Another Bank Failure

Is the truth out there somewhere?
Malaysia cannot afford to keep operating banks where fiduciary responsibilities are not taken seriously and government supported banks end up losing millions of ringgit through poor management and lack of proper controls.

From the BMF scandal in the 80s where a poor auditor was murdered for doing his duty, we now have a bank losing millions in questionable loans to South Africa and Sarejevo.

The result is that the entire paid-up capital of RM563m is almost wiped out.

It is suggested that forensic accountants should be employed to bring the wrong doers to justice. Even if no crime was committed, we cannot allow such incompetents to be in charge of financial institutions.

For BIMB, the writing was on the wall after 1999 but all the bad loans were not disclosed. There is a good write-up here.
It is surprising that earlier actions were not taken and one wonders how the accounts were not qualified.


Pic: http://web.295.ca/darbud/BANKRUPT.gif