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Downtrend: A small toy figure is seen on
representations of the bitcoin virtual currency in this illustration.
The cryptocurrency is down about 28 from its record high reached last
week. — Reuters
SEOUL: Bitcoin resumed its tumble after South Korea said it was eyeing options including a potential shutdown of at least some cryptocurrency exchanges to stamp out a frenzy of speculation.
South Korea has been ground zero for a global surge in interest in bitcoin and other cryptocurrencies as prices surged this year, prompting the nation’s prime minister to worry over the impact on Korean youth.
While there’s no immediate indication Asia’s No. 4 economy will shutter exchanges that have accounted by some measures for more than fifth of global trading, the news poses a warning as regulators the world over express concerns about private digital currencies.
Bitcoin fell as much as 9% to as low as US$13,828 in Asia trading, erasing modest gains after the South Korean release, composite Bloomberg pricing shows. It’s now down about 28% from its record high reached last week.
South Korea will require real-name cryptocurrency transactions and impose a ban on the offering of virtual accounts by banks to crypto-exchanges, according to a statement from the Office for Government Policy Coordination.
Policy makers will review measures including the closure of crypto-exchanges suggested by the Ministry of Justice and take proper measures swiftly and firmly while monitoring the trend of the speculation. Bitcoin was trading at about a 30% premium over prevailing international rates yesterday in Seoul – a continuing sign of the country’s obsession, and the difficulty in arbitraging between markets.
“Cryptocurrency speculation has been irrationally overheated in South Korea,” the government said in the statement, which comes little more than a week after the bankruptcy filing of one South Korean exchange. “The government can’t leave the abnormal situation of speculation any longer.”
Singapore’s monetary authority warned last week that cryptocurrency buyers should be aware they could lose all their money, joining counterparts who’ve warned about speculative mania surrounding bitcoin, which has surged more than 1,300% this year.
“Regulators are getting so concerned that this is primarily and predominantly a retail phenomenon,” said Stephen Innes, head of trading for Asia-Pacific at Oanda. “Regulators not only in Asia but globally are going to start addressing this fact because I don’t think they’ve actually come to terms with what the absolute downside of a complete drop in crypto means for the economy.”
The Internet of Things is a big, juicy target for criminals. — Dreamstime/TNS
As more and more devices connect to the Internet, the risk of them being targeted by criminals is also increasing.
Internet-connected devices are nearly ubiquitous, with computer circuitry now found in a variety of common appliances. They can include security cameras, DVRs, printers, cars, baby monitors, and refrigerators – even “smart” lightbulbs and clothing. Collectively those devices are called the Internet of Things.
The Internet of Things is a big, juicy target for criminals. Up to a million devices were hijacked to create the Mirai botnet which was used to extort companies and bring a university computer system in New Jersey to its knees. The botnet was later exploited to bring down vast swaths of the Internet in a sustained attack on Oct 21, 2016.
Paras Jha, a former Rutgers University student, pleaded guilty Dec 8 with two other men who admitted they wrote the Mirai code. Named after an obscure anime film character, Mirai scoured the Internet for unsecured devices and easily found them.
Once discovered, the Internet of Things devices were hijacked by the Mirai malware and became part of a botnet that launched assaults on Internet service providers and scores of websites. Jha, 21, allegedly monetised the botnet by demanding ransom to call off the attacks, using it to inflate the number of advertising clicks on websites, and renting it out to other hackers for their own nefarious ends.
The attacks on Rutgers’ computer system may have cost the school US$9mil (RM36.70mil), prosecutors said. Rutgers officials told NJ.com the cost of enhancing security was one of the reasons the school hiked tuition in 2016.
When Jha discovered federal investigators were closing in, he released the Mirai source code to the world to cover his tracks. The code is still circulating online and causing damage, according to Brian Krebs, of KrebsOnSecurity.com.
Krebs advises taking these precautions to keep your Internet of Things devices protected:
– Avoid connecting your devices directly to the Internet.
– Change the default credentials to a complex password that only you will know and can remember.
– Check the defaults, and make sure things like UPnP (Universal Plug and Play – which can easily poke holes in your fire wall without you knowing it) are disabled.
– Avoid Internet of Things devices that advertise built-in Peer-to-Peer (P2P) capabilities. P2P Internet of things devices are notoriously difficult to secure, and research repeatedly has shown that they can be reachable even through a fire wall remotely over the internet. That’s because they’re configured to continuously find ways to connect to a global, shared network so that people can access them remotely.
– When it comes to Internet of things devices, cheaper is definitely not better. There is no direct correlation between price and security, but history has shown that less expensive devices tend to have the most vulnerabilities.
The US Department of Justice also offers these tips to protect Internet-connected devices.
– Do your research. Consider the security features of your Internet of things devices before buying. If the device uses a password, make sure it allows you to change it.
– Update firmware when available. Internet of Things devices can be susceptible if not regularly patched. Only install updates from known and reputable sites.
– Disconnect your insecure Internet of Things devices. Outdated security? Can’t update passwords? Then unplug it.
– Turn off Internet of Things devices when not in use, or periodically if otherwise always on. Malware is stored in memory and can often be erased by turning the device off and back on.
– Protect routers and WiFi networks. Use your router’s built-in fire wall, confirm it’s enabled.
– Avoid using public WiFi to check Internet of things devices from a smartphone.
– Use antivirus and intrusion-detection products.
– Ask for help, or hire help, if you can’t figure out fire walls or how to “segment” your network of Internet of things devices.
Some free online resources can help determine whether your devices are susceptible to being accessed by Mirai or other malware. Be cautious and use only well-known sources.
If you suspect your Internet of things device is infected, turn it off and on again to purge the device’s memory. Change the password. — The Philadelphia Inquirer/Tribune News Services
Just
as hurricane trackers chart storms in the Atlantic before they make
landfall, cybersecurity researchers track viral infections that threaten
mayhem. They've found a doozy.
Younger set not living within their means and are bankrupt before they are 30
"When they start their own lives, they are not financially stable. Some want to get married." - Datuk Abdul Rahman Putra Taha
They are young and carefree to the point of being careles, and have expensive tastes. Branded handbags, holidays to exotic places, fancy cars and lavish weddings all lead them into huge debts. By the age of 30, they are bankrupt. Some as young as 25 are among the shocking 60% of the 94,400 people declared bankrupt in the last four years.
PETALING JAYA: They lived the fast life, a life of Pradas and Guccis. When the cash is out, they max out on their credit cards.
Some even go as far as taking up personal loans to finance overseas trips, buying the latest expensive gadgets and holding lavish weddings.
And before they even turn 30, they are bankrupt.
Malaysia’s youth are seeing a worrying trend with those aged between 25 and 44 forming the biggest group classified as bankrupt.
They constituted almost 60% of the 94,408 cases reported from 2013 to August, according to the Insolvency Department.
Director-general Datuk Abdul Rahman Putra Taha said there were multiple factors that contributed to the trend, but singled out that many of them just wanted to “start their own life”.
“When they start their own lives, they are not financially stable. Some want to get married, but if the in-laws ask for hantaran gifts such as cars or a house, they need the money.
“Their pay can be considered low but they need expensive gifts. Where else can they go other than applying for personal loans?” he said in an interview recently.
Abdul Rahman also listed the top four reasons why a borrower was declared a bankrupt.
“Car loans took up 26.63%, personal loans (25.48%), housing loans (16.87%), and business loans (10.24%),” he said.
He revealed that the total number of people declared bankrupt from 2013 stood at 296,712 as of August, with Selangor having the most at 72,114, followed by the Federal Territories (46,377), Johor Baru (41,179) and Penang (22,136).
He urged the public to manage their finances prudently to ensure they would not be burdened by debt.
At the same time, Abdul Rahman said Bank Negara Malaysia (BNM) was making huge efforts to ensure it would not be so easy for the young to obtain credit cards.
In response, he said the department was committed to ensuring that the Government meets its target, especially with the Voluntary Arrangement under the Insolvency Act 1967.
Almost 58,000 bankrupts have been cleared or had their bankruptcy annulled by the courts in about the last five years, marking the first phase of the Government’s efforts to reduce bankruptcy cases following amendments to several bankruptcy laws.
From 2013 to August 2017, the courts have cleared 1,356 cases while another 11,627 cases have been terminated upon annulment of the bankruptcy order.
A total of 44,950 cases were discharged via Insolvency Certificate from the director-general.
However, the Government is pushing to slash the number of people being declared bankrupt to just about 4,000 to 5,000 cases per year.
“The enforcement of the newly amended bankruptcy law began this year. If they meet our criteria, qualified borrowers will be automatically discharged as bankrupts three years from the date of filing of the Statement of Affairs (Penyata Hal Ehwal),” said Abdul Rahman
Under the amended laws, someone at risk of being declared a bankrupt can settle his debt without bankruptcy proceedings with a voluntary agreement.
“Our intention is to ensure that borrowers will be able to pay back their loans without undue suffering and creditors will get their money back, too.”
He said debtors must adhere to the agreed sum of contribution paid to the creditors and they must also file their pay and expenses slip statement every six months throughout the three-year period.
“As long as they fulfil the payment within the period, we will release their names,” said Abdul Rahman.
Under the new amendments of the Bankruptcy Act 1967, the Government has introduced a rescue mechanism with a single bankruptcy order to replace the receiving order and adjudication order from the courts as practised previously.
“This move ensures that creditors are also protected under the amended laws,” he said.
The Act has also paved the way for the setting up of the Insolvency Assistance Fund and a release from bankruptcy without objection by the creditors for certain groups of people.
These include social guarantors made bankrupt under the Bankruptcy Act 1967, those who have died, those categorised as people with disabilities (OKU) by the Welfare Department and those certified by government medical officers as suffering from chronic or serious diseases.
The Star Malaysia by RAHIMY RAHIM rahimyr@thestar.com.my
AT a recent forum in Hong Kong, Jim Rogers, a Wall Street tycoon, played a video of his daughter reciting a classical Chinese poem.
This is not the first time Happy Rogers has exhibited her proficiency in the language.
At an event in Singapore in 2013, the then nine-year-old showed off her nearly perfect Putonghua pronunciation and tone when she recited a not-so-well-known poem by Li Qiao, a Chinese poet during the Tang Dynasty. She won a big round of applause from the audience, most of them Chinese descendants. Happy’s sister Baby Bee, then five years old, did equally well, singing nursery rhymes in Chinese.
While it is not uncommon for young Chinese language learners to recite ancient poems, Happy spoke in classical Chinese with a fluency that could make even some native Chinese speakers envious, according to a report in Guangzhou Daily.
And recently, during US President Donald Trump’s visit to China, his granddaughter Arabella’s recital of Chinese poems went viral online, making her a “popular figure” among Chinese audiences.
There is a long list of foreign celebrities and their children learning Chinese, including Amazon founder Jeff Bezos’ four children and Facebook founder Mark Zuckerberg and his daughter. Even Prince William, media reports say, studied Chinese in school.
The increasing popularity of the Chinese language has led to the introduction of various programmes and classes worldwide. It is estimated that more than 100 million people outside China, including overseas Chinese, are studying the language, as many believe it can be used as a tool to gain access to conveniences in not only China but also some other countries.
The growing enthusiasm of people in other countries to learn Chinese can be attributed to their love for Chinese culture.
It perhaps explains why traditional Chinese cultural elements, from kung fu films to ancient works such as The Analects of Confucius and Sun Tzu’s The Art of War, have won so many global diehard fans. Many foreigners even believe that Chinese characters are an expression of aesthetic appreciation – maybe that’s why many famous personalities including former soccer star David Beckham have got Chinese characters tattooed on their body.
China’s economic and social development is another important factor for the growing interest in the language and culture. As the world’s most populous country and the second-largest economy, China for years has accounted for the largest number of students studying in other countries, which might also have made people overseas interested in the language.
As Jim Rogers said, whether you like or not, the 21st century will belong to China. He always tells people that if they have children, they shall encourage them to learn Chinese, “because Chinese will be the most important language”. For foreign companies intending to do business in China, they can have a huge advantage over their competitors if they can master the language.
And with the Belt and Road Initiative progressing smoothly, a number of Chinese enterprises will venture into countries along the ancient trade routes for business, which means a higher demand for Chinese speakers.
Source: China Daily/Asia News Network
China rising, but English is still king
Asia News Network and The Star recently published an article “Sway of the Chinese language”, detailing the rising popularity of learning Chinese as posted above.
Facebook CEO Mark Zuckerberg, US President Donald Trump’s granddaughter and billionaire investor Jim Rogers’ daughter are among some of the famous people or their family members brushing up on their Chinese language skills.
Tourists from China are splashing their cash all over the world (in some countries such as Thailand and Malaysia, the Chinese can also go cashless by making their purchases through Alipay).
Meanwhile, economists predict that the GDP of China, currently the world’s second largest, would surpass the United States’ within 10 years. As the economic value of the Chinese language grows, it will unseat English to become the world’s leading language. Or so we are told....
But if history is a clue, this may not happen so soon.
In the heyday of the Roman Empire, as the great Julius Caesar and his successors conquered the Mediterranean, Latin became the dominant language of the European continent. The Roman Empire began to disintegrate in the fifth century. Latin, however, remained relevant for many centuries to come. (The Eastern Roman Empire, also known as Byzantine Empire, survived into 15th century, but its capital was in Constantinople, and its official language was Greek.)
In year 1215, the unpopular King John of England, pressured by rebel barons, issued Magna Carta. The document established for the first time the principle that everybody, including the king, was subject to the law. It is considered one of the first steps taken in England towards establishing parliamentary democracy. The Magna Carta was initially written in Latin.
In year 1687, Sir Isaac Newton published three papers which were collectively known as Principia Mathematica. These works form the foundation of classical mechanics. Principia Mathematica, like the Magna Carta, was written in Latin. That was more than 12 centuries after the demise of the Roman Empire.
In ancient times, Malay language was the lingua franca of the Malay Archipelago. Then the Western powers came, created the modern states of Malaysia, Singapore, Brunei and Indonesia. Post-independence, Javanese, who make up 40% of Indonesia’s population, dominate the republic’s politics and economy. Somehow, Bahasa Indonesia is based on Malay rather than Javanese.
By 2050, China will become the world’s largest economy. The US will drop to second place. In the third spot, as economists believe, will be India. Like Malaysia, India was a British territory. And like our country, English, the language of the former colonial master, is still widely spoken.
By mid-century, the combined GDP of English-speaking and English-as-second-language nations, which include US, India, Britain, Canada, Australia, New Zealand, Ireland, the Philippines, Singapore and Malaysia, will likely be larger than that of China.
I do not doubt that Chinese language will get more important every year, and I encourage everyone to learn it if conditions allow. However, it would be foolish if we, in the advent of “China’s Century”, neglect English.
Use technology to learn more about them before casting your vote
Cheah taking a wefie with Tanjung Bungah assemblyman Teh Yee Cheu
(behind Cheah) and (from left) Berapit assemblyman Lydia Ong, Speaker
Datuk Law Choo Kiang and state officials during a break at the Penang state
assembly in November.
KEBUN Bunga assemblyman Cheah Kah Peng of PKR is the man of the moment in the political scene in Penang.
Chief Minister Lim Guan Eng barred him from helping with the registration of flood victims for the RM700 aid in his constituency.
Lim, in his Facebook page, said in Chinese that he wouldn’t sit idly when elected representatives do not perform.
He stopped short of naming Cheah, except to say that he heard grouses from Hong Seng Estate residents about not seeing “their assemblyman” during the floods on Sept 15 as well as on Nov 4 and 5. We do not know if this is true.
In any case, Cheah got a letter from the State Secretariat relieving him of the registration duty. Lim and Pulau Tikus assemblyman Yap Soo Huey took over the task.
Cheah, showing his usual gentleman’s demeanour, declined to comment. But this is not the first time he has come under attack from the state administration.
It was learned that he was reprimanded for being unhappy with the passing of the Penang State Park (Botanic) Corporation Enactment 2017.
Penang Botanic Gardens is in his constituency and he feared the Enactment would affect people’s rights after the park was corporatised. It is said he was informed only a few days before the Bill was tabled.
In 2015, Cheah, Penanti assemblyman Dr Norlela Ariffin, Ong Chin Wen (Bukit Tengah), Dr T. Jayabalan (Batu Uban) and Lee Khai Loon (Machang Bubok) were dubbed the ‘PKR Five’ for abstaining in a vote against a Barisan Nasional motion on land reclamation in the state assembly.
Their relationship with Lim soured after that.
How do we define good elected representatives? Keep count of how many times they visit their constituencies?
And then there is the old question: Should we vote for the person or the party? There are many views on this, but as a journalist, I have an occupational advantage.
I have seen a few assemblymen turning up at gotong-royong, spend less than 30 minutes there for photo opportunities and leave. Yes, I know who you are and I am a voter too.
And then I had the chance to cover many state assembly meetings through the years.
This is where we expect constructive debates among the ‘Yang Berhormat’ on issues that affect us. But on a few occasions, there were no fruitful debates or exchange of ideas.
National issues, which cannot be resolved in the state assembly, dominate the proceedings at times. Why? What were our assemblymen hoping to achieve by prattling about things that the hall cannot act on?
They frequently call each other names and bicker in the august House.
In the last meeting, two assemblymen dragged out the name of a newspaper editor and attacked his character in the hall where the editor had no chance to defend himself due to the absolute privilege that lets assemblymen say anything they want there without fear of being sued.
But I was relieved because at least five other assemblymen stood up to defend the editor and talked those two assemblymen down.
Unlike them, I do not have absolute privilege so regretfully, I can mention no names.
With today’s technology, it is easy to get to know political candidates before giving them our votes.
Check out their Facebook pages or Google their names to learn about them.
If they are not up to mark, something might show in their social media exchanges.
Remember, the election season is just around the corner. Use your vote wisely.
A
DAP assemblyman has come to the defence of the Penang Forum, saying
that there was no need for the state government to criticise the
coalition of 20 environmental and civil rights organisations.
GEORGE
TOWN: A DAP assemblyman has proposed for a royal commission of inquiry
to be set up to look into the sinkhole in Persiaran Tanjung Bungah and
the landslides in Penang Hill.
Like most Penangites who are proud of their heritage, the writer is troubled that Hokkien isn’t spoken as much as it used to be.
IF there’s one clear feature that separates Penangites from the rest of the ethnic Chinese in Malaysia, it is the distinct northern-accented Hokkien.
It doesn’t matter whether we are in Kuala Lumpur, Johor Baru, London or Timbuktu but we can pick up a Penangite whenever we hear this northern style dialect with its rich sprinkling of Malay words that denotes its nyonya-baba linguistic roots.
But each time I return to Penang, I can feel the linguistic changes that are taking place. Whether we realise it or not, Penang Hokkien is slowly disappearing.
Mandarin is quickly taking over this unique Penang Hokkien dialect and for sure, English is also being affected in daily conversations.
Penangites are fiercely proud of their Hokkien as it is entirely different from the one spoken in Singapore, Taiwan or Xiamen in China.
As older Penangites, perhaps we can be a little snooty, as we sometimes dismiss the Hokkien spoken elsewhere as somewhat crass and unrefined.
Only the Hokkien spoken by the Chinese community in Medan closely mirrors that of Penang Hokkien, presumably because of the proximity between Penang and the Indonesian city.
Whether rightly or wrongly, or plainly out of ignorance, Penangites feel the sing-song delivery sounds better.
Words such as balai (police station), balu (just now), bangku (stool), batu (stone), cilaka/celaka (damn it), campur (to mix), jamban (toilet), gatai/gatal (itchy) gili/geli (creepy), sabun (soap) and kesian (pity), are an integral part of the Penang Hokkien dialect.
If the person is not from Penang, then he or she has to be from Kedah, Perlis or Taiping.
Even Penangites of other racial groups can easily speak, or at least understand Hokkien. My fellow moderation advocate, Anas Zubedy, speaks excellent Hokkien. So do my colleagues executive editor Dorairaj Nadason and sports editor R. Manogaran.
But the daily use of the dialect is rapidly being replaced by Mandarin. Go to most coffeeshops today and the hawkers or helpers are likely to tell you the price of food in Mandarin.
I am feeling a little uncomfortable because I am a very parochial and sentimental Penangite. It doesn’t help that I do not speak Mandarin.
Although I am a Cantonese, Hokkien is the spoken language in my family home and the changes that are taking place do have an effect.
Even most of the Penang state government leaders are not from Penang. Chief Minister Lim Guan Eng was born in Johor and grew up in Melaka.
Senior state exco member Chow Kon Yeow is from Kuala Lumpur but he studied in Universiti Sains Malaysia. Deputy Chief Minister II Dr P. Ramasamy is Sitiawan-born but he spent most of his time in Selangor.
Exceptions are the children of the late Karpal Singh – state exco member Jagdeep Singh Deo and Bukit Gelugor MP Ramkarpal Singh Deo – and other state assemblymen.
The Penang Monthly bulletin, in its May issue, dramatically headlined the situation “Penang Hokkien on life support.”
In an interview with Penang Monthly, the Penang Hokkien Language Association secretary Ooi Kee How was quoted as saying that “people think there’s no benefit in learning or speaking Hokkien, which is not true. Yes, you can survive if you do not speak Hokkien; you can get by with speaking only one language your entire life.”
“But the thing is, something will diminish. Our creativity, our cultural identity, will decline. A lot of innovations will disappear, because different languages shape the way we think differently.”
And what has brought about the decline of the Penang Hokkien? It’s a combination of factors. For one, a whole generation of Penangites have been educated in Chinese schools, at least at the primary level.
This is unlike the older generation of Penangites like me, who are now in the 50s, who attended schools using English as a medium of instruction. In the absence of Mandarin, we spoke mainly Hokkien and English but people in their 30s and 40s find it more comfortable conversing in Mandarin – and for sure, not English.
Then there is this huge impact of Chinese TV shows, especially over Astro. They are entirely in Mandarin, with shows from mainland China and Taiwan, and in Hokkien, which is spoken in a manner more similar to those used in Melaka and Johor.
It is no surprise that the sales staff at malls also expect the Chinese community to speak in Mandarin, and understandably they will begin the conversation in Mandarin – because you are expected to know the language.
There is also the impact of China as the new economic powerhouse of Asia, if not, the world. Mandarin has taken over the dominant spot as a language with economic value, and certainly prestige. That is the reality but it may well be at the expense of a rich heritage.
Catherine Churchman, a lecturer in Asian Studies, in the School of Languages and Cultures in Victoria University of Wellington, New Zealand, who studied the Taiwanese and Penang Hokkien dialects, reportedly said: “Penangites have become increasingly used to hearing Taiwanese Hokkien, but the Taiwanese are not used to hearing Penang Hokkien.
“Simply replacing Malay loan words with the Taiwanese equivalents does not turn Penang Hokkien into Taiwanese Hokkien either. The grammatical structure of Penang Hokkien is different.”
Fearful of the danger of Penang Hokkien dying, Penang Monthly further quoted Churchman as saying “languages often die the same way, and one of the reasons is simply the existence of a generation gap.”
That melodious Penang Hokkien may not be heard, decades from now, if this frightening trend continues.
On The Beat by Wong Chun Wai
Wong Chun Wai began his career as a journalist in Penang, and has served The Star for over 27 years in various capacities and roles. He is now the group's managing director/chief executive officer and formerly the group chief editor.
On The Beat made its debut on Feb 23 1997 and Chun Wai has penned the column weekly without a break, except for the occasional press holiday when the paper was not published. In May 2011, a compilation of selected articles of On The Beat was published as a book and launched in conjunction with his 50th birthday. Chun Wai also comments on current issues in The Star.
Important report: RCI Secretary Datuk Dr Yusof
Ismail speaking to media after submitting a police report over Bank
Negara forex trade losses in Putrajaya.
THE Royal Commission of Inquiry into the foreign exchange losses suffered by Bank Negara Malaysia (BNM) back in 1990s has recommended that three people be probed over their involvement and liability.
They are former prime minister Tun Dr Mahathir Mohamad, his then finance minister Datuk Seri Anwar Ibrahim and ex-Bank Negara advisor Tan Sri Nor Mohamed Yakcop, whom the report also named as “principally liable for criminal breach of trust”.
The 524-page report also called out Tun Daim Zainuddin, who served as finance minister from July 14, 1984 to March 15, 1991, for having aided and abetted Nor Mohamed by leaving BNM “to its own devices”.
The commission found that the Cabinet in the 1990s was not given the full picture by Anwar on the forex losses, adding that he had “deliberately concealed facts and information and made misleading statements”.
“The Commission is of the opinion that there was deliberate concealment as BNM’s annual reports did not state the actual losses incurred from the forex dealings from 1992 to 1994.
“It is also of the opinion that the then prime minister (Dr Mahathir) had condoned the actions of the finance minister,” it said.
The RM31.5bil losses, it said, were hidden using “unconventional accounting treatments”, such as booking losses to reserves in the balance sheet and the absorption of the remaining losses by the transfer of shares from the Government to BNM as well as the creation of a “Deferred Expenditure” to be repaid in instalments over a decade.
“All the actions to conceal the losses were discussed and approved by the board of directors before the accounts were signed off by the Auditor-General.
“No further action was taken by the Finance Minister and Treasury secretary-general (as a board member) despite being informed by the Auditor-General on the losses and the unusual accounting treatments,” said the report.
Anwar, noted the Commission, had been informed about the actual forex losses suffered by BNM.
Dr Mahathir, it said, was informed by Anwar together with then Treasury deputy secretary-general Tan Sri Clifford Francis Herbert in late 1993 that BNM had suffered estimated losses of RM30bil on the forex dealings for 1992 and 1993.
However, in the extract of minutes from three Cabinet meetings on March 30, April 6 and 13 in 1994, Anwar had made “no mention of the actual losses of RM12.3bil for 1992 and RM15.3bil for 1993.”
Anwar had chaired the March 30 meeting as the deputy prime minister. The losses for 1993 were reported as RM5.7bil.
“The prime minister, who chaired the meeting on April 6, did not correct or offer more information when the forex losses for 1993 were recorded as only RM5.7bil,” it pointed out.
“The Commission is of the view that it is the finance minister’s responsibility to inform the Cabinet the significant financial affairs about BNM as the Cabinet has collective responsibility with the finance minister and the prime minister for the country’s affairs.”
Dr Mahathir, it said, claimed to have no knowledge of the real amount of losses, which was untenable with his meticulous nature, as well as that under the law, BNM was the banker and financial agent to the Government with the remainder of its net profit to be paid into the Federal Consolidated Fund.
The report said as pointed out by Herbert, he had expected Dr Mahathir to be outraged but his reaction was quite normal with him uttering “sometimes we make profit, sometimes we make losses”.
“His reaction to and acceptance of the huge forex losses suggest that he could have been aware of the forex dealings and its magnitude,” said the report.
The RCI also found Dr Mahathir’s claim that he could only remember the amount of RM5bil forex losses when informed about it in a meeting with Anwar and Herbert in late 1993 to be “questionable”.
It said this was because based on testimonies of other witnesses and documentary evidence, the RM5.7bil only surfaced when Bank Negara’s 1993 annual report was presented to the Cabinet on March 30, 1994.
“Despite his denials, the Commission is of the opinion that a thorough investigation should be carried out to determine the extent of his involvement and liability,” said the report.
By Martin Carvalho, Hemananthani Sivanandam, Loshana K. Shagar, and Rahmah Ghazali The Star
Police set up taskforce to probe possible criminal offences over Bank Negara's forex losses
Inspector-General of Police Tan Sri Mohamad Fuzi Harun says police will
open investigation paper following a report that was lodged by Royal
Commission of Inquiry (RCI) secretary Datuk Dr Yusof Ismail. (Image is
for illustration purpose only).
KUALA LUMPUR: Police have set up a taskforce to investigate possible criminal breach of trust and cheating which may have been committed during Bank Negara Malaysia’s foreign exchange losses in 1990s
Inspector-General of Police Tan Sri Mohamad Fuzi Harun said police would open investigation paper as the forex Royal Commission of Inquiry (RCI) had lodged a police report this afternoon.
“A taskforce has been formed and it will lead the investigation. We are investigating the case under Section 409 of the Penal Code for criminal breach of trust,” he told the New Straits Times when contacted.
RCI’s secretary Datuk Dr Yusof Ismail, who is the Finance Ministry Strategic Investment Division director, had lodged a report at Putrajaya police headquarters at 4.10pm asking police to start an official investigation.
In the police report, it was stated that those who were involved in the alleged wrongdoings were Bank Negara Malaysia (BNM) officers, BNM Board of Members, National Audit Department, Finance Ministry and the prime minister who served during the period.
Royal Commission of Inquiry (RCI) secretary Datuk Dr Yusof Ismail seen
leaving the Putrajaya police headquarters after lodging a report. Pic by
AHMAD IRHAM MOHD NOOR
The RCI, in its 528-page report that was tabled in Parliament today, said it believed that Datuk Seri Anwar Ibrahim, who was Finance Minister at the time, had misled the government and concealed the actual losses suffered by BNM.
RCI also said it believed that the prime minister at the time, Tun Dr Mahathir Mohamad, had approved Anwar’s “misleading statements”.
The commission also revealed that the losses were far larger than that what was initially reported by the central bank, RM31.5 billion as against RM5.7 billion, in the period of three years.
Yusof spent almost 40 minutes at the police headquarters and later spoke to reporters who were waiting outside.
He said in the report, the commission had requested the police to start a official investigation on the possible criminal breach of trust, forgery and other wrongdoings which may have been committed during the forex activities.
"Our report is basically requesting the police to start investigation and for the Attorney-General Chambers to take action based on the findings by the police," he said.
Putrajaya OCPD Asst Comm Rosly Hassan who confirmed that the report was made, said a special unit in Bukit Aman would investigate the case.
By TEOH PEI YING and HASHINI KAVISHTRI KANNAN New Straits Times
It recommends that they be investigated for possible CBT, fraud
New Straits Times
FILE PICFormer finance minister Tun Daim Zainuddin after giving his statement to the Royal Commission of Inquiry in September.
THE
RCI believes Datuk Seri Anwar Ibrahim had concealed Bank Negara’s
actual forex losses from the cabinet, and that Tun Dr Mahathir Mohamad
condoned his actions. The panel, in confirming that RM31.5 billion was
lost, says there are grounds to investigate them for criminal breach of
trust and fraud.
THE Royal Commission of
Inquiry (RCI) into Bank Negara Malaysia’s (BNM) foreign exchange (forex)
losses in the 1990s has recommended investigations against former prime
minister Tun Dr Mahathir Mohamad and his one-time deputy, Datuk Seri
Anwar Ibrahim.
The RCI, in its 528-page
report that was tabled in the Dewan Rakyat yesterday, said the duo had
concealed facts from the cabinet.
It also recommended that Dr Mahathir and Anwar be investigated for criminal breach of trust and fraud.
“There
is a basis for an official police investigation into BNM board of
directors, National Audit Department, then finance minister and prime
minister for criminal breach of trust and fraud in the performing of the
speculative forex transactions and in hiding the losses from the
cabinet and Parliament,” the report said.
Former
BNM adviser Tan Sri Nor Mohamed Yakcop was also implicated as the
commission found that he was responsible for the billions of ringgit in
losses.
RCI had recommended that Nor
Mohamed be investigated for alleged criminal breach of trust and for
allegedly contravening the Central Bank Ordinance 1958.
The
commission also found that former finance minister Tun Daim Zainuddin
had allegedly abetted Nor Mohamed. Daim was finance minister until 1991
before he was replaced by Anwar.
BNM lost
RM31.5 billion in forex trading between 1992 and 1994. Nor Mohamed was
in charge of several portfolios in BNM at the time, including the
management of external reserves.
FILE PIC