KUALA LUMPUR: Datuk Seri Nazir Razak will take his leave of absence as CIMB Group Chairman with immediate effect pending a review of the bank’s process and policies, the bank said today.
Nazir would take the voluntary leave of absence as Chairman of CIMB Group and Director of CIMB Bank until the completion of the board review on the banking activities relating to his personal account, it said.
The Wall Street Journal, had on March 31, reported the transfer of US$7 million into Nazir’s personal account in CIMB from that of his elder brother, Prime Minister Datuk Seri Najib Razak in 2013.
The Board review, which began on April 5 and is expected to be completed in a few weeks’ time, is being assisted by an independent audit firm Ernst & Young.
Nazir, who conveyed his decision to the shareholders at the CIMB annual general meeting earlier today, said CIMB’s reputation and well-being have always been his utmost priority.
“Unless I am completely absent from the company during this period, this institution would not be practising the highest standards of corporate governance that we want to stand for, and I would be undermining what I have described as my utmost career priority,” he said.
CIMB Bank Bhd Chairman Datuk Zainal Abidin Putih said the decision was taken voluntarily by Nazir.
“Having served alongside Nazir on the Board, the members have always been convinced that he upholds the highest standards of corporate governance."
Speaking to reporters after the AGM, Nazir said he regretted the transfer of funds to politicians.
”I acted based on what I knew at that time and of course, given all the controversies around 1MDB and sources of political funding since 2014, I regret it,” he said.
“I understand that since this matter (the WSJ report) has come into public domain, it has become a source of concern," he said.
"I therefore and support the board's decision so far which are to receive a full report from me, a report from internal compliance and initiate independence review by an external audit firm.”
CIMB shares stood at RM4.82 at 4.30pm, down 15 sen.