Yakcop had given him an inaccurate report and that he had accepted Nor Mohamed's resignation as he was the officer responsible".

"Jaafar, himself, took full responsibility even though I acknowledge his integrity and trust that he was not given the full explanation by Nor Mohamed," he said in a statement today.

Anwar, who was finance minister from 1991 to 1998, was brought before the Forex Special Task Force on April 20.

Now serving a five year jail sentence for a second sodomy conviction, he told reporters at the Court of Appeal today that he had testified at the taskforce hearing because it is his duty.

He also said that he was only informed the day before and was not shown any documents.

"The blame (for the losses) is on Nor Mohamed...Until now he is in Prime Minister Najib Abdul Razak's administration, serving in Khazanah," Anwar told reporters.

In his statement, he said he repeatedly stressed the need to be supplied with reports and documentations on the investigation, but this has yet to be done.

He also complained that his lawyer was not allowed to be present.

Previously, Anwar said the foreign exchange foray should be subjected to a Royal Commission of Inquiry and not just a cabinet appointed task force.

He said he was willing to assist the commission if it was established but not the task force.

The task force is led by former chief secretary to the government Sidek Hassan and it comprises representatives from various government agencies, including the Malaysian Anti-Corruption Commission (MACC), police and the Securities Commission.

The terms of reference for the task force is to investigate the losses from currency speculation engaged by BNM at the material time.

It will also investigate if there were attempts to cover up the losses and mislead Parliament, and recommend further action to be taken, if needed.- Mkini