KUALA LUMPUR (June 21): The Cabinet has unanimously agreed on the Special Task Force's recommendation on the need to form a Royal Commission of Inquiry (RCI) to investigate the foreign currency transaction losses by Bank Negara Malaysia (BNM) during the 1980s and 1990s, according to a Bernama report today.

The Prime Minister's Office (PMO) was quoted as saying in the report that the task force, set up to investigate the losses, had also found there had been attempts to conceal actual facts on the losses — with confusing information given to the Cabinet and parliament.

"The establishment of the RCI is therefore expected to unravel the issue which has shackled the country for the past 23 years," the PMO said. 

According to Bernama, the task force presented its report to the Cabinet today, in line with mandate for it to complete the investigation on BNM's losses within three months after its formation.

The PMO said the task force found there was a prima facie case to be answered by BNM for the losses. Therefore, the task force has recommended formation of the RCI.

"The formation of the task force is in line with public interest, as it would be able to determine the BNM losses, which involved national reserves," the PMO added in the report.