• info@sabahtalk.com
  • Borneo,
    Kota Kinabalu, Sabah, MY


BNM Forex losses cost Malaysian Government an arm and a leg.  Besides MAS, TNB and Telekom were forced to sell for a song to cover the losses and mess that Mahathir, Daim, and Anwar created.


Finance Minister II Johari Ghani revealed today that due to Mahathir and Anwar's BNM RM31.5 billion FOREX losses,  the Govt was forced to transfer its shares in Telekom and Tenaga Nasional Berhad to BNM at the nominal value of RM1 per share and these shares were immediately revalued by BNM at RM22.10 per share and RM19.30 per share for Telekom and TNB respectively and then sold.


This means that the govt basically sold off all their remaining holdings in TNB and Telekom for a song - just to cover their BNM losses then.


In addition, BNM had to dispose off its Malaysia Airlines shares to a third party at the price of RM8 per share which later led to the continuous failure of MAS.


One additional info he shared was that BNM had also sold its holdings in MISC shares at RM10 per share (not RM8 as previously reported) to Kumpulan Wang Amanah Pencen (KWAP) while the market price at that time was at RM9.35 per share then.


KWAP paid a total of RM2.2 billion for BNM's 30% stake in MISC in 1994 - as part of BNM's attempt to part-cover their gambling loss.


To add insult to injury, Mirzan Mahathir's's KPB-Perdana tried to offer KWAP to buy the MISC shares for RM6.50 each in 1997 - which would have meant a big loss to KWAP just 3 years after they had to pay a high price to buy from BNM.


However, the onset of the Asian Financial Crisis meant Mirzan did not succeed as he got into trouble.


In the end, KWAP sold their stake in MISC shares to Petronas as an undisclosed price that is higher than RM6.50 offered by Mirzan. However this price is possibly lower than KWAP's cost of RM10 per share but we won't know since it was never disclosed.


The irony is that Petronas then used MISC as the vehicle to bail-out Mirzan Mahathir who had got into even deeper trouble then due to his crushing foreign debts.


Yes, a lot of dodgy business involving the institutions during Mahathir's time - most of the time involving his sons and cronys.


Govt funds and Petronas continually getting screwed while Mahathir and gang benefited.