CIMB chairman Nazir Razak takes voluntary leave of absence, source says
(Bloomberg) – CIMB Group Holdings Bhd. Chairman Datuk Seri Nazir Razak is taking a leave of absence from today pending a review of the lender’s processes and policies, a person familiar with the matter said.
Nazir told shareholders of his decision at the bank’s annual general meeting in Kuala Lumpur today, according to the person, who asked not to be identified because the information isn’t public yet. An independent consultant had been engaged for the review, the person said, without identifying the firm.
The chairman is scheduled to speak at a post-AGM press conference before 1pm local time. His leave of absence and the review were reported earlier by the New Straits Times.
CIMB shares fell 2 per cent as of the 12:30 p.m. break in Kuala Lumpur, extending declines after reports of Nazir’s leave emerged. The benchmark index dropped 0.8 per cent.
The Wall Street Journal reported last month that Nazir, who is the brother of Malaysian Prime Minister Datuk Seri Najib Razak, received about US$7 million (RM27.5 million) from the premier’s accounts ahead of elections in 2013 and passed the money on to politicians in the ruling party.
Nazir said the money that entered his account was distributed in accordance with instructions from party leaders, the paper said, citing a statement from the CIMB chief. He said he believed the money came from donations he helped solicit from Malaysian companies and individuals, it said.
Najib is facing his biggest political crisis since coming to power seven years ago amid questions over US$681 million that appeared in his accounts before the 2013 election, which the ruling coalition, in power since 1957, won with its slimmest margin yet. Attorney General Mohamed Apandi Ali said the money was a personal donation from the Saudi royal family, and that Najib later returned US$620 million.
Saudi Arabia said last week a large donation to Najib was “genuine.” Saudi authorities were aware of the donation and it came without strings, Malaysia’s official news agency Bernama reported, citing Saudi Foreign Minister Adel Al-Jubeir. Najib has denied any wrongdoing over the donation.
