Nazir Razak does not misuse his position - CIMB review

Datuk Seri Nazir Razak did not misuse his position in CIMB Bank, Malaysia's second largest bank by assets, according to a review conducted by the Boards of CIMB Group Holdings Berhad and CIMB Bank Berhad.

In accordance with this finding, the prime minister’s brother will resume his role and position as Chairman of CIMB Group and Director of CIMB Bank effective Thursday, May 19, 2016.

The boards said in a statement today, Nazir's return marks the completion of the comprehensive review which commenced on April 5, 2016.

The review was on banking activities relating to his personal account, following a report by the Wall Street Journal on March 31, 2016.

The boards had appointed an external audit firm, Messrs. Ernst & Young, and sought independent legal advice to assist them with the review.

“Nazir has been on a voluntary leave of absence since April 19, 2016 to ensure the complete independence and integrity of the review.

“The findings from the review concluded that Nazir did not misuse his position as the Group Chief Executive at that time, nor was there any inappropriate use of the bank’s resources,” the boards said.

However, they added, the detailed examinations conducted during the review also identified some process shortcomings.

The boards also have instructed the management to put in place plans for immediate improvements, as well as strengthened internal rules and processes, to avoid re-occurrences moving forward.

Representing the boards, Senior Independent Director and Chairman of the Audit Committee of CIMB Group, Datuk Mohd Nasir Ahmad, welcomed Nazir back.

“The boards are committed to maintaining the highest standards of corporate governance in our organisation, and this decision was taken with firm intent towards fulfilling these obligations.

“Apart from the findings, the boards also took into consideration the vote of confidence from shareholders for Nazir’s continued chairmanship at our 2016 Annual General Meeting.

“Also considered was his track record of serving the Group in various capacities since 1989, in arriving at the decision," said Mohd Nasir.