PUTRAJAYA (Aug 30): Malaysia's Royal Commission of Inquiry (RCI) was told today that Bank Negara Malaysia (BNM) former governor Tan Sri Jaffar Hussein had instructed central bank officials to take a second look at the regulator's accounts, as he was initially shocked to learn about BNM's alleged foreign exchange (forex) losses in the 1990s.

Lee Siew Kuan, who was Jaffar's special assistant then, told the RCI today that after he (Lee) had checked BNM's accounts, he informed the then BNM deputy governor Tan Sri Lin See-Yan that the forex losses amounted to between RM8 billion and RM9 billion.

Lee said today: “I cannot recall what year, but Tan Sri Jaffar requested me to look into the accounts of BNM. I informed the governor about the huge losses suffered by BNM, but the governor did not believe me and said the losses could not be that much."

Lee was testifying at the RCI's fourth hearing today on BNM's alleged forex losses. The RCI's hearing began on Aug 21 this year. 

Today, Lee said he had informed Jaffar that someone from BNM's accounts department had initially informed him of the forex losses, but that he could not recall who the person was.

After taking a second look at BNM's accounts, Lee said he and Lin had briefed the Jaffar on the losses. Lee said: “This time, Jaffar accepted the losses. He did not say anything and looked worried and shocked."

Lee said he was unable to determine who was responsible for BNM alleged forex losses at that time, because he did not have the facts. Lee said he was not responsible for updating Jaffar on the status of the alleged forex losses between 1990 and 1993.

Lee said he was not asked to assist BNM in addressing the matter.